plan for their financial future help clients prepare for ltc expenses

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Products issued by:The Lincoln National Life Insurance Company

For agent or broker use only. Not for use with the public.©2014 Lincoln National Corporation

Lincoln MoneyGuard® II

PLAN FOR THEIR FINANCIAL FUTUREHELP CLIENTS PREPARE FOR LTC EXPENSESA wealth protection strategy

Presenter nameJeremy Sawvel

MoneyGuard Specialist

May 20, 2014

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For agent or broker use only. Not for use with the public.

1. The financial challenge2. Options for planning3. Planning flexibility4. Prospective clients

AGENDA

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Every day, more than 10,000 baby boomers reach age 65*

THE FINANCIAL CHALLENGE

*The Federal Interagency Forum on Aging-Related Statistics, Older Americans 2012: Key Indicators of Well Being, Washington, DC: U.S. Government Printing Office. June 2012, p. 82, available http://agingstats.gov/agingstatsdotnet/Main_Site/Data/2012_Documents/Docs/EntireChartbook.pdf, accessed March 1, 2013.

7070%disposable

income

In 3 years, those age 50+ will control

million

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Consider 2013 national average long-term care (LTC) costs

The cost of a Medicare-certified nursing home private room

$95,630per year

Home Health Aides provided by a certified Home Healthcare Agency

$19.36per hour

The average monthly rate for a single occupancy suite unit in a state-certified Assisted Living Facility

$3,425per month

Source: Univita and Lincoln Financial Group, “2013 Cost of Care Survey,” December 2012; https://www.lfg.com/lfg/DOCS/pdf/rna/2013CostofCareSurvey.pdf. For a printed copy of the survey, call 877-ASK-LINCOLN.

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Perception: Rely on family as they age.

Reality: Americans who needed long-term care are less likely to believethey could rely on family.*

Americans age

40+

*The Associated Press — NORC Center for Public Affairs Research, “Long-term Care: Perceptions, Experiences, and Attitudes among Americans 40 or Older,” April 2013, available at http://www.apnorc.org/PDFs/Long%20Term%20Care/AP_NORC_Long%20Term%20Care%20Perception_FINAL%20REPORT.pdf.

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Why not traditional LTC insurance?

OPTIONS FOR PLANNING

Use it or lose it

Possible premium increases and no guarantee

Waiting and elimination periods

It’s expensive

“I can self-insure”

1

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A smarter alternative to self-insuring®

OPTIONS FOR PLANNING

Provides tax-advantaged reimbursements for qualified long-term case expenses

Offers benefits even if clients never need long-term care

Features premiums that never increase

Has no elimination period, once eligible for benefits

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OPTIONS FOR PLANNING: A SMARTER ALTERNATIVE

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PLANNING FLEXIBILITY

Benefits if your client needs long-term care

A benefit if they don’t Return of premium options

Income tax-free reimbursements for qualified long-term care expenses1

An income tax-free death benefit2

The death benefit is reduced by loans, withdrawals, and benefits paid.

1LTC reimbursements are generally income tax-free under IRC Section 104(a)(3).2Beneficiaries may receive an income tax-free death benefit under IRC Section 101(a)(1).3Through the Value Protection Rider available at issue. The money returned will be adjusted for any loans, withdrawals and benefits paid, and may have tax implications. Rider contains complete terms and

conditions. If surrendered before the planned premiums are paid, the surrender value will be paid.

Leverage long-term care dollars—getting more for their money if they need care.

Leave a legacy to their loved ones if they don’t need care.

Option 1Choose to maximize the long-term care benefits

A return of 80% of paid premiums is available once all planned premiums

are paid.3

Option 2Choose to maximize

the return of premium 100% return of premium is available after year 5

provided all planned premiums are paid;

additional cost applies.3

Choose from options for more benefits or more liquidity.

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Return of premium optionsThe return of premium option must be selected at issue.

*Through the Value Protection Rider available at issue. The money returned will be adjusted for any loans, withdrawals and benefits paid, and may have tax implications. Rider contains complete terms and conditions. If surrendered before the planned premiums are paid, the surrender value will be paid.

Option 1Choose to maximize the long-term care benefitsA return of 80% of the paid premiums is available

once all planned premiums are paid*

Option 2Choose to maximize the return of premium

100% return of premium is available after year 5 provided all planned premiums are paid;

additional cost applies.*

With Option 1, the total long-term care

benefit amount will be greater than with

Option 2.

Return of premium vesting schedule

Year 1 80%

Year 2 84%

Year 3 88%

Year 4 92%

Year 5 96%

Year 6 100%

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NancyAge 60Qualifies for the Couples Discount

ConcernsCould an illness deplete her savings?

She purchases$100,000 Lincoln MoneyGuard® II policy with a 2-year Long-Term Care Acceleration of Benefits Rider (LABR) and a 4-year Long-Term Care Extension of Benefits Rider (LEBR)

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Return of premium option

Long-term care benefit1 Death benefit2

Return of premium3

Monthly maximum

Annual maximum for 6 years

Total

Option one4 $6,863 $82,357 $494,139 $164,713 $80,000

Option two5 $6,322 $75,868 $455,205 $151,735 $100,000Vesting schedule

Year 1: 80% Year 4: 92%

Year 2: 84% Year 5: 96%

Year 3: 88% Year 6: 100%


Four $25,000 annual premiums

Hypothetical example only. Benefit amounts will vary by client’s age and gender. Assumes no inflation protection purchased.1Reimbursements for qualified LTC expenses are generally income tax-free under IRC Section 104(a)(3).2Income tax-free death benefit would be reduced by any loans, withdrawals and benefits paid. Beneficiaries may receive an income tax-free

death benefit under IRC Section 101(a)(1).3Through the Value Protection Rider available at issue. The money returned will be adjusted for any loans, withdrawals and benefits paid, and

may have tax implications. Rider contains complete terms and conditions. If surrendered before the planned premiums are paid, the surrender value will be paid.

4A return of 80% of paid premiums is available once all planned premiums are paid.5100% return of premium is available after year 5 provided all planned premiums are paid; additional cost applies.

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Return of premium option

Long-term care benefit1 Death benefit2

Return of premium3

Monthly maximum

Annual maximum for 6 years

Total

Option one4 $7,221 $86,654 $519,921 $173,307 $80,000

Option two5 $6,652 $79,826 $478,956 $159,652 $100,000Vesting schedule

Year 1: 80% Year 4: 92%

Year 2: 84% Year 5: 96%

Year 3: 88% Year 6: 100%


One $100,000 premium

Hypothetical example only. Benefit amounts will vary by client’s age and gender. Assumes no inflation protection purchased.1Reimbursements for qualified LTC expenses are generally income tax-free under IRC Section 104(a)(3).2Income tax-free death benefit would be reduced by any loans, withdrawals and benefits paid. Beneficiaries may receive an income tax-free

death benefit under IRC Section 101(a)(1).3Through the Value Protection Rider available at issue. The money returned will be adjusted for any loans, withdrawals and benefits paid, and

may have tax implications. Rider contains complete terms and conditions. If surrendered before the planned premiums are paid, the surrender value will be paid.

4A return of 80% of paid premiums is available once all planned premiums are paid.5100% return of premium is available after year 5 provided all planned premiums are paid; additional cost applies.

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PROSPECTIVE CLIENTSHighly compensated professionalsConcern: “I want to plan and save for my future.”Why: More leverage when they are young and healthy

Sandwich generationConcern: “I’m paying my children’s tuitions and helping

with parents’ LTC expenses.”Why: An LTC strategy that fits their budget

Clients nearing retirementConcern: “I’ve maxed out my retirement contributions.”

Why: Financial flexibility with annuity funding

Retirees with concentrated tax-qualified assetsConcern: “I want to protect my retirement savings.”Why: Spread out their tax burden

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PROSPECTIVE CLIENTS

Single femalesConcern: “I don’t want to be a burden on my family.”Why: One step to financial independence

Clients in or near retirementConcern: “Rising healthcare costs impacting my savings.”

Why: A single reallocation can protect the portfolio

High net worth clientsConcern: “I have enough money for LTC expenses.”Why: Move some of the financial risk to Lincoln

Executives/top-earnersConcern: “Taxes are a big deal to me.”Why: Move tax-exposed assets to gain tax efficiencies

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A TRUSTED NAME

*LIMRA, “U.S. Individual Life Combination Product Survey: 2012 Sales,” May 14, 2013.

The leading hybrid solution*

The strength of Lincoln

Dedicated internal and external support

Claims-paying excellence

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RECAP

The face of retirement

Options for planning

Prospective clients

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Lincoln.Financial.com

1/14 Z01Order code: MGR-ADV2-PPT004

Lincoln Financial Group is the marketing name for Lincoln National Corporation and its affiliates.

Affiliates are separately responsible for their own financial and contractual obligations.


This material was prepared to support the promotion and marketing of investment and insurance products. Lincoln Financial Group® affiliates, their distributors, and their respective employees, representatives, and/or insurance agents do not provide tax, accounting, or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state, or local tax penalties. Please consult your own independent advisor as to any tax, accounting, or legal statements made herein.Lincoln MoneyGuard® II is a universal life insurance policy with a Long-Term Care Acceleration of Benefits Rider (LABR) that accelerates the specified amount of death benefit to pay for covered long-term care expenses. Long-Term Care Extension of Benefits Rider (LEBR) is available to continue long-term care benefit payments after the entire specified amount of death benefit has been paid. The return of premium options are offered through the Value Protection Rider (VPR) available at issue; Base option (1) is included in the policy cost; Graded option (2) is available at an additional cost. Any additional surrender benefit provided will be adjusted by any loans/loan interest/loan repayments, withdrawals taken, and claim payments made and may have tax implications. The cost of riders will be deducted monthly from the policy cash value. The insurance policy and riders have limitations, exclusions, and/or reductions. Additionally, long-term care benefit riders may not cover all costs associated with long-term care costs incurred by the insured during the coverage period. All contract provisions, including limitations and exclusions, should be carefully reviewed by the owner.

Issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, on Policy Form LN880/ICC13LN880 with the following riders: Value Protection Rider (VPR) on form LR880/ICC13LR880; Long-Term Care Acceleration of Benefits Rider (LABR) on form LR881/ICC13LR881; optional Long-Term Care Extension of Benefits Rider (LEBR) on form LR882/ICC13LR882.

All guarantees and benefits of the insurance policy are subject to the claims-paying ability of the issuing insurance company. They are not backed by the broker-dealer and/or insurance agency selling the policy, or any affiliates of those entities other than the issuing company affiliates, and none makes any representations or guarantees regarding the claims-paying ability of the issuer.

Products and features, including benefits, terms, and definitions, may vary by state. Product not available in New York.

THANK YOU

Not a deposit Not FDIC-insured May go down in value Not insured by any federal government agency Not guaranteed by any bank or savings association

plan for their financial future help clients prepare for ltc expenses

Documents

cost of care survey

lincoln financial group

long term care

financial challengeoptions

financial challengeconsider

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financial futurehelp

healthrelated expenses