L02-0279-LL For Agent or Broker Use Only. Not To Be Used With The General Public. L02-0279-LL Not a deposit, no FDIC-insured, not insured by any federal.

L02-0279-LLFor Agent or Broker Use Only. Not To Be Used With The General Public.

L02-0279-LL

Not a deposit, no FDIC-insured, not insured by any federal government agency, not guaranteed by any bank or savings

association, and may go down in value.

L02-0279-LL

What is ?

• The MoneyGuard universal life insurance policies have a rider that accelerates the death benefit to pay for covered long-term care (convalescent care in MA & WA) expenses.

• Issued by The Lincoln National Life Insurance Company, Ft. Wayne, IN.

For Agent or Broker Use Only. Not Be Used With The General Public.

L02-0279-LL

What is ?

the smart way

to self-insure for long-term care


L02-0279-LL

&How does MoneyGuard fitinto their plan?

Who needs ?

financial


L02-0279-LL

• Target ages 60-75

• Currently self-insures the LTC risk

• Single women• Adequate invested assets (Excluding primary residence and qualified plan assets)

The client profile


L02-0279-LL

• Are there readily available funds for LTC?

• How much set aside?

• Where are funds?

• Which assets will be used first?

Identify source of funds


L02-0279-LL

Where are your clients’ ?assets

L02-0279-LL For Agent or Broker Use Only. Not Be Used With The General Public.

L02-0279-LL

Which would they use firstto pay for long-term care needs?

assets


L02-0279-LL

Use tothose assetsprotect


L02-0279-LL

selling


L02-0279-LL

What’s the risk of needing long-term care?

11997 Nursing Home Use, U.S. National Center for Health Care Statistics, Advance Data, No. 312, April 25, 2000.

21998 Home Health Care Use, U.S. National Center for Health Care Statistics, unpublished data.

Age distributions of nursing home residents (1997) and home health care recipients (1998)


L02-0279-LL

What does

Daily Costs: $90 - $200

Monthly Costs: $2,700 - $6,0001

Yearly Costs: $32,400 - $72,000

Met Life Mature Market study as of April 26, 2002.

long-term care cost?


L02-0279-LL

Who pays for

Medicare

Out Of Pocket

Medicaid

Other

<2% VA

Private Insurance

L02-0279-LL

long-term care?

11%

27%

39%

15%

7%


L02-0279-LL

Medicare Prior hospitalization required

Skilled Care only

100 days in a nursing home following a hospital confinement.

What does

cover?


L02-0279-LL

Medicaid? A Federal/State welfare program

State administered

Covers long-term care expenses once you qualify

State recovers costs from estate

What is


L02-0279-LL

Medicaid summary Requires impoverishment

“Look-back” provisions for asset transfers

Federal penalties apply to asset transfers made to qualify for Medicaid

Limited choices


L02-0279-LL

funding Long-Term Care

Long-Term Care Insurance

Self-Insure

options


L02-0279-LL

is an optionself-insuring

Many of us plan to use our own assets to pay for long-term care.


L02-0279-LL

Which would you use firstto pay for long-term care needs?

assets


L02-0279-LL

Traditional long-term care insurance

ways totransfer the risk22

&


L02-0279-LL

is an optionAdvantages• Guaranteed benefits• Most policies cover all levels of care

Disadvantages• Recurring premium payments• Premiums are not guaranteed

Traditional long-term care insurance


L02-0279-LL

What if I don’t use it?


L02-0279-LL

“The way to self-insure”smart


L02-0279-LL

$150,000 Readily

Available Assets

“The way to self-insure”smart

This example is based on a 65-year old, non-smoking female in good health. It includes the four-year extension of benefits rider available at an additional cost. Benefit amounts vary by age, gender (except in Montana where male premiums apply) and health status. Benefits are adjusted for loans and withdrawals. Based on guaranteed cost factors and the original benefit amounts, policy values will become exhausted prior to age 100. This would result in a termination of coverage. The minimum single premium is $10,000.

Freed-up Funds for Your Use

$50,000 Moved (Premium)

$100,000

$207,444 Additional

Long-Term Care (LTC) Benefit

$103,522 Death Benefit or LTC

Benefit


L02-0279-LL

Is your win-winsolution

This example is based on a 65-year old, non-smoking female in good health. It includes the four-year extension of benefits rider available at an additional cost. Benefit amounts vary by age, gender (except in Montana where male premiums apply) and health status. Benefits are adjusted for loans and withdrawals. Based on guaranteed cost factors and the original benefit amounts, policy values will become exhausted prior to age 100. This would result in a termination of coverage. The minimum single premium is $10,000.

$310,566

or

Total Long-Term Care Benefit

$103,522 Death

Benefitor


$50,000 Premium

L02-0279-LL

How doescompare?


L02-0279-LL

Which option fits your plan?

• Government programs

• Self-insuring

• Traditional long-term care insurance

•



L02-0279-LL

• MoneyGuard

• MoneyGuard LS

• MoneyGuard Flex I

• MoneyGuard Flex II

• MoneyGuard VUL

optionsfunding


L02-0279-LL

How does work?

$50,000• Guaranteed Return of Principal

• 3.5% First Year Premium Load

Example: Female, age 65 non-smoker in good health


L02-0279-LL

How does work?

$50,000

5.75% - Current 4% - Guaranteed

Cash Value



L02-0279-LL

What if I

$50,000

$103,522 Death Benefit



never need long-term care?

L02-0279-LL

$50,000

• 2 yr. benefit (24 months)

• $4,313/monthly



What if Ineed long-term care?


L02-0279-LL

long-term care

• All levels of care: Assisted Living*, Home Health, Nursing Home and Adult Day Care

• Homemaker and personal care

• Hospice and respite care

*Residential care in CA

features


L02-0279-LL

• 90-day elimination period

• 2 of 6 activities of daily living (bathing, continence, dressing, eating, toileting and transferring)

• Cognitive impairment

• Need for care can be certified by personal physician

long-term care triggers


L02-0279-LL

What if I need ?


more

$50,000



L02-0279-LL

$50,000

$207,044 EOB



• Total 6-year benefit

• $4,313/monthly

$310,566Total LTC benefits


L02-0279-LL


Will there beheirsanything left for my ?

$50,000

$207,044 EOB



$10,352ResidualDeath Benefit


L02-0279-LL

Will this be ?enough


$50,000

$207,044 EOB



$10,352ResidualDeath Benefit


L02-0279-LL

benefit period

*Non-smoking female age 65, in good health, $50,000 premium

2+22+2

$109,572Death Benefit

$109,572Additional LTC

benefit


$207,046 Additional LTC

Benefit

2+42+4 3+Life3+Life


Lifetime LTC Benefits

options


L02-0279-LL

benefit period

*Non-smoking female age 65, in good health, $50,000 premium

2+22+2

$4566/month

Four-yearBenefit

$4313/month

Six-year benefit

2+42+4 3+Life3+Life

$3089/month

Lifetime LTC Benefits

options


L02-0279-LL

New Inflation Feature

• Automatically increases the LTC benefit by 5% per year compounded or 5% simple.

• Compound increases single premium by about 30%

• Simple increases single premium by about 25%

What about ?inflation


L02-0279-LL

New Inflation Feature• Expensive option• Bargain compared to increased premium for inflation

coverage on traditional LTC insurance policies• Simple or compound?• Lower initial Death benefit• Most attractive to clients age 55 to 65

What about ?inflation



L02-0279-LL

• Joint-Last Survivor Design• Better chance to place the impaired risk

• Lifetime Money-back Guarantee

• Lifetime Minimum Death and LTC Benefits

• No Residual Benefit

• No Maturity Age

featureslife insurance


L02-0279-LL

• Male Client: Age 70 N/S

• Female Client: Age 65 N/S

• Joint equal age 67

• $100,000 single premium

• $181,490 death benefit paid at second death

• $272,235 total LTC benefit per person

• $3,781/monthly 6-year benefit per person

Extension of Benefits Rider

$181,490

Insured 1 Insured 2

Insured 1 Insured 2


$181,490

Half the Death Benefit

$90,745


$90,745


L02-0279-LL

• Male Client: Age 70 N/S







Insured 1 Insured 2


$90,745


$90,745


$181,490


$181,490

Unused Death

Benefit


L02-0279-LL

• Male Client: Age 70 Table 16








$160,910

Insured 1 Insured 2

Insured 1 Insured 2


$160,910


$80,455


$80,455



L02-0279-LL

• Minimum death benefit guarantees available on Flex II.

• 5-pay, 7-pay, 10-pay and life-pay funding only• Annual mode only

• No return of premium guarantee on Flex I or Flex II


L02-0279-LL

• MoneyGuard is fully underwritten.

• No exams on single premium cases for clients age 60 and over.

• Contact a MoneyGuard underwriter directly!

underwriting


L02-0279-LL

informationThe MoneyGuard® universal life insurance products have a rider that accelerates the death benefit to pay for covered long-term care (convalescent care in MA & WA) expenses. An Extension of Benefits rider is available at an additional cost to continue long-term care (or convalescent) care benefit payments after the entire death benefit has been paid. Issued by The Lincoln National Life Insurance Company. Products and features subject to state availability. Guarantees are subject to policy terms and conditions. MoneyGuard is a registered service mark of Lincoln National Corporation and its affiliates.

MoneyGuard VUL is offered through broker/dealers with effective selling agreements. Solicitation must be preceded or accompanied by current product and funds prospectuses. Policy value will fluctuate with the performance of the investment options selected. This product and features are subject to state availability. Policy Form VLL-2020 Series and Rider Form VLL-2802 Series.

MoneyGuard and MoneyGuard Flex Policy Form LL-2020 Series and Rider Form LL-2800 Series. MoneyGuard LS Policy Form LL-2021 Series and Rider Form LL-2801 Series.

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

© 2002 The Lincoln National Life Insurance Company, Ft. Wayne, IN 46801 www.LFG.com/Lifewww.moneyguard.com

important


L02-0279-LLFor Agent or Broker Use Only. Not To Be Used With The General Public.

L02-0279-LL

L02-0279-LL For Agent or Broker Use Only. Not To Be Used With The General Public. L02-0279-LL Not a deposit, no FDIC-insured, not insured by any federal.

Documents

ll use

broker use

general public

assets l02

home health care use

ll whats

nursing home use

llfor agent