L03-0337-LL (Rev. 2/03) For Agent or Broker Use Only. Not To Be Used With The General Public. L03-0337-LL (2/03) Not a deposit, not FDIC-insured, not insured.

L03-0337-LL (Rev. 2/03)

For Agent or Broker Use Only. Not To Be Used With The General Public.L03-0337-LL (2/03)

Not a deposit, not FDIC-insured, not insured by any federal government agency, not guaranteed by any bank or savings

association, and may go down in value.

L03-0337-LL (Rev. 2/03)

What is ?

• The MoneyGuard universal life insurance policy has 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 to continue long-term (or convalescent) care benefit payments after the entire death benefit has been paid.

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

L03-0337-LL (Rev. 2/03)

What is ?

the smart way

to self-insure for long-term care


L03-0337-LL (Rev. 2/03)

&How does MoneyGuard fitinto their plan?

Who needs ?

financial


L03-0337-LL (Rev. 2/03)

• Target ages 58-72

• Currently self-insures the LTC risk

• 62% women / 38% men• Adequate invested assets ….. ($300K+) (Excluding primary residence and qualified plan assets)

The client profile


L03-0337-LL (Rev. 2/03)

The Client ProfileThe Client Profile

• Proud of retirement planning• Financially savvy• Independent• Want to shelter assets• Want to pass assets on to family

F00-0164-LL NOT FOR PUBLIC USE

L03-0337-LL (Rev. 2/03)

• Are there readily available funds for LTC?

• How much set aside?

• Where are funds?

• Which assets will be used first?

Identify source of funds


L03-0337-LL (Rev. 2/03)

Where are your clients’ ?assets

L03-0337-LL (Rev. 2/03) For Agent or Broker Use Only. Not Be Used With The General Public.

L03-0337-LL (Rev. 2/03)

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

assets


L03-0337-LL (Rev. 2/03)

Use tothose assetsprotect


L03-0337-LL (Rev. 2/03)

selling


L03-0337-LL (Rev. 2/03)

The Future is UncertainThe Future is Uncertain

• No one knows what the future will bring • We do know that

the probability of needing assistance to carry out our daily activities increases with age


L03-0337-LL (Rev. 2/03)

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21998 Home Health Care Use, U.S. National Center for Health Care Statistics, unpublished data.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


L03-0337-LL (Rev. 2/03)

What does

Daily Costs: $90 - $200

Monthly Costs: $2,700 - $6,000

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

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

long-term care cost?


L03-0337-LL (Rev. 2/03)

Long-Term CareFunding OptionsLong-Term CareFunding Options

They don’t include government programs

Medicare

Medicaid

100 days in nursing home following a hospital stay

For those who have almost no personal assets


L03-0337-LL (Rev. 2/03)


Long-Term Care

InsuranceSelf-Insure


L03-0337-LL (Rev. 2/03)

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


L03-0337-LL (Rev. 2/03)

What if I don’t use it?


L03-0337-LL (Rev. 2/03)


Long-Term Care

InsuranceSelf-Insure


L03-0337-LL (Rev. 2/03)

“The way to insure”smart


L03-0337-LL (Rev. 2/03)

$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

$261,579 Additional

Long-Term Care (LTC) Benefit

$87,193 Death Benefit or LTC

Benefit


L03-0337-LL (Rev. 2/03)

Life Insurance for LivingSM

F00-0164-LL

$50,000 Premium

L03-0337-LL (Rev. 2/03)


F00-0164-LL

$50,000 Premium

$87,193Death Benefit

Available for LTC

Buys

L03-0337-LL (Rev. 2/03)


F00-0164-LL

$50,000 Premium

$87,193Death Benefit

Available for LTC

Buys$174,386

AdditionalAvailable for LTC

Plus

L03-0337-LL (Rev. 2/03)

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.

$261,579

or

Total Long-Term Care Benefit

$87,193 Death

Benefitor


$50,000 Premium

L03-0337-LL (Rev. 2/03)

Which option fits your plan?

• Government programs

• Self-insuring

• Traditional long-term care insurance

•


L03-0337-LL (Rev. 2/03)

L03-0337-LL (Rev. 2/03)

L03-0337-LL (Rev. 2/03)


L03-0337-LL (Rev. 2/03)

• MoneyGuard

• MoneyGuard LS

• MoneyGuard Flex I

• MoneyGuard Flex II

optionsfunding


L03-0337-LL (Rev. 2/03)

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


L03-0337-LL (Rev. 2/03)

• 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


L03-0337-LL (Rev. 2/03)

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


L03-0337-LL (Rev. 2/03)

• Expensive option……but• Bargain compared to increased premium for inflation

coverage on traditional LTC insurance policies• Simple or compound?• Increase premium - don’t lower initial Death benefit• Most attractive to clients age 55 to 65

What about ?inflation


L03-0337-LL (Rev. 2/03)

• MoneyGuard is fully underwritten.

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

• Contact a MoneyGuard underwriter directly!

underwriting


L03-0337-LL (Rev. 2/03)

informationThe 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. An Extension of Benefits rider is available at an additional cost to continue long-term (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 Life Insurance Company.

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.

© 2003 The Lincoln National Life Insurance Company, Ft. Wayne, IN 46801 www.LFG.com

www.moneyguard.com

important


L03-0337-LL (Rev. 2/03)

CPS Insurance &

(800) 326-5433Illustrations/Marketing/Underwriting

Peter Buechler FLMI, AAPA ext 148

Dean Walsh AAPA, ACS ext 143

Supplies/Case Status

Nicole Samson ext 123

L03-0337-LL (Rev. 2/03)

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

Life insurance products are not deposits, not FDIC insured, not insured by any federal government agency, not guaranteed by any bank or savings association, and may go down in value.

L03-0337-LL (Rev. 2/03)

LTC/MoneyGuard Alternatives

• SPWL- Estate Maximizer-

• Issued by Liberty Life/Liberty Mutual

• 90% of DB if client unable to perform 2 of 6 ADL’s

• Non-med issue for dep 100K ages 65-80 (MIB)

• 4 tables built in to standard

• Annuity- John Hancock • No Underwriting whatsoever• 6yr fixed annuity Current

rate approx X.XX% (less .40% for rider)

• After 6 years client can access 1% of initial Px for LTC.

• 3yr beni, compounds at 3% from policy issue date

• 2 of 6 ADL’s/90 days• LTC beni does not reduce

AV

L03-0337-LL (Rev. 2/03) For Agent or Broker Use Only. Not To Be Used With The General Public. L03-0337-LL (2/03) Not a deposit, not FDIC-insured, not insured.

Documents

broker use

general public

home health care use

nursing home use

public usel03

longterm carefor agent

financialfor agent

sellingfor agent