secure your retirement future managing the financial risk of long-term care name title date...

Secure your retirement futureManaging the financial risk of long-term care

NameTitleDate

LFD0603-0385

©2006 Lincoln National Corporationwww.LFG.comLFD0603-0385 MG-1422-06 11/062006-0517A 11/06

Protect your retirement income

Few things matter more than your retirement assets.

Protect them against the threat of long-term care.


Managing assets in retirement

Variable expenses

Fixed expenses Wealth transfer

Healthcareexpenses

Emergency/opportunity funds


What if the balance is destroyed?

Variable expenses

Fixed expenses Wealth transfer

Healthcareexpenses

Emergency/opportunity funds


Agenda

Understanding the facts of long-term care

How would you pay for it?

How MoneyGuard ® Reserve can offer

one simple solution


Chances are, you’ll need care

Source: “Americans Fail to Act on Long-Term Care Protection,” The American Society on Aging, May 2003.

Chance of needing long-term care after age 65

70%


Hour Day Month Year

Basic assisted living

$60 $1,800 $21,600

Nursing home $194 $5,833 $70,000

Full-time home care

$18 $432 $12,960 $155,520

What does long-term care cost?

National average costs of long-term care

Source: Congressional Budget Office Testimony, “The Cost and Financing of Long-Term Care Services before the Subcommittee on Health Committee on Energy and Commerce,” U.S. House of Representatives, April 27, 2005.

Who would pay for it if you needed long-term care?


What you can’t rely on

Medicare — acute care only

Medicaid — must spend down assets


How to cover long-term care costs

It’s up to you.You have three choices:•Pay

•Reposition

•Self-insure


Advantages

•Most policies cover all levels of care

•Guaranteed benefits

Disadvantages•Premiums you pay may be expensive

•Premiums may increase

•Recurring premium payments

•You typically don’t get your money back

Traditional long-term care insurance


Self-insuring

Advantages

•You don’t pay for coverage you may never use

•You maintain control

Disadvantages•You must set aside significant liquid assets•You may deplete assets too quickly


How to cover long-term care costs

If you’re not doing anything, you’re self-insuring.


Now you can reposition with MoneyGuard

® Reserve

MoneyGuard ® Reserve, a universal life

insurance policy, is a smart way to cover long-term care costs. It makes sense — for today and tomorrow.


Designated for long-term care costs

One simple solution

Life insurance

House

Cash reserves

Investments

MoneyGuard ®

Reserve

While the actual proportions in this chart will differ based on a specific investor’s needs, it does show the different types of assets in a typical retirement-oriented portfolio.


If you need long-term care

Life insurance

House

Cash reserves

Investments

MoneyGuard ®

Reserve

Up to 500% withMoneyGuard

®

Reserve

Long-term care reimbursements are income tax-free under IRC Section 104(a)(3).


If you need it back

Take it back; it’s in your reserve.

Life insurance

House

Cash reserves

Investments

MoneyGuard®

Reservepremium is returned

Up to 500% withMoneyGuard

®

Reserve


If you never need long-term care

Unused portion goes to your beneficiary income tax-free.

Life insurance

House

Cash reserves

Investments

MoneyGuard ®

Reserve death benefit

Beneficiaries receive an income tax-free death benefit under IRC Section 101(a)(1).


Long-term care coverage

You need the full benefits of MoneyGuard

® Reserve1

Reimbursement for long-term careup to $499,218 income tax-free

This example is based on a 65-year-old, nonsmoking female in good health with a $100,000 single premium for a policy with the two-year Convalescent Care Benefits Rider (CCBR), the four-year Extension of Benefits Rider (EOBR), and the Return of Premium Rider (ROPR). Benefit amounts vary by age, gender (except in Montana, where male premiums apply), and health status. Benefits are adjusted for loans and withdrawals and may have tax implications. Long-term care reimbursements are income tax-free under IRC Section 104(a)(3).

3 possibilities

1You need the

full benefits of

MoneyGuard®

2

You change

your mind

3

You die


3 possibilities

1You need the

full benefits of

MoneyGuard®

2

You change

your mind

3

You die

Money back guarantee

You change your mind2

This example is based on a 65-year-old, nonsmoking female in good health with a $100,000 single premium for a policy with the two-year Convalescent Care Benefits Rider (CCBR), the four-year Extension of Benefits Rider (EOBR), and the Return of Premium Rider (ROPR). Benefit amounts vary by age, gender (except in Montana, where male premiums apply), and health status. Benefits are adjusted for loans and withdrawals. A portion of the amount returned may have tax implications.

1You need the

full benefits of

MoneyGuard

®

2

You change

your mind


3 possibilities

1You need the

full benefits of

MoneyGuard®

2

You change

your mind

3

All three outcomesare guaranteed

Income tax-free death benefit

You never need long-term care

3

This example is based on a 65-year-old, nonsmoking female in good health with a $100,000 single premium for a policy with the two-year Convalescent Care Benefits Rider (CCBR), the four-year Extension of Benefits Rider (EOBR), and the Return of Premium Rider (ROPR). Benefit amounts vary by age, gender (except in Montana, where male premiums apply), and health status. Beneficiaries receive death benefits income tax-free under IRC Section 101(a)(1).

Guarantees are backed by the claims-paying ability of The Lincoln National Life Insurance Company.

2

You change

your mind

3

You never need

long-term care

1You need the

full benefits of

MoneyGuard®

2

You change

your mind

3

You never need

long-term care


Nancy ArneauAge 65

Let’s look at Nancy Arneau

Good health, nonsmoker

Decided againsttraditional long-termcare insurance

Currently self-insuring

Wants to protecther retirement income

Hypothetical example only. Benefit amounts vary by age, gender (except in Montana, where male premiums apply), and health status.


Repositioning assets

Hypothetical example only. Benefit amounts vary by age, gender (except in Montana, where male premiums apply), and health status.

$300,000Set aside for

long-term care costs

$200,000Freed up

for retirement

$100,000Repositioned for

MoneyGuard payment

Up to

$499,218

Death benefit or long-term care benefit

$166,406

$332,812

Additional long-term care benefit

Benefits are adjusted for loans and withdrawals and may have tax implications. Long-term care reimbursements are income tax-free under IRC Section 104(a)(3). Beneficiaries receive death benefits income tax-free under IRC Section 101(a)(1).


Three outcomes — all guaranteed

This example is based on a 65-year-old, nonsmoking female in good health with a $100,000 single premium for a policy with the two-year Convalescent Care Benefits Rider (CCBR), the four-year Extension of Benefits Rider (EOBR), and the Return of Premium Rider (ROPR). Benefit amounts vary by age, gender (except in Montana, where male premiums apply), and health status. Benefits are adjusted for loans and withdrawals and may have tax implications. Long-term care reimbursements are income tax-free under IRC Section 104(a)(3). Beneficiaries receive death benefits income tax-free under IRC Section 101(a)(1).

1

You need the full benefits

of MoneyGuard® Reserve

2

You change

your mind

3

You never need

long-term care


What you should know about MoneyGuard

® Reserve

Covers qualified long-term care costs.

Includes a money back guarantee.

Helps you leave money to loved ones.

Helps you maintain control of assets.

Protects assets now and in the future.


Which option fits your strategy?

Government programs

Traditional long-termcare insurance

Self-insuring

MoneyGuard ® Reserve


The challenge of long-term care

Do you have enough assets set aside for long-term care?

Do you have access to assets?

If you don’t need long-term care, what happens to the assets?


Retirement income security

MoneyGuard ® Reserve helps you leverage

dollars available for long-term care costs.

MoneyGuard Reserve offers a money back guarantee.

MoneyGuard Reserve offers efficient transfer to your heirs.


Next steps

Talk with your financial advisor or insurance agent.

Be sure you’re protecting your retirement income.


Important disclosures

MoneyGuard® Reserve is a universal life insurance policy with a rider that accelerates the specified amount of death benefit to pay for covered long-term care expenses. An Extension of Benefits Rider (EOBR) is available to continue long-term care benefit payments after the entire specified amount of death benefit has been paid. The Return of Premium Rider (ROPR) is included at issue (single premium only). The cost for these riders will be deducted from the policy account value. Guarantees are backed by the claims-paying ability of the issuer and are subject to policy terms and conditions. This policy has exclusions and/or limitations. Two-year suicide and contestability provisions apply (one-year in some states).

This material was prepared to support the promotion and marketing of a universal life insurance product. 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.

MoneyGuard Reserve is issued on policy form LN850 (8/05), Return of Premium Rider on form LR850 (8/05), Convalescent Care Benefits Rider on form LR851 (8/05), and Extension of Benefits Rider on form LR852 (8/05) and state variations by The Lincoln National Life Insurance Company, Fort Wayne, IN. Products and features are subject to state availability. Not for use in MA or NY.

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

secure your retirement future managing the financial risk of long-term care name title date...

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