1 / 29

Protect your retirement income

Protect your retirement income. Few things matter more than your retirement assets. Protect them against the challenges of long-term care. Fixed expenses. Wealth transfer. Healthcare expenses. Variable expenses. Emergency/opportunity funds. Managing assets in retirement. Fixed expenses.

iden
Download Presentation

Protect your retirement income

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. LCN0710-2008960 10/07

  2. Protect your retirement income Few things matter more than your retirement assets Protect them against the challenges of long-term care

  3. Fixed expenses Wealth transfer Healthcare expenses Variable expenses Emergency/opportunity funds Managing assets in retirement

  4. Fixed expenses Wealth transfer Healthcare expenses Variable expenses Emergency/opportunity funds What if the balance is destroyed?

  5. Agenda Understanding the facts of long-term care How would you pay for it? How MoneyGuard® Reserve can offer one simple solution

  6. Chances are, you’ll need care • At least 60% of Americans over age 65 will need some form of long-term care1 60% 1Source: U.S. Department of Health and Human Services — National Clearinghouse for LTC Information, www.longtermcare.gov, 10/19/07.

  7. What does long-term care cost? • Average costs of long-term care in NY in 2006 How would you pay for it if you needed long-term care? Source: U.S. Department of Health and Human Services — National Clearinghouse for LTC Information, www.longtermcare.gov.

  8. What you can’t rely on Medicare — acute care only Medicaid — must spend down assets

  9. How to cover long-term care costs It’s up to you. You have three choices: • Pay • Self-insure • Reposition

  10. Traditional long-term care insurance • Advantages • Guaranteed benefits • Most policies cover all levels of care • Disadvantages • Premiums you pay may be expensive • Recurring premium payments • Premiums may increase • You typically don’t get your money back

  11. Self-insuring • Advantages • You maintain control • You don’t pay for coverage you may never use • Disadvantages • You must set aside significant liquid assets • You may deplete assets too quickly

  12. How to cover long-term care costs • If you’re not • doing anything, • you’re self-insuring.

  13. 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.

  14. Designated for long-term care costs One simple solution Cash reserves Investments MoneyGuard®Reserve Life insurance House While the actual proportions in this chart will differ based on a specific investor’sneeds, it does show the different types of assets in a typical retirement-oriented portfolio.

  15. If you need long-term care Cash reserves Up to 500% with MoneyGuard® Reserve Investments MoneyGuard®Reserve Life insurance House Long-term care reimbursements are income tax-free under IRC Section 104(a)(3).

  16. If you need it back Cash reserves Up to 500% with MoneyGuard® Reserve Investments MoneyGuard®Reserve premium is returned Life insurance House Take it back; it’s in their reserve.

  17. If you never need long-term care Cash reserves Investments MoneyGuard® Reserve death benefit Life insurance House Unused portion goes to their beneficiary income tax-free. Beneficiaries receive an income tax-free death benefit under IRC Section 101(a)(1).

  18. 1 Long-term care coverage • You need the full benefits of MoneyGuard® Reserve 3 possibilities 1 • You need the full benefits of MoneyGuard® 2 • You changeyour mind This hypothetical 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), the Nonforfeiture Benefit Rider, and the Return of Premium Rider (ROPR). Benefit amounts vary by age, gender, 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 • You die

  19. 1 1 • You needsthe full benefits of MoneyGuard® 2 2 • You changeyour mind Money back guarantee 3 possibilities • You change your mind 2 • Your client needs the full benefits of MoneyGuard® This hypothetical 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), the Nonforfeiture Benefit Rider, and the Return of Premium Rider (ROPR). Benefit amounts vary by age, gender, and health status. Benefits are adjusted for loans and withdrawals. A portion of the amount returned may have tax implications.Guarantees are backed by the claims-paying ability of Lincoln Life & Annuity Company of New York. • You changeyour mind 3 • You die

  20. You never need • long-term care 3 1 • You need the full benefits of MoneyGuard® 2 2 • You change • your mind • You change your mind 3 3 • You never needlong-term care • You never needlong-term care Income tax-free death benefit 3 possibilities 1 • You need the full benefits of MoneyGuard® All 3 outcomes are guaranteed 2 Guarantees are backed by the claims-paying ability of Lincoln Life & Annuity Company of New York. • Your client changes hermind This hypothetical 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), the Nonforfeiture Benefit Rider, and the Return of Premium Rider (ROPR). Benefit amounts vary by age, gender, and health status. Beneficiaries receive death benefits income tax-free under IRC Section 101(a)(1). 3

  21. Let’s look at Nancy Arneau • Good health, nonsmoker • Decided againsttraditional long-termcare insurance • Currently self-insuring • Wants to protecther retirement income Nancy Arneau Age 65 Hypothetical example only. Benefit amounts vary by age, gender, and health status.

  22. Repositioning assets $200,000Freed up for retirement Additional long-term care benefit $300,000Set aside for long-term care costs Up to $332,812 $499,218 $166,406 $100,000Repositioned for MoneyGuard® Reserve payment Death benefit or 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). Hypothetical example only. Benefit amounts vary by age, gender, and health status.

  23. 1 2 3 Three possibilities – all guaranteed • You need the full benefits of MoneyGuard® Reserve • You changeyour mind • You never needlong-term care This hypothetical 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), the Nonforfeiture Benefit Rider, and the Return of Premium Rider (ROPR). Benefit amounts vary by age, gender, and health status. Beneficiaries receive death benefits income tax-free under IRC Section 101(a)(1).

  24. What you should know about MoneyGuard® Reserve • Reimburses for 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

  25. Which option fits your strategy? • Government programs • Traditional long-termcare insurance • Self-insuring • MoneyGuard®Reserve

  26. 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?

  27. 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.

  28. Next steps • Talk with your financial advisor/insurance agent. • Be sure you’re protecting your retirement income.

  29. 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. The policy and riders have exclusions, limitations, and/or reductions. • 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 by Lincoln Life & Annuity Company of New York, Syracuse, NY on Policy Form LN850 (8/05) with a Convalescent Care Benefits Rider (CCBR) on Rider Form LR851 (8/05), an Extension of Benefits Rider (EOBR) on Rider Form LR852 (8/05), a Terminal Illness Accelerated Death Benefit Rider on Rider Form LR853 (8/05), and a Return of Premium Rider (ROPR), on Rider Form LR850 (8/05). Contractual obligations are backed by the claims-paying ability of Lincoln Life & Annuity Company of New York. • 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.

More Related