1 / 29

Protect your retirement income

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

kiral
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. Protect your retirement income • Few things matter more than your retirement assets. • Protect them against the threat of long-term care.

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

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

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

  5. Chances are, you’ll need care • Chance of needing long-term care after age 65 Source: “Americans Fail to Act on Long-Term Care Protection,” The American Society on Aging, May 2003.

  6. What does long-term care cost? • National average costs of long-term care Who would pay for it if you needed 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.

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

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

  9. 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

  10. 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

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

  12. 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.

  13. 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’s needs, it does show the different types of assets in a typical retirement-oriented portfolio.

  14. 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).

  15. 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 your reserve.

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

  17. 3 possibilities 1 • You need the full benefits ofMoneyGuard® 2 • You changeyour mind 3 • You die Long-term care coverage • You need the full benefits • of MoneyGuard®Reserve 1 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).

  18. 3 possibilities 1 1 • You need the full benefits ofMoneyGuard® • You need the full benefits ofMoneyGuard® 2 2 • You changeyour mind • You changeyour mind 3 • You die Money back guarantee • You change your mind 2 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.

  19. You never need • long-term care 3 1 • You need the full benefits ofMoneyGuard® 2 2 • You changeyour mind • You changeyour 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 ofMoneyGuard® All three outcomes are guaranteed 2 • You changeyour mind 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. 3

  20. 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 (except in Montana, where male premiums apply), and health status.

  21. 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 MoneyGuardpayment 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 (except in Montana, where male premiums apply), and health status.

  22. 1 2 3 Three outcomes—all guaranteed • You need the full benefits of MoneyGuard® Reserve • You changeyour mind • You never needlong-term care 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).

  23. 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.

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

  25. 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?

  26. 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.

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

  28. 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.

More Related