MoneyGuard UL

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MoneyGuard UL

• Wherever tomorrow takes them

CPS Insurance Services
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What is MoneyGuard UL?

• A solid alternative

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Who needs MoneyGuard UL?

• How does it fit into their financial plans?

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Who needs MoneyGuard UL?

• Who buys MoneyGuard UL?
• Currently self-insures the long-term care risk
• Target ages 5580
• Single women
• Adequate invested assets (excludes primary
  residence and qualified plan assets)

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Identify source of funds

• Are there readily available fundsfor long-term
  care?

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Where are your clients assets?
Commonasset categories
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Which assets would they use firstto pay for
long-term care needs?
Commonasset categories
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The case for MoneyGuard UL

• Introducethe concept.

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Whats the chanceof needing long-term care?

• Chance of needing long-term care after age 65

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Source American Society on Aging press release,
May 23, 2003
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What does long-term care cost?

• Average costs of long-term care

Source Financing Long-Term Care for the
Elderly, A Congressional Budget Office Paper,
April 2004
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Who pays for long-term care?

• Over 45 frompersonal assets!

Privateinsurance11
Out-of-pocket27
Medicare15
Other 7
Source The Congressional Budget Office, 2004
Medicaid39
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Medicare and Medicaid

• Medicare
• 100 days in nursing home following a hospital
  stay
• Medicaid
• For those who have virtually no personal assets

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What is Medicaid?

• A federal/state welfare program
• Income and assets are eligibility factors
• Look back provisions for asset transfers
• Penalties for giving assets away
• Limited long-term care facility choices

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Long-term care funding options
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Traditional long-termcare insurance is an option

• Disadvantages
• Recurring premiumpayments
• Generally, premiumsare not guaranteed
• If they dont use it,
• they lose it

• Advantages
• Guaranteed benefits
• Most policies coverall levels of care

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Traditional long-termcare insurance is an option

• What if they dontneed it?

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Self-insuring is an option

• Many clients will end up using their own assets
  to pay for long-term care.

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MoneyGuard UL

A solid alternative Long-term care
coverage Control of assets Money for loved ones

Hypothetical example only. Actual benefit amounts
would be different, depending upon your age,
gender, and/or health status. Unisex rates
apply in Montana.
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MoneyGuard UL

• A solid alternative
• Based upon a 65-year-old nonsmoking female in
  good health, includes the optional Return of
  Premium Rider, 2-year Convalescent Care Benefits
  Rider, and 4-year Extension of Benefits Rider
• Hypothetical example only. Actual benefit
  amounts wouldbe different, depending upon your
  age, gender, and/or health status.

Unisex rates apply in Montana.
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Profile Nancy Arneau

• Asset repositioning

100,000Moved (premium)
Hypothetical example only. Actual benefit amounts
would be different, depending upon clients age,
gender, and/or health status. Unisex rates
apply in Montana.
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A win-win solution
100,000 single premium payment, including the
Return of Premium Rider and the 4-year Extension
of Benefits Rider into MoneyGuard UL gives Nancy
Hypothetical example only. Actual benefit amounts
would be different, depending upon clients age,
gender, and/or health status. Unisex rates
apply in Montana.
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A win-win solution
100,000 single premium payment, including the
Return of Premium Rider and the 4-year Extension
of Benefits Rider into MoneyGuard UL gives Nancy
Hypothetical example only. Actual benefit amounts
would be different, depending upon clients age,
gender, and/or health status. Income tax-free
under IRC 104(a)(3) Unisex rates apply in
Montana.
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A win-win solution
100,000 single premium payment, including the
Return of Premium Rider and the 4-year Extension
of Benefits Rider into MoneyGuard UL gives Nancy
AcceleratedSpecifiedAmount
166,406Income tax-freedeath benefit
Income tax-free under IRC 101(a)(1)
Hypothetical example only. Actual benefit amounts
would be different, depending upon clients age,
gender, and/or health status. Unisex rates
apply in Montana.
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Which option fitsyour clients plans?

• Government programs
• Self-insuring
• Traditional long-termcare insurance
• MoneyGuard UL

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Long-term care features

• All levels of care
• Assisted living
• Home health
• Nursing home
• Adult daycare
• Alternative and personal care
• Hospice and respite care

Residential care in CA Convalescent care in
MA Alternative care is not available in CA
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Long-term care triggers

• 90-day lifetime deductible period
• Difficulties with 2 of 6 activities of daily
  living (ADLs)
• Bathing
• Continence
• Dressing
• Eating
• Toileting
• Transferring
• Cognitive impairment
• Need for care can be certified by personal
  physician

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Will this be enough?
499,218Total long-term care benefits Total6-yea
r benefit 6,934monthly

• 332,8124-year Extension of Benefits Rider

166,406Specified amount ofDeath Benefit
16,641 Residual Death Benefit
Example female, age 65, nonsmoker in good health
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MoneyGuard UL

• Convalescent Care Benefits Rider (CCBR)
• Extension of Benefits Rider (EOBR)

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Benefit period options
432,910Total LTC benefit
348,990Total LTC benefit
316,183Total LTC benefit
499,218Total LTC benefit
247,377 AdditionalLTC benefit
126,473 AdditionalLTC benefit
332,812 AdditionalLTC benefit
174,495 AdditionalLTC benefit
189,710 Specified benefit
185,533 Specified benefit
174,495 Specified benefit
166,406 Specified benefit
24 Six-year benefit 6,934/month
22 Four-year benefit 7,271/month
32 Five-year benefit 5,270/month
34 Seven-year benefit 5,154/month
Example female, age 65, nonsmoker in good health
100,000 premium with Return of Premium Rider
(ROPR)
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What about inflation?

• MoneyGuard UL Inflation Feature
• Automatically increases the long-term care
  benefit annually by the percentage chosen at
  issue.
• Expensive option
• Simple or compound
• CCBR EOBR
• Simple 3 3
• Compound 2 5

Inflation protection on the CCBR Is not available
in all states
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Underwriting

• MoneyGuard UL is fully underwritten
• APS only on single premium for clients age 60 and
  older
• Field underwriting tools available
• Lincoln reserves the right to order
  medicalrequirements if the APS is incomplete

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Illustration system

• Client-specificconcept pages
• Guaranteed premium
• Guaranteedbenefits

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Illustration system

• Customized buckets let you show each client what
  MoneyGuard UL means to them.

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Illustration system

• Summary page

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Illustration system
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Illustration system
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Illustration system
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MoneyGuard UL

• Backed by the claims-paying ability of The
  Lincoln National Life Insurance Company
• A companys promises are only as strong as its
  reputation, integrity, and financial strength.
  The Lincoln National Life Insurance Company has
  consistently received high marks from independent
  evaluators including A.M. Best, Fitch, Moodys,
  and Standard Poors

These ratings apply onlyto the companys
claims-paying ability. Ratings asof
10/31/05. Visit www.LFD.com for the most current
ratings.
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MoneyGuard UL
This material was prepared to support the
promotion and marketing of universal life
insurance products. Neither The Lincoln National
Life Insurance Company, its distributors nor
their respective employees and representatives
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.
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MoneyGuard UL

• MoneyGuard UL is a universal life insurance
  policy with a rider that accelerates the
  specified amount of death benefit to pay for
  covered long-term care (convalescent care in MA)
  expenses. An Extension of Benefits Rider (EOBR)
  is available to continue long-term (or
  convalescent) care benefit payments after the
  entire death benefit has been paid. The Return
  of Premium Rider (ROPR) is available at issue
  (single premium only). An additional 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).
• MoneyGuard UL 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) by The Lincoln National Life
  Insurance Company, Fort Wayne, IN. Products and
  features are subject to state availability.
• Lincoln Financial Group is the marketing name for
  Lincoln National Corporation and its affiliates.

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