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

LCN0710-2008960 10/07

Secure your retirement future

Managing the financial risk of long-term care

[Name][Title][Date]

©2007 Lincoln National Corporation

LCN0710-2008960 MG-1968-07 10/07

Protect your retirement income

Few things matter more than your

retirement assets

Protect them against the challenges of

long-term care

©2007 Lincoln National CorporationLCN0710-2008960 MG-1968-07 10/07

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


LCN0710-2008960 MG-1968-07 10/07

Agenda

Understanding the facts of long-term care

How would you pay for it?

How MoneyGuard® Reserve can offer one

simple solution


LCN0710-2008960 MG-1968-07 10/07

Chances are, you’ll need care

1Source: U.S. Department of Health and Human Services — National Clearinghouse for LTC Information,www.longtermcare.gov, 10/19/07.

At least 60% of Americans over age 65 will need some form of long-term care1

60%


Per day Per year

Nursing home – semi-private $285.13 $104,072.45

Nursing home – private $297.60 $108,624

Full-time (12 hours per day)

care by home health aide $270 $98,550

What does long-term care cost?

Average costs of long-term care in NY in 2006

Source: U.S. Department of Health and Human Services — National Clearinghouse for LTC Information, www.longtermcare.gov.

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


LCN0710-2008960 MG-1968-07 10/07

What you can’t rely on

Medicare — acute care only

Medicaid — must spend down assets


LCN0710-2008960 MG-1968-07 10/07

How to cover long-term care costs

It’s up to you.

You have three choices:• Pay• Self-insure• Reposition


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


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


How to cover long-term care costs

If you’re notdoing 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’sneeds, 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 their 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 their 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

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 possibilities

1You need

the full benefits

of MoneyGuard ®

2

You change

your mind

3

You die


3 possibilities

1Your client needs

the full benefits

of MoneyGuard®

2

You change

your mind

3

You die

Money back guarantee

You change your mind2

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.

1You needs

the full benefits

of MoneyGuard ®

2

You change

your mind


All 3 outcomesare guaranteed

3 possibilities

1You need

the full benefits

of MoneyGuard®

2

Your client

changes her

mind

3

Income tax-free death benefit

You never need

long-term care

3

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).

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

Guarantees are backed by the claims-paying ability of Lincoln Life & Annuity Company of New York.


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, and health status.


Repositioning assets

Hypothetical example only. Benefit amounts vary by age, gender, and health status.

$300,000Set aside for

long-term care costs

$200,000Freed up

for retirement

$100,000Repositioned for

MoneyGuard® Reserve 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 possibilities – all guaranteed

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).

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

• 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


LCN0710-2008960 MG-1968-07 10/07

Which option fits your strategy?

• Government programs

• Traditional long-termcare insurance

• Self-insuring

• MoneyGuard ® Reserve


LCN0710-2008960 MG-1968-07 10/07

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?


LCN0710-2008960 MG-1968-07 10/07

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.


LCN0710-2008960 MG-1968-07 10/07

Next steps

Talk with your financial advisor/insurance agent.

Be sure you’re protecting your retirement income.


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.

Important disclosures

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

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