Lincoln Money Guard II

The Sobering Reality Fact: 70% of people over age 65 will need long-term care.1 Source: www.whatcarecosts.com/lincoln *Genworth 2016 Cost of Care Survey, conducted by CareScout®, April 2016¹ Based on 44 hours per week

From Facts to Figures Service $ Per Day $ Per Month $ Per Year Private room (nursing home) $273 $8,190 $98,280 Semi-private room (nursing home) $238 $7,140 $85,680 One-bedroom unit (assisted living) $146 $4,383 $52,596 Home health aide (44 hours/week) $133 $3,990 $47,880 Homemaker services (44 hrs/week) $128 $3,840 $46,080 At this rate, 5 years at an assisted living facility will cost $262,980.

Current Funds Most people: Have set aside emergency funds, commonly for health-related incidents Are not willing to take a risk with these funds Is this how your clients plan to fund a health crisis? Resource - $100,000 Annual Rate 1 5-Year Gain CD 0.50% $2,525 Money Market Account 0.90% $4,582 Savings Account 0.25% $1,256 Fixed Annuity 3.00% $15,927 73% of fixed annuity owners plan to use their annuity savings for healthcare emergencies.2 1Returns are hypothetical and for illustrative purposes only. 2Survey of Owners of Non-Qualified Annuity Contracts, The Committee of Annuity Insurers, 2009

Return of Premium Options Option 1: Choose to maximize your long-term care benefits. Option 2: Choose to maximize your return of premium. OR A return of 80% of paid premiums is available once all planned premiums are paid. Your total long-term care benefit amount will be greater than with Option 2. A return of 100% of paid premiums is available after year 5 once all planned premiums are paid, subject to the vesting schedule below. An additional premium load applies for the graded return of premium option. Vesting Schedule Year 1: 80% Year 2: 84% Year 3: 88% Year 4: 92% Year 5: 96% Year 6: 100%

Product Features & Benefits Amount of Coverage Minimum specified amount $50,000 Payment Options A choice of flexible payment options of 1 through 10 years Issue Ages and Classes Ages 40-79 (age last birthday) Male/female Interest Credits and Tax-Deferred Growth Your policy is guaranteed a 2% credited interest rate No Deductible or Elimination Period Monthly Insurance Costs Each month, the insurance costs for your life and long-term care benefits are deducted from the policy cash value. Benefit Period Option Choose between 2-7 years of long-term care benefits based on the duration of the LABR and LEBR options that you choose. Optional Inflation Protection Compound 3% or compound 5% Couples Discount Available at time of application to married couples or domestic partnerships as recognized in the state of policy issue Both partners need not apply.

Eligibility for LTC Benefits A chronically ill person is any individual who has been certified by a licensed healthcare practitioner as being unable to perform, without substantial assistance from another individual, at least two activities of daily living (ADLs) for a period of at least 90 days as a result of loss of functional capacity. You are also considered chronically ill if you were certified by a licensed healthcare practitioner as requiring substantial supervision to protect you from threats to health and safety caused by severe cognitive impairment. ADLs bathing continence dressing eating toileting transferring

Qualified LTC Services Available Once Eligible Home healthcare benefits Nursing home benefits Assisted-living facility benefits International benefits provision Bed reservation benefit Adult day care services Respite care Caregiver training Care planning Alternative care services Hospice services Non-continual alternative care services

Application Process Client wants protection with Lincoln MoneyGuard solutions. Advisor checks licensing status and firm-specific submission requirements with MoneyGuard sales team. Application is signed and submitted with the ticket and other required point-of-sale forms to Lincoln (or firm’s back office). Forms are “not in good order”. Lincoln NBA* contacts advisor for missing info/forms. Forms are “in good order”. Missing info/ forms are received. PHI is conducted. Underwriting makes a decision in five days. Client is contacted within 48 hours by Lincoln to schedule PHI. Policy issued Instructions for final client’s signature and funding options will be given. Policy is placed in-force Advisor is notified that client has been approved, declined, or postponed for coverage. Policy declined or postponed MoneyGuard sales team notifies advisor with next steps.