Do you have clients with temporary cash flow issues who want to protect their estate, seek shelter from estate tax, or reposition assets to a business or investment? Consider this solution.
A guaranteed death benefit
Lower premiums for any number of years with a catch-up at the end of that period
Tax advantages to help make the most of assets
Read more
John and Ann Ages: 65 and 62 Children: 2
The challenge: John and Ann want $2 million of coverage to create a legacy. They own real estate that has depreciated, and do not want to sell at this time. The couple believes its future sale might be a good funding source.
The recommendation: A Lincoln LifeGuarantee SUL policy with the Flex Option offers the couple affordable yearly payments of $13,773 for the first 10 years. By the time they anticipate selling their property, their annual premiums will be $41,600.
This data reflects female age 62 and male age 65, both standard nontobacco; using the Flex Option for 10 years, solving for a guaranteed death benefit of $2,000,000.
877 533-0118
Your clients will need to maintain their purchasing power. Based on historical average inflation rates, if you need $50,000 today, you will need over $131,000 in 25 years — just to keep pace.*
* U.S. Bureau of Labor Statistics, June 2010.
Are your clients prepared to cover their essential costs in retirement? Will they have enough money for items such as gas, groceries, housing and healthcare?
Will your clients’ income grow to help cover the rising cost of these essential goods and services? It can with Lincoln SmartIncomeSM Inflation Annuity. This innovative single-premium immediate annuity offers guaranteed lifetime income that automatically adjusts with inflation — as measured by the Consumer Price Index-Urban (CPI).
An income solution that raises the bar
Inflation-based income
When prices of goods and services go up, your clients automatically get an increase.
No market volatility
You can help your clients keep up with inflation without subjecting their money to the second-to-second ticker movements of the stock market.
Lifetime income
With lifetime payments, your clients don’t have to worry about outliving their income or losing their purchasing power.
Greater control
If your clients need to access their account to fund an emergency, they can — without withdrawal penalties. The Lincoln SmartIncomeSM Inflation Annuity gives them more control over their money.*
Guarantees are backed by the claims-paying ability of the appropriate issuing company.
* Unscheduled payments may reduce future income payments. Unscheduled payments are not available in New York.
Your clients need an income that not only can last their lifetime but can keep up with the potential rise in the costs of everyday goods and services: †
† Future prices shown are for illustrative purposes only and are based on a 20-year inflation trend from 1990 to 2009. Past changes in the CPI are no guarantee of future changes in the CPI or of future adjustments to a Lincoln SmartIncomeSM Inflation Annuity contract. Actual future prices of items shown may be more or less favorable than those shown.
Lincoln Fixed Annuity Sales 888 895-4830, option 2 fixedannuitysales@lfg.com
Build your business with competitive products from the number one provider of secondary guarantee life insurance.1
As a pioneer in the marketplace, Lincoln’s financially disciplined approach to asset and risk management gives you a robust portfolio of secondary guarantee solutions. Look to Lincoln for lifetime guarantees, lifetime guarantees with cash values, and shorter-duration guaranteed protection.
Lincoln LifeGuarantee® UL
Lincoln LifeGuarantee® SUL
Lincoln LifeGuarantee® Plus UL
Lincoln DurationGuarantee® UL
How does Lincoln do it?
• Disciplined product design and pricing
–Interest rate management embedded in up-front product design
–Targeted investment strategy that reflects the nature of secondary guarantee liabilities
• Management of ongoing profitability
–Ensures a solid in-force return on investment (ROI) through detailed monitoring of new business profitability
• Proactive management of interest rate risk
–Tight link between product design, ongoing hedging and investments, and strategic market positioning
• Extensive understanding of mortality and policyholder behavior
–Industry-leading underwriting helps ensure a favorable mortality experience
In today’s ever-changing estate planning marketplace, secondary guarantee solutions are as important as ever. Lincoln’s broad range of product solutions is here for you.
Contact us today!
1LIMRA Individual Life, UL, SUL 3Q2010 Sales Report.
Since 1988, Lincoln MoneyGuard universal life policies with optional long-term care riders have helped protect more than 60,000 clients from the risks of long-term care expenses.
1.
Protect clients from the risks of long-term care expenses
Clients receive income tax-free reimbursements, of significantly more value than the premium paid, for qualified long-term care expenses. This gives your client more buying power for long-term care needs.
2.
Death benefit for beneficiaries
If your client never needs long-term care or doesn’t use all of their long-term care benefit, a death benefit is paid to beneficiaries income tax-free.
3.
Money back guarantee
Lincoln MoneyGuard Reserve Plus provides a money back guarantee.1
4.
Streamlined application process
The application process requires a few simple prescreening questions and a 45-minute phone interview — no exams, labs or doctor’s statements.2
5.
Outstanding claims management experience
Based on previous MoneyGuard Reserve claims experience, the majority of claims are approved and paid within five days or less.
There is no deductible or elimination period.
Long-term care reimbursements are generally income tax-free under IRC Section 104(a)(3). Beneficiaries can receive an income tax-free death benefit under IRC Section 101(a)(1).
1The amount received will be adjusted for any benefits paid and/or any loans and withdrawals, it may have tax implications, and it is subject to the terms of the Enhanced Surrender Value Endorsement.
2 Prescreening questions not available in CA.
Guarantees are backed by the claims-paying ability of The Lincoln National Life Insurance Company, Fort Wayne, IN.
Find out more today!
877-546-2647, option2
*Lincoln MoneyGuard Reserve Plus is not available in CA, CO, HI, IL, NY, PA, TN, or VT.
The Lincoln Leader - Fixed Annuities
March 2011 Issue
Download your copy of the Lincoln Leader
- Consider Lincoln SmartIncomeSM Inflation Annuity As One Solution for Qualified Plan Distributions
- Flexible Premium Products: Additional Premium Subject to Contract Limitations
- Fixed Indexed Annuity Disclosure Statements Updated
- New Annuity Suitability Requirements – Ohio and Oregon
- New Long-Term Care Training Requirements – Pennsylvania and Nevada
- Florida Suitability Form: Signature Requirements Updated
- LFIT/Mobility Illustration System Release v1.23 Now Available
Don’t let market volatility sabotage your clients’ retirement
No one can predict what the market will do or when it will do it. The market has experienced annual returns ranging from greater than 50% to less than –40%.1
1 Source: Ned Davis Research, 2009. Based on the DJIA, 1901 to 2009. Past performance does not guarantee future results.
Market volatility
Wouldn’t it be nice if your clients’ income could increase without risking the market’s ups and downs? It can with a Lincoln SmartIncomeSM Inflation Annuity. This innovative single-premium immediate annuity offers guaranteed lifetime income that automatically adjusts with inflation — as measured by the Consumer Price Index-Urban (CPI).
* Unscheduled payments could reduce future income payments and are not available inNew York.
Are your clients bullish on inflation?
While stock markets went through bubbles and booms — losing ground over the last decade — inflation maintained its steady upward course. The lost decade for the stock market was a decade of 28% inflation.
The chart shown compares a hypothetical investment of $100,000 that mirrors the performance of the S&P 500 Index with $100,000 adjusted for inflation as measured by the CPI from 2000 to 2009.
This chart is for illustrative purposes only. Past changes in the CPI are no guarantee of future changes in the CPI. The S&P 500 Index is a price index and does not reflect dividends paid on the underlying stocks. It is not possible to invest directly in an index.
To learn more about a Lincoln SmartIncomeSM Inflation Annuity, contact:
Lincoln Fixed Annuity Sales
888 895-4830, option 2
fixedannuitysales@lfg.com
Congress acted to extend many of the Bush-era tax provisions in late December, but understanding all of the new information — what has changed and what remains thesame — can be daunting. This checklist highlights some of the key tax issues thatmay affect you.
The provisions listed below expire at the end of 2012 unless otherwise noted.
Income taxes
The Bush-era federal income tax cuts were extended; however, the brackets have been adjusted slightly higher than those of last year due to inflation.
2011 federal income tax rates
Single
Married filing jointly
Taxable income
The tax is
Of the amount over
Taxable income over
$0 - $8,499
$0 + 10%
$0
$0 - $16,999
$8,500 - $34,499
$850 + 15%
$8,500
$17,000 - $68,999
$1,700 + 15%
$17,000
$34,500 - $83,599
$4,750 + 25%
$34,500
$69,000 - $139,349
$9,500 + 25%
$69,000
$83,600 - $174,399
$17,025 + 28%
$83,600
$139,350 - $212,299
$27,088 + 28%
$139,350
$174,400 - $379,149
$42,449 + 33%
$174,400
$212,300 - $379,149
$47,514 + 33%
$212,300
$379,150 or more
$110,017 + 35%
$379,150
$102,574 + 35%
Dividends and capital gains
The tax rate reductions for long-term capital gains remain at 0% for taxpayers in the 10% and 15% income tax brackets, and 15% for taxpayers in the 25% income tax bracket and above.
Estate tax exemption and tax rate
The estate tax exemption is set at $5 million per individual for estate, gift, and generation-skipping taxes. The maximum estate tax rate (applied to assets over and above the exemption amount) is 35%. The annual exclusion for tax-free gifts also remains at $13,000 per donor, per recipient.
Alternative Minimum Tax (AMT)
Congress enacted a slightly higher "patch" retroactive for 2010 and through 2011. This provision sets the AMT exemption at $48,450 for single filers and $74,450 for married couples.
Unemployment insurance extension
Federal extended unemployment insurance (providing benefits for up to 99 weeks in states with high unemployment) has been extended through the end of 2011.
Employee Social Security tax reduction
Employees will continue to enjoy a 2% cut in their share of Social Security taxes. Most people will see this cut as an automatic adjustment to their withholding. This cut will expire at the end of 2011.
Capital assets deduction for businesses
Congress has continued the trend of increasing first-year tax deductions to encourage businesses to invest in capital assets. The "Section 179 Deduction" has been increased to an annual amount of up to $500,000 for the cost of qualifying property first used in the business during tax years beginning in 2010 or 2011.
Many tax provisions are being extended through 2011 and 2012. Work with your tax professional and financial advisor to be sure you are educated.
In this Issue
To read more click on the links below.
· Lincoln LifeGuarantee® SUL launch
· Keep your competitive edge in the credit crunch
· Transition rules
· Still the one — committed to secondary guarantees
· Deal makers: 10 underwriting advantages
Questions & Comments
We’re here to help!
Contact your Lincoln representative with questions or for additional information.
www.lfg.com
Point-of-sale forms update
Important reminder: Several forms that were previously included in the Lincoln MoneyGuard® Reserve delivery package are now required at the point of sale and must be submitted with the ticket via your standard process. For tickets submitted on or after March 25, 2011, the following forms must be signed by the owner and the agent, and submitted along with the ticket and other required forms at point of sale in all states: -LTC Personal Worksheet (Form 33498 and state variations)-Replacement of Life Insurance or Annuities (Form LF10087 and state variations) Note: This form is required even if you are not replacing an existing insurance policy.
CA Submissions: In addition to the above referenced forms, the following forms must be signed by the owner and the agent and submitted along with the ticket and other required forms at point of sale: -Lincoln MoneyGuard Reserve Application Checklist (Form MG10086) -Financial Disclosure for CA Residents Age 65 and Over (Form LF10088)
The LTC Personal Worksheet is available in the required Point-of-Sale Forms section through the Lincoln online forms tool and also under the Additional Reports section in the Lincoln DesignItSM Platform illustration software. All other forms will be available in the required Point-of-Sale Forms section through the Lincoln online forms tool by March 4, 2011. iPipeline will also be updated with these forms. It is important that they be submitted with all incoming new business.If you have any questions, please contact your Lincoln MoneyGuard Internal Sales representative. If you are with an MGA, please contact 877 533-0114. All others please call 877 546-2647.
© 2010 Lincoln National Corporation
www.LincolnFinancial.com
Lincoln MoneyGuard® Reserve universal life policies are issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, on Policy Form LN850 (8/05) with a Convalescent Care Benefits Rider (CCBR) on Rider Form LR851 (8/05).The Lincoln National Life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so. Policies sold in New York are issued by Lincoln Life & Annuity Company of New York, Syracuse, NY, on Policy Form LN850 (8/05) with a Convalescent Care Benefits Rider on Rider Form LR851 (8/05).All guarantees and benefits of the insurance policy are backed by the claims-paying ability of the issuing insurance company. They are not backed by the broker/dealer and/or insurance agency selling the policy, or any affiliates of those entities other than the issuing company affiliates, and none makes any representations or guarantees regarding the claims-paying ability of the issuer.Products and features, including benefits, exclusions, limitations, terms, and definitions, may vary by state.
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.
LCN1103-2051723 LFG-GEN-10-0013_LFG-LMC-eBL002_Z01
Click here to be removed from this mailing list.
Where do you think inflation is headed?
Fed’s QE2
The Fed’s $600 billion debt-purchase program — the second round of quantitative easing or QE2 — could create inflationary pressure.
The stimulus package
The multibillion-dollar stimulus package of 2009 helped many troubled companies, but its impact on inflation may come years from now.
Growing budget deficit
A steady rise in inflation and higher GDP growth may be required to pay for the budget deficit.
Low interest rates
With interest rates at historic lows, there is a lot of liquidity, which could push the inflation level higher.
Inflation has met its match
Wouldn’t it be nice if your clients’ income could increase with the price of goods and services? It can with Lincoln SmartIncomeSM Inflation Annuity. This innovative single-premium immediate annuity offers guaranteed lifetime income that automatically adjusts with inflation — as measured by the Consumer Price Index–Urban (CPI).
* Unscheduled payments could reduce future income payments and are not available in New York.
Higher inflation = higher income
Let’s say your clients spend an average of $500 on groceries every month. They may have to pay $856.64 for the same amount of goods in 2030 — that’s an increase of almost 70%.†
With Lincoln SmartIncomeSM Inflation Annuity, your clients’ income grows with inflation, so their purchasing power is not eroded by cost-of-living increases. The chart on the bottom right shows a hypothetical initial annual payment of $5,000 from a Lincoln SmartIncomeSM Inflation Annuity, adjusted for inflation over 20 years, compared to an annual fixed income payment.† ‡
How much could groceries cost in retirement?
An income that keeps pace with inflation
† The CPI values shown in both charts are for illustrative purposes only and. are based on a 20-year inflation trend from 1990–2009. Past changes in the CPI are no guarantee of future changes in the CPI.
‡ Past changes in the CPI are no guarantee of future adjustments to a Lincoln SmartIncomeSM Inflation Annuity contract. Actual future results may be more or less favorable than those shown. However, in no case will the scheduled payment adjustment result in a scheduled payment less than the applicable guaranteed minimum payment amount.
To learn more about helping your clients’ retirement incomes keep pace with inflation, contact:
February 2011 Issue
Download your copy of the Lincoln Leader Key Headlines
· Commission Rates Increased for Lincoln OptiPoint® 8 and 10
· Lincoln Long-Term CareSM Fixed Annuity Now Available in 26 States (Subject to Firm Approvals) · Checking the Right Box = The Right Commission Structure
· February Forms Update: Fixed Annuity Suitability Form and Maryland-Specific Disclosure Statements Now Available · Advance Notice: Disclosure Statements to Be Updated in March
Take advantage of higher interest rates with Lincoln New Directions® 8
It pays to play safe. Give your clients the possibility of attractive returns without subjecting their money to market risks. Fixed indexed annuity rates/caps are effective for applications on or after 2/22/11 and are subject to change.1
Premium
Premium< $100,000
3.00%
5.20%
13.45%
Premium≥ $100,000
3.10%
5.40%
14.05%
Fixed interest ratefor the inital eightcontract years3
One-yearspecified rate
Two-year indexedinterest cap
Interest rates, specified rates, and caps are based on product/contract features, including any, additional rider benefits, and death benefit options. All rates, specified rates, and caps are declared by The Lincoln National Life Insurance Company at its discretion.
Withdrawals within the first 8 years may be subject to a surrender charge (9% maximum) and a Market Value Adjustment, if applicable.
To learn more about Lincoln New Directions, contact:
888 895-4830, Option 2fixedannuitysales@lfg.com
1 Subsequent rates may be higher or lower than the initial rates and may differ from those used for new contracts or for contracts issued at different times.
2 Each indexed account features a specific crediting calculation and will not credit less than 0%. For complete calculation information, please refer to the Lincoln New Directions® Client Guide.
3 Guarantees are backed by the claims-paying ability of The Lincoln National Life Insurance Company.
Fixed account interest is credited and compounded daily. Applicable indexed interest is credited at the end of the indexed term. Amounts withdrawn before the end of an indexed term will not receive indexed interest for that indexed term.
Look no further. Lincoln has extra capacity to help place your larger cases.
To help you with cases that exceed the Jumbo limit, we increased our retention to $20 million for permanent and term products up to age 75. For ages 76 to 80, Lincoln still has $10 million per life retention available for permanent products.
Retention amount
Products
Ages
$20 million
Permanent and term life
Maximum age 75
$10 million
Permanent life
76–80
Lincoln is committed to providing business advantages and quality underwriting services. Our financial strength, competitive retention/auto bind limits, comprehensive product lineup, and customer-focused underwriting are some of the reasons why you should look to Lincoln for large-capacity cases.
Call today!
Learn more about Lincoln’s $20 million retention and how you can access the capacity for your customer needs.
"The retention increase to $20,000,000 enables Lincoln to help our customers continue to grow their sales and is an opportunity for us to meet the needs of the high net worth market and our key distribution partners."
— Jordan Carreira, Chief Underwriter