Total Living Coverage®
Same Initial Dollars ● Same Events
●
Better Financial Outcome
Lazy Money
Underwritten by Genworth Life Insurance Company, Richmond, VA
Lazy Money
162805CRUMP 3/24/15
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For Producer/Agent Use Only. Not to be reproduced or shown to the public.
Producer/Agent Use Only. Not to be reproduced or shown to the public.
©2015 Genworth Financial, Inc. All rights reserved.
Agenda
 Lazy Money in Certificates of Deposit (CDs)
 Lazy Money in Money Market Accounts (MMAs)
 Clients Trust in a Safe Investment
 The TLC Advantage
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Total Living Coverage®
Lazy Money in Certificates of Deposit (CDs)
Lazy Money
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Lazy Money in CDs
Slow Growth Accounts Can Leave Your Clients Unprepared for the Future
• CDs are FDIC insured only up to $25,000*
• Considered risk free*
• Because virtually no risk - interest rate is among the lowest of any
financial product*
• Pay a penalty to withdraw your money early
• CD is most likely earmarked as emergency fund for future health care
events
Investopedia - http://www.investopedia.com/video/play/certificate-deposit-cd/ - 02/18/2015
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Lazy Money in CDs
Leverage potential on emergency asset
$700,000
$600,000
$500,000
Year 1
Year 2
Year 3
Year 4
Year 5
$400,000
$300,000
$200,000
$100,000
$0
TLC
CD*
Assuming a $100,000 CD investment over 5 years at a 2% growth rate each year.
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Total Living Coverage®
Lazy Money in Money Market Accounts (MMAs)
Lazy Money
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Lazy Money in MMAs
Self Insuring Can Be Risky
• Money Market Accounts are very liquid and considered
extraordinarily safe*
• Because they are extremely conservative, money markets offer
significantly lower returns*
• Money market accounts most likely earmarked as emergency funds for
future health care events
Investopedia - http://www.investopedia.com/university/moneymarket/moneymarket1.asp - 02/18/2015
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Lazy Money in MMAs
Money Market Funds to Pay for LTC are Depleted After 14 Months and
Do Not Offer the Leverage of Death Benefits
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Total Living Coverage®
Three benefits in one policy
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Clients Trust in a Safe Investment???
Typical TLC Clients
• Understand the need for long term care but hesitant to commit to paying
for benefits they may never use
• Interested in leaving assets to heirs
• Concerned about self insuring the risk of a long term care event
• Want reassurance that they can change their mind and
get their money back
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Clients Trust in a Safe Investment?
A Capital Transfer Could Lead from Low Performance to
Strong Protection
• TLC has ROP feature
• TLC is a reposition of assets in CDs and MMAS (not an expense)
• TLC provides immediate LTC and death benefits
• TLC provides minimum death benefit if all the LTC pool is exhausted
• TLC provides a certainty of benefits being paid
Gain Instant Leverage with a Linked Benefits Solution
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A Smarter Way To Self-Insure
An Asset-Allocation Approach
TLC Portfolio
LTC Benefits with TLC
&
Return of Premium
Typical Portfolio
Cash Reserves
Life Insurance
Bonds
Mutual Funds
Stocks
Annuities
IRAs
Real Estate (Home)
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Rider (ROP)
Compare and Contrast
Get Your Clients’ Lazy Money Up and Moving!
Account
consideration
Money Market
Account
Bank CD account
Total Living
Coverage®
Attributes
You already have money saved
and want to keep it liquid.
Save your money and don’t
access it for a specified period of
time.
Gain both a substantial fund for
long term care and a guaranteed
death benefit.
Interest features
Traditionally higher interest rates
than a savings account.
Interest rates are often higher for
longer-term CDs.
Instant leverage of almost 5.5x
your initial premium.
Long Term Care Event
Would deplete a $100,000
account if LTC event lasted
longer than 14 months. No
leverage available.
A penalty may apply for
withdrawal of funds before CD
matures. Would deplete a
$100,000 account if LTC event
lasted longer than 14 months.
No leverage available.
Money is immediately available
for home care . There is a 90-day
facility elimination period which is
reduced by the number of days
home care benefits are paid or by
days Medicare pays for covered
expenses.
Access to Money
Immediate access
Penalty will apply for early
withdrawal of funds.
With the optional Return of
Premium Rider you can get back
at least the initial premium, less
any outstanding loan balance,
withdrawals or long term care
benefits already received.
Death Benefit
None if money all used for long
term care.
None if money all used for long
term care.
Guaranteed
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The TLC Advantage
Typical Value Example
$647,193
$215,731
$100,000
Initial
Premium
Initial Death
Benefit
Total LTC
Benefits
Lifetime Guaranteed
Optional Return of
Premium Rider (ROP)
Residual Death
Benefit (RDB)
Pool of Benefits Can
Grow with Inflation
Protection
These values are based on the average TLC client. Your clients’
specific values may be higher or lower based on issue age,
gender, riders chosen and risk class.
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Important Information
Total Living Coverage® is underwritten by Genworth Life Insurance Company, Richmond, VA.
In all states excluding CA, CT, FL, HI and NY, Total Living Coverage universal life insurance with long term care benefits is subject to state
availability and the terms, issue limitations and conditions of Policy Form No. ICC12-GL5000 and Rider Form Nos. ICC12-GL500R,
ICC12-GL501R, ICC12-GL502R, and ICC12-GL503R or Policy Form No. GL5000 0212 et al. and Rider Form Nos. GL500R 0212 et al.,
GL501R 0212 et al., GL502R 0212 et al., and GL503R 0212 et al.
Lincoln MoneyGuard® II is issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, on Policy Form LN880/ICC13LN880
with Long Term Care Acceleration of Benefits Rider (LABR) on Rider Form ICC13LR881, Long Term Care Extension of Benefits Rider
(LEBR) on Rider Form ICC13LR882, and Return of Premium Rider on Rider Form ICC13LN880.
MoneyGuard® is a registered service mark of The Lincoln National Life Insurance Company.
Refer to the policy for definitions and more details regarding coverage and its features. This webinar provides a summary of coverage.
Policy terms and provisions will prevail.
All guarantees are based on the claims-paying ability of the issuing insurance company.
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Important Information
Covered long term care expenses may be paid for a longer or shorter period than the ABR and EBR periods. Expenses may
be paid for a longer period if the actual expenses paid are less than the Maximum Monthly LTC Benefit. Expenses may be paid
for a shorter period because some services – supportive equipment, caregiver training and bed reservation – do not count toward
the Maximum Monthly LTC Benefit.
Generally death proceeds paid are income-tax-free to the beneficiary. Death proceeds from certain employer-owned life insurance
policies may not be income-tax-free unless the requirements of section 101(j) of the Internal Revenue Code (Code) are met. All or part
of death proceeds may be taxable in other circumstances as well. The circumstances include, but are not limited to, the following: (a)
the policy or an interest in it has been transferred for a valuable consideration and the transfer is not to a person identif ied in section
101(a) of the Code, (b) the death proceeds are received under the terms of a qualified pension or profit-sharing plan, (c) the proceeds
are received as alimony by a divorced spouse.
The death benefit is generally received income tax-free by the beneficiary under subsection 101(a) of the Internal Revenue Code
©2014 Genworth Financial, Inc. All rights reserved.
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Important Information
This policy is a Modified Endowment Contract (MEC) unless it is issued in exchange for a life insurance contract entered
into before June 21, 1988. Partial withdrawals and policy loans taken from a MEC are taxable under federal income tax law
to the extent that there is any gain in the policy. An additional penalty tax of 10% of the taxable amount may be due if the
owner is under age 59½.
LTC benefit payments made under the terms of a contract federally tax-qualified under section 7702B(b) are not subject to
federal income tax. These benefit payments must be reported to the IRS on Form 1099-LTC. Monthly charges for the LTC
coverage are considered to be withdrawals and reportable on Form 1099 to the extent that there is any gain in the contract
in excess of the owner’s income-tax basis.
If this policy is exchanged for a contract entered into before June 21, 1988, partial withdrawals are taxable to the extent that
there is any gain in the policy above the owner’s income-tax basis (usually premiums paid). Policy loans are taxable upon
lapse or surrender of the policy to the extent that there is any gain in the policy. The additional tax that could be payable with
respect to MEC’s does not apply.
The company has provided this information to help producers understand the ideas discussed. Any
examples are hypothetical and are used only to help producers understand the concepts of the policy.
What the company says about legal or tax matters is its understanding of current law, but the company
is not offering legal or tax advice. Tax laws and IRS administrative positions may change. This material
is not intended to be used by any taxpayer to avoid any IRS penalty. Your clients should consult
independent tax and legal professionals for advice based on their particular circumstances.
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