Wealth Protection

The Ltc Frontier

What you need to start the long-term care conversation

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66% icon

of Americans surveyed say long-term care planning is important

but only

20% icon

have discussed the topic with a financial professional

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The opportunity

The market for long-term care planning is growing.

U.S. population over age 65 will nearly double between 2015 and 2050*

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2015

2050 map

2050

4in10

people over the age 85 develop dementia

four in ten image

9in10

advisors expect long-term care
planning demand to increase

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Advisors who discussed 7 planning
topics saw client satisfaction of 86%*

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As these statistics show, the need for long-term care is growing – and so is the opportunity to help your clients plan for this potential retirement expense.

The Ltc Conversation

It's easy with the right approach.

Starting a long-term care conversation isn’t as difficult as you may think.

Here are two proven approaches to help you ease into the discussion with your clients.

The Emotional approach

Long-term care is a very personal experience. You may be surprised how willing clients are to open up about their families and concerns.

The Balanced Approach

Get right to the point. As an advisor, part of your role is identifying gaps in clients’ plans for the future, and long-term care expenses can have an enormous impact on savings.

Why don’t clients plan for long-term care?

Our research has uncovered the top four client misconceptions. Explore how to dispel them.

Myth
1
It Won't Happen to Me
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One of every two individuals turning age 65 today will need the coverage of a long-term care solution during their lifetime.*

Myth
2
Medicare and Medicaid have me covered
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Medicare and Medicaid aren't the whole story: Medicare only covers a portion of skilled nursing costs up to 100 days, and Medicaid only applies to individuals who qualify based on income and financial need.

Myth
3
That's what my savings is for
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Long-term care costs add up fast: Advisors we surveyed estimate that an unplanned long-term care event may cause clients to draw down their assets two to three times faster than expected.

Myth
4
My family will be able to take care of me
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Caregiving involves lifting, bathing, and toileting – and that can take an emotional as well as physical toll. It’s no wonder that a woman taking care of her disabled spouse is nearly six times as likely to suffer from depression or anxiety.§

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*Melissa Favreault and Judith Dey, "Long-Term Services and Supports for Older Americans: Risks and Financing," ASPE Research Brief, https://aspe.hhs.gov/sites/default/files/pdf/106211/ElderLTCrb-rev.pdf, revised February 2016.

†U.S. Department of Health & Human Services, “Medicare & You 2015,” www.Medicare.gov, www.medicare.gov/Pubs/pdf/10050.pdf, revised December 2014.

‡Lincoln Financial Group and Hanover Research, “Managing Long-Term Care Risks,” https://www.lfg.com, October 2014.

§National Center on Caregiving, "Women and Caregiving: Facts and Figures," Family Caregiver Alliance, https://www.caregiver.org/women-and-caregiving-facts-and-figures, February 2015.

Start Solving

Match your clients’ long-term care needs with effective solutions.

( Select a category below to learn more. )

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MG-LTHC-BRC001

Accelerated death benefits may be taxable and may affect public assistance eligibility. All guarantees and benefits of the annuity and insurance policy are subject to 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. Variable products may involve market risk, including possible loss of principal. Only registered representatives can sell variable products. Hybrid products are universal life insurance policies and annuity contracts with optional long-term care benefit riders. Products, riders and features are subject to state availability. Limitations and exclusions may apply. Check state availability.

Please note: Life insurance with ABRs is for chronic illness conditions and should not be marketed for LTC insurance.

Identify Solutions

Today, with the proliferation of hybrid solutions, you have more options than ever to address long-term care expenses. But how can you navigate this growing market and find the right solution for your clients' unique needs?

Fixed annuity with LTC-benefitsLincoln Long-Term CareSM Fixed Annuity Variable annuity with LTC-related riderLincoln Long-Term CareSM Advantage Life insurance with accelerated benefit rider Lincoln LifeEnhance® Life insurance/long-term care combo Lincoln MoneyGuard® II*
Solution type Fixed annuity with LTC-benefits Rider on certain Lincoln variable annuity products Optional chronic illness rider available at issue on several of Lincoln's permanent life insurance products1 Universal life insurance with long-term care riders1
LTC prognosis Permanent and recoverable conditions Permanent and recoverable conditions Permanent conditions only Permanent and recoverable conditions
LTC expense coverage
  • Acceleration of the account value plus extended benefits
  • Coverage could increase based on account value growth
  • Acceleration of the account value plus extended benefits
  • Step-ups to account value based on underlying fund performance. Available for an additional charge.
  • Acceleration of death benefit up to the daily maximum
  • Can use care benefit for any purpose; no receipts required
  • Acceleration of face amount to cover long-term care expenses, plus extended benefits
  • Inflation protection options available for an additional charge
  • Base policy benefits Death benefit is account value Standard annuity death benefits available: account value; GOB; EGMDB Death benefit plus potential for cash value accumulation Death benefit
    Flexibility 10% free withdrawal without surrender charge available each contract year 10% free withdrawal without surrender charge available each contract year
  • Can set monthly or lump sum payout
  • Lapse protection in force when client goes on claim
  • 100% or 80% ROP options available once all premiums are paid
  • Choice of 2 to 7-year benefit periods
  • Leverage
  • 3x purchase payments guaranteed with the opportunity to increase coverage based on crediting rate
  • 3% or 5% Optional Inflation Benefit
  • 3x purchase payments guaranteed with the opportunity to increase coverage based on underlying fund performance Death benefit 2-3x face amount with the opportunity for enhanced leverage based on optional inflation protection

    The Lincoln LifeEnhance® Accelerated Benefits Rider is not long-term care insurance nor is it intended to replace the need for long-term care insurance. The benefits are supplementary to the primary need for death benefit protection. The rider may not cover all of the costs associated with the chronic illness of the insured. The benefits of the rider are limited by the policy’s death benefit at the time of claim; long-term care insurance does not typically contain this limitation.

    Accelerated death benefits may be taxable and may affect public assistance eligibility.

    Tax qualification

    The benefits paid under this rider are intended to be treated as accelerated death benefits under section 101(g)(1) of the Internal Revenue Code of 1986, as amended (the “Code”). The Company considers the benefits paid under this rider that do not exceed the maximum Per Diem Limit as prescribed by law to be eligible for exclusion from income under section 101(a) of the Code to the extent that all applicable qualification requirements under the code are met. If benefits are paid in excess of the applicable Per Diem Limit, or if benefits are paid and all applicable qualification requirements are not met, the benefits may constitute taxable income to the recipient. This rider is not intended to be a qualified long-term care insurance contract under section 7702(b) of the Code. The tax treatment of the accelerated death benefits may change, and clients should always consult and rely on the advice of a qualified tax advisor.

    Lincoln Financial Group® affiliates, their distributors, and their respective employees, representatives and/or insurance agents do not provide tax, accounting or legal advice. Please consult an independent advisor as to any tax, accounting or legal statements made herein.

    Issuers:

    The Lincoln National Life Insurance Company, Fort Wayne, IN

    Lincoln Life & Annuity Company of New York, Syracuse, NY

    The Lincoln National Life Insurance Company does not solicit business in the state of New York, nor is it authorized to do so.

    All guarantees and benefits of the insurance policy are subject to 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, riders and features are subject to state availability. The insurance policy or annuity contract and its riders have limitations, exclusions, and/or reductions. Check state availability. Long-term care benefit riders may not cover all costs associated with long-term care costs incurred by the insured during the coverage period.

    Distributor: Lincoln Financial Distributors, Inc., a broker-dealer

    Insurance policies:

    Lincoln LifeGuarantee® UL (2013) policy form UL6000 and state variations with optional rider form ABR-7001. Not available in NY.

    Lincoln LifeReserve® Indexed UL Accumulator (2014) policy form UL6024/ICC14UL6024 and state variations with optional rider form ABR-5762; UL6024N with optional rider form ABR-5762N in NY.

    Lincoln WealthAdvantage® Indexed UL policy form UL6046/ICC15UL6046 and state variations with optional rider form ABR-7027/ICC15ABR-7027; UL6046N with optional rider form ABR-7027N in NY.

    Lincoln WealthPreserve® Survivorship IUL policy form SUL6035 and state variations with optional rider form ICC14ABR-7012/ABR-7012; SUL6035N with option rider form ABR-7012N in NY.

    Lincoln MoneyGuard® II, universal life insurance policy form LN880/ICC13LN880 with the Value Protection Rider (VPR) on form LR880 and state variations/ICC15LR880 Rev, Long-Term Care Acceleration of Benefits Rider (LABR) on form LR881/ICC13LR881, and optional Long-Term Care Extension of Benefits Rider (LEBR) on form LR882/ICC13LR882. Not available in NY.

    Lincoln AssetEdge® VUL (2015) policy form LN683 and state variations with optional rider form ICC15LR631/LR631; LN683 with optional rider form LR631 in NY.

    Lincoln AssetEdge® Exec VUL (2015) policy form LN683 and state variations with optional rider form LR631; LN683 with optional rider form LR631 in NY.

    Lincoln VULONE (2014) policy form LN696 and state variations with optional rider form LR630. Not available in NY.

    Annuity contracts:

    A fixed annuity is intended for retirement or other long-term needs. It is intended for a person who has sufficient cash or other liquid assets for living expenses and other unexpected emergencies, such as medical expenses.

    Lincoln Long-Term CareSM Fixed Annuity (contract form 06-608 and state variations) with Long-Term Care Benefits Rider (form AE-227 and state variations), Long-Term Care Coverage Endorsement (form AE-235 and state variations) and Contract Amendment for Long-Term Care Benefits (form AE-236 and state variations). Not available in NY.

    Variable annuities are long-term investment products designed for retirement purposes and are subject to market fluctuation, investment risk, and possible loss of principal. Variable annuities contain both investment and insurance components and have fees and charges, including mortality and expense, administrative, and advisory fees. Optional features are available for an additional charge.

    Lincoln Long-Term CareSM Advantage Rider is available with American Legacy® and Lincoln ChoicePlus AssuranceSM variable annuities (contract forms 30070-B with LTC riders AR-518(3-10) and AR-519(3-10) and state variations. Not available in NY.

    All contract and rider guarantees, including those for optional benefits, fixed subaccount crediting rates, or annuity payout rates, are subject to the claims-paying ability of the issuing insurance company. All features may not be available in all states.

    There is no additional tax-deferral benefit for an annuity contract purchased in an IRA or other tax-qualified plan.

    Planning Resources

    Create interest and start the planning process.

    Use these planning tools to show your clients why they should prepare to protect their wealth, their loved ones and their financial independence from the impact of long-term care risk.

    Client Videos

    video teaserLONG-TERM CARE COSTS - UNDERSTANDING THE CHALLENGE

    For use in all states except: AZ, CA, CT, DC, DE, FL, HI, IN, MT, NJ, ND, NY, SD, and VI.

    video teaserLONG-TERM CARE COSTS - UNDERSTANDING THE CHALLENGE (non-ICC)

    Available only in the following states: AZ, CA, CT, DC, DE, FL, HI, IN, MT, ND, NJ, NY, SD, and VI.

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