How to use MoneyGuard II to help your 65 year old client plan for Long Term Care.

Jerry Thomas Case Study, Financial Planning, Life Insurance, Lincoln Financial, Linked Benefit Product, Long Term Care Insurance, Male Age 65, MoneyGuard, MoneyGuard II Leave a Comment

Long Term Care can drastically change how quickly assets are used up during retirement. 70% of people age 65 today will need some sort of Long Term Care. The average length of care for a male is 2.2 years and the average length of care for a female is 3.7 years. The average cost of a nursing home in the U.S is $7,698.

So how much will this cost them each? Cost of Care 2015 Nursing Home National Numbers


Case Study: Male Age 65

Victor, who turns 65 this year, and his spouse, Leslie, are recently retired. Leslie was a long-time executive, and Victor ran a consulting practice for many years. They share a desire to protect each other from long-term care costs with proper long-term care planning.

Financial Situation

Leslie’s pension covers all their living expenses, including travel and discretionary purchases. Victor accumulated a sizable SEP-IRA during his consulting career and can comfortably turn to this source to fund both of their long-term care plans. The couple recognizes the biggest risk to their retirement is the potential of incurring long-term care costs.


Their advisor recommended funding two $75,000 policies each over a five year period. Both of them would pay $15,000 per year in a five-pay Lincoln MoneyGuard II policy with 3% compound inflation protection, available for an additional charge. By withdrawing $40,000 a year from Victor’s IRA, they can pay for taxes and fund the $30,000 of premiums each year. Lincoln MoneyGuard II is a universal life insurance policy with a rider that provides income tax-free reimbursements for qualified long-term care expenses.1 Below is a example of policy values for Victor. A separate projection of values can be requested for Leslie.

Lincoln MoneyGuard Financial Review

Click Here to see how much $100,000 will buy you with pre-illustrated quotes.


You can help protect you clients assets from a potential Long Term Care claim while also offering partial liquidity or a death benefit if care is never needed. These polices are used inside of a financial plan not for the IRR on the death benefit but to protect the IRR the other assets are generating.

For more ideas on how to incorporate MoneyGuard II into your clients financial plan download Lincoln Financials MoneyGuard II Playbook

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