As a leader in the hybrid long-term care marketplace, Lincoln has a long-standing commitment to helping you protect the wealth of your clients against long-term care expenses with innovative solutions appropriately priced for market conditions.
Therefore, following a thorough and in-depth analysis of all factors influencing pricing, including those related to the persistent low interest rates, we will be making pricing adjustments. Effective March 16, 2020, Lincoln Financial Group will implement pricing updates to the Lincoln MoneyGuard® III product with the launch of Lincoln MoneyGuard® III (2020).
This is a change to rates only. There are no changes to the product structure, contract language, forms, compensation or types of benefits provided.
Pricing adjustments will result in a price increase between 0-8%.
- Single pays will see an increase of 8%
- Flexible premium payments will see an increase that trends down as the duration of payments is extended:
- 5-pays increase 6.5%
- 10-pays increase 4.5%
- 15-pays increase 3.0%
- 20-pays increase 1.5%
- 25-pays increase 0.5%
There is a transition period which begins on March 16, 2020, and ends on March 27, 2020. Important items to be aware of regarding the Transition Guidelines are listed below;
- For applications to qualify for the current Lincoln MoneyGuard® III pricing, a projection of values and the completed Part 1 must be signed, dated, and received in-good-order by Lincoln’s home office by Friday, March 27, 2020.
- For pending or issued business, after March 16, 2020, Lincoln will accept requests with a revised projection of values to change to Lincoln MoneyGuard® III (2020) pricing.
- For placed business, normal internal replacement guidelines apply. Rewrites will not be accepted.
- Ensure that you are appropriately credentialed. Clients of financial professionals who are not properly credentialed to solicit business when the paperwork is submitted will be subject to the premium rates in effect on the date when the financial professional becomes properly credentialed and resubmits the paperwork.
- Remember that once an application is submitted, the Personal History Interview (PHI) must be completed within 60 days of submission. In addition, the case must be placed within 90 days of the PHI. If these conditions are not met, the case will be closed out. If a case is reopened, a new Part 1 must be submitted, and the case will be subject to the product available at that time.
The following riders/endorsements are included with the Lincoln MoneyGuard® III (2020) * (19-MG890, ICC19-MG890) life insurance policy;
- Long-Term Care Benefits Rider: (LTCBR-890, ICC19LTCBR-890)
- Value Protection Endorsement: (END-10534, ICC19END-10534)
- Terminal Illness Acceleration of Death Benefit Rider: (TIR-891, ICC19TIR-891)
* Lincoln MoneyGuard® III (2020) will be reflected as Lincoln MoneyGuard® III 031620 where required.