Effective July 12, 2021, Lincoln Financial will be implementing pricing improvements to Lincoln MoneyGuard® III, Lincoln MoneyGuard® II, and Lincoln MoneyGuard® II NY.
The purpose of these pricing updates is to improve competitive pricing in key cells. There will be no pricing increases as a result of this update.
After a transition period, currently sold MoneyGuard® products will be replaced by the following:
- Lincoln MoneyGuard® III (2021) – 07/12/21 will replace currently sold Lincoln MoneyGuard® III (2021)
- Lincoln MoneyGuard® II (2020) – 07/12/21 will replace currently sold Lincoln MoneyGuard® II (2020) – 06/14/21 in the state of California.
- Lincoln MoneyGuard® II NY – 07/12/21 will replace currently sold Lincoln MoneyGuard® II NY – 06/14/21 in the state of New York.
Lincoln MoneyGuard® III
- 5-year LTC benefit duration with 3% inflation option design for issue ages 55-65 will see the following updates:
- Couples Discount underwriting class will see an average pricing decrease of 10%. Standard underwriting class will see an average pricing decrease ranging from 3% to 10%.
- 5-year LTC benefit duration with 5% Inflation option design for issue ages 55-65 will see the following updates:
- Couples Discount underwriting class will see an average pricing decrease of 8%. Standard underwriting class will see an average pricing decrease of 6%.
- Issue ages 51-54 and 66-69 may also see moderate pricing improvements.
Lincoln MoneyGuard® II
- 6-year LTC benefit duration with 3% inflation option design will see prices decrease by an average of 9.5% with a range of 6% to 13% based on issue age, gender and underwriting class.
Lincoln MoneyGuard® II NY
- 6-year LTC benefit duration with 3% inflation option design will see prices decrease by 9% for all issue ages, genders, and underwriting classes.
Availability and Transition Guidelines
Please see below for information pertaining to the transition guidelines associated with these July 12, 2021 pricing updates;
- For applications to qualify for the current products, a projection of values and the completed application Part 1 must be signed, dated, and received in-good-order by Lincoln’s home office by Friday, August 13, 2021.
- For pending or issued business, on or after July 12, 2021, Lincoln will accept requests with a revised projection of values to change to new product offerings.
- For placed business, normal internal replacement guidelines apply. Rewrites will not be accepted.
- As of July 12, 2021, Lincoln DesignItSM and WinFlex will be updated with the new product version. During the transition period, both versions can be run.
- 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 product 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.
- New York Reg 187: Please note that effective February 1, 2020, financial professionals are now required to complete two presale training courses prior to soliciting new business or servicing existing business in New York. Specifically, the trainings include:
1. NY Regulation 187 Best Interests Training; AND
2. Carrier Specific Product Training
You will not need to retake these trainings if you have already completed them (this rate change does not require any additional product training). In accordance with NY Regulation 187, the enhanced documentation and suitability review are still required before policy issue.