Effective September 16, 2019, subject to state availability, The Lincoln National Life Insurance Company (Lincoln) is introducing the latest updates to its MoneyGuard solutions suite with Lincoln MoneyGuard®
III, life insurance with a long-term care rider.
As part of our long-standing commitment to provide you and your clients with our strongest long-term care solutions, we are constantly reviewing and enhancing our product lineup. As a result, we are pleased to announce the launch of MoneyGuard III, which offers a new Long-Term Care Benefits Rider (LTCBR) design for simplified policy designs and consistent benefit period pricing.
The introduction of the Transitional Care Assistance Benefit and the Terminal Illness Rider adds additional flexibility for clients to provide for their care needs. In addition, Lincoln MoneyGuard III will be expanding our return of premium options, issue ages and payment options to provide more financial flexibility to clients.
Lincoln MoneyGuard III® complies with principle-based reserving (PBR)/2017 CSO Mortality Table regulatory adopted by the NAIC. Following a transition period, Lincoln MoneyGuard III will replace currently sold Lincoln MoneyGuard® II (2019) in all approved states.
|Added Simplicity||More Flexibility|
Single Rider DesignThe LTCBR is one simple rider (rather than separate riders for Acceleration and Extension), which allows for a streamlined contract structure and consistent pricing between the benefit period options.
LTC benefit design of 3–7 years
Updated Contract Language
|Transitional Care Assistance (TCA) Benefit
New Covered Service that helps clients transition from informal to formal careThe TCA allows for $100/day for up to 180 days (no receipts required)
Terminal Illness Rider (TIR)
Flex Pay Options
Maximum issue age: 80 (previously 79)Minimum issue age: 30 (previously 40)
Return of Premium
Vested: 100% with an 11-year vesting schedule (previously a 6-year vesting schedule)
Due in large part to the PBR/2017 CSO Mortality Table regulatory changes and the significant headwinds presented by the current interest rate environment, we will be making pricing adjustments leading to a
cost increase — the weighted average increase is about 7% between ages 50–70.
Overall, the pricing change range in this core market is between 0% to 20% depending on several factors, including age, gender, marital status, and funding schedule.
With these design changes, some sales opportunities have improved for certain benefit periods and inflation options, for example, the 5-year benefit period and 5% compound inflation availability.
New business applications will be accepted on September 16, 2019, in states where MoneyGuard® III is approved. The new product will be available in all states except CA, DE, DC, MT, NJ, NY and VI. As
additional states approve MoneyGuard® III, they will become available upon announcement. Please note, the new product will not be available in New York.
For applications to qualify for the current MoneyGuard ® II (2019), a projection of values and the completed Part I must be signed, dated and received in good order by Lincoln’s Home Office by Friday,
November 1, 2019.
For pending or issued business, after September 16, 2019, Lincoln will accept requests to change to MoneyGuard® III by submitting a revised projection of values.
- Before policy issue (or reissue if currently in issued status), a signed Terminal Illness Disclosure will be required.
- Prior to policy placement, a completed MoneyGuard III Part I Application will be required (in place of completing a new Part I, Lincoln can amend the current MoneyGuard II Part I to satisfy this requirement).
- In addition, the advisor should provide the updated Outline of Coverage to the client.
For placed business, normal internal replacement guidelines apply. Rewrites will not be accepted.
Standard MoneyGuard rules apply during this transition
- Ensure that you are appropriately credentialed. Clients of advisors 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 advisor 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 (or within the non-PBR/2017 CSO deadline on the next page). 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.