Lincoln MoneyGuard III Review – Is Lincoln MoneyGuard Worth Considering?
When you say Hybrid Long-Term Care Insurance, often times Lincoln MoneyGuard comes to mind. This is due to the fact that Lincoln’s MoneyGuard pioneered the Hybrid Long-Term Care Insurance Market.
Now MoneyGuard did experience a short term price increase between December 2020 – June 2021.
However, on July 12th 2021, Lincoln Financial repriced their product by lowering their rates. They have corrected course in an attempt to make themselves an option again in the Hybrid Long-Term Care Insurance market.
With lower rates, it is worth taking a look at Lincoln Financial MoneyGuard. This is especially true since MoneyGuard is known for its features such as “No Elimination Period,” its rich history, and its aggressive underwriting.
Now before I go on about Moneyguard, there are definitely other products to consider in the long-term care insurance marketplace. Two products that are worth mentioning are Nationwide CareMatters and Securian Financial’s SecureCare. These two product are well-known for their “Cash Indemnity Benefits.”
That being said, let’s continue to discuss MoneyGuard and its features along with how it works to gain a better understanding.
To skip to a product comparison of MoneyGuard & Nationwide CareMatters II, you can click it in the Table of Contents to your right.
How Does Lincoln MoneyGuard III Work?
Lincoln MoneyGuard III is a universal life insurance policy with a qualified long-term care insurance rider. This Hybrid Long-Term Care Life Insurance policy provides three benefits to you the insured:
- Long-term care coverage in the event you need long-term care services.
- A death benefit to your beneficiaries if you never need care &
- A return of premium if you ever change your mind
Using a portion of your savings, MoneyGuard III provides the added flexibility you need to plan for long-term care.
The policy works by first accelerating the policy’s death benefit. The death benefit is paid out as a living benefit to cover your qualified long-term care expenses.
Next, it offers a Long-Term Care Extension of Benefits Rider. This rider can extend your long-term care benefits once you’ve exhausted the death benefit.
With both the Acceleration of Death Benefit and the Extension of Benefits Rider, MoneyGuard III can provide up to 7 years of long-term care benefits & protection!
What LTC Services Does Lincoln MoneyGuard III Cover?
Lincoln MoneyGuard III can cover multiple long-term care services. Services include:
- Adult Day Care
- Assisted Living
- Home Healthcare
- Hospice Care
- Nursing Home Care
With MoneyGuard III, you are able to select from a variety of care options. The policy also provides bed reservation benefits and international benefits as well.
How Does Lincoln MoneyGuard III Pay Claims?
Lincoln MoneyGuard III pays claims through reimbursement. Benefits are paid to you or to a long-term care facility for qualified long-term care expenses incurred. In order to receive benefit payments, you must submit your bills or receipts of long-term care expenses to the insurer.
Reimbursement of benefit payments help ensure that your benefits are not misused and are utilized for LTC services only.
How Can I Qualify for Lincoln MoneyGuard III?
MoneyGuard III is available to individuals between the ages of 30-70. The application process for MoneyGuard III has streamlined underwriting with no medical exams or lab tests required.
Additionally, there are two rate classes: Standard & Couples Discount. A couples discount will apply based on your marital status at the time of issue only.
How May I Pay For A Lincoln MoneyGuard III Policy?
MoneyGuard III can be paid using a single or recurring premium option.
The single premium option allows you to pay your premium in one single lump-sum. No further premium would be required after this lump-sum payment. This option offers the most cost savings and is the preferred option by some folks.
The recurring premium option offers more flexibility as it allows you to pay guaranteed premiums over a 10 year period. You can pay on a monthly, quarterly, semi-annual, or annual basis. Once the 10 year period is over and all premium payments have been met, no further premium would be required. This option has definitely grown in popularity over the last two years.
You can pay your policy using:
- A portion of your savings
- Cash value from an existing life insurance via 1035 exchange
There is great flexibility in regards to premium payment options and ways to fund your policy.
Key Features of Lincoln MoneyGuard III
No Elimination Period
A key feature of MoneyGuard III is it has “No Elimination Period.”
Benefits are payable on the first day of care for eligible claims. This is great because an elimination period of 90 days is typically standard with long-term care insurance.
This is also a great feature as having no elimination period can lead to huge cost savings for you!
For example, the median daily cost of a private room in a nursing home is about $275 a day. If you had a 90-day elimination period, you may pay a total of almost $25,000 out-of-pocket expenses before you would receive benefits.
However, with MoneyGuard’s “No Elimination Period,” you would receive benefits from the first day of eligible long-term care services rendered!
Transitional Care Assistance Benefit
Lincoln MoneyGuard III offers a unique “Transitional Care Assistance Benefit.” This feature is designed to help you transition from informal care to formal care services.
Generally in the early stages of a long-term care event, a family member or relative may provide you with informal care. This is typically done freely by a family mermber out of love and concern for their loved one(s).
However, with the Transitional Care Assistance Benefit, MoneyGuard III will provide up to $100 a day for up to 180 days to pay your family member for the informal care they provided you.
This feature is only available in the first year of claims. However, this is a cash benefit that you can receive without having to submit any receipts of your long-term care expenses. All you need to do is fill out a simple form in order to receive it!
How Does Lincoln MoneyGuard III Compare to Other Products?
Now here is where things get interesting. So far in our review of MoneyGuard III, we see that it is definitely a valuable Hybrid Long-Term Care insurance product. Therefore, let’s see how it compares to other products such as Nationwide CareMatters II.
Now MoneyGuard is competitive in 4 of the 5 following categories:
- Long-Term Care Benefits
- The Benefit Period – ✔
- Inflation Protection Options – ✔
- Elimination Period – ✔
- Premium Payment Options – ✔
(For a better understanding of each of those 5 categories, read our post “5 Things to Review In Every Hybrid Long-term Care Policy.“)
Therefore based on our list, the only category really worth comparing is the Long-Term Care Benefits.
The question we must ask for our comparison is, “How much long-term care benefits will my money buy from each company?”
For our comparison we will compare Lincoln Financial’s MoneyGuard to Nationwide’s CareMatters. We will see how much benefits each company will offer for the same premium.
Since long-term care rates tend to be higher for females, we will use a 55 year-old married female as our example.
Example – 55 Year Old Female
A 55 year old married female is looking to protect herself from long-term care expenses if she ever needs care. She is in good health and does not smoke.
She would like to pay her policy over the next 10 years on an annual basis and can afford approximately $6,500 a year for her premium.
Since around age 80 is typically the age some long-term care events begin, we will use it as our reference point when comparing products and benefits.
Now let’s take a look at what each product will offer her in benefits at age 80.
Lincoln MoneyGuard III vs. Nationwide’s CareMatters
Lets see what Lincoln MoneyGuard III can offer a 55 year-old married female for about $6,500 a year in premium for the next 10 years:
Now Lincoln MoneyGuard III offers a $332,041 total long-term care benefit pool at age 80. Benefits would be disbursed over a 6 year period for long-term care services.
This also comes with no elimination period for all eligible claims. Once again, the “No Elimination Period” is a unique feature of MoneyGuard.
Now let’s see what Nationwide’s CareMatters can offer a 55 year-old married female for about $60,000 .
For approximately the same premium, Nationwide’s CareMatters would provide a total long-term care benefit pool of $406,302 at age 80. This benefit amount would be disbursed over a 6-year period as well for long-term care services.
Therefore CareMatters offers over $70,000 more in long-term care benefits at age 80 than Lincoln Financial’s MoneyGuard.
In addition, as stated earlier, Nationwide’s CareMatters is a Cash Indemnity policy.
There is no need to submit bills or receipts of your care with a Cash Indemnity policy. A monthly check, according to your policy benefits, will be paid directly to the policyowner regardless of actual long-term care expenses incurred.
This gives you added flexibility to use your long-term care benefits however you’d like.
Let’s look at another example this time using a 55 year old male.
Example 55 Year Old Male
In this example we will use a 55 year old married male. We’ll even use a slightly lower premium of about $5500 a year for 10 years.
Lincoln MoneyGuard III vs. Nationwide’s CareMatters
Let’s start by looking at the benefits offered by Lincoln Financial’s MoneyGuard. Again we will pretend this individual will need long-term care services at age 80.
Now Lincoln MoneyGuard III offers a $325,055 total long-term care benefit pool at age 80. Benefits would be disbursed over a 6 year period for long-term care services.
Again, there is no elimination period for all eligible claims and this is a unique feature only available with Lincoln MoneyGuard.
Now let’s take a look at what Nationwide CareMatters can offer the 55 year old married male for the same premium.
For approximately the same premium of $5,500 for 10 years, Nationwide’s CareMatters would provide a total long-term care benefit pool of $406,304 at age 80. This benefit amount would be disbursed over a 6-year period as well for long-term care services.
Again, Nationwide CareMatters provides over $70,000 more in coverage than Lincoln’s Moneyguard for the same level of premium.
Therefore, based on our multiple comparisons, what can we conclude regarding Lincoln MoneyGuard III?
Conclusion – MoneyGuard III May Not Always Be The Right Option
While Lincoln’s MoneyGuard may have pioneered the Hybrid Long-Term Care Insurance market, there are now other products like Nationwide’s CareMatters II worth considering as well.
Though its good reputation preceded it for a long time (and rightfully so) I do have a few suggestions before you choose this policy:
- First, get yourself a Lincoln MoneyGuard Quote
- Second, get a quote from a similar product like Nationwide’s CareMatters &
- Last, compare to see who is giving you the most coverage and benefits for your dollars
Nationwide’s CareMatters offers more long-term care benefits and features than Lincoln Financial’s MoneyGuard for practically the same cost to you.
Therefore, weigh your options and consider them before you buy!
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