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Lincoln Financial’s MoneyGuard III – Objective Review

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Lincoln Financial’s MoneyGuard Now Too Expensive

Updated 8/21/ 2020

When you say Hybrid Long-Term Care Insurance, often times Lincoln Financial’s MoneyGuard comes to mind. This due to the fact that Lincoln’s MoneyGuard pioneered the Hybrid Long-term Care/Life Insurance Market.

Since its inception, agents like myself have recommended it due to its great features and reasonable pricing. However, in of April 2020 and again in June 2020, Lincoln Financial raised their rates on their MoneyGuard product.

Unfortunately, due to these recent price changes, MoneyGuard has now become one of the more expensive (if not the most expensive) Hybrid Long-term Care insurance product. In addition, today there are more Hybrid Long-term Care Insurance options available that offer just as much value as MoneyGuard at a lower cost.

One of the better Hybrid LTC insurance options I can think of is Nationwide’s CareMatters II. As of early 2020, CareMatters II has definitely picked up where Lincoln’s MoneyGuard has left off. This is due to its lower pricing and its great features such as Cash Indemnity Benefits.

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However, since we are discussing Lincoln’s MoneyGuard, it’s important that we first review how the product works. From there, it will be easier to understand why the product had such a great reputation and why pricing has made it a lot less attractive.

To skip to the product comparison MoneyGuard & Nationwide’s CareMatters, you can click it in the Table of Contents below. Otherwise, here is what we will cover in this article:

How Does MoneyGuard III Work?

So 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:

  1. Long-term care coverage in the event you need long-term care services.
  2. A death benefit to your beneficiaries if you never need care
  3. A return of premium if you ever change your mind

Using a portion of your savings, MoneyGuard III provides the added flexibility you need planning for long-term care.

MoneyGuard Graphic

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. Altogether, MoneyGuard III can provide up to 7 years of Long-term Care benefits & protection!

How Is MoneyGuard III Funded?

MoneyGuard III can be funded using single or recurring premiums. It offers flexible premium payments in years 1-10 with the option to pay on a monthly, quarterly, semi-annual, or annual basis. Also, it offers a pay to age 70 option to individuals based on their age.

Examples of ways to fund your policy include:

  • Cash
  • 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.

What LTC Services Does MoneyGuard III Cover?

MoneyGuard III can cover multiple Long-term Care services. Services include:

  1. Adult Day Care
  2. Assisted Living
  3. Home Healthcare
  4. Hospice Care
  5. 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 MoneyGuard III Pay Claims?

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 Money Guard 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.

Key Features of 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 would have to pay a total of almost $25,000 out-of-pocket before you can receive benefits.

However, with MoneyGuard’s No Elimination Period, you would receive benefits from the first day of eligible long-term care services rendered!

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Transitional Care Assistance Benefit

MoneyGuard III offers a unique Transitional Care Assistance Benefit. This is a cash benefit that you can receive without having to submit any receipts of your long-term care expenses! This feature is designed to help you transition from informal care to formal care services.

Generally, in the beginning stages of a long-term care event, it is a family member or relative providing informal care. With the Transitional Care Assistance Benefit, MoneyGuard III will provide up to $100 a day for up to 180 days so you can pay your loved one for the informal care they provided.

This feature is only available in the first year of claims. However, all you need to do is fill out a simple form in order to receive it!

How Does MoneyGuard III Compare to Other Hybrid 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 product. However, with the recent price changes, it has lost much of its attractiveness.

Nevertheless, MoneyGuard is competitive in 4 of the 5 following categories:

  1. Long-term Care Benefits
  2. The Benefit Period – ✔
  3. Inflation Protection Options – ✔
  4. Elimination Period – ✔
  5. 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.)

Based on our list, the only category that has now become questionable due to the recent price change is the Long-term care Benefits. Therefore, the question we ask for our comparison is, “How much will it cost me to get a certain amount of monthly LTC benefits?”

For our comparison we will compare Lincoln Financial’s MoneyGuard to Nationwide’s CareMatters. We will see how much it will cost to receive the same level of benefits from each carrier. In addition, we will use a single woman in her 60’s as our example.

Case Study: 63 yr. Old Female

Allyson is a 63 year old widow looking to protect herself from long-term care expenses if she ever needs care. She is in good health, does not smoke or use tobacco, and plans to retire in the state of Illinois. She is looking for a policy that offers $4,000 in initial monthly LTC benefits.

Let’s take a look at what each carrier will offer her.

Lincoln Financial’s MoneyGuard III vs. Nationwide’s CareMatters

Lets see how much it costs to get $4,000 in initial monthly LTC benefits with Lincoln Financial’s MoneyGuard III:

For $141,405, Lincoln Financial’s MoneyGuard III can provide Allyson with $4,000 in initial monthly LTC benefits with a benefit duration of 6 years.

This also comes with a 3% compound inflation option and no elimination period for all eligible claims. Once again the “No Elimination Period” is a feature that is unique to MoneyGuard.

Nationwide’s CareMatters – Comparison

Now lets see how much it would cost Allyson to get $4,000 in initial monthly LTC benefits with Nationwide’s CareMatters.

For $112,709, Nationwide’s CareMatters can offer Allyson $4,000 in initial monthly LTC benefits. This is $30,000 less in premium than MoneyGuard for exactly the same level of long-term care coverage!

In addition, while MoneyGuard may have “No Elimination Period,” CareMatters has a similar feature of its own. Nationwide’s CareMatters will pay you retroactive monthly LTC benefits once the elimination period is satisfied.

In addition, Nationwide’s CareMatters is a Cash Indemnity policy. This means a monthly check, according to your policy benefits, will be paid directly to the policyowner regardless of actual long-term care expenses incurred! There is no need to submit bills or receipts your care!

Nationwide’s CareMatters provides valuable long-term care benefits and features for a much lower price. Hence, Nationwide’s CareMatters is clearly the better option for Allyson!

Conclusion- MoneyGuard III Is No Longer Competitive

While Lincoln’s MoneyGuard III may have pioneered the Hybrid Long-Term Care Insurance market, it now pales in comparison to Nationwide’s CareMatters II due to its exorbitant prices. Currently, the recent price changes have practically made MoneyGuard no longer worth considering.

Though its good reputation preceded it for a long time (and rightfully so), my honest suggestion would be anyone considering this hybrid product should look elsewhere – particularly to Nationwide’s CareMatters. Its benefits are no longer worth the cost. Hopefully things change in the future as this was a good product to have as an option.

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If you were interested in MoneyGuard and would like to see a comparison with another Hybrid Long-Term Care Insurance product, feel free to give us a call today at 1(800) 498-3955 or schedule a call for a FREE quote below!

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6 Comments

    • Michael B. Chapman

      Hi Marcus,

      Thanks for visiting our site! When it comes to CareChoice One vs. MoneyGuard II, MoneyGuard II wins by a landslide. MoneyGuard II offers value that CareChoice One just does not offer. It has no elimination period, provides a couples discount, offers a guaranteed benefit period longer than 4 years, and offers inflation protection at a reasonable rate (unlike CareChoice One).

      In addition MoneyGuard II typically will provide more LTC coverage than CareChoice One. I hope this information was helpful. You can give me a call at (800) 498-3955 and I would be more than happy to assist you in getting the right hybrid policy for your needs.

    • Michael B. Chapman

      Hello Ron,

      MoneyGuard II will no longer be available after Nov 1. 2019. The new higher priced MoneyGuard III will be on the market. In order to lock-in the lower rates of MoneyGuard II, you would need to place an application in good order with Lincoln no later than Nov. 1st. Please give me a call at (800) 498-3955 if you need assistance with your Hybrid LTC insurance needs.

  1. Greg

    have the requirements for ADL’s changed between Moneyguard 2 and 3? specifically it seems moneyguard 3 requires “substantial assistance” of 2 of 6 ADL’s to be eligible for a claim. has that changed and what is the requirement for Mass Mutual’s Care Choice plan?

    • Michael B. Chapman

      Hi Greg,

      Thanks for visiting my site. To my knowledge it has remained the same. In regards to hybrid products and being eligible for claims, there are two things that must be done. First, you are typically required to be certified as “chronically ill” by a licensed health practitioner.

      This means you’re unable to do at least two activities of daily living (ADL’s) without the help of a personal caregiver or you need to be supervised to protect your health and safety because you have a cognitive impairment (such as Alzheimer’s or Dementia). Second, you must complete the elimination period (if there is any) that is set by the insurance carrier for their product. This is typically standard across the board for claims eligibility with hybrid long-term care insurance products.

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