Lincoln MoneyGuard III

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Lincoln MoneyGuard III Review – Is Lincoln MoneyGuard Worth Considering?

If you’re wondering if Lincoln MoneyGuard is worth considering as a long-term care insurance option then you’ve come to the right place!

First things first, I’ll tell you that Lincoln Financial’s MoneyGuard helped pioneer the Hybrid Long-Term Care Insurance Market.

That’s why when we talk about hybrid long-term care insurance, Lincoln’s MoneyGuard often comes to mind among advisors.

In addition, MoneyGuard does offer affordable rates and great benefits which we will discuss later.

However, while I can go on about Moneyguard, I must say there are definitely other products to consider in the long-term care insurance marketplace.

If you don’t consider them, you’ll be doing your self a disservice.

Two products besides Lincoln’s MoneyGuard that are worth considering are Nationwide CareMatters and Securian Financial’s SecureCare.

These two product are well-known for their low rates and their great benefits as well. In many instances, these products actually perform better than Lincoln Financial’s MoneyGuard.

If you are wondering how, I will definitely explain it in this article.

However, before I do that, let me explain how MoneyGuard works and discuss some of its features.

This will allow me to explain later on why MoneyGuard may not always be the best option on the table.

Call now for a Free No Hassle Quote & Consultation – (800) 498-3955 or click here to request a quote

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?

Now Lincoln MoneyGuard III is a universal life insurance policy with a qualified long-term care insurance rider. As a Hybrid Long-Term Care Life Insurance policy, it provides the following three benefits to you:

  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

Therefore, MoneyGuard III provides the added flexibility you need to plan for long-term care.

How Does Lincoln Financial's MoneyGuard Work?

How the policy works is pretty simple. First, the policy accelerates the built-in death benefit 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?

If you’re wondering how you may use your policy, here is a list of the following services Lincoln MoneyGuard III covers. Services include:

  1. Adult Day Care
  2. Assisted Living
  3. Home Healthcare
  4. Hospice Care
  5. Nursing Home Care

MoneyGuard III, can cover a variety of care options. In addition, to the services mentioned above, the policy also provides bed reservation benefits as well as international benefits.

How Does Lincoln MoneyGuard III Pay Benefits?

Long-term care insurance policies pay benefits in one of two ways. They either pay:

  1. Cash benefits where they send you a check every month and you use it however you’d like OR
  2. They pay in reimbursements

Lincoln MoneyGuard III is a reimbursement policy. With a reimbursement policy, either you or your long-term care facility are reimbursed for the long-term care expenses you incurred.

Therefore, you must first submit your bills or receipts of long-term care expenses to Lincoln Financial in order for your MoneyGuard policy to pay out benefits.

This is not the case with cash benefit policies such Nationwide CareMatters and Securian Financial’s SecureCare. These policies require no submission of bills or receipt and benefits are paid directly to you as a cash benefit.

What Age Can I Apply For A Lincoln MoneyGuard Policy?

Now MoneyGuard III is available to individuals between the ages of 30-70. If you are between those ages, you can easily apply for a policy.

The application process for MoneyGuard III has streamlined underwriting with no medical exams or lab tests required. This makes it very simple.

The policy offers two rate classes: Standard & Couples Discount. The couples discount will apply based on your marital status at the time of issue only.

Key Features of Lincoln MoneyGuard III

Now that we’ve gotten some of the basics out of the way, let’s discuss the key features of Lincoln Financial’s MoneyGuard policy.

This is definitely worth discussing as the key features can help us determine if the product is right for you. So let’s jump right in.

No Elimination Period

The biggest key feature of MoneyGuard III is it has “No Elimination Period.”

The elimination period is also referred to as a deductible period or waiting period.

Since this is the case, benefits are payable on the first day of care for all eligible claims!

This means that a MoneyGuard policyholder does not have to wait your typical 90 day waiting period (which is standard among long-term care insurance policies) before they can receive their benefits.

For a MoneyGuard policyholder, no elimination period can lead to huge cost savings.

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 of 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!

Last but not least, Lincoln’s MoneyGuard offers a Transitional Care Assistance Benefit. I will explain how that works below.

Call now for a Free No Hassle Quote & Consultation – (800) 498-3955 or click here to request a quote

Transitional Care Assistance Benefit

So 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.

Let me give you an example. In the early stages of a long-term care event, care may be provided by a family member or relative for free. This is considered “informal care.”

Now with the Transitional Care Assistance Benefit, your family member can be paid up to $100 a day for up to 180 days for the informal care they provided to you.

This feature is only available in the first year of claims. However, this is a cash benefit that they can receive without you having to submit any bills or receipts of your long-term care expenses.

All you need to do is simply fill out form for them to receive it!

Now that we have covered the main features and benefits of Lincoln Financial’s MoneyGuard, I want to go into the multiple premium options available for this product.

Lincoln MoneyGuard III Premium Payment Options

For MoneyGuard III, you can pay for your policy 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.

On the other hand, there is a recurring premium option. This offers more flexibility as it allows you to pay guaranteed premiums up to age 70 or for a 10 year period.

For individuals ages:

  • 40-60 you can pay to age 70
  • 61-70 you can pay for a period of 10 years

During that time, you can pay on a monthly, quarterly, semi-annual, or annual basis. Once the payment 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. This is due to the rising cost of hybrid long-term care insurance across the market.

You can pay your policy using:

  • Cash
  • 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.

That being said, let’s compare the costs of this policy for individuals ranging from ages 50-70 against similar insurance products.

We will do this comparison for a single premium and 10-pay premium basis.

Before I do this however, I want to briefly show you what a typical Lincoln Financial MoneyGuard illustration looks like.

Example of A Lincoln MoneyGuard Quote or Illustration

Below you will an example of a typical Lincoln MoneyGuard quote or illustration:

Now what you see above is the summary page of a typical Lincoln MoneyGuard quote or illustration. I highlighted some of the sections to just point out some of the key points on the illustration.

The first box from top to bottom is reflects your premium. It generally shows your the total premium to be paid into the policy, the premium payment option (i.e. single premium, 10 year premium, monthly premium, etc.)

The next highlighted section shows the initial long-term care benefits. These are the benefits you would receive from the outset of the policy. It breaks it down on a monthly, total, and annual basis.

The next highlighted box displays the long-term care benefit duration. This is the minimum amount of time your policy will pay benefits if you went on claims.

Now the last highlighted box show your return of premium. This is the surrender value available to you if you ever change your mind and surrender the policy.

So now that we have a quick break down of how a typical Lincoln Financial MoneyGuard quote/illustration works, its time for our comparison.

Let’s compare the cost for folks ranging from ages 50-70 with similar long-term care products.

Again, we will look at a single premium and a 10-pay premium for our comparison.

Cost Comparison of Lincoln Financial’s MoneyGuard For Ages 50-70 – Single Premium

Let’s look at the table to see our cost comparison using:

  • An initial $2,500 Monthly LTC Benefit Amount
  • 6 Year Benefit Period &
  • 3% Compound Inflation Option.

Cost Comparison of Lincoln Financial MoneyGuard – Single Premium

Married Male AgeLincoln Financial MoneyGuardNationwide CareMattersSecurian Financial SecureCare
50$50,190$44,218$43,512
55$58,099$49,849$48,542
60$60,252$53,718$51,946
65$67,879$62,174$59,779
70$83,057$78,220$67,786
Using An Initial $2,500 Monthly LTC Benefit Amount | 6 Year Benefit Period | 3% Compound Inflation Option

Now for Married Males, we see that Lincoln Financial’s MoneyGuard is on the higher end when it comes to cost.

There are two other hybrid long-term care insurance products that offer the same level of coverage for a lower premium – Nationwide CareMatters & Securian Financial’s SecureCare.

These products also offer competitive features of their own that make them stand out against Lincoln MoneyGuard.

However, before we discuss those features, let’s look at a cost comparison for Married Females:

Cost Comparison of Lincoln Financial MoneyGuard – Single Premium

Married Female AgeLincoln Financial MoneyGuardNationwide CareMattersSecurian Financial SecureCare
50$60,203$49,053$47,836
55$65,772$56,669$52,570
60$70,846$61,650$58,604
65$82,276$73,665$67,437
70$107,007$103,962$81,889
Using An Initial $2,500 Monthly LTC Benefit Amount | 6 Year Benefit Period | 3% Compound Inflation Option

Even with Married Females, we see that MoneyGuard is on the higher end of the price spectrum.

In some instances, such as age 70, it can be about $20,000 more in premium compared to its competitors.

That’s $20,000 more in premium for the same level coverage.

So then, where does this leave us?

Well, before I answer that question, let us look at a cost comparison for a 10-pay policy.

Cost Comparison of Lincoln Financial’s MoneyGuard For Ages 50-70 – 10-Pay Premium

Again, we are looking at a cost comparison of MoneyGuard using the following criteria:

  • An initial $2,500 Monthly LTC Benefit Amount
  • 6 Year Benefit Period &
  • 3% Compound Inflation Option

Let’s take a look:

Cost Comparison of Lincoln Financial MoneyGuard – 10-Pay Premium (Annually)

Married Male AgeLincoln Financial MoneyGuardNationwide CareMattersSecurian Financial SecureCare
50$6,070$5,447$5,292
55$7,027$5,755$5936
60$7,287$6,410$6,416
65$8,210$7,794$7,181
70$10,045$10,587$8,218
Using An Initial $2,500 Monthly LTC Benefit Amount | 6 Year Benefit Period | 3% Compound Inflation Option. Premium Paid Annually For 10 Years.

Here again, when it comes to a 10-pay premium, we see that MoneyGuard pricier compared to other products for the same level of coverage.

Unlike the single premium setup, we see that the more affordable product changes with age for the 10-pay premium.

In some instancesNationwide CareMatters was the more affordable product while in others it wasSecurian Financial’s SecureCare.

However, regardless of age, not once did MoneyGuard price out the competition when it comes to affordability.

That being said, lets see if the same can be said for our 10-pay cost comparison using Married Females:

Cost Comparison of Lincoln Financial MoneyGuard – 10-Pay Premium (Annually)

Married Female AgeLincoln Financial MoneyGuardNationwide CareMattersSecurian Financial SecureCare
50$7,281$6,015$6,198
55$7,955$6,526$6,845
60$8,568$7,607$7,684
65$9,951$9,303$8,949
70$12,942$13,386$10,874
Using An Initial $2,500 Monthly LTC Benefit Amount | 6 Year Benefit Period | 3% Compound Inflation Option. Premium Paid Annually For 10 Years.

After a quick review, we see the same exact thing can be said in regards to a 10-pay MoneyGuard for married females.

MoneyGuard was higher priced in comparison to other 10-pay products for the same level of coverage.

WhileNationwide CareMatters was the most affordable for married females ages 50-60 &Securian Financial’s SecureCare for married females 60 and older, MoneyGuard remained the most expensive.

Again, this is for the same level of coverage.

Therefore, as I asked earlier in our first comparison, “Where does this leave us?”

Let me wrap things up and answer this question as it is a bit clear based on our comparison.

There Are Better More Affordable Options Than Lincoln Financial’s MoneyGuard

While Lincoln Financial MoneyGuard has my stamp of approval for its history in the long-term care insurance market and its unique features such as No Elimination Period, there are better options out there today.

As we saw from our cost comparison, two products that I can definitely recommend that are worth considering areNationwide CareMatters &Securian Financial’s SecureCare.

Both products offer the same level of coverage at a lower price than MoneyGuard AND they have a unique feature that MoneyGuard does not have.

Both Nationwide’s CareMatters &Securian Financial’s SecureCare are Cash Indemnity long-term care policies!

As I mentioned earlier in this article, Lincoln MoneyGuard III is a reimbursement policy.

Again, a reimbursement policy, requires you to first submit your bills or receipts of your long-term care expenses to Lincoln Financial in order for you to receive your benefits.

On the other hand, with a Cash Indemnity policy likeNationwide’s CareMatters orSecurian Financial’s SecureCare, there is no need to submit bills or receipts of your long-term carer expenses to receive benefits.

A monthly check, according to your policy’s benefits, will be paid directly to the policyowner regardless of actual long-term care expenses incurred!

This gives you way way way more flexibility to use your long-term care benefits however you’d like!

I often see that many folks prefer the freedom of using their benefits however they’d like and dread the idea of having to submit paper in order to receive their benefits.

So while Lincoln’s MoneyGuard may have pioneered the Hybrid Long-Term Care Insurance market, there are now more competitive products available that are definitely worth considering.

Therefore, I have a few suggestions before you buy a MoneyGuard this policy:

Weigh your options and have a certified long-term care specialist like myself help you consider them before you buy!

Get Free Quotes Today!

I have access to all available long-term care insurance companies. I am also licensed to sell insurance across the country.

Feel free to give me a call now at 1(800) 498-3955 or schedule a call below. I look forward to speaking with you!

Michael B. Chapman

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