Lincoln MoneyGuard III – Objective Review

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Lincoln MoneyGuard Now Too Expensive

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.

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.

Now today there are more Hybrid Long-Term Care Insurance options available. Some of them 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 great features such as Cash Indemnity Benefits.

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

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 of 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 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:

  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 to plan for long-term care.

How Does Lincoln Financial's MoneyGuard Work?

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!

How Is Lincoln 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 Lincoln MoneyGuard III Cover?

Lincoln 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 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.

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!

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

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 LTC insurance 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 must 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.

Also, we will use a 55 year old married female as our example.

Case Study: 55 yr. Old Married Female

Allyson is a 55 year old married female looking to protect herself from long-term care expenses if she ever needs care. She is in good health, does not smoke, and plans to retire in the state of Ohio.

She is looking for a policy that starts with $3,000 in monthly long-term care benefits for 7 years and a 3% compound interest inflation option to grow her benefits.

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

Lincoln MoneyGuard III vs. Nationwide’s CareMatters

Lets see how much it costs to get $3,000 in initial monthly long-term care benefits with Lincoln MoneyGuard III:

Lincoln MoneyGuard III offers Allyson her 7 year – $3,000 monthly LTC benefit for a single premium deposit of $87,786.

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 unique feature of MoneyGuard.

Nationwide’s CareMatters – Comparison

Now lets see how much it would cost Allyson to get $3,000 in initial monthly LTC benefits with Nationwide’s CareMatters.

For a single premium deposit of $73,265, Nationwide’s CareMatters can offer Allyson her 7 year – $3,000 initial monthly LTC benefits.

This is $14,500 less in premium than Lincoln MoneyGuard for exactly the same level of coverage!

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 of your care with a Cash Indemnity! This gives you added flexibility to use your long-term care benefits however you’d like!

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

Nationwide’s CareMatters is clearly the better option for Allyson!

Therefore, what can we conclude from all of this regarding Lincoln MoneyGuard III?

Conclusion- Lincoln MoneyGuard III Is No Longer Competitive

While Lincoln’s MoneyGuard 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.

The price changes that occurred last year have practically made Lincoln MoneyGuard III no longer worth considering.

Though its good reputation preceded it for a long time (and rightfully so), my honest suggestion would be if you’re considering MoneyGuard, you should look elsewhere – particularly to Nationwide’s CareMatters.

Nationwide’s CareMatters provides valuable long-term care benefits and features for a much lower price.

The cost of Lincoln Financial’s MoneyGuard III outweighs its benefits. Hopefully things change in the future as this was a good product to have as an option.

Get Your FREE Quote Today!

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

Disclaimer: By submitting a request for a free quote, you agree to our privacy policy and consent to have agent Michael Chapman contact you by email, phone call, or text/SMS message at the phone number & email you provide for the purpose of providing you a free quote and offers for insurance. We will not sell your information. The only insurance agent that will contact you regarding your quote is Michael Chapman. You will not be contacted by numerous agents by submitting this quote.

8 thoughts on “Lincoln MoneyGuard III – Objective Review”

    1. 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.

    1. 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. 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?

    1. 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.

  2. Michael. I think an update to this article would be great. Can you speak to the concierge care coordination that is exclusive to LMG? also, how long has each competing carrier actually been paying claims? as you know, product cycles change and each carrier determines their pricing and benefits at differing times. the fact that LMG has been actually keeping promises and paying claims for 33 years speaks loud. Here is what I am saying, chasing the lowest cost premiums from the “new shiny” object in the sandbox may or may not be the best idea for the clients best interest. overall I think your article is fine, but a bit mis-leading as it sounds like you are trying to sell NW. best wishes.

    1. Michael B. Chapman

      Hey Tim!

      Thank you for visiting my site. Since you are the Regional Marketing Director for Lincoln Financial Distributors, I especially welcome your feedback. Now, as an independent agent, I am always pointing my readers and my clients to the best available products. As it currently stands, Nationwide’s CareMatters II is an undeniably better product than Lincoln Financial’s MoneyGuard.

      There was a time when I sold Lincoln’s MoneyGuard and did not recommend Nationwide’s CareMatters. The reason being, when Nationwide’s CareMatters first entered the market, it was a bit underwhelming in benefits when compared to MoneyGuard.

      However, with both products experiencing updates over the last two years, the tides have turned! As you have pointed out, product cycles change, and as a result, so do pricing and benefits. Unfortunately for MoneyGuard, it did not change in the favor of consumers.

      Now let me take some time to address a few of the points you mentioned. First, the concierge care coordination service is not, as you stated, “exclusive to Lincoln MoneyGuard.” Other carriers also offer a concierge care coordination service including Pacific Life, OneAmerica, and even Nationwide.

      Nationwide’s concierge care coordination services is called “Silver Brick Road.” Here is a link to their site: Nationwide’s Silver Brick Road.

      Now in regards to claims paying abilities, both companies are A+ rated and have been around for approximately the last 100 years. Hence, just like Lincoln Financial, Nationwide is not a “fly-by-night” company. Therefore, both companies are currently financially stable and are able to stand by their contracts.

      At the end of the day, Nationwide’s CareMatters II provides more LTC benefits per dollar compared to Lincoln’s MoneyGuard. I am not, as you say, “chasing the lowest cost premiums.” Rather, I am trying to inform my readers as to who will provide them with the highest level of coverage for their dollar. Unfortunately as it stands, Lincoln Financial just isn’t that company.

      If things change, I assure you, I would be the first to update my article for the sake of my readers and my clients. Once again Tim, thanks & I appreciate for your feedback!

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