Since 1905, Lincoln Financial has provided life insurance to many Americans. Today, Lincoln Financial Group not only provides life insurance but long-term care protection as well. “MoneyGuard III” is the name of their Hybrid Long-term Care – Life insurance product.
Lincoln Financial’s MoneyGuard III
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 planning for long-term care.
How Does MoneyGuard III Work?
MoneyGuard III works by first accelerating the life insurance 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 depending on their age.
Examples of ways to fund your policy include:
- Cash value from an existing life insurance via 1035 exchange
- Portion of your savings
MoneyGuard III provides 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:
- 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.
(May Vary by State)
How Does MoneyGuard III Pay Claims?
MoneyGuard III pays claims through reimbursement. Benefits are paid to you or to a long-term care facility.
Benefit payments are made after the bills or receipts of long-term care expenses you incurred are submitted 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 ?
In order to apply for this policy, you must be between the ages of 30-80.
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.
No Elimination Period
A key feature of MoneyGuard III is it has “No Elimination Period.”
An elimination period of 90 days is generally standard when it comes to hybrid long-term care insurance.
However, Lincoln Financial’s MoneyGuard III has NO elimination period. Benefits are payable on the first day of care for eligible claims.
This is great because 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!
With Lincoln’s MoneyGuard III however, you would receive your benefits from the first day you receive LTC services!
Transitional Care Assistance Benefit
MoneyGuard III offers a unique Transitional Care Assistance Benefit. This feature is designed to help you transition from informal care to formal care services.
Often times in the beginning stages of a long-term care event, it is a family member or relative providing informal caregiving services.
With the Transitional Care Assistance Benefit, MoneyGuard III will provide up to 100 a day in the first 180 days so you can pay your loved one for the informal care they provided.
This is a cash benefit that you can receive without having to submit any receipts of your long-term care expenses!
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?
MoneyGuard III can be a very competitive hybrid LTC policy for the right individual. Let’s see how competitive it is by seeing how it performs in the following 5 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.“
Now MoneyGuard III offers standard performance in 3 out of the 5 categories listed. In addition we also listed MoneyGuard’s exceptional performance in having no elimination period. So let’s recap. In regards to:
- Benefit Period – MoneyGuard III offers up to 7 years of benefits
- Inflation Protection – MoneyGuard offers standard 3% or 5% compound interest
- Elimination Period – No Elimination Period For All Eligible Claims (only hybrid product with this offer)
- Premium Payment Options – MoneyGuard III offers standard single or recurring premium payment options
Now, let’s see how well it does in regards to LTC Benefits. Let’s use a single woman in her 60’s as a case study.
Case Study: Allyson
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.
Lincoln Financial’s MoneyGuard III vs. MassMutual’s CareChoice One
Lets see what Lincoln Financial’s MoneyGuard III can offer her to cover the cost of home health care in Illinois.
Lincoln Finacial’s MoneyGuard II can provide Allyson with $4,400 in monthly LTC benefits and a benefit duration of 6 years for a single premium of $120,020.
This also comes with a 3% compound inflation option, no elimination period for eligible claims, a death benefit equal to the premium, and a return of premium if she ever changes her mind.
In addition, at age 80, her LTC benefits would increase to over $560,000 due to the inflation option.
MassMutual CareChoice One
Now lets see what the competitor MassMutual’s CareChoice One can offer them.
MassMutual’s Carechoice One can offer Allyson the same LTC coverage but for almost $9,000 more in premium at $129,000.
In addition, this policy is not offering inflation protection. Hence Allyson’s benefits will not increase with time.
Conclusion- Lincoln Financial’s MoneyGuard III Is A Quality Product
Lincoln’s MoneyGuard III is the best suited hybrid for Allyson’s needs.
MoneyGuard III is a strong hybrid long-term care insurance policy. It offers Allyson some great benefits and reasonably priced compared to its competitors.
By choosing MoneyGuard III, Allyson would receive:
- Very strong long-term care benefits
- No elimination period resulting in huge cost savings
- Standard benefit periods & inflation protection
- Reasonable return of premium options
- Reimbursement payment of benefits that can make sense for the right person
Overall, I believe MoneyGuard III does well across the board!
Is MoneyGuard III Right For Me?
MoneyGuard III can be a great option for the right individual. With features like No elimination period and inflation protection, it has made itself a popular choice for hybrid LTC products.
However, whether or not MoneyGuard III is right for you will depend on your specific needs. Without knowing your long-term care planning goals, it is not easy to say conclusively it is right for you.
Since Lincoln Financial’s MoneyGuard III is worth considering, we invite you to reach out to us so we can assess your needs and see if it makes perfect sense for you.
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If you are interested in MoneyGuard II or long-term care planning in general reach out to us now!
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