Lincoln Financial Long-Term Care Insurance Review

Lincoln Financial Group is part of Lincoln National Corporation. The company offers life and group protection insurance, annuities, retirement planning services and long-term care insurance. Lincoln Financial opened for business in 1905 and grew into a Fortune 500 company and the fourth largest life and health insurer in the United States.

Lincoln MoneyGuard II long-term care insurance is a hybrid universal life insurance policy combined with long-term care benefits. The advantage of this hybrid long-term care insurance is the payout provided if the policyholder doesn’t use any or all long-term care benefits.

Pros
  • 98 percent of claims paid within three days
  • No medical exam needed
  • Residual death benefit or return of premium options
  • Federally tax-qualified

Cons
  • Hybrid plans generally cost more than long-term care-only plans

Lincoln Financial Long-Term Care Insurance Options

Lincoln Financial’s MoneyGuard II long-term care insurance is a hybrid policy, so a life insurance payout is available to your benefactors if you never use your long-term care benefits. Hybrid long-term care insurance is a good fit for people who are concerned about getting no return on their long-term care insurance premiums if they remain healthy until death.

– Flexible Long-Term Care Options

Lincoln MoneyGuard II long-term care insurance covers a variety of care:

MoneyGuard II also pays for caregiver training, such as for a loved one who may provide your care.

– Universal Life Benefit Long-Term Care Coverage Options

Lincoln MoneyGuard II gives consumers several options for using plan benefits in addition to long-term care. Consumers choose from:

  • Tax-free long-term care reimbursements
  • Death benefit, reduced by any loans or disbursements, for your heirs
  • Premium return of 80 or 100 percent, subject to vesting

Like universal life insurance, the death benefit grows over time according to policy terms and is affected by investment returns, loan disbursements, premium payment status and rate increases.

– Lincoln Financial Inflation Protection Option for Long-Term Care

The Journal of the American Medical Association (JAMA) confirms what we all know: medical costs are increasing quickly. A 2017 JAMA study shows an annual 4 percent increase in health care costs, outpacing U.S. economic growth of 2.4 percent between 1995 and 2015. What may seem like reasonable long-term care insurance coverage today may not pay expenses as expected 15 years down the road.

Lincoln MoneyGuard II has optional inflation protection riders to ensure adequate long-term care coverage in the years to come. You get a choice of 3 percent or 5 percent compound interest to hedge the value of your policy against long-term care price inflation. Inflation Protection is optional with an additional associated cost for adding the rider. However, it’s worth considering given rising healthcare expenses.

Below, we’ve listed some important options you choose from with a Lincoln MoneyGuard II long-term care insurance policy. The LABR in the chart refers to a Long-Term Care Acceleration of Benefits Rider. A LABR allows the insurance to pay for covered long-term care costs using part of the death benefit associated with the policy. The surrender charge on the chart is a fee charged for canceling your plan.

Lincoln Financial MoneyGuard II
Long-Term Care Insurance Options
Benefit Option 1 Option 2
Coverage $50,000 minimum – $500,000 with 2-year LABR
– $750,000 with 3-year LABR
Benefit Length 2-year minimum 7-year maximum with LABR riders
Premium Return 80% after all premiums paid 100% starting in the fifth year after all premiums paid
Surrender Charge Phases out over 10 years Phases out over 10 years
Length of Coverage Choose between 2 and 7 years, including benefit acceleration riders. Subject to policy maximums. Choose between 2 and 7 years, including benefit acceleration riders. Subject to policy maximums.

Concierge Care with Lincoln Financial Long-Term Care Insurance

Lincoln Concierge Care Coordination is available to all MoneyGuard II policyholders to assist with finding solutions and providers in your area to fit your needs. The concierge will help you file claims and review your policy, so you understand your coverage. Lincoln Concierge Care Coordination also provides help online with research, needs assessment, and a social network to interact with others facing long-term care decisions.

How to Buy Lincoln MoneyGuard II Long-Term Care Insurance

Lincoln Financial rolled out a streamlined application process in August 2018 for Lincoln MoneyGuard II long-term care insurance. Part of the new application allows customers to complete medical information over the phone with a Lincoln Financial representative or complete forms on paper in person with an agent. Forms used to apply for MoneyGuard II long-term care insurance adjust to the consumer to avoid unneeded questions and reduce interview time.

Call Lincoln Financial directly for a referral to a local adviser or use the “Find an Advisor” option on the website. Ask about MoneyGuard II discounts for insured couples, either married or domestic partners.

Lincoln financial

Source: Lincoln Financial

Lincoln Financial Complaints

Lincoln Financial gets an “A+” rating from the Better Business Bureau with 51 complaints closed in the past three years. Complaints addressed disability insurance and not Lincoln Financial long-term care insurance. The BBB notes complaints to state regulators about Lincoln Financial are lower than average for financial services and insurance companies of the same size. The company’s financial strength ratings are strong: AM Best (A+ Superior), Standard and Poor’s (AA- Very Strong), Fitch (A+ Strong), and Moody’s (A1 Good).

Lincoln Financial Long-Term Care Insurance Q&A

  • Do I need a medical exam to purchase Lincoln Financial long-term care insurance?
    No. Lincoln Financial uses streamlined underwriting which requires no medical exam or lab tests to verify eligibility.

  • How long is Lincoln MoneyGuard II’s long-term care insurance elimination period?
    One of the best features from Lincoln Financial long-term care insurance is no elimination period. Benefits start when you become eligible, which is at the point you need help with at least two activities of daily living (ADLs) for 90 days.

  • Lincoln Financial long-term care insurance is available to people of what ages?
    People between the ages of 40 and 79 are welcome to apply for Lincoln MoneyGuard II long-term care insurance.

  • Can I qualify for Lincoln MoneyGuard II insurance if I have a pre-existing condition?
    Disclose your pre-existing conditions when you apply for Lincoln Financial long-term care insurance to learn about benefits available for your circumstances with a MoneyGuard II plan.

  • Does Lincoln MoneyGuard II long-term care insurance cover care for Alzheimer’s disease or dementia?
    Lincoln MoneyGuard II pays for care required for chronic illness due to Alzheimer’s disease and other cognitive conditions.

Conclusion

Costs for long-term care are increasing and represent a weighty concern for retirees. The risk of needing long-term care combined with the significant expense puts seniors at risk for losing their life savings. While there are pros and cons to long-term care insurance to consider, many people benefit from the coverage. Lincoln Financial’s MoneyGuard II helps you be prepared for your future long-term care needs with the option of a death benefit or premium returns if you don’t need to use the benefits.

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