Lincoln Financial Group Expands Payment Options for Lincoln MoneyGuard II

Expanded Payment Options for Clients Provide Greater Flexibility at an Earlier Age and an Ability to Potentially Spread Payments up to 25 Years

Monday, February 27, 2017 5:00 am EST
Monday, February 27, 2017 10:00 am EST

Dateline:

RADNOR, Pa.

Public Company Information:

NYSE:
LNC
"These enhancements will help advisors reach an even broader client base, at a time when long-term care and longevity planning are very important."

RADNOR, Pa.--(BUSINESS WIRE)--Lincoln Financial Group (NYSE: LNC) today announced expanded payment options for MoneyGuard ® II, the hybrid life/long-term care (LTC) funding solution issued by The Lincoln National Life Company. New expanded payment options will provide even greater flexibility for clients who might want to purchase a hybrid life/long-term care solution at an earlier age, and spread payments over a longer period of time, potentially up to 25 years. MoneyGuard II was initially introduced to the marketplace in 2014 and allowed clients to pay premiums over time, up to ten years, which helped advisors provide clients with flexible solutions to help protect savings from the impact of LTC expenses.

“Since the launch of MoneyGuard II, we’ve seen a tremendous response in the marketplace to the payment flexibility this solution offers,” said Mike Hamilton, vice president, MoneyGuard Product Management, Lincoln Financial Group. “These new extended payment options provide clients considering a hybrid life/long-term care solution the potential to spread payments over a longer period of time, delivering greater flexibility and tailoring to their needs.”

New payment period options for MoneyGuard II will be as follows:

  • Clients between the ages of 40-54: payment options up to age 65, potentially as long as 25 years
  • Clients between the ages of 55-72: payment options up to 10 years
  • Clients between the ages of 73-79: payment options up to 9 years at age 73, graded down by one year at each subsequent age, to 3 years of payments at age 79

Clients may also choose to pay a one-time, single premium.

Research shows that 1 out of 2 Americans turning 65 will need some form of long-term care in their lifetime due to a life event or illness.1 However, savers often hold off on discussing long-term care options with their advisors, and tend to purchase policies later in life.

“Our MoneyGuard franchise is strong, and we maintain a continued focus on product innovation and bringing the most meaningful solutions to market,” said Bill Nash, MoneyGuard national sales manager, Lincoln Financial Distributors. “These enhancements will help advisors reach an even broader client base, at a time when long-term care and longevity planning are very important.”

Lincoln MoneyGuard solutions have been helping clients for over a quarter century protect their wealth from long-term care expenses. Lincoln MoneyGuard II is a universal life insurance policy with an optional long-term care benefit rider that provides clients income tax-free2 benefits to reimburse their qualified long-term care costs. It allows clients to select premium payments that fit their needs or choose from return of premium options that allow them to maximize LTC benefits or increase liquidity.3,4 With MoneyGuard II, policy charges are guaranteed as long as clients pay their premiums as scheduled.

Policyholders also have access to Lincoln Concierge Care Coordination, a suite of tools to help clients and their families with formal and informal care options and to coordinate the type of care needed. MoneyGuard II has no elimination or deductible period, which can help reduce total out-of-pocket costs for qualified long-term care expenses.

For additional information about the product, visit www.lincolnfinancial.com.

About Lincoln Financial Group

Lincoln Financial Group provides advice and solutions that help empower people to take charge of their financial lives with confidence and optimism. Today, more than 17 million customers trust our retirement, insurance and wealth protection expertise to help address their lifestyle, savings and income goals, as well as to guard against long-term care expenses. Headquartered in Radnor, Pennsylvania, Lincoln Financial Group is the marketing name for Lincoln National Corporation (NYSE:LNC) and its affiliates. The company had $229 billion in assets under management as of December 31, 2016. Learn more at: www.LincolnFinancial.com. Find us on Facebook, Twitter, LinkedIn and YouTube. To sign up for email alerts, please visit our Newsroom at http://newsroom.lfg.com.

About Lincoln Financial Distributors

Lincoln Financial Distributors, Inc. (LFD), the wholesale distribution business of Lincoln Financial Group (LFG), provides expertise and access to a range of solutions that help advisors protect wealth and deliver outcomes for their clients. Lincoln’s broad portfolio includes innovative annuity, life insurance and retirement solutions that focus on addressing issues related to taxes, healthcare, longevity, inflation and market volatility. LFD comprises seasoned financial professionals who distribute Lincoln products through licensed insurance agents, registered broker-dealers, and other financial services intermediaries. Affiliates are separately responsible for their own financial and contractual obligations.

Disclosure

Lincoln MoneyGuard® II is a universal life insurance policy with a Long-Term Care Acceleration of Benefits Rider (LABR) that accelerates the specified amount of death benefit to pay for covered long-term care expenses. Long-Term Care Extension of Benefits Rider (LEBR) is available to continue long-term care benefit payments after the entire specified amount of death benefit has been paid. The return of premium options are offered through the Value Protection Rider (VPR) available at issue; Base option (1) is included in the policy cost; Graded option (2) is available at an additional cost. Any additional surrender benefit provided will be adjusted by any loans/loan interest/loan repayments, withdrawals taken, and claim payments made, and may have tax implications. The cost of riders will be deducted monthly from the policy cash value. The insurance policy and riders have limitations, exclusions, and/or reductions. Additionally, long-term care benefit riders may not cover all costs associated with long-term care costs incurred by the insured during the coverage period. All contract provisions, including limitations and exclusions, should be carefully reviewed by the owner. Benefits provided are subject to medical underwriting.

Issued by The Lincoln National Life Insurance Company, Fort Wayne, IN, on Policy Form LN880 with the following riders: Value Protection Rider (VPR) on form LR880 Rev; Long-Term Care Acceleration of Benefits Rider (LABR) on form LR881; optional Long-Term Care Extension of Benefits Rider (LEBR) on form LR882.

All guarantees and benefits of the insurance policy are subject to the claims-paying ability of the issuing insurance company. They are not backed by the broker-dealer and/or insurance agency selling the policy, or any affiliates of those entities other than the issuing company affiliates, and none makes any representations or guarantees regarding the claims paying ability of the issuer.

Product not available in New York.

The purpose of this communication is the solicitation of insurance. An insurance agent /producer or insurance company will contact you.

1 Department of Health & Human Services, “Long-Term Services and Support for Older Americans’ Risks and Financing,” ASPE Issue Brief, https://aspe.hhs.gov/sites/default/files/pdf/106211/ElderLTCrb-rev.pdf, revised February 2016, page 1.

2 Long-term care reimbursements are generally income tax-free under IRC Section 104(a)(3). The benefit is subject to annual and monthly maximums and is available for a specific number of years based on the optional riders purchased (up to 7 years).

3 A return of 80% of paid premiums is available once all planned premiums are paid. The money returned will be adjusted for any loans, withdrawals and benefits paid, and will have tax implications. Rider contains complete terms and conditions. If surrendered before the planned premiums are paid, the surrender value will be paid.

4 100% return of premium is available after year 5 provided all planned premiums are paid; additional cost applies. The money returned will be adjusted for any loans, withdrawals and benefits paid, and will have tax implications. Prior to year 5, provided all planned premiums are paid, the ROP is subject to a vesting schedule, beginning at 80% in year 1, increasing to 100% in year 6. Rider contains complete terms and conditions. If surrendered before the planned premiums are paid, the surrender value will be paid.

LCN: 1668488-1221166

Contact:

Lincoln Financial Group:
Jay Russo, 860-466-1324
jay.russo@lfg.com
or
Lincoln Financial Distributors:
Stephanie Jacobson, 484-583-2499
stephanie.jacobson@lfd.com