Effective May 30, 2017, Lincoln MoneyGuard® II is introducing expanded payment options and pricing changes for new sales of the product, in the states of Florida, Indiana, North Dakota and Virgin Islands.
Background
Lincoln has a long-standing commitment to helping you protect client wealth from long-term care expenses with innovative solutions appropriately priced for market conditions.
Upholding this commitment means creating new opportunities for our partners to grow their business and reach new customers. It also requires us to proactively manage our business in today’s persistently low interest rate environment. To achieve this balance, Lincoln makes fair and responsible adjustments when appropriate to provide value to our policy owners, partners and shareholders, and operate responsibly for the long-term.
Market conditions have been challenging, yet Lincoln MoneyGuard® continues to grow. This is because we are committed to being able to offer your clients a flexible product that offers benefit and payment options that fit their specific needs.
Product Change Highlights
Expanded Payment Options
Due to customer demand, we are expanding our payment options to provide more financial flexibility to clients. Our new expanded payment options will give clients greater flexibility to purchase a policy at an earlier age and spread their payments over a longer period of time.
Listed below is the availability for the new expanded payment options;
- Clients ages 40 to 54 will now have the option to fund up to age 65, potentially for as long as 25 years.
- Clients between the ages of 55 and 72 will continue to have a choice of payment options up to 10 years.
- Clients between the ages of 73 and 79 will have a new schedule of payment options. Starting at age 73, clients can choose options up to 9 years, grading down by one year at each subsequent age, to 3 years of payments at age 79.
- Single premium payment options are still available.
Pricing Change
The pricing changes identified below were made following a thorough and in-depth analysis of all factors influencing pricing, including those related to the persistently low interest rates. These are the first pricing changes since the product was introduced in early 2014 and will result in a pricing increase or decrease, depending on each client’s specific situation.
- Overall, the pricing is increasing by an average of 10%
- In our core markets: o Single pay premium rates will increase by a range of 2% to 11% with an average increase of 10%
- Flexible premium rates will increase by a range of 8% to 18% with an average increase of 14%
At certain ages, this pricing adjustment may alter the benefit level or rider combinations available for sale. For situations where rider/inflation combinations are no longer available, there are alternative options. Contact your Lincoln wholesaler to learn more.
Existing policy owners are not affected, because one of the product’s unique benefits is that all rates and charges are fully guaranteed, assuming all premiums are paid as scheduled and no loans or withdrawals are taken for the life of the policy.
Lincoln MoneyGuard® insurance continues to be the competitively priced life/long-term care hybrid solution that provides clients benefits even if they never need long-term care.
Transition Guidelines
Reflected below are the Transition Guidelines for the states of Florida, Indiana, North Dakota and Virgin Islands:
- As previously announced on 4/24/2017, for applications to qualify for the Lincoln MoneyGuard® II (2015) pricing, the completed ticket and one other required point of sale form for Lincoln MoneyGuard® II (2015) must be signed, dated, and received in good order by Lincoln’s home office by May 26, 2017 by 6:00 pm EST.
- For pending business, after May 26, 2017 Lincoln will accept a written request and a revised projection of values to change to Lincoln MoneyGuard® II (2017).
- For states that approve after the May 30, 2017 launch date, a standard 30 day transition period will apply. Please refer to the grid below for Key Transition Dates for all states.
- For issued or placed business, normal internal replacement guidelines apply. Rewrites will not be accepted.
Summary of Key Transition Dates
See below for grid that summarizes the key transition dates for the multiple transition timelines. Please note, states not identified below are already selling Lincoln MoneyGuard® II (2017).
| State | DesignIt Release Date for MoneyGuard II (2017) | Transition Cutoff Date for MoneyGuard II (2015)
|
MoneyGuard II (2017) Product Availability |
| FL, IN, ND, VI | 4/24/17 | 5/26/17 | 5/30/17
|
| CA, HI, MT | Pending State Approvals
|
||
| NY | Has not been filed with the State | ||