Coming Soon – Lincoln MoneyGuard Fixed Advantage
We’re excited to announce our newest addition to the Lincoln MoneyGuard solutions product portfolio, Lincoln MoneyGuard Fixed Advantage will be available effective May 16, pending state approval.
MoneyGuard Fixed Advantage is a universal life insurance policy with a long-term care rider that preserves the core design features of our current MoneyGuard Universal Life product. Following a transition period, MoneyGuard Fixed Advantage will replace Lincoln MoneyGuard® III in approved states.
With the launch of MoneyGuard Fixed Advantage, we’re excited to introduce the new Benefit Transfer Rider (BTR) that is automatically included with all MoneyGuard Fixed Advantage policies, at no additional cost. This innovative rider provides the opportunity to enhance an existing policy’s long-term care and death benefits through the utilization of death claim proceeds from a separate policy at a rate that will always be greater than the amount being transferred.
Benefit Transfer Rider
Qualifications
The BTR provides beneficiaries the choice of additional flexibility with the option to use some ($25,000 minimum) or all of their death benefit proceeds to enhance benefits on their existing MoneyGuard policy with no additional underwriting requirements.
Qualifications to use the BTR are:
- Insured and beneficiary are MoneyGuard policyholders
- The Benefit Transfer Rider is on both policies
- The beneficiary is the insured on their policy
Utilization
At the time of first death claim, the beneficiary has the following choices:
- Take full death benefit income tax-free.
- Use full death benefit to purchase more benefits on their own policy.
- Take partial death benefit income tax-free and use remainder to purchase more benefits on their own policy.
Product Pricing
Maintains the competitive pricing improvements from Lincoln MoneyGuard® III (2021) – 01/10/22.
Flexible Care Cash Enhancement
Flexible Care Cash benefits will now be available for seven days a week (previously limited to five days a week). The following aspects of Flexible Care Cash remain in place:
- While Specified Amount remains, this feature provides access to cash benefit for care needs.
- Allows for 50% of the maximum daily benefit to be used per occurrence (up to the IRS per diem limit).
- Cash benefit payable without providing receipts.
- Care under this feature may be provided by family members, including the spouse.
Clients have ability to simultaneously use both FCC and reimbursement but are limited to one option per day.
Availability and Transition Rules
Applications for Lincoln MoneyGuard Fixed Advantage will be accepted beginning on May 16, 2022 in states where approved.
- For applications to qualify for the current MoneyGuard® III (2021) – 01/10/22, a projection of values and the completed Part 1 must be signed, dated, and received in-good-order by Lincoln’s home office by Friday, June 17, 2022.
- For pending or issued MoneyGuard® III business on or after May 16, 2022:
- Lincoln will accept requests with a revised projection of values and the updated Terminal Illness Rider Disclosure to change to MoneyGuard Fixed Advantage. Please note the updated Long-Term Care Insurance Outline of Coverage should be provided to the client.
- Please contact your New Business Team with any requirement or process questions.
- For placed business, normal internal replacement guidelines apply. Rewrites will not be accepted.
- As of May 16, 2022, Lincoln DesignIt and WinFlex will be updated with the new product. During the transition period both products can be run.
- Ensure that you are appropriately credentialed. Clients of advisors who are not properly credentialed to solicit business when the paperwork is submitted will be subject to the product in effect on the date when the advisor becomes properly credentialed and resubmits the paperwork