Lincoln Financial introduces the innovative new Benefit Transfer Rider available with MoneyGuard Fixed Advantage
Lincoln Financial Group launched the next generation of Lincoln MoneyGuard by introducing MoneyGuard Fixed Advantage, a universal life insurance policy with a long-term care rider. The MoneyGuard solutions suite helps address the concerns of 87% of Americans surveyed who say that having a long-term care solution would help them feel more confident about their financial future1.
“As a leader in the hybrid long-term care marketplace, with more than 30 years of experience in providing long-term care solutions, Lincoln has remained committed to providing innovative solutions to meet the evolving needs of our customers.”
“The MoneyGuard suite of solutions provides optionality so our customers have the freedom to select what works best for their individual needs and circumstances,” said Heather Deichler, senior vice president, MoneyGuard Business Management. “Long-term care planning is more than having enough money to pay for care services. It’s about building a comprehensive strategy to better prepare for the emotional and financial decisions that come with a long-term care event. MoneyGuard Fixed AdvantageSM gives clients more control over decisions affecting them and their families.”
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MoneyGuard Fixed Advantage preserves the core design features of the current MoneyGuard Universal Life product and introduces the new Benefit Transfer Rider (BTR), automatically included at no additional cost. This innovative rider provides an opportunity for a beneficiary to enhance their existing policy’s long-term care and death benefits by leveraging death claim proceeds from another person’s policy. The increase in long-term care and death benefits will always be greater than the amount being transferred to the policy.
To use the Benefit Transfer Rider, the insured and beneficiary must both be policyholders with BTRs on both policies3 and the beneficiary is the insured on their own policy. If qualifications are met, beneficiaries can choose to:
- take the full death benefit income tax-free2 or
- use the full death benefit to purchase more benefits on their own policy or
- take a partial death benefit income tax-free and use the remainder to purchase more benefits on their own policy2
There is no additional underwriting needed to transfer benefits and policy charges do not increase if benefits are enhanced through the rider. This rider can be used through age 121.
The rider goes beyond married couples and can be used with couples, siblings, parents, estate planning or anyone named as a beneficiary to help start important conversations about planning for long-term care expenses. These conversations are critically important — 82% of consumers surveyed say they wish they talked more about long-term care plans and options before they’re needed1.
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Additionally, the Flexible Care Cash benefits will be extended to seven days a week (previously five) providing clients greater flexibility and access to cash for informal care needs. Flexible Care Cash provides access to cash benefit for care needs and allows for 50% of the maximum daily benefit to be used per occurrence (up to the IRS per diem limit). The cash benefit is payable without receipts and care may be provided by family members, including spouses. For days when formal care is used, reimbursement up to 100% of daily benefit is available.
“Long-term care events happen to loved ones, not just one person. We want to help Americans take control and protect their legacy with the flexibility to plan for their unique circumstances,” said Bill Nash, senior vice president, MoneyGuard Distribution. “As a leader in the hybrid long-term care marketplace, with more than 30 years of experience in providing long-term care solutions, Lincoln has remained committed to providing innovative solutions to meet the evolving needs of our customers.”
Lincoln is committed to investing in innovative product solutions and data, tools and technologies that enhance the customer experience. Other recent examples of innovation include the launch of MoneyGuard Market Advantage™, an enhanced digital claims experience and the Lincoln Concierge Care Coordination platform aimed at guiding customers and their families in how to plan for the impacts of a long-term event.
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