Intro
Lincoln Moneyguard is one of the first hybrid long-term care insurance (LTCi) policies, first introduced in 1987. The newest version of the policy released in 2024 offers some enticing benefits:
- High benefit pool
- Zero-day elimination period
- A little cash indemnity
- Benefit transfer rider
- 1035 exchanges
The Lincoln MoneyGuard Fixed Advantage is like Stevie Nicks and Fleetwood Mac—a timeless classic with staying power. Just as Fleetwood Mac dominated the 1970s, MoneyGuard was an early leader in hybrid LTCi policies. Over the last few years, it fell out of the spotlight, much like Nicks' quieter solo years, but it never lost its loyal following. Now, with revamped pricing akin to Fleetwood Mac's stunning comebacks, it's once again drawing fans who value proven quality and enduring appeal.
As you consider your options, let "LTC" guide you: Learn about options, Talk with family, and Create a plan that supports your shared future. Because in the end, isn’t it all about harmonizing your decisions, like a timeless melody coming together just right?
Post jargon
benefit: the amount LTCi pays for covered care expenses
benefit period: the maximum time LTCi pays for care after criteria are met
benefit pool: total amount available in LTCi for care expenses
cash indemnity: pays the full benefit, regardless of the actual care costs
death benefit: a payout to a beneficiary from a hybrid policy after the insured passes away
elimination period: the waiting period after criteria are met before benefits start
exclusion: an insurance rule that denies benefits for specific risks
inflation protection: LTCi benefit that adjusts for rising costs
nonforfeiture option: LTCi feature allowing reduced benefits or partial premium return if policy lapses or cancels
premium: the payment to maintain insurance
rider: an insurance add-on
specified amount: initial pool of money allocated for LTC or death benefits (same as face amount)
surrender options: LTCi cancellation options with partial premium refund or reduced benefits
underwriting: insurer’s review process to decide coverage and cost
➡️ Explore all the LTC jargon
What's special about it?
Many policies include special features to stand out in a competitive market.
High benefit pool
In early 2024, Lincoln raised their benefit game to be more competitive in the marketplace.
Later in this post, we'll compare the benefit pool of MoneyGuard with other hybrids in the market.
Zero-day elimination period
An elimination period, or waiting period, is the time after you qualify for benefits during which you must pay care costs out of pocket before your policy starts paying.
Most long-term care policies include a 90-day elimination period. This particular policy stands out by offering a zero-day elimination period, meaning you'll receive benefits immediately when you need care.
How valuable is this benefit?
The value depends on your situation. Today, the cost of care for a 90-day period can range between $10,000 and $30,000, depending on geography and type of care.
If you pay a $100,000 premium and receive 3x to 5x that amount in benefits (e.g., $300,000 to $500,000), the zero-day elimination period effectively adds about 2% to 10% to your total benefit pool.
A little cash indemnity
Lincoln MoneyGuard is a reimbursement policy.
But in 2024, they added a limited cash indemnity benefit with a few conditions:
- Available for a limited period of time (once your specified amount is used up)
- Up to 50% of your monthly benefit limit (not the full amount)
This benefit was designed to compensate family members or neighbors who provide care during the early stages of a care need. It gives families valuable time to explore and arrange more formal care options.
Since informal caregiving can often lead to burnout, the limited cash indemnity benefit strikes a practical balance. It offers flexibility and short-term relief while helping families transition to professional in-home care or assisted living.
Benefit transfer rider
Lincoln MoneyGuard offers a benefit transfer rider at no extra cost.
How it works:
If you pass away with a remaining death benefit, your beneficiary can use that amount to purchase additional coverage on their own MoneyGuard policy without the need for underwriting.
- What doesn’t change: Their monthly benefit remains the same.
- What does change: Their total pool of money increases with some leverage, extending the benefit period (e.g., from 6 years to 7 years).
While this means more money overall, the funds are harder to access because they’re tacked onto the end of their benefit period, rather than being available upfront.
1035 exchanges
MoneyGuard Fixed Advantage allows for 1035 exchanges. If you own a non-qualified, tax-deferred annuity or life insurance policy, you can transfer those funds directly—tax-free—to purchase this LTCi policy. This can convert an otherwise taxable investment into a policy that provides tax-free LTCi benefits when you need them.
The details
If this policy piques your interest, we’ll hit all the right notes to uncover the key details that matter.
We’ll rate the benefits, premium, underwriting, and company from one to three stars (three being the best) compared to other LTCi policies.
Benefits
Benefits are what the policy pays for covered care expenses. MoneyGuard provides a high benefit pool with a zero-day elimination period.
Premium
Premiums are the payments made to maintain insurance.
Underwriting
Underwriting is the insurer’s process to decide coverage and cost.
Company
Lincoln Financial is a stable company with a long history and extensive experience in the insurance industry.
Comparisons
How does Lincoln MoneyGuard Fixed Advantage compare to other LTCi policies? Focus on what matters most to make the right policy choice for you.
Benefit pools
Compare the benefit pools offered by different individual hybrid policies for the same premium.
Benefits
Compare the benefits offered by different LTCi policies.
Next steps
If this policy sounds like a good fit, request quotes and mention "MoneyGuard Fixed Advantage" in your notes.
Wrap up
With its updated pricing in 2024, this MoneyGuard policy hits a high note with one of the best benefit pools for the money on the market. However, you'll need to balance this strength with the limits of its reimbursement policy. Like finding the right harmony in a song, comparing multiple policy quotes tailored to your needs will help you find the right fit.
