Hybrid/LTC Products & LTC Rider Options: Part 2 – Lincoln Financial
The growth in popularity of Hybrid or Linked LTC/Chronic Care solutions is undeniable and continues to grow due to the optionality and flexibility the products offer. Our April ONE Idea, titled Hybrid/LTC Products & LTC Rider Options, summarized the basic specifications and benefits on Hybrid/LTC products available through some of our carrier partners. The article featured Lincoln, Nationwide, OneAmerica and Securian and provided a good overview of the solutions that each of these carriers offers. This ONE Idea along with the next three (3) will each discuss one of the carriers above and explore the details and niches that distinguish one product from another. This week, we will focus on Lincoln Financial.
My approach to this ONE Idea is different than others I have written. I interviewed our 4 carrier partner reps using the same 6 questions. My intention was to provide our AgencyONE 100 advisors with the most pertinent information to help satisfy their clients’ LTC planning needs.
Lincoln Life: Moneyguard Linked Benefit Contract
Timothy Lockwood, RICP, CLTC, Sales Vice President
1) How is the year going for Lincoln, so far? Lincoln continues to see double-digit growth since the start of 2024 and is coming off another year where we lead in market share. As we offer more flexibility and optionality for clients, we see a trend toward younger individuals who want to plan early by funding over a flexible premium schedule.
2) What sets MoneyGuard apart from other hybrid LTC options? The power of choice. MoneyGuard allows owners to choose how they want to fund, how they prefer their benefits to grow over time, and how those benefits are distributed. Our streamlined underwriting process and our 36-year history along with our field distribution of planning experts sets us apart from most competitors. From a product feature standpoint, there (3) are three features to highlight:
a. Our Zero Day Elimination Period, which adds up to real dollars for your clients.
b. The ability to choose a cash benefit while also having access to setup direct billing via reimbursement.
c. The Benefit Transfer Rider which allows Lincoln to transfer benefits to a beneficiary at the first to die.
3) What are Lincoln’s target markets? 45–65-year-olds who are either high net worth individuals/families or high-income earning individuals that see value in tax advantage planning strategies. MoneyGuard offers market linked growth or 5% compounding inflation along with the flexibility in funding and the power of choice. The value proposition is extremely strong in early planning, which has our average issue ages decreasing year over year.
4) What is the most popular design when illustrating MoneyGuard?
a. Leading with a design that transfers about 60-90% of the risk monthly/annually with a 5 or 6-year benefit duration and 3% compounding inflation protection.
b. Funding our Market Advantage solution over 5-15 years.
5) Does MoneyGuard have any product niches to share?
a. Its unique ability for clients between 30 & 70 (with focus on 30–60-year-olds) to leverage market linked growth with guarantees and downside protection. Upside growth opportunity grows all three asset based LTC buckets. On the fixed side of the house, the 5% compounding inflation can be a powerful story as well for fixed producers with clients between 40-55.
b. A zero-day elimination Period.
c. Cash and/or reimbursement with direct billing options.
d. The ability to transfer benefits (Benefit Transfer Rider) – think generational planning, spouses & those spouses who may have significant age gaps between them.
e. There are no smoker rates, although smoking is factored into underwriting.
6) Any tips on when brokers should consider MoneyGuard as an option?
a. Engage clients at earlier ages, plan when they are healthy enough to obtain coverage.
b. Individuals between 45-65 are likely to have aging parents and may be experiencing a real-time LTC need for a family member which may make their planning easier to motivate.
c. Like other long-term planning needs – building a nest egg, preparing for retirement income or even funding college tuition – planning with dollar-cost-averaging is much easier than coming up with potentially several lump sums while in crisis mode or when funding a plan requires more dollars with less leverage.
d. Bottom line, ask your clients about direct or indirect experience. Have your own story to share and recommend action and a formalized plan. Discuss the long-term tax advantage strategies to protect their portfolio and retirement income.
Lincoln also has a useful website that will help you determine the approximate cost of care in each state www.whatcarecosts.com/Lincoln (Sponsor Code: enter LTC in the top right and click GO).
AgencyONE is aware of the changing needs of your clients and has access to the highest rated carriers offering the solutions best suited to their Hybrid or Linked LTC/Chronic Care planning needs.
Contact the AgencyONE Case Design Department at 301.803.7500 for more information
or to discuss a case.
