Lincoln Financial

Lincoln Financial Group is a prominent Fortune 500 company known for its comprehensive financial services and insurance solutions. The company was founded in 1905 in Fort Wayne, Indiana, as Lincoln National Life Insurance Company and has greatly expanded since its beginnings.

Lincoln Financial Group owns and operates many subsidiary companies with a vast portfolio, including life insurance, annuities, group benefits, asset management, and retirement plans.

In 1987, Lincoln Financial introduced MoneyGuard, a hybrid Long-Term Care Insurance product that integrated life insurance with a qualified long-term care rider. This product series provided policyholders with long-term care benefits if needed or a death benefit if not utilized for extended care.

As of February 7, 2025, AM Best revised its outlook on Lincoln Financial outlook from negative to stable, reflecting an improved balance sheet and operating performance.

Despite these improvements, AM Best noted ongoing considerations:

• Reinsurance Concentration: Lincoln's increased reliance on reinsurance, particularly with affiliated entities, introduces counterparty risk and affects the quality of capital.
• Earnings Volatility: Statutory earnings have been volatile due to the material amount of in-force liabilities and assets transferred through reinsurance treaties.

However, Lincoln Financial also maintains financial strength and creditworthiness, with high ratings from major rating agencies:

• A from AM Best.
• A+ from S&P Global.
• A3 from Moody’s.
• A+ from Fitch Ratings.

Two Hybrid Long-Term Care Insurance Products

Lincoln Financial is best known for its hybrid Long-Term Care Insurance products:

• Lincoln Financial MoneyGuard® Fixed Advantage
• Lincoln Financial MoneyGuard® Market Advantage

These products meet federal guidelines under Section 7702(b), providing comprehensive long-term care and life insurance benefits all under one product. 

There has been a recent update with Fixed Advantage.

Lincoln Financial MoneyGuard® Fixed Advantage

Lincoln MoneyGuard® Fixed Advantage is a universal life insurance policy with a qualified long-term care rider designed to provide long-term care benefits if care is needed, while also offering life insurance protection and value for beneficiaries if long-term care is never required.

Key Features

Issue Ages

• Available to individuals ages 40–80.

Couples Discount

• Available to eligible couples, including legally married spouses, same-sex spouses, domestic partners, civil unions, and common-law spouses where recognized by state law.

No Elimination Period

Once benefit eligibility requirements are met, long-term care benefits are available immediately.

Point-of-Claim Payment Options

At the time of claim, policyholders can choose between:

100% Reimbursement Benefit

• Pays actual qualified long-term care expenses up to the monthly maximum benefit.

80% Indemnity Benefit

• Pays a fixed monthly cash benefit equal to 80% of the monthly maximum benefit without requiring receipts or proof of expenses.

Premium Payment Options

Flexible funding options include:

• Single-pay premium
• Multi-pay options up to 10 years (availability may vary by age and state)
• Annual, semiannual, quarterly, and monthly payment modes

Long-Term Care Benefit Periods

Policyholders can select a benefit period of:

• 3 years
• 4 years
• 5 years
• 6 years

Benefit periods are based on policy design and available options.

Inflation Protection Options

Available inflation protection choices include:

• 3% Compound Inflation Protection
• 5% Compound Inflation Protection
• No Inflation Protection

Inflation protection helps increase available benefits over time to address rising long-term care costs.

Guaranteed Benefits

MoneyGuard Fixed Advantage provides contractual guarantees outlined in the policy, including:

• Guaranteed long-term care benefit pool
• Guaranteed death benefit protection
• Guaranteed premium schedule based on the policy design selected

These guarantees help provide certainty regardless of future market conditions.

Return of Premium Protection

If long-term care benefits are never needed, beneficiaries receive a death benefit. Depending on the policy design and how long the policy has been in force, surrender value may also be available.

Terminal Illness Benefit

Provides access to a portion of the death benefit if the insured is diagnosed with a qualifying terminal illness, subject to policy limitations and state approval.

Benefit Eligibility

Benefits become available when a licensed healthcare practitioner certifies that the insured:

• Requires substantial assistance with at least two of the six Activities of Daily Living (ADLs) for at least 90 days, or
• Requires substantial supervision due to a severe cognitive impairment, such as Alzheimer's disease or another form of dementia.

The six Activities of Daily Living are:

• Bathing
• Dressing
• Toileting
• Transferring
• Continence
• Eating

Covered Long-Term Care Services

Home Health Care

Benefits are available for qualified care provided by licensed caregivers through a licensed home health agency.

Adult Day Care

Covers qualified adult day care services provided through licensed or state-certified programs.

Assisted Living Facilities

Benefits are available for care received in licensed assisted living communities.

Memory Care Services

Benefits are available when qualified long-term care services are received in licensed facilities that provide specialized care for individuals living with Alzheimer's disease or other forms of dementia.

Nursing Home Care

Benefits are available for care received in licensed skilled nursing facilities and nursing homes.

Hospice Care

Benefits are available when hospice services are included in the plan of care.

Respite Care

Provides temporary relief for informal caregivers through qualified respite care services.

Alternative Care Services

May cover services, treatments, equipment, or care arrangements not specifically listed in the policy when approved by Lincoln and included in a plan of care.

Additional Policy Benefits

Caregiver Training Benefit

Reimburses up to $500 for training an informal primary caregiver. Payments do not reduce the policy's maximum monthly benefit or total long-term care benefit pool.

Bed Reservation Benefit

If the insured temporarily leaves a facility because of hospitalization or another approved absence, the policy may pay to reserve the room for up to 30 days during each calendar year.

Care Coordination and Case Management

Provides access to professional care planning and care coordination services to help families navigate long-term care needs.

Durable Medical Equipment and Home Modifications

May reimburse eligible expenses for:

• Durable medical equipment
• Medical alert systems
• Home safety modifications
• Other approved equipment designed to help the insured remain safely at home

Living Well Endorsement

Included automatically in approved states at no additional cost. It provides access to select wellness, health, and support services for policyowners, insureds, beneficiaries, and eligible family members.

International Benefits

MoneyGuard Fixed Advantage provides limited international long-term care benefits for qualified care received outside the United States. Coverage generally applies to care received in qualifying assisted living facilities or nursing homes and is subject to policy limitations, eligibility requirements, and a maximum benefit period of up to 36 months.

Potential Tax Advantages

Because MoneyGuard Fixed Advantage includes a qualified long-term care rider, a portion of the premium attributable to the long-term care coverage may qualify for favorable tax treatment depending on policy ownership and tax status. Business owners may have additional opportunities for deductibility. Consumers should consult a qualified tax advisor regarding their specific situation.

Benefit Transfer Rider (Optional)

The Benefit Transfer Rider (BTR) allows eligible couples to transfer unused long-term care benefits from one spouse or partner to the surviving spouse after death.

How It Works

When both individuals purchase MoneyGuard Fixed Advantage policies and elect the Benefit Transfer Rider:

• Each person owns an individual policy.
• If one spouse dies before exhausting the policy's available long-term care benefits, eligible remaining benefits may be transferred to the surviving spouse's policy, subject to rider provisions and policy requirements.
• The surviving spouse receives an increased pool of long-term care benefits that can be used if future care is needed.

Key Points

• Available only when both partners apply and are issued policies.
• Must be elected when the policies are issued.
• Helps preserve unused long-term care benefits within the family.
• Can significantly extend the surviving spouse's available long-term care protection.
• Provides additional flexibility for couples concerned about future care costs.

The Benefit Transfer Rider is designed to help maximize the value of two policies by allowing eligible unused long-term care benefits from one spouse to continue protecting the surviving spouse.

Lincoln MoneyGuard Market Advantage®

Lincoln MoneyGuard® Market Advantage is a variable universal life insurance policy with a qualified long-term care rider that combines life insurance protection, long-term care benefits, and the potential for market-based cash value growth.

Unlike traditional long-term care insurance, MoneyGuard Market Advantage allows policyholders to participate in investment market performance while maintaining access to long-term care protection and a death benefit.

Important Considerations

Market Risk

Because MoneyGuard Market Advantage is a variable universal life insurance policy, policy values are invested in market-based investment options and are subject to market risk, including the possible loss of principal. Investment performance can impact cash value accumulation, policy values, and the amount available through certain policy features.

Investment Risk Disclosure

MoneyGuard Market Advantage is:

• Not FDIC insured
• Not a bank deposit
• Not guaranteed by a bank
• Subject to investment risk
• Subject to possible loss of principal

Investment Complexity

MoneyGuard Market Advantage combines life insurance, long-term care protection, and investment management within a single policy. Prospective buyers should carefully evaluate their risk tolerance, financial goals, and long-term objectives before purchasing coverage.

Long-Term Perspective

This policy is generally designed for individuals seeking long-term growth potential and who are comfortable with market fluctuations in exchange for the opportunity to build greater policy value over time.

Key Features

Variable Universal Life Structure

Policyholders can allocate policy values among a variety of professionally managed investment options offered within the policy.

Potential advantages include:

• Tax-deferred cash value growth
• Access to diversified investment choices
• Opportunity for greater long-term accumulation than fixed-interest products
• Flexible investment allocation options

Qualified Long-Term Care Coverage

The policy includes a qualified long-term care rider designed to help cover the cost of extended care services, including:

• Home health care
• Adult day care
• Assisted living
• Memory care services
• Nursing home care
• Hospice care

Benefits become available when the insured satisfies the policy's long-term care eligibility requirements.

No Elimination Period

Once long-term care eligibility requirements are met, benefits are available immediately without satisfying a traditional elimination period.

Benefit Eligibility

Benefits become available when a licensed healthcare practitioner certifies that the insured:

• Requires substantial assistance with at least two of the six Activities of Daily Living (ADLs) for at least 90 days, or
• Requires substantial supervision due to severe cognitive impairment, including Alzheimer's disease or other forms of dementia.

The six Activities of Daily Living are:

• Bathing
• Dressing
• Toileting
• Transferring
• Continence
• Eating

Flexible Point-of-Claim Payment Options

At the time of claim, policyholders can choose between:

100% Reimbursement Benefit

• Reimburses actual qualified long-term care expenses up to the monthly maximum benefit.

80% Indemnity Benefit

• Pays a fixed monthly cash benefit equal to 80% of the available monthly benefit without requiring receipts or proof of expenses.

This flexibility allows policyholders to select the payment option that best fits their care situation.

Tax-Deferred Growth Potential

Cash value accumulates on a tax-deferred basis, allowing investment gains to compound without current income taxation, subject to policy limitations and applicable tax laws.

Return of Premium Features

Depending on policy design, MoneyGuard Market Advantage offers optional return-of-premium features that may allow policyholders to recover a portion or all of premiums paid if the policy is surrendered.

Available options generally include:

• A 70% return-of-premium design that provides enhanced long-term care leverage.
• A 100% return-of-premium design that typically becomes fully vested after approximately 11 policy years.

Availability varies by state and policy design.

Death Benefit Protection

If long-term care benefits are not fully utilized, beneficiaries generally receive the remaining policy death benefit according to policy provisions.

This feature helps address concerns about paying premiums for coverage that may never be used.

Inflation Protection

Optional inflation protection features are available to help increase long-term care benefits over time. Available options vary by state and policy design.

Flexible Premium Funding

Premium payment schedules may be customized based on policy design and financial objectives, subject to underwriting and policy requirements.

Covered Long-Term Care Services

Home Health Care

Benefits are available for qualified care provided through licensed home health agencies.

Adult Day Care

Benefits are available for qualified adult day care programs licensed or certified by the state.

Assisted Living Facilities

Benefits are available for care received in licensed assisted living communities.

Memory Care Services

Benefits are available when qualified long-term care services are received in licensed facilities that provide specialized care for individuals living with Alzheimer's disease or other forms of dementia.

Nursing Home Care

Benefits are available for care received in licensed skilled nursing facilities and nursing homes.

Hospice Care

Benefits are available when hospice services are included in the plan of care.

Additional Benefits

Care Coordination Services

Professional care coordination services help policyholders and families navigate long-term care decisions and develop appropriate plans of care.

Alternative Care Services

The policy may cover services, treatments, equipment, or care arrangements not specifically listed in the contract when approved by Lincoln and included in a plan of care.

Home Modification and Equipment Benefits

Eligible expenses may include:

• Durable medical equipment
• Medical alert systems
• Home accessibility modifications
• Other approved items designed to help individuals remain safely at home

Living Well Endorsement

Included automatically in approved states at no additional cost, the Living Well Endorsement provides access to select wellness, health, and support resources for policyowners, insureds, beneficiaries, and eligible family members.

Tax Qualification

Lincoln MoneyGuard Market Advantage meets federal requirements under Section 7702B of the Internal Revenue Code and is designed to provide qualified long-term care insurance benefits under federal tax law.

Long-term care benefits received under the policy are generally income tax-free when paid for qualified long-term care services, subject to applicable federal tax rules.

Consumers should consult a qualified tax advisor regarding their specific circumstances.

Who May Benefit from MoneyGuard Market Advantage?

MoneyGuard Market Advantage is often considered by individuals who:

• Want long-term care protection and life insurance in one solution.
• Desire the potential for market-based growth.
• Have a longer investment horizon.
• Are comfortable with investment risk and market volatility.
• Want flexibility in how long-term care benefits are received.
• Are seeking an alternative to traditional stand-alone long-term care insurance.

Best Fit

MoneyGuard Market Advantage may be appropriate for:

• Affluent pre-retirees and retirees.
• Investors comfortable with market fluctuations.
• Individuals seeking long-term care protection plus investment growth potential.
• Consumers who want life insurance and long-term care benefits within a single policy.

May Not Be the Best Fit

MoneyGuard Market Advantage may not be appropriate for:

• Consumers seeking guaranteed values.
• Conservative investors.
• Individuals uncomfortable with market volatility.
• Those who prioritize certainty over growth potential.

Lincoln positions MoneyGuard Market Advantage primarily for consumers who already have investment experience and are comfortable accepting market risk in exchange for the potential for greater long-term growth than fixed-interest hybrid long-term care policies.

MoneyGuard Market Advantage vs. MoneyGuard Fixed Advantage

MoneyGuard Market Advantage

• Market-based growth potential.
• Variable universal life insurance chassis.
• Investment risk and market exposure.
• Designed for growth-oriented investors.
• Opportunity for greater long-term accumulation based on investment performance.

MoneyGuard Fixed Advantage

• Guaranteed policy values.
• Fixed universal life insurance chassis.
• No market exposure.
• Designed for conservative consumers seeking predictability.
• Greater emphasis on guarantees rather than growth potential.

The choice between the two products often comes down to an individual's risk tolerance, investment philosophy, and long-term financial objectives.

Partnership Policies Are Not Available

Since Lincoln Financial's MoneyGuard® hybrid Long-Term Care Insurance products are not traditional Long-Term Care Insurance, they do not qualify for the partnership program.

What is the Long-Term Care Insurance Partnership Program?

Lincoln Makes LTC Premiums Easier to Identify for Tax and HSA Benefits

Lincoln Financial Group now separates the long-term care (LTC) premium from the life insurance portion on its hybrid LTC policies—a move that provides added transparency and potential tax advantages for policyholders.

What it means for you:

• Tax Deductions: You may now claim the LTC portion of your premium as a qualified medical expense, which could be tax-deductible depending on your age and income.
• HSA Reimbursement: If you have a Health Savings Account (HSA), you may be able to use those funds tax-free to pay the long-term care portion of your premium.
• IRS Compliance: This change aligns with IRS guidelines under Section 213(d), making it easier for you or your tax professional to document and claim benefits.
• Improved Planning: The clearer breakdown in policy language helps you better plan for health care costs and tax strategies.

LTC Insurance Tax Deduction Amounts and HSA Contribution Limits for 2026

This added feature gives you more control and flexibility in how you pay for your policy—and how you manage long-term care expenses down the line.

How Hard is it to Qualify for Long-Term Care Insurance with Lincoln Financial?

Qualifying for a long-term care policy with Lincoln Financial depends on several key factors, including your current health, age, and whether you already need care.

Here’s what you need to know:

• Are you currently receiving long-term care?

If you already need help with daily activities or have cognitive impairment, you won’t qualify for a new policy.

• Do you have pre-existing health conditions?

Some conditions may disqualify you, especially if they’re not well-controlled.

• How old are you?

The older you are, the harder it can be to qualify. Most insurers, including Lincoln, have age limits, and your risk profile increases with age.

Lincoln Financial uses medical underwriting to evaluate each applicant’s health and risk level. The company is known for conservative underwriting—meaning it may be tougher to qualify if you have certain health issues or are older.

What is Medical Underwriting with Long-Term Care Insurance?

Shopping for Long-Term Care Insurance

It helps to work with a Long-Term Care Insurance specialist. These professionals:

• Understand Lincoln's underwriting rules as well as those of all the top insurance companies that offer long-term care solutions.
• Under features and benefits, tax benefits, and claims.
• Can help you compare multiple companies and provide accurate quotes to find the best fit based on your age, health, and other considerations.

A specialist works for you, not the insurance company, and can guide you toward coverage that aligns with your age, health history, and budget.

If you're considering a policy, don’t wait until your health declines. The earlier you apply, the more likely you are to qualify—and lock in lower premiums and larger benefits.

Find State-Specific Information

Each state has a state-specific page that includes the current and future cost of long-term care services, available tax incentives, information on care providers, and other important information - LTC News Cost of Care Calculator.