There are variations between the policy language and benefits between the many companies that offer Long-Term Care Insurance, however, the primary features and benefit choices are comparable from company to company. Differences do exist between the primary companies. When comparing long-term care insurance, you should recognize the differences between Lincoln Financial and other major companies.
The Lincoln MoneyGuard II policy is a “hybrid’ long-term care policy. It is considered a 7702B policy. This means it is actually a long-term care policy with normal benefit triggers. Generally, you want to avoid a 101g policy which would only provide a long-term care benefit if you are terminal and then only give you access to the death benefit early (speak with a licensed agent for details).
With “hybrid” policies you are guaranteed to receive either benefits for long-term care, death, or both. You have access to your money as well in three ways:
You need long-term care services and supports – Just like any tax-qualified long-term care policy, you receive tax-free benefits when you meet the benefit triggers – two of six activities of daily living or supervision due to cognitive impairment.
You die – Like any life insurance policy, when you pass away your beneficiaries will receive the tax-free death benefit.
You change your mind – If for any reason you need money you can receive the cash surrender value. While very few people will ever consider doing that, it gives many people additional peace-of-mind knowing you have access to the money in the policy.
This policy is a combination of life insurance policy with complete benefits for long-term care services and supports. Lincoln’s MoneyGuard II can be paid with a single premium or guaranteed premium which can NEVER increase
- Zero-day elimination period for any long-term care service
- Up to seven years of long-term care benefits – a pool of money, so could last longer
- Inflation options - 3% or 5% compound available
- Caregiving training
- Case Management
- International benefits available
- Death benefit with a guaranteed minimum death benefit even if you receive long-term care benefits
- Tax-Free Long-Term Care benefits. The death benefit is also tax-free
- Single pay premium or pay annually for 10 to 15 years at most ages. The premium can never increase
Since Lincoln’s MoneyGuard II is not a traditional long-term care policy it will not qualify as a partnership policy under state and federal law.
Get more details on the partnership program by finding your state on the LTC NEWS MAP. You can get the current cost of long-term care services, the availability of partnership plans and tax incentives by clicking here.
Significant premium differences exist between companies for the exact same benefits. Long-Term Care Insurance premiums are calculated based on your selection of benefit levels you wish to have in place. Premium calculations are also based on your age and health at the time of application. Plus, you may qualify for discounts which might be available.
Every company has their own underwriting rules which determine insurability and rate class. An experienced Long-Term Care Insurance specialist will understand these underwriting rules when helping you select the best company and policy options.
You can find a qualified specialist who represents the major insurance companies which offer these products by clicking here.
Keep in mind, numerous state and federal regulation impact Long-Term Care Insurance. However, options and benefits do vary from company to company. Be sure to seek the assistance of a qualified Long-Term Care Specialist to compare the features, benefits, and costs of each policy.
Since your health is a primary consideration in determining your eligibility for coverage it is always best to start planning prior to retirement when health is usually better. A Long-Term Care Specialist will ask you a number of questions about your health in order to make the appropriate recommendation.
Please note: Since every company has different underwriting rules you could be eligible with one company and not another.
Because Long-Term Care Insurance is custom designed you can design the plan to fit your specific needs, concerns and budget. A specialist will help you design your plan to address your concerns. Generally, you can design almost any plan, to:
- Safeguard income and savings
- Protect the lifestyle of your spouse/partner
- Provide options for quality care
- Reduce the stress and burdens otherwise placed on family members
- Give your adult children time to be family
- Provide a legacy for loved ones
State variations may apply.