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.
• A2 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

The Lincoln MoneyGuard Fixed Advantage® (2025) is a universal life insurance policy with a long-term care (LTC) rider designed to provide both a death benefit and coverage for qualified LTC expenses. Key features include:

• Issue Ages: Available to individuals aged 40–80.
• Couples Discount: Offered to legally married couples, including same-sex marriages, civil unions, domestic partnerships, and common-law marriages where recognized.
• Point of Claim Payment Option: At the time of claim, policyholders can choose between:
• 100% Reimbursement: For actual LTC expenses incurred.
• 80% Indemnity: A fixed monthly cash benefit without the need to submit receipts
• Premium Structure: Premiums are split between life insurance and long-term care coverage, potentially allowing for tax deductibility of the LTC portion.
• Inflation Protection: Options include 3% or 5% compound inflation protection to help benefits keep pace with rising care costs. A policyholder could elect no inflation benefit as well.
• Benefit Period: Policyholders can elect a benefit period for long-term care of either 3,4,5 or 6 years, depending on the policy design.
• Return of Premium: If the policy is not used for long-term care, beneficiaries receive a death benefit; if the policy is surrendered, a portion of premiums may be returned.
• Terminal Illness Rider: Provides a one-time claim for 25%–75% of the current specified amount of death benefit, up to $250,000.
• International Benefits: Long-term care benefits can be used for qualified expenses abroad for up to 36 months, applicable to care received in assisted living facilities or nursing homes.
• Home Health Care: Caregivers must be licensed and provided by a licensed home health care agency.
• Adult Day Care: Benefits for social and health-related services by a state-licensed or certified adult day care program.
• Assisted Living/Memory Care/Nursing Home: The policy will pay for benefits in any licensed long-term care facility
• Caregiver Training: Policyholders can get up to $500 to train an informal primary caregiver. These benefit claims do not decrease the maximum monthly benefit or the total long-term care benefit account.
• Bed Reservation Benefit: For a policyholder receiving care in a long-term care facility and needs to leave temporarily (like go to the hospital or visit family during the holidays), the policy will pay to retain the room for up to 30 days during each calendar year.
• Case Management: The policy will reimburse expenses for care plan services provided by a care planning agency.
• Hospice: The policy will pay for benefits for hospice care if the policyholder is terminal.
• Respite Care: The policy will pay for short-term care services that are provided to relieve your informal primary caregiver for up to 21 days.
• Alternative Care Services: Policyholders can receive services that are not listed in the policy but are prescribed in the plan of care by a licensed healthcare practitioner.
• Equipment: The policy will pay the policyholder for durable medical equipment, medical alert systems, or modifications to your residence to help you remain at home safely.
• Living Well Endorsement: This benefit is automatically included with all policies at issue in states where it’s approved. It provides access to select health and wellness services for the policyowner, insured, beneficiaries, and eligible family members—at no additional cost.
• Premium Payment Options: The policyholder can select a single premium or flexible premiums paid over a period of time up to ten years if the policy is issued before age 72 (more limited after that age.) Payment modes available are annual, semi-annual, quarterly, and monthly.
• No Elimination Period: Once eligibility requirements are met, long-term care benefits are available immediately.

Benefit Transfer Rider

The Benefit Transfer Rider (BTR) on the Lincoln MoneyGuard Fixed Advantage® (2025) is an optional feature that allows a surviving spouse or partner to use the unused long-term care benefits from the other person’s policy — if both partners buy policies at the same time.

Both spouses must buy a MoneyGuard Fixed Advantage® policy. You use all or some of your long-term care benefits over time. If one spouse passes away with benefits left unused on their policy, the surviving spouse can receive those unused benefits to extend their own coverage.

Key points:

• Only available for couples (must apply together).
• Not automatic — you must elect the rider when the policy is issued.
• Can increase your benefit pool if your spouse passes without using all of theirs.
• Helps maximize your investment in the policies — so nothing goes to waste.

It’s essentially a way to “recycle” unused long-term care benefits from one partner to the other.

Lincoln MoneyGuard Market Advantage®

Lincoln MoneyGuard Market Advantage® is a variable universal life insurance policy with a qualified long-term care rider designed to offer both investment growth potential and protection against long-term care expenses.

Major Consideration

• Market Risk: As a variable policy, the cash value is subject to market fluctuations, which can affect the policy's performance and available benefits.
• Complexity: The combination of investment components and insurance features may require careful planning and understanding to align with individual financial objectives.

Key Features

• Variable Universal Life Structure: Allows policyholders to allocate premiums among various investment options, providing the opportunity for cash value growth based on market performance.
• Long-Term Care Rider: Offers benefits to cover qualified LTC expenses, helping to safeguard retirement savings from the high costs of extended care.
• Return of Premium Options: Provides choices for return of premium, including a 70% option for higher reimbursement amounts and a 100% option subject to an 11-year vesting period.
• Tax-Deferred Growth: Cash value accumulation grows on a tax-deferred basis, enhancing the policy's value over time.
• Flexible Benefit Payment Options: At the time of claim, policyholders can choose between reimbursement for actual long-term care expenses or an indemnity benefit, offering flexibility in how benefits are received

Lincoln MoneyGuard® Market Advantage meets federal guidelines under Section 7702B(b) of the Internal Revenue Code, classifying it as a qualified Long-Term Care Insurance contract.

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 2025

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.

Claims

If you own a Lincoln Financial policy and seek help submitting a claim, LTC News offers free - no-obligation assistance - including help finding quality caregivers and facilities.

Since most agents and financial advisors have little or no experience in this area, this assistance can be helpful for the entire family - Filing a Long-Term Care Insurance Claim.