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. 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 Investors Service.
• 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. 

Lincoln Financial MoneyGuard® Fixed Advantage

This universal life insurance policy combines a death benefit with coverage for qualified LTC expenses, providing guaranteed, predictable benefits.

Key Features & Benefits of MoneyGuard® Fixed Advantage

Lincoln Financial's MoneyGuard® Fixed Advantage plan offers comprehensive Long-Term Care Insurance benefits, including:

• Guaranteed Premiums: Premiums are fixed and guaranteed not to increase over the life of the policy.
• Flexible Premium Payment Options: Policyholders can pay premiums as a single lump sum or over a period of up to 10 years (depending on the issue age).
• Inflation Protection Options: To help LTC benefits keep pace with rising care costs, policyholders can select:
• No Inflation: Long-term care benefits will never increase over the life of the policy.
• 3% Compound Inflation: Benefits increase annually by 3% on a compounded basis.
• 5% Compound Inflation: Benefits increase annually by 5% on a compounded basis.
• No Elimination Period: Once eligibility requirements are met, LTC benefits are available immediately.
• Death Benefit Range: Policies provide death benefits between $50,000 and $500,000.
• Long-Term Care Benefit Period: Policyholders can select an LTC benefit period between three and six years.
• Coverage of Various Types of Care: Hybrid policies cover all types of long-term care, such as:
• Home Health Care: Services provided by licensed agencies in the insured's home.
• Adult Day Care Centers: Supervised care during the day in a licensed facility.
• Assisted Living Facility Care: Coverage for services in a licensed assisted living facility.
• Memory Care: Specialized services for those with cognitive impairments.
• Nursing Home Care: Coverage for skilled nursing facilities and nursing homes.
• Hospice Benefits: End-of-life care coverage.
• Respite Care: Temporary relief for primary caregivers.
• Alternative Care Services: Coverage for agreed-upon alternatives to traditional LTC services.
• Durable Medical Equipment & Home Modifications: Coverage for mobility aids and home alterations.
• Bed Reservation Benefit: Pays for bed reservation at a facility during temporary absences.
• Case Management: Helps coordinate and assess care needs.
• Caregiver Training: Covers training for informal caregivers.
• Flexible Cash Benefit Option: The policyholder can receive 50% of the long-term care monthly benefit in cash for home care without receipts.
• Return of Premium Options
• Basic: Returns 70% of paid premiums.
• Vested: Returns up to 100% of paid premiums after a 10-year vesting schedule.
• International Benefits: Provides up to 36 months of long-term care benefits for care received outside the U.S.
• Eligibility Age: Applicants must be between the ages of 40 and 80 on their last birthday (and meet underwriting requirements).

Lincoln Financial MoneyGuard® Market Advantage

This variable universal life (VUL) insurance policy offers growth potential for both long-term care benefits and death benefits through market participation while also providing guaranteed long-term care protection. 

Because this policy is built on a variable universal life (VUL) chassis, an insurance agent or financial advisor must be licensed to offer the product.

It's also worth mentioning that this is a market-dependent option, so it carries additional investment risks. 

Key Features & Benefits of MoneyGuard® Market Advantage

Lincoln Financial's MoneyGuard® Market Advantage plan offers many benefits, including:

• Investment Options: Over 50 investment options, allowing policyholders to customize their portfolios.
• Flexible Benefit Payment Options: Policyholders can choose reimbursement for LTC expenses or indemnity-style payments.
• Guaranteed LTC Benefit Floor: Policyholders always receive a guaranteed minimum long-term care benefit even during market downturns.
• Tax Advantages: Tax-deferred growth and tax-free access to LTC benefits.
• Death Benefit Range: Policies provide a death benefit amount between $50,000 and $500,000.
• Long-Term Care Benefit Period: Policyholders can select a long-term care benefit period between two and seven years.
• Coverage of Various Types of Care: Hybrid policies cover all types of long-term care, such as:
• Home Health Care: Services provided by licensed caregivers or agencies in the insured's home.
• Adult Day Care Centers: Supervised care in a licensed facility during the day, similar to a senior center.
• Assisted Living Facility Care: Coverage for licensed assisted living facility services.
• Memory Care: Specialized services for those with cognitive impairments, dementia, or other memory issues.
• Nursing Home Care: Coverage for nursing homes or skilled nursing facilities.
• Hospice Benefits: End-of-life care coverage.
• Respite Care: Temporary relief for primary caregivers.
• Alternative Care Services: Coverage for agreed-upon alternatives to traditional LTC services.
• Durable Medical Equipment & Home Modifications: Coverage for mobility aids and home alterations.
• Bed Reservation Benefit: Pays for bed reservation at a facility during temporary absences.
• Case Management: Helps coordinate and assess care needs.
• Caregiver Training: Covers training for informal caregivers.
• Flexible Cash Benefit Option: 50% of the long-term care monthly benefit can be paid in cash to the policyholder for home care without needing receipts.
• Eligibility Age: Applicants must be between 30 and 70 years old at their last birthday.

Downsides & Market Risks

Unlike MoneyGuard Fixed Advantage, which offers fixed LTC benefits, MoneyGuard Market Advantage introduces investment risk.

Because it is structured as a Variable Universal Life (VUL) policy, policyholders' cash value and death benefits are tied to market performance.

This means that if investments perform well, the policy's cash value and LTC benefits may increase.

On the other hand, if the market declines, the policy's cash value and death benefit could be lower than expected. However, long-term care benefits will never fall below the guaranteed minimum.

Long-Term Care Insurance with Lincoln Financial

In addition to the benefits and coverage options mentioned above, Lincoln Financial Group provides many promising advantages. Below, we’ll discuss other benefits, tax advantages, and information that makes coverage with Lincoln Financial more secure. 

Benefit Transfer Rider (BTR)

Both MoneyGuard products include the Benefit Transfer Rider (BTR) at no additional cost (except in California).

This unique feature allows beneficiaries to reinvest a death benefit from one MoneyGuard policy into their own, enhancing their existing long-term care and life insurance coverage.

To be eligible, both the insured and the beneficiary must hold MoneyGuard policies with the benefit transfer rider included. The beneficiary must also be insured by their own policy.

Some key features of the benefit transfer rider include:

• Beneficiaries can reinvest a minimum of $25,000 from a death benefit into their existing MoneyGuard policy without additional underwriting. (This feature is not limited to spouses—any beneficiary with a MoneyGuard policy can use it.)
• Enhances long-term care benefits, the death benefit, and the surrender value.
• No additional charges apply when utilizing the BTR.

Guaranteed Benefits

Lincoln Financial's hybrid Long-Term Care Insurance policies guarantee benefits for long-term care, death, or both. You have access to your money as well in three ways:

• A need for long-term care services - You receive tax-free benefits to pay for all levels and types of long-term health care, either at home or in a facility of your choice. The traditional trigger for benefits is the same as any traditional Long-Term Care Insurance policy. You do not have to have a "permanent" or "terminal" health condition to trigger the long-term care benefit in addition to the traditional benefit trigger.
• Passing away - Like any life insurance policy, you get a tax-free death benefit after passing away.
• 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 policyholders additional peace of mind, knowing they have access to the money in the policy.

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.

The Long-Term Care Insurance Partnership program provides dollar-for-dollar asset protection to policyholders' estates. If a policyholder ever uses all the benefits within their policy, they can qualify for coverage through Medicaid without meeting Medicaid spend-down asset and income requirements.

This also protects policyholders from Medicaid estate recovery, which is when the state recovers an individual's estate after they pass away to repay the cost of care. Policyholders with a partnership policy are not subject to estate recovery.

Only traditional policies are eligible for the partnership program; no hybrid policy offering from Lincoln Financial would be eligible for partnership policy protection.

Easy Tax & HSA Identification of Long-Term Care Premium

Lincoln Financial Group has introduced separately identifiable premiums for the long-term care component of its hybrid Long-Term Care Insurance policies.

This provides additional tax advantages for policyholders. Here's how it works.

Since the long-term care premium is separated from the life insurance premium, policyholders can claim an LTC premium tax deduction for the long-term care portion of their premium.

The key benefits of this feature include:

• Tax Advantages: Policyholders can either claim an LTC premium tax deduction or Health Savings Account (HSA) reimbursement, creating more opportunities for tax savings.
• IRS Compliance: This separation fully aligns with IRS rules for tax-deductible Long-Term Care Insurance premiums, making it easier to qualify for potential tax savings.
• Transparency: Lincoln Financial's policy language clearly separates long-term care premiums from life insurance premiums, helping policyholders and tax professionals maximize tax benefitsand improve financial planning.

How Hard Is It to Qualify for a Policy with Lincoln Financial?

Your ability to qualify for Long-Term Care Insurance with Lincoln Financial depends on three key factors:

1. Do you require long-term care? If you are currently in need of long-term care services, you will not qualify for a new LTC Insurance policy.
2. Do you have any pre-existing health conditions? Those with pre-existing conditions must demonstrate that their health is well-managed. In certain cases, specific health issues may disqualify you from obtaining new coverage.
3. What is your age? Older individuals may face challenges in qualifying for new coverage, as health typically declines with age, and some insurance providers set age limits for starting new policies.

Long-Term Care Insurance companies use a process called underwriting to assess the risk of insuring each applicant. Applicants with poorly managed health conditions represent a higher risk than those in good health.

As a result, those deemed higher risk may face higher premiums and could only qualify for coverage within a specific rate class.

Each insurer uses different criteria in their underwriting process. Lincoln Financial is considered to have more conservative underwriting. 

A Long-Term Care Insurance Specialist can help you determine if you would qualify for new coverage with Lincoln Financial. Specialists have a deep understanding of each insurer’s underwriting criteria. 

They will work with you to determine if you'd qualify for coverage, as well as determine if another company could offer better coverage at a more affordable price. 

Specialists aren’t tied to any particular company. Instead, they’ll consider your needs, budget, and preferences and find you the best company for your personal situation. 

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Filing a Claim with Lincoln Financial

If you have a policy with Lincoln Financial, LTC News can assist you with filing a claim. Navigating the claims process on your own can be overwhelming and confusing, especially while trying to find quality care at the same time.

That's why LTC News has partnered with Amada Senior Care, a trusted leader in in-home healthcare, to offer no-cost, no-obligation assistance in processing claims with any Long-Term Care Insurance provider.

Amada's experts can guide you through the claims process and help you find high-quality care tailored to your or your loved one's needs. In some cases, they may even offer care at a discounted rate.

Is Long-Term Care Insurance with Lincoln Financial Safe?

Due to recent ratings and financial outlook predictions, Lincoln Financial is on track to become a stable company for Long-Term Care Insurance. However, they are not free from controversies. 

Lincoln Financial has a slight negative reputation for its bad-faith practices and sales tactics. The company has faced lawsuits for difficulty receiving and denial of benefits. 

These controversies are not associated with the company's Long-Term Care Insurance offerings. Lincoln Financial's hybrid LTC Insurance products are considered safe and reputable, providing comprehensive coverage. 

All Long-Term Care Insurance policies, including hybrid policies, in the U.S., are regulated under IRS regulation Section 7702(b). These strict regulations help protect policyholders and keep LTC Insurance policies safe for consumers by ensuring the following:

• Regulated benefit triggers.
• Tax advantages.
• Protection against excessive premium increase.
• Clear coverage expectations.
• Guaranteed benefits. 

Lincoln Financial's Hybrid Long-Term Care Insurance products meet federal guidelines. 

Remember, any life insurance contract that meets Section 101(g) guidelines cannot call itself "Long-Term Care Insurance" and should generally be avoided as a long-term care solution. Federal law prohibits insurance companies from marketing these policies as "long-term care" policies.

Shopping for Long-Term Care Insurance: Is Lincoln Financial A Good Option for Coverage?

The best Long-Term Care Insurance option for you or your loved one depends on needs, budget, and preferences. If you're looking for a stable, comprehensive hybrid Long-Term Care Insurance option, Lincoln Financial may be a great choice for you.

Lincoln Financial is a highly financially reputable company, offering great hybrid policies that combine long-term care with life insurance. However, it's important to consider all of your options when shopping for an LTC Insurance policy.

This is where a Long-Term Care Insurance specialist can help. A specialist can not only find the best company for you to apply for coverage with, but they can also help you process a claim if needed in the future.

Specialists have years of expert industry experience and your best interest in mind, making them great resources for your long-term care and retirement needs.

In addition, Amada Senior Care offers cost- and obligation-free help with LTC Insurance claims and finding the best care provider for you or your loved one.

If you're more inclined to solve things on your own, LTC News's Cost of Care Calculator can help you estimate the current and projected costs of care in your or your loved one's area.

This tool can help you determine how many benefits to purchase in your LTC Insurance policy. It can also help you compare the prices of different levels of care in your area so you can choose the best option for your circumstances.

LTC News also offers a Care Directory containing thousands of high-quality care providers such as assisted living, independent living, nursing homes, and more. This research tool can help aid in the process of searching for and comparing nearby care providers.

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