Lincoln Long-Term Care Insurance: Solid Choice with Zero Elimination Period – 2022 Review

Thang Truong
Thang Truong
Updated on:

The Lincoln long-term care insurance product is called Lincoln MoneyGuard III. It is a hybrid long-term care insurance policy, one that combines permanent life insurance with long-term care insurance. These are sometimes called linked policies. The beauty of these policies is that if you require long-term care the money is there for that, but if you don’t, your heirs get a nice tax-free lump sum death benefits when you pass away. This is different than the traditional long-term care insurance, because if it turns out you don’t need long-term care, all the money you spent on premiums goes to the insurance company and you get nothing. 

MoneyGuard III is a flexible hybrid long-term care insurance policy. Its unique feature is zero elimination period which is very rare in the hybrid long-term care insurance market. Overall, it is a very solid policy, definitely worth your consideration.

Features of Lincoln Long-Term Care Insurance Policy

This plan has some nice features, including:

  • Choose how long you pay premiums (one time, monthly, quarterly, semi-annually or annually)
  • Inflation protection is optional (3% or 5%)
  • No elimination period
  • Couples discount
  • Benefits travel with you if you move abroad
  • No medical exams are needed to qualify

Basically, this is a universal life insurance policy with a long-term care benefits rider attached.

There’s also two return of premium options: 

  • Basic: You’ll get back 70% of premiums paid
  • Vested: You’ll get 100% back after year ten (this requires a 20% price increase for the same LTC benefits)

One thing that’s important to note is that this is a reimbursement policy. You will pay for care out-of-pocket and Lincoln will reimburse you for those expenses. A major drawback with this plan is that not everyone has that money available to pay for care before they get reimbursed. If that’s your situation, you should look around for a cash indemnity policy, which gives you cash you can spend it as you see fit. Both Securian and Nationwide offer such policies. Another drawback of reimbursement policies is that you’ll have to submit receipts every month, even if you haven’t moved and your expenses are exactly the same as they were last month. 

There is a brief cash option with this plan—it allows for $100 a day to cover the transition from informal to formal care, for up to 180 days. You don’t need to submit receipts. 

MoneyGuard III Long-Term care insurance policy from Lincoln Financial also offers residual death benefit of 5% of base face amount, up to $5,000. This means that even after using up all long term care benefit, when the insured passes away, his/her beneficiary still receives up to $5,000 death benefit. This should be good for final expenses, avoiding the need to have another final expense policy.

>>MORE: The Best Hybrid Long-Term Care Insurance Companies

How Much does Lincoln Long-Term Care Insurance Cost?

We got a quote for a healthy 50-year-old woman living in Florida. Below are the policy’s benefits:

  • $6,000 monthly benefit limit
  • $72,000 annual long-term care benefit
  • $288,000 total LTC benefits
  • $156,000 death benefit
  • Four years of benefits. The quote we obtained is for a 4-year benefit policy. MoneyGuard III offers options from 2 to 7 years.
  • And the annual premiums are $11,623 and pay for 10 years. So, the total premiums would be $116,230.

To be clear, if you don’t use the long-term care benefits, your heirs get at least a $156,000 death benefit.

Customer Satisfaction Rating of Lincoln Long-Term Care Insurance

Lincoln Financial gets an overall score of 750 out of 1,000 points on J.D. Power’s life insurance study. This puts them solidly in the average range, with three stars. 

The BBB gives Lincoln Financial an A-, although they’re not accredited. There are 67 complaints on the website in the last three years, 23 in the last 12 months. Some complaints are unavailable, and most of the rest concern being denied benefits for some reason. 

The NAIC gives Lincoln Financial a .09 score, with the median average being 1.0. This means Lincoln Financial has fewer complaints than expected.

>>MORE: The 5 Best Traditional Long-Term Care Insurance Companies

Financial Strength Rating of Lincoln Long-Term Care Insurance

Lincoln Financial earns an A+ rating (superior) from A.M. Best, with a stable outlook. Lincoln Financial definitely has the resources it needs to pay claims.

Last Thoughts

If you need a hybrid long-term care/permanent life insurance policy, Lincoln Financials’ MoneyGuard III is a solid option. One great feature is that the elimination period is zero, so benefits start right away. The fact that you have to submit receipts and get reimbursed for costs is a drawback, but if you don’t mind that, Lincoln Financial may work for you. 

>>MORE: Compare Long-Term Care Insurance Quotes Online

Thang Truong
Thang Truong

Thang Truong covers small business insurance and small business success at BravoPolicy. He is a licensed P&C insurance agent. Previously, he held product leadership positions at, Capital One, NerdWallet, and Mulberry Technology. He holds a MBA degree from UC Berkeley - Haas School of Business.

More Stories

6 Best Indexed Universal Life Insurance (IUL) for 2023

Are you looking for a way to set aside some extra money for your senior years, and maybe a little extra for loved ones to inherit? Most people opt for indexed universal life insurance because it offers the greatest cash value growth tied to the performance of S&P 500 index with the least risk thanks […]

Thang Truong
Thang Truong

Best Self-Directed Roth IRA Companies for 2023

A self-directed Roth IRA is much like a regular Roth IRA, but offers more flexibility as far as what you can invest in. Whereas a regular Roth will only let you invest in stocks, bonds, mutual funds, ETFs, and real-estate investment trusts, a self-directed Roth lets you invest in a greater variety of investment options.  […]

Thang Truong
Thang Truong

The 5 Best Hybrid Long-Term Care Insurance Companies for 2023

If you’ve decided to plan for every eventuality, you’d be smart to include a plan to cover long-term care. Someone turning 65 this year has an almost 70% chance of needing some type of long-term care, and about 13% of those will need it for five years or more. Long-term care is expensive and can […]

Thang Truong
Thang Truong

The 3 Best Traditional Long-Term Care Insurance Companies for 2023

Long term care is something that no one likes to think about, but unfortunately, many people will eventually need. Health care costs are skyrocketing, and a lengthy stay at a long-term care facility can easily bankrupt most people’s nest eggs. Long-term care insurance is one way to protect both yourself and your retirement savings. Out […]

Thang Truong
Thang Truong

The Best Long-Term Care Insurance Companies in California for 2023

California residents who are keen to protect themselves and their families against the worst events in life may be considering long-term care insurance. However, you might not know much about LTC insurance or how it is handled in California. Let’s take a look: What is Long-Term Care Insurance? Long-term care insurance helps pay for long-term […]

Thang Truong
Thang Truong

The Best Long-Term Care Insurance Companies in Arizona for 2023

Arizona is a great place to retire. It’s warm, there’s no snow to shovel, and Arizona improves the quality of life for anyone with allergies or asthma. When you pack your bags and retire to Arizona, you’re probably not thinking about long-term care. But the sad reality is that 47% of men and 58% of […]

Thang Truong
Thang Truong

The Best Long-Term Care Insurance Companies in Florida for 2023

There’s a lot of good reasons to retire in Florida. The weather is warm, the beaches are beautiful, and there are lots of other retirees to socialize with. Also, Florida has no state income taxes, no inheritance taxes, and no estate taxes. When you pack up your things and move to Florida, you’re probably not […]

Thang Truong
Thang Truong

Private Placement Life Insurance: Everything You Need to Know

If you haven’t heard of private placement life insurance, you probably don’t qualify to buy it. Private placement life insurance is typically for investors with millions in liquid cash that they need to invest for tax reasons.  What is Private Placement Life Insurance? Who Qualifies for Private Placement Life Insurance? Benefits of Private Placement Life […]

Thang Truong
Thang Truong

Nationwide IUL – A Strong Product With Great Features and Excellent Ratings

The Nationwide IUL product can help you either supplement your retirement income or ensure your beneficiaries future by leaving them a nice tax-free death benefit. Obviously, you have many options when it comes to IUL policies, so you want to know how does Nationwide’s policy stack up against the competition? Let’s take a look. Pros […]

Thang Truong
Thang Truong

Transamerica IUL – A Solid Product but High Consumer Complaint Score & Law Suits

Consumers looking to supplement their retirement income often settle on an indexed life insurance policy. These policies build cash value based on market performance and allow your heirs to enjoy a tax-free death benefit. Let’s take a look at Transamerica’s indexed universal life insurance policy and see what makes it stand apart from other such […]

Thang Truong
Thang Truong