Given the industry’s historically low interest rate environment, and that insurance products with guarantees tend to be more sensitive to macroeconomic trends, Lincoln is making prudent and responsible business decisions to adjust the pricing of our products.
Effective June 15, 2020, Lincoln Financial implemented pricing increases to all products in the Lincoln MoneyGuard solutions suite. Adjustments on flex-pay designs will see a pricing increase of approximately 15%. Single-pay designs will see a pricing increase of approximately 20%.
Additionally, Return of Premium (ROP) on Lincoln MoneyGuard® II in California is being updated to bring consistency across the MoneyGuard product suite. The Basic ROP option will be 70%. The Vested ROP option will begin at 70% and grade up to 100% over six years.
As a leader in the hybrid long-term care marketplace, Lincoln remains steadfastly committed to developing and providing your clients with best-in-class products
It is important to note that no changes will be made to the contract language, forms, compensation or benefits provided.
How This Change Impacts Your Business
- For applications to qualify for the current pricing, a projection of values and the completed application Part 1 must be signed, dated and received in good order by Lincoln’s home office by Friday, June 26, 2020.
- For pending or issued business, after June 15, 2020, Lincoln will accept requests with a revised projection of values to change to new pricing.
- For placed business, normal internal replacement guidelines apply. Rewrites will not be accepted.
- All pending business must be issued, or 1035 exchanges initiated (where applicable), on or before August 28, 2020.
- As of June 15, 2020, Lincoln DesignItSM and WinFlex will be updated to reflect the new rates. During the transition period both current and new rates can be run.
Standard MoneyGuard Rules Apply During This Transition
- Ensure that you are appropriately credentialed. Clients of advisors who are not properly credentialed to solicit business when the paperwork is submitted will be subject to the premium rates in effect on the date when the advisor becomes properly credentialed and resubmits the paperwork.
- Remember that once an application is submitted, the Personal History Interview (PHI) must be completed within 60 days of submission. In addition, the case must be placed within 90 days of the PHI. If these conditions are not met, the case will be closed out. If a case is reopened, a new Part 1 must be submitted, and the case will be subject to the product available at that time.
- NY Reg 187: Please note that effective February 1, 2020, financial professionals are now required to complete two pre-sale training courses prior to soliciting new business or servicing existing business in New York. Specifically, the trainings include: 1) NY Regulation 187 Best Interests Training; AND 2) Carrier Specific Product Training
You will not need to retake these trainings if you have already completed them (this rate change does not require any additional product training). In accordance with NY Regulation 187, the enhanced documentation and suitability review are still required before policy issue.