A screenshot of part of the prospectus of Lincoln Financial's new MoneyGuard Market Advantage VUL-LTC hybrid. (Image: Lincoln Financial)
Lincoln Financial Group is adding a product that will combine long-term care (LTC) benefits with variable universal life (VUL) insurance.
The new Lincoln MoneyGuard Market Advantage program will provide a VUL policy along with a long-term care (LTC) benefits rider.
Resources
- Lincoln Life Flexible Premium Variable Life Account M SEC document feed
- Lincoln Rolls Out Updated MoneyGuard Life-LTC Hybrid
Lincoln Financial's MoneyGuard policies have been a major source of life-LTC hybrid coverage for decades. The older life-LTC hybrid policies have been fixed universal life policies.
Lincoln Financial says in product fliers that it plans to sell the new VUL-LTC MoneyGuard product alongside the old UL-based MoneyGuard products.
Lincoln Financial executives have told securities analysts that they're trying to move away from products that expose the company to substantial amounts of risk related to low interest rates and changes in interest rates.
Offering life insurance through a VUL policy, rather than a UL policy, may help an insurer assume less interest rate risk, hedge any interest rate risk it does assume. Also it will charge a policyholder a separate amount for any riders or other features used to protect the policyholder against interest rate risk.
Radnor, Pennsylvania-based Lincoln Financial said it will write the new VUL-LTC hybrid policy through The Lincoln National Life Insurance Company, according to a product prospectus filed with the U.S. Securities and Exchange Commission.
