Moneyguard: Long Term Care’s Best Kept Secret

As my own mother is aging and needing more assistance in her home, my brother and I are beginning to explore various long term care facilities for her and my stepfather.  I am so glad that a decade ago she and I decided that she should invest in Lincoln’s MoneyGuard Long Term Care product.  This product is a combination of a cash value life insurance policy and traditional long term care insurance.

While life insurance is a well accepted financial product to provide family protection.  Almost everyone will own life insurance at some point in their life. However, long term care insurance is owned by only 7% of Americans.  Considering that we are living longer and longer, the potential costs of long term care for an aging parent can consume much of a family’s wealth.  This can be avoided with LTC insurance!

Long Term Care insurance is designed to help pay for your costs of care received either in your home or in a facility. The cost of long term care care is expensive, currently averaging over $87,000.00 nationwide.  Project that your parent may need assisted living for 3, 5 or even 10 years and you can see how quickly an family assets be used to provide for them.

Without long term care insurance, you can easily spend through a lifetime of savings and end up on Medicaid.  Buying long term care insurance enables you to not only remain independent; but also allows you to not burden your family with caregiving issues.

So, why doesn’t everyone buy long term care insurance?

Concerns About Purchasing Long Term Care

There are usually two basic concerns that hold people back from purchasing LTC insurance:

  1. What if I pay premiums and never need long term care?
  2. What if my premiums increase and I can’t afford my coverage when I’m older?

Several large life insurance companies such as Lincoln National Life, State Life and Genworth have recognized and addressed these concerns with insurance policies that combine guaranteed long term care benefits with a guaranteed life insurance benefit for what is known as a guaranteed premium.

One of the more popular hybrid long term care insurance policies is a product called Lincoln Moneyguard Reserve Plus.  (Also marketed today as Lincoln Moneyguard II).

Linked benefit LTC policies such as Lincoln MoneyGuard Reserve provide tax-free long term care insurance if you need it; income tax-free life insurance benefits for your heirs if you don’t need care; and a money back guarantee if you ever change your mind.  These benefits are guaranteed and fixed for the life of the contract.  The contract is usually funded with a one-time payment.  There are no ongoing premiums.

As my mom moves towards living in an Assisted Living facility, I’m so grateful we purchased her Lincoln Moneyguard over a decade ago.  As we age, it’s inevitable we face a loss of independence and the financial stress that comes with paying for long term care.

The Best Laid Plans