Lincoln MoneyGuard II - Introducing Expanded Payment Options and Pricing Changes

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Lincoln MoneyGuard II - Introducing Expanded Payment Options and Pricing Changes

Effective April 17, 2017, Lincoln MoneyGuard will be introducing expanded payment options and pricing changes for new sales of the product, pending state approval.

Product Change Highlights

Expanded Payment Options

LFG is expanding their payment options to provide more financial flexibility to clients. The new expanded payment options will give clients greater flexibility to purchase a policy at an earlier age and spread their payments over a longer period of time.

Listed below is the availability for the new expanded payment options;

• Clients ages 40 to 54 will now have the option to fund up to age 65, potentially for as long as 25 years.
• Clients between the ages of 55 and 72 will continue to have a choice of payment options up to 10 years.
• Clients between the ages of 73 and 79 will have a new schedule of payment options. Starting at age 73, clients can choose options up to 9 years, grading down by one year at each subsequent age, to 3 years of payments at age 79.
• Single premium payment options are still available.

Pricing Change

The pricing changes identified below were made following a thorough and in-depth analysis of all factors influencing pricing, including those related to the persistently low interest rates. These are the first pricing changes since the product was introduced in early 2014 and will result in a pricing increase or decrease, depending on each client’s specific situation.

• Overall, the pricing is increasing by an average of 10%
• In Lincoln's core markets:
o Single pay premium rates will increase by a range of 2% to 11% with an average increase of 10%
o Flexible premium rates will increase by a range of 8% to 18% with an average increase of 14%

At certain ages, this pricing adjustment may alter the benefit level or rider combinations available for sale. For situations where rider/inflation combinations are no longer available, there are alternative options. Contact your Internal Wholesaler to learn more.

Existing policy owners are not affected, because one of the product’s unique benefits is that all rates and charges are fully guaranteed, assuming all premiums are paid as scheduled and no loans or withdrawals are taken for the life of the policy.

Transition Guidelines

Reflected below are the Transition Guidelines for this rollout:

• For applications to qualify for the current Lincoln MoneyGuard® II (2015) pricing, the completed ticket and one other required point of sale form for Lincoln MoneyGuard® II (2015) must be signed, dated, and received in good order by Lincoln’s home office by April 13, 2017 by 6:00 pm EST.
• For pending business, after April 13, 2017 Lincoln will accept a written request and a revised projection of values to change to Lincoln MoneyGuard® II (2017).
• For issued or placed business, normal internal replacement guidelines apply. Rewrites will not be accepted.



Brokerage Sales Consultant
Phone: 800-792-6795