What is the difference between reimbursement and indemnity benefits?

Reimbursement pays 100% of your monthly maximum benefit for qualified expenses—you submit receipts or Lincoln pays providers directly. Indemnity pays 80% of your monthly maximum directly to you with no receipts required. Both draw from the same total LTC pool, so choosing indemnity doesn't reduce your overall coverage—just your monthly payment. Choose reimbursement for higher monthly benefits; choose indemnity for flexibility and simplicity.

How does the 0-day elimination period work?

Once you're certified as chronically ill (unable to perform 2 ADLs for at least 90 days or requiring supervision for cognitive impairment), benefits begin immediately. There's no deductible or waiting period. Compare this to competitors who require you to pay 90 days of care costs out-of-pocket before coverage begins. This can save $20,000 or more in initial care costs.

What are the Return of Premium options?

Basic ROP returns 70% of premiums paid (less claims, loans, withdrawals) at any time upon surrender. Vested ROP starts at 70% and increases to 100% over 11 years. Vested ROP costs more but provides full premium protection if you change your mind. You choose at purchase—it cannot be changed later.

What happens if I need care outside the United States?

Lincoln provides international benefits for Nursing Home and Assisted Living Facility services only—up to 36 months total. Home care outside the U.S. is not covered. If you plan to retire abroad, compare this to competitors like Nationwide CareMatters II which offers 100% international benefits during the acceleration period.

Can family members provide care and be compensated?

Yes, but with limitations. Services from "Immediate Family Members" are generally excluded unless: (1) the family member is a regular employee of the care provider, (2) the provider receives payment, and (3) the family member receives only normal compensation. This is more restrictive than competitors like Nationwide, which allows direct informal caregiver payments.

What is the Living Well Endorsement?

Included free with every policy, this endorsement provides access to health and wellness services for the policy owner, insured, beneficiary, and family members. It's proactive support before a claim is needed—helping you stay healthy and plan for potential care needs. Services may vary by state.

How does MoneyGuard compare to Nationwide CareMatters II?

MoneyGuard offers a 0-day elimination period (CareMatters has 90 days), benefit payment choice at claim time, and the Benefit Transfer Rider. CareMatters offers cash indemnity standard, higher residual death benefit (20% vs 5%), unlimited informal caregiver payments, and unique CPI inflation option. MoneyGuard is better for couples and those who want immediate benefits; CareMatters is better for cash flexibility and higher death benefit protection.

What inflation protection options are available?

Lincoln offers no inflation, 3% compound, or 5% compound. Note that 5% compound is not available with 6-year benefit duration. Inflation must be selected at purchase and cannot be changed. LTC benefits continue to grow while on claim, which is important for longer care scenarios.

What is the 2025 IRS per diem limit for indemnity benefits?

For 2025, the IRS per diem limit is $420 per day ($12,775 per month). Indemnity benefits received within this limit are generally tax-free. Amounts exceeding this limit may be taxed as ordinary income. If you choose indemnity, you can select maximum monthly benefit, IRS per diem limit, or a custom amount.

Lincoln MoneyGuard Fixed Advantage Review: Is It Worth It? (2025)

Q: What is the Benefit Transfer Rider and how does it work?

The BTR is included free with every policy. If your spouse (who also has a MoneyGuard policy with BTR) passes away, you can use their death benefit to enhance your own policy—increasing your LTC benefits, extending duration, and boosting your death benefit—all without new underwriting. This is powerful protection for couples. Both policies must include BTR, and the beneficiary must be the insured on their own policy.

Key Metrics at a Glance

Elimination Period	0 Days	Benefits start immediately
Issue Ages	40-80	Best rates under 65
Min Face Amount	$50,000	Single or flexible pay
Benefit Duration	3-6 years	Multiple options
Benefit Type	Reimb. or Indem.	Choose at claim time
Residual Death Benefit	5%	Up to $10,000

Three Doors Framework Applies

Three Outcomes. One Asset. You Stay in Control.

With asset-based LTC products like MoneyGuard Fixed Advantage, your money works for you no matter what happens. The insurance company doesn't keep it.

Scenario	What Happens	Benefit	Who Gets It
Door 1: LIVE	You need LTC care	Tax-free LTC benefits pay for your care (3-6 years)	You get the money
Door 2: DIE	You don't need LTC	Income tax-free death benefit to your heirs	Family gets the money
Door 3: LEAVE	You change your mind	Up to 100% Return of Premium (vested)	You get the money

The Bottom Line: Unlike traditional LTC insurance where you can pay premiums for decades and lose them if you never need care, MoneyGuard Fixed Advantage guarantees your money stays with you or your family—no matter which door life opens.

How MoneyGuard Fixed Advantage Works

Key features that set MoneyGuard Fixed Advantage apart from other hybrid LTC products.

0-Day Elimination Period

Benefits begin immediately upon qualification—no waiting period or out-of-pocket costs before coverage kicks in. This is a significant advantage over competitors who require 90-day elimination periods.

Choose Reimbursement or Indemnity

Unique flexibility to choose at time of first claim: reimbursement (100% monthly max with receipts) or indemnity (80% monthly max without receipts). Same total LTC pool either way.

Benefit Transfer Rider (BTR)

Included free. If your spouse passes away, their death benefit can enhance your policy—increasing your LTC benefits, extending duration, and boosting death benefit—with no new underwriting.

Flexible Premium Payments

Single-pay or flexible premiums up to 10 years. Premium modes: Annual, Semi-Annual, Quarterly, or Monthly (EFT). All scheduled payments are guaranteed never to increase.

No-Lapse Guarantee

Your policy will not lapse as long as minimum monthly no-lapse premium is paid—provided through the Value Protection Endorsement included with every policy.

Living Well Endorsement

Included at no charge. Access to health and wellness services for the policy owner, insured, beneficiary, and family members—proactive support before a claim is needed.

Inflation Protection Options

Option	Growth	Cost	Best For
No Inflation	0%	Lowest	Older buyers (70+) or those with shorter time horizons
3% Compound	3% compound	Moderate	Balanced protection, most common choice
5% Compound	5% compound	Higher	Younger buyers who want maximum long-term growth

Return of Premium Options

Basic ROP (70%)

Returns 70% of paid premiums upon surrender at any time. Included at no additional cost. Maximizes your LTC benefit pool.

Best for: Those prioritizing maximum LTC benefits over liquidity

Vested ROP (Up to 100%)

Returns a percentage of premiums that increases over 11 years, reaching 100% in year 11+. Costs more than Basic but provides full premium protection.

Best for: Those who want the option to recover their full premium

Vesting Schedule:

100%

Reimbursement vs. Indemnity: Your Choice at Claim Time

MoneyGuard Fixed Advantage is unique: you don't have to choose how you receive benefits until you actually need them. At your first claim, you select reimbursement or indemnity—and that choice is irrevocable for future claims.

Reimbursement

100% of monthly maximum benefit
Direct billing—Lincoln pays providers
⚠Receipts/invoices required

Example: $950,000 total, $16,000/month

Indemnity

⚠80% of monthly maximum benefit
Check sent directly to you—no receipts
⚠Additional tax forms may be required

Example: $950,000 total, $12,800/month

2025 IRS per diem: $420/day ($12,775/month) for 2025

Important: Your total LTC pool is the same regardless of which option you choose. Reimbursement gives you higher monthly benefits but requires documentation. Indemnity gives you flexibility and simplicity but at 80% of the monthly maximum.

Leverage Ratios: How Far Your Dollar Goes

The leverage ratio shows how much LTC benefit you receive per dollar of premium. Higher ratios mean your money works harder.

Age 60, 3% compound inflation

Premium Repositioned

$75,000

3.8xleverage

LTC Benefit Pool$285,000

Monthly Benefit$5,938/mo

Benefit Period4 years

Death Benefit$75,000

Most Common

Age 58, 3% compound inflation

Premium Repositioned

$100,000

3.8xleverage

LTC Benefit Pool$380,000

Monthly Benefit$6,333/mo

Benefit Period5 years

Death Benefit$100,000

Age 55, 5% compound inflation

Premium Repositioned

$150,000

3.8xleverage

LTC Benefit Pool$570,000

Monthly Benefit$7,917/mo

Benefit Period6 years

Death Benefit$150,000

Actual benefits vary by age, gender, health classification, and selected riders. These are representative illustrations—request your personalized quote for exact figures. • January 2025

Real World Scenarios

Is MoneyGuard Fixed Advantage right for YOUR situation? Here's who this works for—and when to consider alternatives.

Perfect Fit: The Flexibility Seeker

Perfect Fit

Patricia (Age 58): Patricia wants LTC protection but is uncertain about exactly how she'll use it. She might need home care from her daughter, or she might prefer a facility. She doesn't want to be locked into one approach.

How MoneyGuard Helps:

MoneyGuard Fixed Advantage with 5-year benefit period and Vested ROP. At claim time, she can choose indemnity (80% monthly, no receipts) to pay her daughter, or reimbursement (100% monthly) for facility care. Key Benefits: • 0-day elimination means immediate benefits • Choice of payment method at claim time • Vested ROP allows full premium recovery after year 11 • Benefit Transfer Rider for spouse protection

Outcome:

Patricia has 5 years of LTC benefits and can adapt her payment method to her actual needs. If she never needs care, her family receives the death benefit. If she changes her mind, she can recover her full premium after year 11.

Perfect Fit: The Couples Strategist

Perfect Fit

Michael and Karen (Age 65 & 63): They want coverage for both of them, but they're concerned about what happens if one spouse uses their benefits and the other needs care later.

How MoneyGuard Helps:

Each purchases a MoneyGuard Fixed Advantage policy with the Benefit Transfer Rider. They name each other as beneficiaries. Both select 3% compound inflation. Why BTR is Powerful: • If Michael passes without using LTC, Karen can enhance her policy • Her LTC pool increases by 25%+ • Duration extends significantly • Death benefit also increases • No new underwriting required

Outcome:

If Michael passes without using LTC benefits, Karen can use his death benefit to enhance her policy—increasing her LTC pool by 25%+, extending duration, and boosting her death benefit—all without new underwriting.

Compare Options: Maximum Leverage Buyer

Compare Options

David (Age 52): David is single with no spouse to care for him. He wants the highest possible LTC benefit and doesn't care about cash indemnity flexibility—he'll likely need professional facility care.

Analysis:

MoneyGuard works well, but Nationwide CareMatters II or OneAmerica Asset Care may offer higher leverage ratios and longer benefit periods (up to 7 years) for his situation. Comparison Points: • MoneyGuard: 0-day elimination, BTR (less useful for singles) • CareMatters II: Higher residual DB (20% vs 5%), 7-year max • Asset Care: Highest leverage ratios, up to age 80 MoneyGuard's unique advantages (0-day elimination, benefit choice) may be less valuable if David prioritizes pure LTC leverage.

Our Recommendation:

MoneyGuard's 0-day elimination and flexible payment options are strong, but if David prioritizes pure LTC leverage over benefit flexibility, he should compare illustrations from multiple carriers.

Where It Shines

0-Day Elimination Period

Benefits begin immediately upon qualification. No 90-day out-of-pocket period like most competitors require. This can save $20,000+ in initial care costs.

Unique Benefit Payment Choice

The only major hybrid product that lets you choose between reimbursement and indemnity at time of claim, not at purchase. Decide based on your actual care situation.

Benefit Transfer Rider

Included free. Couples can extend each other's protection significantly. Example: $100,000 death benefit transfer can increase LTC benefits 25%+ and add 12 months of coverage.

35+ Years in LTC Solutions

Lincoln MoneyGuard solutions and predecessors have been sold since 1988. They serve approximately 17 million customers and bring institutional expertise to claims handling.

Vested ROP to 100%

The 11-year vesting schedule means you can recover 100% of your premium if you change your mind—one of the more generous ROP options in the market.

⚠What Gives Us Pause

Lower Residual Death Benefit

Only 5% or $10,000 residual death benefit (whichever is less). Competitors like Nationwide offer 20%. If you exhaust your LTC benefits, your family receives minimal death benefit.

Indemnity Reduces Monthly Max

Choosing indemnity means 80% of the reimbursement monthly maximum. While total LTC pool is the same, monthly cash flow is reduced. May not cover full facility costs.

Not Available in NY

Lincoln National Life Insurance Company does not solicit or write business in New York state. NY residents need alternative carriers.

International Coverage Limited

Only provides international benefits for nursing home and assisted living facility services—home care abroad is not covered. Limited to 36 months total.