---
title: MoneyGuard vs. CareMatters - Linked Life/LTC comparison
description: "For advisors, there's a lot to like about two of the leading \"Asset-based\" Linked Life/LTC plans. But which is the best plan for your client?"
---

<https://www.ltcipartners.com/blog>

# [MoneyGuard vs. CareMatters - Linked Life/LTC comparison](https://www.ltcipartners.com/blog/moneyguard-vs.-carematters-linked-life/ltc-comparison)

 Written by [LTCI Partners](https://www.ltcipartners.com/blog/author/ltci-partners) | Feb 11, 2016 8:44:05 PM

For advisors, there's a lot to like about two of the leading "Asset-based" Linked Life/LTC plans - [Lincoln Financial MoneyGuard Fixed Advantage](https://www.ltcipartners.com/carriers/lincoln-financial-group) and [Nationwide CareMatters](https://www.nationwide.com/carematters-video-nf-carematters-main-video-fs.jsp).  But which is the best plan for your client?

As a quick refresher, linked life/ltc plans combine life insurance with tax-qualified long-term care insurance.  If a policyholder needs long-term care, it is paid by first accessing an accelerated death benefit and then an extension of benefit rider.

Both plans offer features such as:

- Return of premium 
- Guaranteed premiums and benefits
- Tax-qualified (non-taxable) LTC benefits
- Inflation options

We took a look at both products for a 65 year old single female in Illinois - using both a single premium and a 10-pay plan.  We did not include inflation options.  Take a look at this comparison:

|   | **Lincoln MoneyGuard Fixed Advantage** | **Nationwide CareMatters II** |
| --- | --- | --- |
| $100,000 single premium, 65 year old single female |   |   |
| Monthly benefit | $4,091 | $4,816 |
| Total benefit pool | $294,540 | $346,756 |
| Death benefit | $123,223 | $115,585 |
| Residual death benefit | $4,909 | $23,117 |
|  Type of LTC benefit | Reimbursement | Cash Indemnity |
|   |   |   |
| $10,000 annual premium, 10 premium payments, 65 year old single female |   |   |
| Monthly benefit | $3,368 | $4,112 |
| Total benefit pool | $242,508 | $296,059 |
| Death benefit | $80,836 | $98,686 |
| Residual death benefit | $4,041 | $19,737 |
| Type of LTC benefit | Reimbursement | Cash Indemnity |

*Note:  For producer use only - not for consumers*

You'll note that the single premium will give you more benefit with both carriers than paying premiums over 10 years. The reason?  Because the 10-pay puts more risk on the insurance carrier in earlier years while single premium plans use the deposit to pay for long-term care costs before the carrier pays - a form of partial self-insurance.  

So, which plan would you choose? Here are some things to keep in mind.  First, a major difference between these plans is the reimbursement versus cash benefits.  A cash indemnity benefit will pay a benefit no matter who is providing the care - even if it is an immediate family member.  As long as care is required because of failing 2 of 6 activities of daily living (ADL's) or cognitive impairment, the full cash monthly payment is paid.  As an example, in the future you could use the money to lease a caregiving robot. Nationwide offers this cash benefit.

On the other hand, if you live in an urban area a reimbursement plan gives you more benefit dollars to use.  There are a lot of quality home health care and assisted living communities in major urban areas - and the reimbursement plans should work well.

Either product makes for a sound long-term care plan. For more information on Linked Benefit products, download a [special guide](https://www.ltcipartners.com/hubfs/Brokerage%20Marketing%20Pieces/An%20Advisors%20Guide%20to%20Linked%20Life%20LTC%20Products%202021.pdf) or [request an illustration](https://www.ltcipartners.com/rfp-new).

 

*Pat and Tom Talk Linked Benefits (2 minutes)*

*

*

[View full post](https://www.ltcipartners.com/blog/moneyguard-vs.-carematters-linked-life/ltc-comparison)

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