Effective February 11, 2019, Lincoln is implementing pricing updates to enhance competitive positioning in core market segments for Lincoln MoneyGuard® II.
This is a change to rates only for our current offering of Lincoln MoneyGuard® II (2017). There are no changes to the product structure, contract language, compensation, or types of benefits provided. The updated product will be called Lincoln MoneyGuard® II (2019)*.
The goal of the pricing changes are to improve and maintain competitive positioning in our core sales scenarios. Most of the changes are rate decreases with some rate increases – on average, decreasing 3%.
* Lincoln MoneyGuard® II (2019) will be reflected as Lincoln MoneyGuard® II (2017) 021119 where required.
Lincoln MoneyGuard® II pricing updates, which consist of an overall average decrease of 3%, will continue to put us at #1 in the hybrid marketplace in over 80% of our sales opportunities. We are targeting two growth segments for pricing improvements:
• Females and males with Couple’s Discount – The single premium price is decreasing on average 3%, with a range of -1% to -12%.
• Flexible premiums for males are decreasing on average 3%, with a range of -2% to -8%.
While most of our sales opportunities will see a decrease in price, there are some areas, including a number in the female flex pay categories, that will have pricing increases as part of this update.
New business applications will be accepted on February 11, 2019 in all states that currently sell Lincoln MoneyGuard® II (2017).
All states that currently sell Lincoln MoneyGuard® II (2017) will automatically be approved at rollout (will not be made available in New York). There is a 30-day transition period which begins on February 11, 2019 and ends on March 15, 2019. During the transition period:
• For applications to qualify for the current MoneyGuard® II (2017) pricing, a projection of values and the completed Part 1 must be signed, dated, and received in good order by Lincoln’s home office by Friday, March 15, 2019.
• For pending or issued business, after February 11, 2019, Lincoln will accept requests with a revised projection of values to change to MoneyGuard® II (2019) pricing.
• For placed business, normal internal replacement guidelines apply. Rewrites will not be accepted.
As a reminder, the standard MoneyGuard® Rules are:
• Once an application is submitted, the Personal History Interview (PHI) must be completed within 60 days of submission. In addition, the case must be placed within 90 days of the PHI. If these conditions are not met, the case will be closed out. If a case is reopened, a new application must be submitted, and the case will be subject to the premium rates in effect at that time.
• Producers who are not properly credentialed (licensing/appointment/etc.) to solicit business when the paperwork is submitted will be subject to the premium rates in effect on the date when the advisor becomes properly credentialed and resubmits the paperwork.
Reminder: As of February 11, 2019, the Lincoln DesignIt Illustration System and WinFlex will be updated to reflect the new rates. During the transition period both current and new rates can be run.
More detailed information on Lincoln MoneyGuard® II (2019) will be available in the Lincoln Life Leader launch announcement on February 11, 2019 (including illustration information, reference materials, and marketing materials).