Lincoln Moneyguard III -When Just Okay Is Not Okay

[Northeast Agent]

Lincoln MoneyGuard announces repricing effective immediately. Apps must be in by 6/26 for current rates

Effective immediately! Pricing changes to all Lincoln MoneyGuard products

Effective TODAY, June 15, 2020, Lincoln Financial will implement pricing increases to all new products in the Lincoln MoneyGuard® solutions suite.

Pricing Updates

• Single pays will see an approximate increase of 20%
• Flexible premium payments will see an increase that trends down as the duration of payments is extended:
• 5-pays increase 17%
• 10-pays increase 15%
• 15-pays increase 12%
• 20-pays increase 10%
• 25-pays increase 8%

To receive lower current rates, 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, June 26, 2020.

This is a change to rates only. There are no changes to the product structure, contract language, forms, compensation, or types of benefits provided*.

 

[ltcadviser]

Lincoln Moneyguard III is now 45% more expensive than the pricing of Lincoln Moneyguard II in November 2019! If interest rates stay low I imagine Nationwide, Pacific Life and Securian could follow suit and also increase their rates again later this year or next year, but I really don't think Nationwide or Securian specifically have that much exposure from a volume standpoint.

 

[Jay1958]

Securian Financial

SecureCare Pricing Update

For new business only, expect premiums to increase an average of:

• Single-pay: 13.5%
• 5-pay and 7-pay: 10.5%
• 10-pay and 15-pay: 7%

Key Dates

• Monday, July 6, 2020: illustration software will be updated to reflect new pricing.
• Friday, July 17, 2020: applications must be signed, in good order and received by Securian Financial's home office or submitted via eApp by 3 p.m. CT to receive the old rates.
• Saturday, July 18, 2020: SecureCare Universal Life's new pricing and extension of payments to age 80 will be implemented in the Compact states and South Dakota.

 

[ltcadviser]

Securian Financial

SecureCare Pricing Update

For new business only, expect premiums to increase an average of:

• Single-pay: 13.5%
• 5-pay and 7-pay: 10.5%
• 10-pay and 15-pay: 7%

Key Dates

• Monday, July 6, 2020: illustration software will be updated to reflect new pricing.
• Friday, July 17, 2020: applications must be signed, in good order and received by Securian Financial's home office or submitted via eApp by 3 p.m. CT to receive the old rates.
• Saturday, July 18, 2020: SecureCare Universal Life's new pricing and extension of payments to age 80 will be implemented in the Compact states and South Dakota.

Old news, been known about for months, still great pricing after minor rate changes.

 

[Jay1958]

Yes Jack, still great pricing but not old news. Price increases just recently announced.

 

[ltcadviser]

Yes Jack, still great pricing but not old news. Price increases just recently announced.

Whispered to me 3-4 months ago, regardless of a formal announcement. So, we have known about the forthcoming Securian pricing change for awhile. Different than Lincoln dropping a huge rate increase last week, 3rd one in 6 months to boot, with very little notice.

 

[Jay1958]

I'm glad it wasn't the other way around regarding the notice and that is, Securian giving short notice and Lincoln giving a longer lead time. As you mentioned in a much earlier post, it was only a matter of time until there would be increases but at least the Securian product remains an exceptional value to those seeking a hybrid solution.

 

[ltcadviser]

I'm glad it wasn't the other way around regarding the notice and that is, Securian giving short notice and Lincoln giving a longer lead time. As you mentioned in a much earlier post, it was only a matter of time until there would be increases but at least the Securian product remains an exceptional value to those seeking a hybrid solution.

Exactly correct Jay. Totally agree.

We just need to write Securian and Nationwide for our clients for as long as they remain great values.

Hopefully interest rates go up at some point so the insurance companies aren't under so much pressure.

 

[ltcadviser]

Phone rang off the hook for the Securian policy for three weeks. Get time to breathe now. Phew...

 

[Allen Trent]

Phone rang off the hook for the Securian policy for three weeks. Get time to breathe now. Phew...

Sure hoping treasury & interest rates go up so all carriers are not forced to reprice all products again so soon after the recent reprices for new mortality tables. A lot of people don't realize that some regulations require a mandatory reprice when a rolling interest rate benchmark is at or below a threshold for a consecutive period of quarters or years. Repricing is a pretty big undertaking for all life products, especially to make them less desirable.