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Lincoln National (LNC) Launches Upgraded MoneyGuard Policy

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Lincoln National Corporation (LNC - Free Report) recently introduced a universal life insurance policy integrated with a long-term care rider. Named MoneyGuard Fixed Advantage, the policy not only maintains the basic design features of the MoneyGuard Universal Life product but also incorporates the Benefit Transfer Rider (BTR) without any added expense.

Shares of Lincoln National gained 4.8% on May 17.

Since the new policy includes features of the MoneyGuard Universal Life product, it is quite evident that MoneyGuardFixed Advantage intends to deliver a care strategy for the long haul to effectively plan and address the long-term care expenses of policyholders and their loved ones. Meanwhile, the BTR offers an innovative opportunity to beneficiaries to upgrade long-term care and death benefits within their existing policies by using death claim proceeds from the policy of another person. The benefits, if enhanced via the rider, will certainly not increase the policy charges.

It is worth mentioning that the BTR can be utilized till the age of 121. The scope of the rider has been widened and is not just restricted to benefit married couples but also can be used with parents, siblings, couples, estate planning or anyone named as a beneficiary. However, if one has to avail of the BTR, both the insured and beneficiary must individually hold policies equipped with BTRs and the beneficiary is required to be the insured person on one’s own policy.

Concurrent with the recent launch, the Flexible Care Cash benefits can be availed seven days a week, which was earlier available for five days a week. This cash benefit, payable without receipts, offers increased flexibility and cash availability to take care of the informal care needs of clients. Up to 100% of daily benefits can be reimbursed on those days which require formal care.

With several benefits bundled within a single policy, MoneyGuardFixed Advantage definitely seems alluring for Americans. In fact, the portfolio of MoneyGuard solutions devised by Lincoln National is committed to helping individuals interested in utilizing a long-term care solution for a better financial future. Apart from the recent launch being part of MoneyGuard solutions, the MoneyGuard Market Advantage forms part of the same portfolio and offers a guaranteed minimum level of death and long-term care benefits that hold the potential to grow over time.

The latest policy launch seems to be in line with the efforts of Lincoln National to launch long-term care solutions backed by its 30-year exceeding expertise in developing the same. Unveiling upgraded solutions similar to the latest one is expected to bring in more clients, which in turn might bolster revenues in the days ahead. There is a dire need to gear up for long-term care at an early age amid escalating healthcare expenses, as a result of which their benefits will amplify with time.

Shares of Lincoln National have lost 19.6% in a year compared with the industry’s decline of 23.1%. LNC currently carries a Zacks Rank #3 (Hold).

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Stocks to Consider

Some better-ranked stocks from the insurance space include Assurant, Inc. (AIZ - Free Report) , MGIC Investment Corporation (MTG - Free Report) and AXIS Capital Holdings Limited (AXS - Free Report) . While Assurant sports a Zacks Rank #1 (Strong Buy), MGIC Investment and AXIS Capital carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The bottom line of Assurant outpaced estimates in each of the last four quarters, the average surprise being 18.31%. The Zacks Consensus Estimate for AIZ’s 2022 earnings suggests an improvement of 37.6%, while the same for revenues indicates growth of 4.9% from the corresponding year-ago reported figures. The consensus mark for Assurant’s 2022 earnings has moved north by 3.2% in the past 60 days.

MGIC Investment’s bottom line outpaced estimates in three of the trailing four quarters and matched once, the average surprise being 10.94%. The Zacks Consensus Estimate for MTG’s 2022 earnings indicates a 18.9% improvement from the prior-year figure. The consensus mark for MGIC Investment’s 2022 earnings has moved north by 1.8% in the past seven days.

The bottom line of AXIS Capital outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 54.80%. The Zacks Consensus Estimate for AXS’s 2022 earnings suggests a 20.7% improvement from the prior-year figure, while the same for revenues indicates a 3.2% rise from the prior-year figure. The consensus mark for AXIS Capital’s 2022 earnings has moved north by 15.5% in the past 30 days.

Shares of Assurant and AXIS Capital have gained 18.7% and 4.4%, respectively, in a year. Meanwhile, MGIC Investment stock has lost 4.8% in the same time frame.