In response to the continuing low interest rate environment, and with a focus on the ability to continue to offer competitive rates, Lincoln Financial has announced the following change to MoneyGuard:
A vesting schedule will be added to the Refund of Premium option. IF a client cancels the policy they will receive:
- Months 1-6: 100% of premiums paid
- Months 7-12: 90% of premiums paid
- Months 13-24: 92% of premiums paid
- Months 25-36: 94% of premiums paid
- Months 37-48: 96% of premiums paid
- Months 49-60: 98% of premiums paid
- Months 61+: 100% of premiums paid
Historically only about 2% of policy holders ever exercise the refund option (and that is since the policy was introduced in 1989). There have been no other changes to benefits.
This change goes into effect for clients whose paperwork is received into the home office after August 16th, 2013. To get the current, 100% immediate refund of premium product paperwork must be in our office by 12pm on 8/16/13.
Please contact our Marketing Department if you have questions, would like illustrations, or if we can help you with paperwork.
As always we appreciate the opportunity to earn your business,
