Founded in 1905, Lincoln Financial is the fifth-largest life insurer in the U.S. — and one of the most misunderstood. This guide cuts through the product complexity to answer the questions people actually struggle with: which Lincoln product fits their situation, what the ratings really mean, and where other carriers might serve them better.
Lincoln Financial sits in the upper tier of U.S. insurers — financially solid, broad product lineup, good complaint record — but it isn’t the right fit for every situation. These are the real questions people ask when they’re researching or already holding a Lincoln policy.
1 Is Lincoln Financial financially stable enough to trust with a 20 or 30-year policy? Yes — A from AM Best and AA− from S&P are strong ratings. After AM Best revised its outlook from negative to stable in February 2025, Lincoln is trending in a positive direction. ▼
2 Does Lincoln Financial sell whole life insurance? No. Lincoln does not offer whole life or traditional universal life insurance. If you need whole life, you’ll need a different carrier — this is one of Lincoln’s most significant product gaps. ▼
3 What is MoneyGuard and is it worth the price? MoneyGuard is Lincoln’s hybrid life and long-term care policy — you get LTC coverage you may need, and a death benefit if you don’t. It solves the “use it or lose it” problem of traditional LTC insurance. ▼
4 What is Lincoln Level Advantage and who is it actually designed for? It’s a registered index-linked annuity (RILA) — a product between a fixed indexed annuity and a variable annuity. It accepts limited downside risk (10–20% buffer) for higher upside participation. Not appropriate for true capital preservation. ▼
5 I have a Lincoln Financial policy that was originally issued by a company Lincoln acquired. What should I know? Acquired policies have caused frustration for some customers — premium increases, limited online access, and legacy system limitations. Contact Lincoln’s policyholder service team and verify your benefits in writing. ▼
6 Does Lincoln Financial offer no-exam life insurance? Yes — Lincoln is on NerdWallet’s list of best no-exam and instant life insurance companies. Accelerated underwriting can approve eligible applicants without a medical exam for certain coverage amounts. ▼
7 What happens to my Lincoln annuity if Lincoln Financial fails? State guaranty associations provide a safety net — typically $250,000 per annuity owner per insurer per state. Coverage limits vary by state. Lincoln’s strong ratings make this scenario unlikely, but the protection exists. ▼
8 Does Lincoln sell directly to consumers, or do I need an advisor? Lincoln distributes almost entirely through independent financial advisors and broker-dealers, not directly to consumers. You cannot walk in or call Lincoln and buy a policy directly. ▼
Ratings from AM Best, S&P, Moody’s, and Fitch measure an insurer’s ability to pay claims over the long term. The BBB and NAIC complaint ratios measure how the company treats existing customers. Lincoln’s picture on both fronts is better than average.
An A rating from AM Best means Lincoln has demonstrated the financial resources, management quality, and operating performance to meet its policyholder obligations over the foreseeable future. It does not mean the company is risk-free — no insurer is — but it does mean that the probability of Lincoln failing to pay a legitimate claim is extremely low. The NAIC complaint ratio being below the expected level for a company Lincoln’s size is arguably the more meaningful day-to-day number: it means that when policyholders file claims or raise disputes with state regulators, Lincoln resolves them at a rate that’s better than what you’d expect from a company of this scale.
Lincoln does not sell whole life or traditional universal life. Its lineup consists of term life, indexed universal life, and variable universal life — each targeting a different financial situation and risk tolerance.
Lincoln’s term life product is straightforward: you pay level premiums for a fixed period, and if you die during that period, your beneficiaries receive the death benefit. No cash value, no investment component, no complexity. TermAccel is available in 10, 15, 20, 25, and 30-year terms with face amounts from $100,000 to $5 million or more. Accelerated underwriting means many applicants — particularly healthy adults under 60 — can get approved without a medical exam. If you become totally disabled, Lincoln waives monthly policy deductions and charges while keeping the policy active. Lincoln’s term rates are competitive, particularly for applicants with complex health histories like managed cancer, heart disease, or diabetes, where Lincoln’s underwriting has been noted as more accommodating than many competitors.
Lincoln’s IUL products combine a permanent death benefit with a cash value component that earns interest linked to a market index — typically the S&P 500 — with a floor of 0% so the account value cannot decrease from market losses. The WealthBuilder IUL includes five indexed account options and optional chronic illness and multiplier riders. The WealthBuilder ECV IUL focuses on high early cash value access for premium financing and business insurance uses. IUL illustration assumptions have been an industry-wide concern — Lincoln, like all carriers, can illustrate rosy projections that depend on sustained high cap rates. Always ask to see the guaranteed illustration alongside the current-assumption illustration. The guaranteed illustration shows the worst-case scenario if caps are reduced — a reality that does happen in low-rate environments.
Lincoln’s VUL products provide full market exposure through investment subaccounts — similar to mutual funds inside a life insurance wrapper. Unlike IUL, there’s no floor; your cash value can decrease with market downturns. In exchange, the upside potential is higher than any indexed product. VUL can make sense for high-income earners who have maxed other tax-advantaged accounts and want additional tax-deferred growth with life insurance protection, working with a financial advisor who will actively manage the subaccount allocations. VUL is not appropriate for conservative investors or anyone who cannot tolerate years of below-zero performance in the cash value account. Market risk is real and not buffered.
Lincoln’s survivorship (second-to-die) life insurance policies cover two people — typically spouses or business partners — and pay the death benefit after the second person passes away. This structure makes premiums lower than two separate policies because the insurer’s obligation is deferred to the survivor’s death. The primary use cases are funding estate taxes, equalizing inheritances among heirs, or transferring wealth into an irrevocable life insurance trust (ILIT). Survivorship policies are an estate planning tool, not an income replacement tool — they serve a very specific purpose and should be evaluated in the context of your overall estate plan with an attorney and financial advisor.
- Accelerated Benefit Rider: Access a portion of your death benefit if diagnosed with a terminal illness — at no additional cost on most policies.
- Waiver of Premium: Premiums waived if you become disabled and meet the policy’s disability definition. Rider availability varies by product and state.
- Children’s Term Rider: Up to $15,000 of coverage for children aged 15 days to 18 years — low cost and convertible to permanent insurance as children reach adulthood.
- Chronic Illness Rider: Available on several IUL products — provides access to policy value if you become chronically ill and require long-term care services.
- Multiplier Rider: Available on select IUL products — enhances index credits in eligible accounts above a certain performance threshold.
Lincoln’s annuity lineup spans the full spectrum from simple guaranteed accumulation to sophisticated market-linked strategies. Understanding which type matches your specific goal is the most important decision before you look at any specific product.
Lincoln’s MYGA provides a fixed interest rate guaranteed for a set term — typically 3, 5, 7, or 10 years — similar to a bank CD but typically paying a higher rate and growing tax-deferred. Unlike a CD, there’s no annual tax bill on the interest earned until you take distributions. The tradeoff: your money is tied up for the surrender period with penalties for early withdrawal (usually 10% free withdrawals per year are allowed). Lincoln is not typically among the top MYGA rate carriers — buyers prioritizing maximum guaranteed rate should compare MYGuarantee Plus against dedicated MYGA specialists. Where Lincoln earns consideration is for buyers who want the MYGA within a relationship with an established carrier that also provides their life insurance or other planning products.
Lincoln’s OptiBlend FIA links interest credits to a market index with a 0% floor — your principal is protected from index losses, but your upside is capped by participation rates or cap rates. An optional guaranteed lifetime withdrawal benefit (GLWB) rider can be added to create a predictable, guaranteed income stream in retirement regardless of account performance. This is Lincoln’s primary product for buyers who want some market participation but can’t tolerate any risk of principal loss. FIA income riders have complex fee structures — ask your advisor to show you both the illustrated income and the impact the rider fee has on your account value over a 10, 15, and 20-year projection.
Lincoln Level Advantage is the flagship product of Lincoln’s annuity business — over $20 billion in lifetime sales and consistently one of the most widely distributed RILAs in the country. A RILA differs from an FIA: instead of a 0% floor, Level Advantage offers a “buffer” — typically 10% or 20%. The annuity absorbs the first 10% or 20% of index losses, but losses beyond that buffer reduce your account. In exchange, cap rates are substantially higher than traditional FIAs. The product includes Secure Lock, which lets you lock in gains mid-segment, and offers multiple index options including S&P 500, MSCI EAFE, and Capital Group ETFs. Level Advantage is appropriate for buyers who understand and accept that they can lose some principal in a severe market downturn in exchange for meaningfully higher upside potential.
Lincoln’s variable annuities provide full market participation through investment subaccounts — no floors, no buffers. The account value rises and falls with the markets. Living benefit riders (guaranteed minimum income or withdrawal benefits) can be layered on to provide a guaranteed income floor even if the account value drops to zero, but these riders carry annual fees that can be substantial — typically 0.75%–1.50% per year of the benefit base. Variable annuities with living benefits have been controversial in the industry for their complexity and fee load. Before purchasing, ask your advisor to show you the total annual expense ratio across all fees: mortality and expense charges, subaccount management fees, and any optional rider fees. The total cost matters as much as the benefit guarantees.
| Annuity Type | Principal Risk | Growth Potential | Best For | Key Caveat |
|---|---|---|---|---|
| MYGA (MYGuarantee Plus) | None — guaranteed | Fixed rate · modest | Capital preservation · CD alternative | Not top rate carrier — compare |
| FIA (OptiBlend) | None — 0% floor | Moderate · capped upside | Retirement income · zero loss tolerance | Rider fees reduce account value |
| RILA (Level Advantage) | Limited — beyond buffer | Higher caps than FIA | Growth-focused · some risk tolerance | You can lose money beyond buffer |
| Variable Annuity | Full market risk | Unlimited upside | Long-term growth · living benefit | Total fees 2–3%+ — know all-in cost |
All Lincoln annuities carry surrender charges during the surrender period (typically 7–10 years). Most allow 10% free withdrawals annually without penalty. Products and features vary by state. Always verify current rates with a licensed, independent insurance professional before purchasing.
Long-term care is among the most pressing financial risks in retirement — and Lincoln’s MoneyGuard product line is one of the most consistently recommended hybrid LTC solutions in the market. Here’s what it actually does and when it makes sense.
MoneyGuard III combines a universal life insurance death benefit with a long-term care benefit pool — both are available to you, and whichever you use first reduces the other. If you need extensive long-term care, the LTC benefit activates and pays for qualifying care (nursing home, assisted living, in-home care, adult day care) with the death benefit reduced proportionally. If you never need care, your heirs receive the full death benefit. If you need some care but not the full benefit, the remaining death benefit passes to heirs. Benefits are 100% guaranteed by contract — not linked to markets, interest rates, or subject to premium increases. After pricing adjustments in January 2024, MoneyGuard became the top-selling or second-selling hybrid LTC product among advisors who compare products across multiple carriers. No elimination period applies to certain care settings.
Traditional standalone long-term care insurance has a problem that’s driven many insurers out of the market: if you don’t need care, you lose every premium you paid. And even if you do need care, premiums can increase significantly over time — a reality that devastated policyholders who bought LTC coverage 20 years ago at initial rates that later doubled. MoneyGuard eliminates both problems: benefits are guaranteed regardless of whether care is needed, and premiums don’t increase. The tradeoff is cost — a single premium or multi-year premium payment into MoneyGuard is substantially larger than a traditional LTC premium in year one. Think of it as converting retirement assets you already have into a dual-purpose financial tool, rather than paying a purely consumable premium for coverage you may never use.
Lincoln is one of the largest U.S. group insurance carriers, providing employee benefits through employers. If you have Lincoln coverage through work, understanding what you have — and what it doesn’t cover — matters for your overall financial plan.
Lincoln is a leading provider of employer-sponsored short-term disability (STD) and long-term disability (LTD) coverage. If you’re covered through your employer, your Lincoln disability policy replaces a portion of your income — typically 60–70% — if you become unable to work due to illness or injury. The definitions of “disability” matter enormously: some policies use an “own occupation” definition (you’re disabled if you can’t do your specific job) while others use “any occupation” (you’re not disabled if you can do any job at all). Check your Lincoln disability policy for which definition applies to your coverage — the difference can determine whether you receive benefits in a partial or gradual disability situation. Claims concerns should go to Lincoln’s Group Benefits disability claims line.
Many employers offer basic group life insurance through Lincoln — typically one to two times your annual salary — with the option to purchase supplemental coverage at your own cost. Group life is generally simpler to qualify for than individual life insurance (often guaranteed issue up to a certain amount), but it has a significant limitation: it doesn’t follow you if you leave your employer. While Lincoln provides portability options in some plans, the premium after leaving employer sponsorship is typically much higher than comparable individual coverage you could purchase independently. If you’re relying primarily on employer group life insurance for your family’s financial protection, supplementing it with an individual term policy is worth considering.
Lincoln offers a broad range of voluntary benefits that employers can make available to employees at group rates — dental, vision, accident insurance, critical illness, hospital indemnity, and legal services. These are priced lower than individual market equivalents because of the group risk pool. During open enrollment, voluntary benefits deserve more attention than most people give them — particularly accident insurance and critical illness coverage, which pay fixed benefits regardless of other coverage and can fill gaps left by high-deductible health plans. Review your employer’s Lincoln voluntary benefits catalog and compare costs against what you’d pay individually.
No single carrier is the best for every product and situation. This comparison covers the areas where Lincoln is a clear leader, where competitors have the edge, and where the decision is close enough that you need side-by-side illustrations.
| Need | Lincoln’s Standing | Strongest Competitor(s) | Bottom Line |
|---|---|---|---|
| Hybrid Long-Term Care (MoneyGuard) | Top 1–2 nationally · pricing improved 2024 | Nationwide CareMatters · Pacific Life | Get illustrations from all three — Lincoln is competitive |
| RILA / Buffered Annuity | Level Advantage is a market leader · $20B+ sold | Allianz · Jackson · Equitable | Lincoln Level Advantage is a strong choice; compare current cap rates |
| Indexed Universal Life (IUL) | Strong IUL lineup · WealthAccumulate · WealthBuilder | North American · Pacific Life · Nationwide | IUL is highly dependent on illustration assumptions — compare same age/health |
| MYGA / Fixed Annuity Rates | Competitive but not top-tier | Athene · American Equity · Global Atlantic | Shop rate-focused carriers for highest guaranteed return |
| Whole Life Insurance | Not offered | Guardian · MassMutual · Northwestern Mutual | Go elsewhere entirely — Lincoln doesn’t have this product |
| Term Life (Complex Health) | Favorable underwriting · cancer · heart · diabetes | Prudential · Banner Life · Principal | Lincoln is worth quoting specifically for complex health histories |
| Group Disability / Group Life | Among the top 5 group carriers nationally | Unum · Sun Life · Principal · Hartford | Lincoln is a solid group carrier — employer choice, not employee |
| Financial Strength Rating | A / AA− — strong but not top tier | MassMutual · TIAA · Athene (A+ AM Best) | Lincoln is sound; if A+ is required, look at the carriers listed |
Carrier rankings shift as products are updated and rates change. The most reliable comparison is always a same-age, same-health-class side-by-side illustration from an independent broker who represents multiple carriers.
Lincoln’s underwriting has been specifically noted for more favorable treatment of complex health histories — particularly managed cancer diagnoses, certain heart conditions, and type 2 diabetes — than many major national carriers. If you’ve received a rated premium or an outright denial from another carrier, requesting a Lincoln illustration through an independent broker is worth doing before concluding that favorable-rate coverage isn’t available to you. Lincoln’s WealthBuilder IUL and TermAccel both go through underwriting that can, in some cases, classify applicants that competitors put in a higher risk category at a more reasonable rate. Get the quote in writing — don’t take a preliminary opinion as final.
This is MoneyGuard’s home territory. The average cost of a nursing home in the U.S. currently runs over $100,000 per year, and the average length of care needed is 2–3 years for the majority of people who need it. Medicare doesn’t cover custodial care. Without a plan, care costs come directly from your retirement savings. MoneyGuard III addresses this by converting a lump sum or a series of payments into a dual-purpose asset: a guaranteed LTC benefit pool if care is needed, and a guaranteed death benefit if it isn’t. Ask your advisor to show you the total LTC benefit available versus the single premium or total premium paid — this ratio (often called the “leverage factor”) is the clearest way to evaluate whether the product is working for your situation. Compare against Nationwide CareMatters and Pacific Life before deciding.
Start by answering two questions before looking at any Lincoln product: (1) Can you afford to lose any of the money going in? (2) Is income or accumulation your primary goal? If the answer to (1) is absolutely not, and income is the goal, a FIA with an income rider (OptiBlend) is the right category — but compare Lincoln’s income rider against Nationwide, Athene, and North American before committing. If you can absorb a limited loss in a severe market downturn in exchange for more growth, Level Advantage RILA is worth comparing. If you simply want the highest guaranteed fixed rate for 5 years, Lincoln’s MYGA is not your best choice — dedicated MYGA carriers will likely beat Lincoln’s rates. Get current rate sheets from an independent annuity advisor before any decision.
Call Lincoln’s policyholder service at 800-487-1485 and request a complete in-force illustration in writing. This shows your current cash value, future projected values under both guaranteed and current assumptions, and any scheduled changes to the policy. Don’t accept a verbal explanation — the written illustration is the document that matters. If you have an older legacy policy (from Alexander Hamilton Life or another acquired company), specifically ask whether your policy is being administered under the original policy contract terms. If you have concerns about premium increases on a policy you purchased decades ago, an insurance attorney in your state can review whether increases are permitted under the original contract language.
Group coverage typically does not follow you when you leave an employer, or it converts to individual coverage at significantly higher premiums. Before your last day, request a conversion option summary from your HR department or Lincoln directly — you typically have 30 to 60 days after leaving employment to convert group coverage to an individual policy without medical underwriting. For disability coverage specifically, portability rules vary significantly by plan. If you’re leaving for a new employer with a benefits waiting period, the conversion window matters. Contact Lincoln Group Benefits at 800-423-2765 as soon as you know your departure date to understand your options before they expire.
An IUL from Lincoln — or any carrier — should be compared against the straightforward alternative before purchasing: maximizing a Roth IRA, backdoor Roth, and other tax-advantaged accounts first. IUL is most valuable for high-income earners who have already maxed traditional tax-advantaged accounts and want additional tax-deferred growth alongside a death benefit. If you haven’t yet maxed your 401(k) and Roth IRA contributions, the IUL comparison is premature. If you do proceed to evaluate Lincoln’s IUL, always ask to see the guaranteed illustration alongside the current-rate illustration — a guaranteed illustration showing the worst-case outcome where cap rates are reduced to the contractual minimum is the honest stress test. Many IUL sales presentations rely heavily on optimistic current-rate projections.
Lincoln does not sell directly to consumers. Use the “Find an Advisor” function at lincolnfinancial.com to locate licensed advisors who represent Lincoln products in your area. Strongly recommend working with an independent advisor rather than an advisor who represents only Lincoln — an independent broker can run Lincoln illustrations alongside competing carriers so you see the honest comparison, not just Lincoln’s best case.
This is an independent informational guide and is not affiliated with, sponsored by, or endorsed by Lincoln Financial Group, Lincoln National Corporation, or any of their subsidiaries. All product descriptions, ratings, and features reflect publicly available information and are provided for general educational purposes only. Insurance and annuity products are complex financial instruments with costs, risks, and limitations that vary by state, product version, and individual circumstances. This content does not constitute financial, tax, or legal advice. Always consult a licensed financial advisor, insurance professional, or attorney before making any insurance or annuity purchase decision. Product availability and features vary by state. This content is entirely original.