Is Lincoln Financial a Good Insurance Company?

Lincoln Financial Group is a good insurance company — a financially sound, well-established carrier founded in 1905 that has maintained investment-grade ratings through every major economic cycle across more than a century of operation. For buyers asking whether Lincoln is safe, reliable, and capable of honoring long-term obligations, the answer is affirmative. At the same time, Lincoln Financial’s rating history includes one development that any buyer conducting thorough due diligence should understand: in November 2022, AM Best downgraded Lincoln National Life Insurance Company from an A+ (Superior) rating to an A (Excellent) rating, citing concerns about balance sheet pressures related to its variable annuity block and reinsurance concentration. In February 2025, AM Best revised Lincoln’s outlook from negative to stable, signaling that management actions taken to strengthen the company’s financial position were viewed favorably. AM Best affirmed the A (Excellent) rating with stable outlook again in March 2026. Lincoln is a carrier trending in the right direction — but a buyer who was told Lincoln holds an A+ rating should be aware that this is no longer the case, and that the current A (Excellent) rating, while still strong, places Lincoln one notch below the A+ carriers. Our resource on state guaranty association covers the state-level protection framework that backstops policyholders at any A-rated carrier, and our resource on are annuities insured covers the full protection picture beyond the carrier rating itself.

Within its product category strengths, Lincoln Financial is a legitimate leader. The company’s three-product annuity lineup — MYGuarantee Plus for fixed guaranteed accumulation, OptiBlend for fixed indexed annuity income strategies, and Level Advantage for registered indexed-linked (buffered) annuities — covers the full range of principal-protected and partially-protected accumulation products that retirement savers evaluate. The OptiBlend income rider design specifically has been recognized as competitive in its income payout factors for a range of ages and deferral windows. Lincoln’s MoneyGuard product — a hybrid universal life insurance policy with built-in long-term care benefits — is one of the most established and widely distributed linked-benefit LTC products in the market, offering the dual-outcome structure that families prefer over traditional standalone LTC insurance. Our dedicated resource on Lincoln Financial OptiBlend Lifetime Income Annuity covers the specific income rider design, our resource on Lincoln MYGuarantee Plus Fixed Annuity covers the MYGA product, and our resource on Lincoln OptiBlend FIA covers the indexed accumulation product. Our resource on hybrid life insurance with long-term care benefits covers the linked-benefit category where MoneyGuard competes.

Lincoln Financial is particularly relevant for buyers with two concurrent planning goals: retirement income from an annuity and long-term care protection from a hybrid policy. Few other carriers offer both a competitive FIA income product and a leading hybrid LTC product within the same distribution network. For a household constructing a retirement plan that addresses both income sustainability and care cost risk — two of the most significant financial vulnerabilities in retirement — Lincoln’s product breadth makes it worth evaluating across both product categories simultaneously. Our resource on how to replace income after retirement covers the income planning framework, and our resource on guaranteed income from annuities covers the income rider mechanics that Lincoln’s OptiBlend is designed around.

Lincoln Financial Product Portfolio — Competitive Position Overview

Lincoln Financial’s product lineup spans five distinct categories. The table below maps each against its competitive standing and key planning considerations.

Product availability, rates, income factors, and competitive positioning vary by state, age, premium amount, and market conditions. This table reflects general patterns as of current analysis and is subject to change as Lincoln and competing carriers update product designs. All annuity and life insurance decisions should be based on current carrier-specific illustrations and independent market comparison.

The 2022 Downgrade and 2025 Stabilization — What Buyers Need to Know

The most significant financial development in Lincoln’s recent history is the AM Best rating action that most buyers are unaware of: in November 2022, AM Best downgraded Lincoln National Life Insurance Company from A+ (Superior) to A (Excellent). The downgrade was driven by balance sheet pressures related to Lincoln’s variable annuity in-force block and the concentration of reinsurance arrangements Lincoln had entered into to manage certain liabilities. These are technical but substantive concerns — not a crisis, but a signal that Lincoln’s balance sheet was under more strain than AM Best considered consistent with the top-tier A+ rating. The rating action placed Lincoln’s outlook at negative, meaning AM Best was actively monitoring for further deterioration. Lincoln’s management responded with a series of capital actions, reserve strengthening, and business model adjustments over the following two years. In February 2025, AM Best revised Lincoln’s Long-Term Issuer Credit Rating outlook from negative to stable, affirming the A (Excellent) financial strength rating. AM Best affirmed these ratings again in March 2026 with stable outlook. The practical meaning of this sequence for a buyer today is that Lincoln is a carrier that experienced a real financial stress test, took corrective action, and has had that action validated by an independent rating agency. An A (Excellent) rating is still solidly investment grade — AM Best defines A- as the minimum standard most financial planners recommend for annuity placements, and Lincoln’s A is above that threshold. Our resource on are annuities worth it covers the broader evaluation framework for annuity decisions including carrier selection.

OptiBlend and Income Rider Design — Lincoln’s FIA Strength

Lincoln’s OptiBlend fixed indexed annuity is designed primarily as an income rider vehicle — a contract where the primary purpose is generating a predictable guaranteed lifetime income stream in retirement rather than maximizing index-linked accumulation. The income rider attached to OptiBlend uses a roll-up rate that increases the benefit base during the deferral period, and a payout rate that determines the percentage of that benefit base paid annually as guaranteed lifetime withdrawal income. Understanding how these two rates interact is essential before comparing Lincoln against competing carriers. Our resource on what is an annuity roll-up rate covers the benefit base growth mechanics, our resource on what is an annuity payout rate covers the income calculation, and our resource on do income riders have fees covers the annual cost of the rider that reduces account value while the benefit base grows. Our resource on how does a GLWB work covers the guaranteed lifetime withdrawal benefit structure that OptiBlend uses. Our dedicated page on Lincoln Financial OptiBlend Lifetime Income Annuity provides the specific product details and illustration framework. Our resource on what is a fixed indexed annuity covers the FIA product category foundational education. Our resource on annuity surrender charges explained covers the surrender period terms that apply to the OptiBlend contract.

MoneyGuard — Lincoln’s Flagship Hybrid LTC Product

Lincoln’s MoneyGuard product occupies a distinct and important position in the hybrid life/LTC market — it is one of the most established products in a category that has grown significantly as families seek an alternative to traditional standalone long-term care insurance. MoneyGuard is structured as a universal life insurance policy with built-in long-term care benefits. The basic design addresses the two scenarios that concern families most: if the insured eventually requires qualifying long-term care, MoneyGuard pays an accelerated and extended long-term care benefit — typically a multiple of the death benefit — to cover care costs. If the insured never requires care and dies of natural causes, the policy pays the life insurance death benefit to the beneficiary. The “use it or lose it” problem that makes standalone LTC insurance psychologically difficult for many buyers — paying premiums for years and receiving no benefit if care is never needed — is eliminated by this dual-outcome design. MoneyGuard’s track record, distribution breadth, and product refinement over multiple years of operation make it a benchmark against which other hybrid LTC products are measured. Our resource on hybrid life insurance with long-term care benefits covers the category, our resource on annuity with long-term care benefits covers the annuity-based LTC alternative, and our resource on hybrid long-term care covers the full hybrid LTC landscape including MoneyGuard’s category position.

Term Life and What Lincoln Does Not Offer

Lincoln’s TermAccel term life insurance product is consistently competitive, with premiums running approximately 24% below the national average in independent analysis. The accelerated underwriting available for qualifying applicants — allowing approval without a medical exam for certain age and health profiles — is a practical advantage for buyers who want a fast, friction-reduced application process. Conversion options to permanent products are available at the end of the term. Like Prudential, Lincoln does not offer dividend-paying whole life insurance. Buyers whose planning strategy requires a participating whole life policy — for dividend growth, guaranteed cash value accumulation, or whole life as a financial asset — need to look at MassMutual, New York Life, Northwestern Mutual, or Guardian. Lincoln’s permanent insurance focus is on universal life structures including indexed universal life and variable universal life. Our resource on term life insurance calculator provides instant rate comparisons for benchmarking Lincoln’s term against competing carriers. Our resources on permanent life insurance, life insurance with living benefits, and life insurance for high-income earners cover the permanent life insurance categories where Lincoln participates. Our resource on how annuities are taxed in retirement covers the tax treatment framework relevant to both Lincoln’s annuity and life insurance products. Our resource on how Social Security and annuities work together covers the income coordination context, and our resources on get a 2nd opinion on your annuity quote and get a 2nd opinion on your life insurance quote cover the validation process for any Lincoln quote already in hand. Our resource on sequence of returns risk covers the retirement income protection context in which Lincoln’s annuity products are most relevant. Our resource on life insurance rates and our resource on annuities for conservative investors provide the market context for comparing Lincoln’s pricing against the full carrier landscape.