John Hancock Offers New Approach to Long-Term Care Insurance

BOSTON, Aug. 13, 2012 /PRNewswire/ -- To offer comprehensive long-term care insurance coverage at a substantially lower price, John Hancock Long-Term Care (LTC) Insurance today launched a first-of its-kind option on the newest version of its flagship LTC insurance policy, Custom Care III.  Called Benefit Builder,* the feature is an alternative to a traditional inflation option and provides automatic increases in benefits that occur gradually over time, as well as voluntary buy-up options.

Benefit Builder enables a policyholder's benefits to grow through an automatic crediting formula tied to the investment earnings of a segment of John Hancock's general account, without a corresponding increase in premiums. In addition, every three years through age 75, policyholders will be offered the opportunity to increase benefits by 10 percent without having to answer questions about health or undergo a medical exam, subject to restrictions. Premiums for the additional buy-up coverage will be based on the policyholder's age on the option date.

"We wanted to offer lower-cost LTC protection that provided meaningful coverage so that Boomers in their 50s or 60s, who often are taking care of parents and children while saving for retirement, would feel financially able to address their own LTC planning needs," said Marianne Harrison, president, John Hancock Long-Term Care Insurance. "A lower price point offers more day-to-day cash flow for other existing priorities. The policy itself offers comprehensive coverage, and the Benefit Builder feature offers the ability for future growth."

For premiums that are significantly less than what a consumer might expect to pay for more traditional coverage, Custom Care III featuring Benefit Builder offers a wide range of benefits, provider discounts, and extensive support for policyholders and their uninsured family members. Custom Care III featuring Benefit Builder also includes the same consumer protection features found in John Hancock's other LTC insurance policies.

Harrison contends that Benefit Builder will expand the LTC insurance marketplace, by appealing to younger consumers who may have competing financial priorities and cannot afford more traditional policies.  She also expects the product will attract older healthy individuals who otherwise could not afford the premiums.

"We view Custom Care III featuring Benefit Builder as a break-through product that will renew consumer interest in LTC insurance by adapting to their unique needs and budgetary concerns," said Harrison.

The policy has been filed nationally and currently is available in 36 states via approval by the Interstate Compact.  For individuals who prefer a more traditional LTC insurance policy, Custom Care III can be purchased with a CPI or 5% compound inflation option instead of Benefit Builder.

*Patent pending.

About John Hancock Financial and Manulife Financial Corporation
John Hancock Financial is a unit of Manulife Financial Corporation, a leading Canada-based financial services group with principal operations in Asia, Canada and the United States. In 2012, John Hancock celebrates 150 years of serving clients across the United States, while Manulife celebrates its 125^th anniversary. Operating as Manulife Financial in Canada and in most of Asia, and primarily as John Hancock in the United States, Manulife Financial Corporation offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents and distribution partners. Funds under management by Manulife Financial and its subsidiaries were C$514 billion (US$504 billion) as at June 30, 2012. Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '945' on the SEHK. Manulife Financial can be found on the Internet at manulife.com. 

The John Hancock unit, through its insurance companies, comprises one of the largest life insurers in the United States. John Hancock offers a broad range of financial products and services, including life insurance, annuities, fixed products, mutual funds, 401(k) plans, long-term care insurance, college savings, and other forms of business insurance. Additional information about John Hancock may be found at johnhancock.com.

Long-term care insurance is underwritten by John Hancock Life Insurance Company (U.S.A.), Boston, MA 02117 (not licensed in New York) and in New York by John Hancock Life & Health Insurance Company, Boston, MA 02117.

SOURCE John Hancock Long-Term Care