Next week John Hancock will be making some benefit, pricing and underwriting changes to their products. Some of these changes will affect all states and some will first be implemented in the Interstate Compact states.
John Hancock will also be temporarily suspending all product sales in the state of California.
Please read below for more details and click through the links for the original John Hancock communications.
Important deadlines:
To be considered for the current product, benefits or pricing, signed applications must be in to Newman Long Term Care by Tuesday, May 13 in order for us to process the applications and have them into John Hancock’s Home Office by their deadlines.
If you have any potential John Hancock cases, or outstanding quotes, please contact one of our wholesalers immediately for assistance in beating these deadlines.
The product, pricing, and underwriting changes effective May 19th
Effective May 19, 2014, there will be several changes to their product and pricing on the Custom Care III and Custom Care III featuring Benefit Builder products. Additionally, they will be introducing a shortened application and revised underwriting process.
For Interstate Compact states only:
The changes John Hancock will be making effective May 19th include new rates and some changes to product features for all new business on our Custom Care III featuring Benefit Builder product in Compact states. Similar changes in non-Compact states will be implemented at a later date following state approvals.
- The average total increase on gender-distinct rates for Custom Care III featuring Benefit Builder is 15%. The average total increase on unisex pricing (for the Sponsored Group Employer market only) is 27%.
- The Couples/Partner discount for unisex rates is increasing from 30% to 35%. This to align the gender-distinct and unisex premiums for a married couple.
- Waiver of Home Health Care Elimination Period rider cost is increasing to 17%
- Please note: The Double Coverage for Accident Benefit calculation has been modified and will be renamed as the Additional Accident Benefit. For details on the calculation, please refer to the CC III featuring Benefit Builder producer guide. (This applies to CC III featuring Benefit Builder in Compact states only at this time)
Custom Care III featuring Benefit Builder and Custom Care III benefit changes – All states
In addition to the pricing changes mentioned above, the following benefit changes for all new business in all states will include:
- Lowering maximum issue age to 75 (formerly age 79)
- Lowering maximum daily benefit selection from $500 to $400 (FL will remain at $300)
- Lowering maximum monthly benefit selection from $15,000 to $12,000 (FL will remain at $9,000; NY (metro & non-metro) will be lowered to $12,400)
- Removing CPI Compound Inflation through Age 75 (Benefit Builder, CPI Compound Inflation, and 5% Compound Inflation remain as inflation options, in states where available)
- Removing the 10 year Benefit Period
- Removing the Survivorship &Waiver of Premium rider (SharedCare, Additional Cash Benefit, and Nonforfeiture are still available, in states where available)
- Please note: The Core Care product, which has recently only been available in CT, IN and DC, will no longer be available as of May 19, 2014.
Temporary suspension of business in California
On May 19th, John Hancock is temporarily suspending sales of all LTC products in California, until their product pricing has been updated and they are ready to implement. They expect to have a revised product available in California in the next few months.
For the original John Hancock Newslink with complete details on these changes, please click here.