Today John Hancock became the second LTCI carrier to announce that they will be moving to gender-specific rates (Genworth previously announced they would make this move mid-April).
As a result of their extensive claims experience, John Hancock will be moving to gender-distinct pricing, reflecting the male/female differences in the probability of benefits usage, effective April 29, 2013, in the Compact states listed below:
John Hancock will be introducing gender-distinct pricing in additional states upon approval.
Please note:
- This pricing change affects all new retail business on the Custom Care III featuring Benefit Builder product in Compact states (with the exception of Employer-based Sponsored Groups).
- There is no impact to any in-force policies.
- On average, premiums for women will increase by 24% and premiums for men will decrease by 21%. For a married male/female couple, premiums will be mostly neutral, increasing about 1.5% on average.
Transition Deadlines:
All applications for Custom Care III featuring Benefit Builder in Compact states for current rates must be signed no later than April 28, 2013 and received in the Home Office by May 6, 2013.
We will provide more information on changes to marketing and sales support materials as they become available.
If you have any John Hancock business you need assistance with, please contact one of our wholesalers today to help get your apps in before the deadlines. If you have not yet talked to the women in your book of business about the gender-specific pricing that is coming, these are just the first two carriers to announce the switch. Two more carriers have indicated they will also move from unisex pricing before summer. Use our gender-specific marketing tools to have these conversations today!