John Hancock Long-Term Care is including new forms as part of the new business application process to improve the management of policyholder records while effectively administering our customers’ policies in compliance with contract terms and existing tax regulations.
With that in mind, following is the detail regarding two new forms:
IRS Form W-9
W-9 forms (applicant A and applicant B) are being added to the application booklet in adherence with existing IRS regulations and FATCA (Foreign Account Tax Compliance Act), which was enacted in 2010 as a part of the Hiring Incentives to Restore Employment (HIRE) Act. The goal is to improve tax compliance involving U.S. persons with foreign financial assets and offshore accounts.
The W-9 form is required of each applicant due to documentation requirements under income tax regulations and the company’s decision to comply. In its absence, certain LTC payments would be subject to backup withholding. Please note: This does not affect the payment of claims. Obtaining a W-9 form will avoid the need for withholding and allow for timely payment processing. We currently collect the data contained on a W-9 form (Name, address, SS#) today but by collecting the actual signed and certified W-9 form, it will streamline any potential future documentation requirements and ensure accurate reporting.
The W-9 form will also be available to download from www.jhltc.com. W-9 instructions are available on the IRS website at: http://www.irs.gov/Forms-&-Pubs .
Beneficiary Form
Due to the current regulatory environment, we have created a new Long-Term Care Insurance Beneficiary Designation form (LTC-3663), designed for couples as part of the new business application process.
This form nominates a beneficiary for certain refunds of premium upon death of the policyholder. It should be completed by clients who are eligible for the built-in Return of Premium benefit, available to applicants under age 65.
Otherwise, such refunds will be made payable to a surviving spouse/partner (if any), or to the deceased’s estate in accordance with policy provisions.
This form will also be included in the application booklet, and should be used for any changes in beneficiary. An entity or individual (not for an estate) who is named as a beneficiary must also complete a W-9 form.
Both the W-9 and the Long-Term Care Insurance Beneficiary Designation form will be required with signed applications beginning on 2/25/13. These forms will also be made available to download on www.jhltc.com under Apps & Sales Forms>Policy Forms.
For most state applications, an insert will be provided beginning on 2/25/13 that includes the W-9 form and the beneficiary form. To view a sample of the insert, please click here.
Please note: On January 28, Custom Care III featuring Benefit Builder became available in four additional states: Delaware, Florida, Hawaii, and New York. In preparation for the launch, both the W-9 form and the beneficiary form have already been built into the application booklet itself, which are available to order now (fillable applications are also available to download). While the new forms have been added into the application, signed applications without those completed forms will be accepted prior to February 25, 2013.
Questions?
For more information on the inclusion of the W-9 form, click here to view our Brainshark.