John Hancock will end sales of California Partnership plans while continuing to sell non-Partnership plans.
John Hancock to discontinue sales of its California Partnership Long-Term Care insurance product effective September 16th
John Hancock regularly monitors our long-term care insurance product portfolio to ensure that it continues to meet the needs of our customers and distributors. After a thorough analysis of our California long-term care insurance business, we have made the difficult decision to discontinue sales of our California Partnership individual long-term care insurance policies (policy form LTC-06 CAP) effective September 16, 2013. We have found that the strategic direction of our LTC products and markets no longer synchronizes with California Partnership regulatory requirements. In addition, the continued low sales volume of our CA Partnership products does not support the high product development, marketing and implementation costs associated with this portfolio.
We will continue to market our non-Partnership product, Custom Care III (policy form LTC-06 CA), in California. We appreciate the dedication, work and advocacy of the California Partnership staff as it relates to California Partnership policyholders. We also remain committed to working with the California Partnership and industry on matters that are important to our policyholders.
Existing Policyholders
Our decision to discontinue new California Partnership sales will not impact existing California Partnership policyholders’ coverage. As a reminder, John Hancock’s California Partnership polices are guaranteed renewable. This means that as long as premiums are paid on time and benefits have not been exhausted, coverage cannot be cancelled.
However, premiums for coverage can be raised on a class basis subject to appropriate regulatory approval. Most importantly, John Hancock remains committed to our existing California Partnership policyholders and will continue to provide the same dedication, service and care as we always do, especially at time of claim.
Timing
All individual long-term care insurance applications for CA Partnership policies must be signed by September 16, 2013 and received in the Home Office by September 23, 2013. Any CA Partnership applications received after September 23, 2013 will not be processed.
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