John Hancock Long Term Care Insurance Program for ( by iem58695

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									                                       John Hancock
                                  Long Term Care Insurance
                                        Program for
                                     (Employer Name)

                                                     Presented by:
                                              (Agent Name, Designation)
                                     (Agent License # required for CA, FL and MT)
                                                         (Date)
                                                                                                                                      Policy Series: LTC-03
                                                                                                                                      In Idaho: Policy Form LTC-03ID
                                                                                                                                      In Pennsylvania: LTC-03FRPA
                    Long term care insurance is individually underwritten by John Hancock Life Insurance Company, Boston, MA 02117.   In New York: SG-03NY
                                                For use with employers only. Not for use with consumers.                              In North Carolina: LTC-03NC
                                                                                                                                      In Oklahoma: LTC-03OK 10/03
LTC-2613 ER 12/04
John Hancock‟s Corporate Solutions

 Specifically designed for the business
  market
 An easy way to provide long term care
  insurance to valued employees
 Employer pay or voluntary options
  available
 Flexibility to meet your business objectives
  Why John Hancock Long Term
  Care Insurance Program?

       John Hancock Life Insurance Company-Financial
        Strength and Stability
          Rate “A++” (Superior) by A.M. Best (as of
           April, 2004)
       Experience you can rely on
          More than 140 years of service

          More than 700,000* long term care insurance
           policyholders
* Based on year-end 2003 LIMRA sales data, including individual, group and the Federal Long Term Care Insurance Program
What is long term care?
Long Term Care
…is care needed when someone is losing their
 independence due to a physical or cognitive
 impairment.
…it could be needed as a result of a serious
 health condition, an accident, or later, as the
 aging process takes its toll.
What Does LTC Insurance Cover
   Nursing Home
   Alzheimer‟s Facility
   Assisted Living Facility
   Home Health Care
   Adult Day Care
   Respite Care
   Other community-based Supportive Services
John Hancock‟s LTC Insurance Program
fills a “gap” in coverages.
 Health insurance covers skilled, medically
  necessary care.
    LTCI picks up where health insurance
     ends.
 Disability insurance replaces a portion of an
  employees salary.
Why consider installing an LTCI
Program?
   Of those needing LTC Services:
      60% are 65 or older

      40% of people who need LTC are working age adults between 18-
        64*

   Average Cost of Care:
      Private room nursing home care cost on average $66,000 annually
       in 2003**
      24 hour home care can cost as much or more as nursing home
       care**


     * U.S. General Accounting Office, “Where Does the Population Live and Who Cares for Them?” January 2001.
     ** Congressional Budget Office Financing long term care for the elderly , April 2004
Cost of Long Term Care Issues
   U.S. businesses lose as much as $29 billion annually in lost
    productivity due to employees having care-giving
    responsibilities*
   The Cost of replacing a managerial employee can reach
    250% of annual salary.**
   Cost of replacing a non-managerial employee can reach
    150% of annual salary**



       *National Caregiving Alliance before the U.S. Senate Finance Committee, 3/27/01.
       ** Work and Family, 12/00, citing management consultant William Bliss.
What does John Hancock‟s LTC
Insurance Program mean to your
employees?
 Provides a plan that helps employees
  protect for unexpected long term care
  services.
 Extends coverage to eligible family
  members
 Allows employees to pick the amount of
  coverage that meets their needs for
  protection and affordability
  Value to your employees
      Allows approximately 52% of LTC recipients to stay
       at home*
      68% of informal care givers reported a decrease in
       stress when the care recipient had long term care
       insurance**
      98% of enrollees said they felt more secure about
       their future***
*Health Ins. Assoc. of America, Benefits of LTC Insurance: enhanced care for disabled elders, improved quality of life for care givers and savings to
Medicare and Medicaid, p7, 9/02
**Dept. of Health and Human Services. “Informal Caregivers of Elders with Long Term Care Insurance.” Final Report to the Assistant Secretary for
Planning and Evaluation, Aging and Disability Policy, Department of Health and Human Services (Washington, D.C. Department of Health and Human
Services, October 2000).
***Health Insurance Association of America, „Who Buys Long Term Care Insurance in the Workplace? A Study of Employer Long Term Care Insurance
Plans, 2000-2001” (Washington, D.C., Health Insurance Association of America, 2001).
Program Benefits: Value to your
employees
   Offers a program that provides:
     Discounted premiums

     Streamlined enrollment

     Coverage portability

     John Hancock Long Term Care Insurance

      protection
    Who can participate?
      Actively at work employees
      Retirees**
      Their spouse or partner**
      Their adult children**
      Their parents and grandparents**
      Their spouse or partner‟s parents and
       grandparents**
*Under our sponsored group discount program or also called Marketing Distribution Discount Program in NY and TX.
Actively at Work Employees*

   Employees between the ages of 18-64
   Actively at work 30 hours per week
   Employees must have not been absent from work
    due to sickness or injury for 10 days or more in
    the last 6 months.
   Employees must be U.S. residents or citizens
   Employees must have been employed (full-time)
    for at least six months
Two Simplified Approaches
MGTI or Modified Guaranteed To Issue
   Best for voluntary (employee pay)

   Access to preferred rates

   Simplified application, with slightly expanded
    underwriting
   Offers minimum guaranteed coverage for
    declines if group meets minimum participation
    requirements (15 employees or 3%, which ever
    is greater)
Two Simplified Approaches
MGSI or Modified Guarantee Standard Issue
  Best for employer pay enrollment

  Limited health questions; no further
   underwriting
  No preferred or substandard rates (just
   one rate class for all)
  Minimum participation requirements (15
   employees or 3%, which ever is greater)
Premium Payment Methods
   For Employees and their Spouse or Partner
      List Bill
      Direct Bill (Annual, Semi-Annual or
       Quarterly)
      Monthly Bank Draft


   For all other eligible persons
      Direct Bill (Annual, Semi-Annual or Quarterly)
      Monthly Bank Draft
Custom Care II Product
Innovations*
   Appeals to employees
     Double Coverage for Accident Benefit

     Return of Premium at Death

     Convertible Guaranteed Purchase Option

      at age 65
     Additional Stay at Home Benefit


     *Not all riders or benefits are available in every state or to all ages.

                                    CCII not available in all states
Tax Advantages of LTCI
 Tax deductible employer contributions
 Flexibility for employer to determine
  eligible class
 Policyholder benefits non-taxable
 Voluntary employee contributions receive
  preferential tax treatment


    Clients should consult with their financial advisor or tax consultant regarding tax issues.
Keys to Successful Program
 Employer Endorsement
 Simplicity in Plan Design
    Employer may choose plans to be offered

     to employees
 Education-based Enrollment Process
 Continuing support for new hires and
  terminating employees
John Hancock‟s Long-Term Care
Corporate Solutions
 Flexible Plan Design
 Modified Underwriting &Simplified
  Application Process
 Favorable Tax Advantages
 Discounted Rates
 Minimal Participation Requirements (3% or
  15 eligible employee applications, which
  ever is greater)
Long Term Care Insurance
Program for (Employer Name)
 Underwritten by John Hancock
    Financial Strength, Stability

    Commitment to Long Term Care

     insurance
    Quality LTC products
                                      John Hancock
                                 Long Term Care Insurance
                                       Program for
                                    (Employer Name)

                                                             Presented by:
                                                      (Agent Name, Designation)
                                             (Agent License # required for CA, FL and MT)

                                                                                     (Date)

                            This is a general description of coverage and is not an insurance contract. Refer to an Outline of      Policy Series: LTC-03
                            Coverage for an explanation of features and options. Only the individual long term care insurance       In Idaho: Policy Form LTC-03ID
                            Policy contains governing contractual provisions.                                                       In Pennsylvania: LTC-03FRPA
                                                                                                                                    In New York: SG-03NY
                    Long term care insurance is individually underwritten by John Hancock Life Insurance Company, Boston, MA 02117. In North Carolina: LTC-03NC
LTC-2613 ER 12/04                                 For use with employers only. Not for use with consumers.                          In Oklahoma: LTC-03OK 10/03

								
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