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JH LTC Custome Care Power Point

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					                                           Custom Care II Enhanced

                                              Helping you meet a broader
                                                    range of client needs




LTC-3775 6/08   Long-Term Care Insurance is Underwritten by John Hancock Life Insurance Company, Boston, MA 02117.
                For financial professional use only. Not for use with the public.
A Standard of Excellence
• Leadership
        – John Hancock is a committed leader in the Long-Term Care
          Insurance Market
        – LTC insurance solutions through innovative, competitive and
          responsible product offerings
        – John Hancock was the #1 LTC insurance carrier in the US, based on
          new premium and new lives sold in 20071
        – We have more than 1 Million LTC insurance policyholders in-force
          as of December 31, 2007²

• Brand Recognition
        – John Hancock is one of the leading brands among consumers in the
          country for financial services, with 96% consumer awareness³
1. LIMRA, Individual and Group LTCI Sales Surveys for Q4 and YTD 2007.
2. Based on John Hancock internal claims data as of December 31, 2007. Total includes individual and group LTCI
    and 50% of the Federal Long-Term Care Insurance Program.
3. Chadwick Martin and Bailey, 2007.
A Standard of Excellence
  • A History of Paying Claims for our Policyholders
        – We have more than $8.1 billion in LTC insurance claims reserves¹
        – With 20 years of LTC insurance experience, we are a company that has
          kept its promises, paying more than $1.8 billion² in claims on our LTC
          insurance policies

  • Strength & Stability
        – Ratings as of 12/31/07 John Hancock Life Insurance Co.
            S&P                      AAA
            MOODY’S                  Aa1
            A.M. BEST                A++
            FITCH Rating             AA+
            Comdex Ranking           99 (out of 100)
1. Based on internal data as of 12/31/07.
2. Based on internal data, including individual, group, Fortis and the Federal Long-Term Care Insurance Program
Custom Care II Enhanced
   Features & Benefits
State Approvals – Launch Date 6/23/08
  AK

  HI        WA
                            MT                                                                               ME
                                       ND

       OR                                         MN                                                   VT
                                                                                                         NH
                  ID                                         WI                                   NY          MA
                                       SD
                                 WY                                     MI                             CT     RI

                                        NE         IA                                       PA
             NV                                                                                         NJ
                                                              IL   IN             OH
                       UT                                                                              DE
                                                                                                  MD
                                  CO
       CA                                                                              WV                     DC
                                            KS                                               VA
                                                        MO                   KY
                                                                                             NC
                   AZ                                              TN
                                 NM          OK
                                                        AR                              SC

                                                              MS   AL         GA
                                                        LA
                                            TX


                                                                                        FL
CC II Enhanced - State Approval List
• Alabama                •   North Dakota
• Alaska                 •   Nebraska
• District of Columbia   •   New Mexico
• Illinois               •   Oklahoma
• Kansas                 •   Rhode Island
• Kentucky               •   South Dakota
• Maine                  •   West Virginia
• Michigan               •   Wyoming
• Mississippi
Deadlines for Custom Care II applications
• Once Custom Care II Enhanced has been launched in a state,
  Custom Care II will no longer be available in that state
• For the initial launch on June 23rd, all Custom Care II applications
  must be signed no later than June 22, 2008 and received in the
  Home Office no later than July 22, 2008
• Custom Care II applications signed after June 22, 2008, or
  received after July 22, 2008, in the states included in the June 23rd
  launch of Custom Care II Enhanced will continue to go through
  the underwriting process
    – You will be required to obtain a new Custom Care II
      Enhanced application from the client prior to policy issuance
      and the new Custom Care II Enhanced rates will apply
Everything You Love About CC II plus…..
• Unlimited CPI Compound Inflation with the
  Guaranteed Increase Option (GIO)
• Caregiver Support Services
• Lifestyle Benefit Changes
• Consumer Protection Provisions
        – Alternate Services Benefit
        – Independent Third-Party Review
        – Timely Payment of Claims
• Contingent Nonforfeiture for Limited Pay Policies

Policy benefits may vary by state
CC II Enhanced - Policy Building Blocks
• Eligibility for Benefits
      – Need Substantial Assistance to perform at least two of the six
        Activities of Daily Living
              Bathing, continence, dressing, eating, toileting, or transferring
              Substantial Assistance means ―Hands-on or Stand-by‖
               assistance (or)
      – Requires Substantial Supervision to protect himself or herself due
        to presence of ―Severe Cognitive Impairment‖
              Clinical evidence and standardized tests (and)
      – A licensed health care practitioner certifies the ADL disability is
        expected to continue for at least 90 days

Policy benefits may vary by state
CC II Enhanced - Policy Building Blocks
• Coverage
      – Pay actual charges up to the LTC Benefit Amount
              At home (Adult Day Care, Professional Care, Hospice Care
               and Incidental Homemaker Services)
                      Independent home health care provider definitions
                      Immediate family members can be compensated if
                       working through an approved provider
              In a Nursing Home or Assisted Living Facility
              Unused benefits extend the benefit period




Policy benefits may vary by state
CC II Enhanced - Policy Building Blocks
• Applicant Age
      – Ages 18-84
      – Ages 80-84 with limited benefits
• LTC Benefit Amount
      – Choose from a Monthly or Daily Benefit
              Monthly $1,500 to $15,000 limit
                      in $100 increments
              Daily $50 to $500
                      in $10 increments


Policy benefits may vary by state
 CC II Enhanced - Policy Building Blocks
 • Benefit Periods
         – Multiplier for the LTC Benefit Amount
                  2 years (730 days)
                  3 years (1,095 days)
                  4 years (1,460 days)*
                  5 years (1,825 days)*
                  6 years (2,190 days)*
                  10 years (3,650 days)*
                  Lifetime (unlimited days)*

* Not available ages 80-84

 Policy benefits may vary by state
CC II Enhanced - Policy Building Blocks
• Elimination Periods (EP)
        – Deductible where client pays for services before the policy pays
            30 days of service *
            60 days of service*
            90 days of service
            180 days of service
            365 days of service
        – ―True cumulative‖ EP: days of service do not need to be
          consecutive or within the same claim
        – For Home Health Care (HHC)
                 At least one HHC day of service in a calendar week
                  = seven days of service in calculating the EP
* Not available ages 80-84.

Policy benefits may vary by state
CC II Enhanced - Inflation Protection
 • 5% Compound Inflation Option
       – LTC Benefit Amount & Pool of Money increased by 5%
         compound, each year
       – Increases applied to the remaining Pool of Money, even if on
         claim
       – 5/3% Annual Compound Inflation no longer offered
 • 5% Simple Inflation Option
       – LTC Benefit Amount increased 5% of original benefit, each year
       – Increases applied to the remaining Pool of Money, even if on
         claim


Policy benefits may vary by state
 CC II Enhanced - Inflation Protection
 • “New” – Unlimited CPI Compound Inflation
         – Annual Compound increases based on the Consumer Price
           Index (CPI)
         – No limit to the CPI increase
         – CPI is the most widely used measure of inflation1
         – Steadily increased over the last 50 years1
         – Highly weighted towards housing & labor costs1
         – If CPI is negative, benefits remain level



1. Source – U.S. Department of Labor, Bureau of Labor Statistics


 Policy benefits may vary by state
CC II Enhanced - Inflation Protection
• Unlimited CPI Compound Inflation (cont.)
        – Provides meaningful and appropriate inflation protection
        – May be more than fixed 5% Compound Inflation
        – Premium stability
                 Investment strategy that matches investments to benefits
                  through the use of inflation hedges
                 Level premiums, regardless of how high future inflation
                  may be
        – More affordable than fixed 5% Compound Inflation




Policy benefits may vary by state
Guaranteed Increase Option (GIO) -
included with CPI Compound Inflation
• Option to increase LTC Benefit Amount by 10% every 3 years
• The GIO increase is in addition to the annual CPI increase
• No underwriting
• Clients have to accept the increase within 31-days or the right to
  elect that increase will expire (future offers will still be made)
• The premium for any increase is based on attained age
• Not available if client has been on claim during the 2 year period
  prior to the Option Date or if the Option Date occurs on or after
  91st birthday.
• Not available with 10 Pay or Paid-Up at 65 payment options
• Not available with FamilyCare II Benefit

Policy benefits may vary by state
Why GIO?
  • Offering a policy that can adapt over time enables you to better
    meet your clients’ needs — particularly with younger buyers
  • GIO is a safety net for increasing coverage for any reason (i.e.
    move to a higher cost of care community), without underwriting,
    if a client’s needs change
  • Like any safety net, your client may never need it, but having it
    provides a higher comfort level and greater confidence
  • GIO would be a great addition to any LTC insurance policy,
    regardless of the inflation option selected
  • GIO is not meant to be a cost-effective way to buy additional
    LTC insurance over time


Policy benefits may vary by state
     5% Simple Inflation Performance

                $300

                $250                                                            $250
Daily Benefit




                $200

                $150

                $100

                 $50

                $-
                       1   4   7   10      13      16       19   22   25   28
                                            Simple
                                        Years Policy in Effect
     5% Compound Inflation Performance


                $500
                                                                                $433
                $400
Daily Benefit




                $300
                                                                                $250
                $200

                $100

                $-
                       1   4   7   10     13      16      19     22   25   28
                                   Simple        5% Compound

                                        Years Policy in Effect
     CPI Compound - Historical Performance

                                                                                4.2%
                                                                              (CPI Results
                                                            5.0%               1977-2007)
                $500
                $450                                     (CPI Results
                                     6.5%                 1977-1997)                   $433
                $400
Daily Benefit




                                   (CPI Results
                $350                1977-1987)                                         $341
                $300
                $250                                                                   $250
                $200
                $150
                $100
                 $50
                $-
                       1   4     7     10   13    16          19    22   25      28
                               CPI Compound    Simple           5% Compound

                                            Years Policy in Effect
     55 Year Old
     Preferred Health – Married Both Applying
     $100 Daily Benefit, 5-Year Benefit Period, 90 Day Elimination Period
     Inflation Based on 30 Year Calculation



                                                                      39% less than
                             Premiums:                                5% Compound
                $500
                             CPI Compound           $ 778
                $450
                             Simple                 $ 761                                   $433
                $400
Daily Benefit




                             5% Compound            $1,083
                $350                                                                        $341
                $300
                $250                                                                        $250
                $200
                $150
                $100
                 $50
                $-
                       1          4        7     10   13    16         19    22   25   28
                                         CPI Compound    Simple          5% Compound

                                                     Years Policy in Effect
     Policy benefits may vary by state
     55 Year Old
     Preferred Health – Married Both Applying
     $100 DB (5% Compound), $130 DB (CPI Compound), 5-Year BP, 90 Day EP
     Inflation Based on 30 Year Calculation




                $500         Premiums:
                             CPI Compound          $1,012                                 $447
                $450
                             5% Compound           $1,083
                $400                                                                      $433
Daily Benefit




                $350
                $300
                $250
                $200
                $150
                $100
                 $50
                $-
                       1          4      7      10   13      16      19   22    25   28
                                             CPI Compound         5% Compound

                                                    Years Policy in Effect
     Policy benefits may vary by state
     50 Year Old
     Preferred Health – Married Both Applying
     $100 Daily Benefit, 5-Year Benefit Period, 90 Day Elimination Period
     Inflation Based on 30 Year Calculation



                                                                      36% less than
                             Premiums:                                5% Compound
                $500
                             CPI Compound           $ 694
                $450
                             Simple                 $ 643                                   $433
                $400
Daily Benefit




                             5% Compound            $ 948
                $350                                                                        $341
                $300
                $250                                                                        $250
                $200
                $150
                $100
                 $50
                $-
                       1          4        7     10   13    16         19    22   25   28
                                         CPI Compound    Simple          5% Compound

                                                     Years Policy in Effect
     Policy benefits may vary by state
     50 Year Old
     Preferred Health – Married Both Applying
     $100 DB (5% Compound), $130 DB (CPI Compound), 5-Year BP, 90 Day EP
     Inflation Based on 30 Year Calculation




                $500         Premiums:
                             CPI Compound          $ 902                                  $447
                $450
                             5% Compound           $ 948
                $400                                                                      $433
Daily Benefit




                $350
                $300
                $250
                $200
                $150
                $100
                 $50
                $-
                       1          4      7      10   13      16      19   22    25   28
                                             CPI Compound         5% Compound

                                                    Years Policy in Effect
     Policy benefits may vary by state
     45 Year Old
     Preferred Health – Married Both Applying
     $100 Daily Benefit, 5-Year Benefit Period, 90 Day Elimination Period
     Inflation Based on 30 Year Calculation



                                                                      52% less than
                             Premiums:                                5% Compound
                $500
                             CPI Compound           $ 592
                $450
                             Simple                 $ 558                                   $433
                $400
Daily Benefit




                             5% Compound            $ 897
                $350                                                                        $341
                $300
                $250                                                                        $250
                $200
                $150
                $100
                 $50
                $-
                       1          4        7     10   13    16         19    22   25   28
                                         CPI Compound    Simple          5% Compound

                                                     Years Policy in Effect
     Policy benefits may vary by state
     45 Year Old
     Preferred Health – Married Both Applying
     $100 DB (5% Compound), $150 DB (CPI Compound), 5-Year BP, 90 Day EP
     Inflation Based on 30 Year Calculation




                             Premiums:
                $600
                             CPI Compound          $ 888
                $500         5% Compound           $ 897                                  $513
Daily Benefit




                $400                                                                      $433

                $300

                $200

                $100

                $-
                       1          4      7      10   13      16      19   22    25   28
                                             CPI Compound         5% Compound

                                                    Years Policy in Effect
     Policy benefits may vary by state
 ―Buy up‖ to actual local costs

        Use premium equivalency to buy
additional Daily or Monthly LTC Benefits
          with Custom Care II Enhanced
Maximizing Day One Coverage


• Average daily benefit sold (CCII)                                            $150
• Average Annual Coverage                                                      $150 X 365 days = $54,750


• National Avg. Daily Cost of Care                                             $190 ($70,000/365 days)1
• Average Annual Shortfall                                                     $15,250 ($70,000 - $54,750)




1. John Hancock 2005 Cost of Care Survey, conducted by Harris, Rothenberg International, LLC, 2005


Policy benefits may vary by state
5% Compound vs. CPI Compound – Age 45
5 Year Benefit Period, 90 Day Elimination Period, Married, Select



  Day One Benefits

                                                                Annual    Policy
            Product                   Premium   Daily Benefit   Benefit   Limit

     CC II Enhanced
     5% Compound                       $1,569       $150        $54,750   $273,750
     CC II Enhanced
     CPI Compound                      $1,382       $200        $73,000   $365,000




  Policy benefits may vary by state
5% Compound vs. CPI Compound – Age 50
5 Year Benefit Period, 90 Day Elimination Period, Married, Select



  Day One Benefits

                                                                Annual    Policy
            Product                   Premium   Daily Benefit   Benefit   Limit

     CC II Enhanced
     5% Compound                       $1,658       $150        $54,750   $273,750
     CC II Enhanced
     CPI Compound                      $1,619       $200        $73,000   $365,000




  Policy benefits may vary by state
5% Compound vs. CPI Compound – Age 55
5 Year Benefit Period, 90 Day Elimination Period, Married, Select



  Day One Benefits
                                                                Annual    Policy
            Product                   Premium   Daily Benefit   Benefit   Limit

     CC II Enhanced
     5% Compound                       $1,895       $150        $54,750   $273,750
     CC II Enhanced
     CPI Compound                      $1,634       $180        $65,700   $328,500
     CC II Enhanced
     CPI Compound                      $1,725       $190        $69,350   $346,750



  Policy benefits may vary by state
5% Compound vs. CPI Compound – Age 60
5 Year Benefit Period, 90 Day Elimination Period, Married, Select



  Day One Benefits
                                                                Annual    Policy
            Product                   Premium   Daily Benefit   Benefit   Limit

     CC II Enhanced
     5% Compound                       $2,250       $150        $54,750   $273,750
     CC II Enhanced
     CPI Compound                      $1,913       $170        $62,050   $310,250
     CC II Enhanced
     CPI Compound                      $2,138       $190        $69,350   $346,750



  Policy benefits may vary by state
5% Compound vs. CPI Compound – Age 50 w/SharedCare
2 X 5 Year Benefit Period, 90 Day EP, Married, Select, SharedCare



  Day One Benefits

                                      Combined    Individual     Individual   Combined
            Product                   Premium    Daily Benefit     Annual       Policy
                                                                   Benefit      Limit
     CC II Enhanced
     5% Compound                       $3,648        $150         $54,750     $547,500
     CC II Enhanced
     CPI Compound                      $3,561        $200         $73,000     $730,000




  Policy benefits may vary by state
CC II Enhanced - Inflation Protection
• Enhanced Guaranteed Purchase Option (GPO)
      – Insured may purchase additional coverage without underwriting
        every 3 years (5%, 10% or 15% of original amount)
      – If benefits have been paid in the previous 2 year period or if the
        insured is older than age 90 no offer will be made
      – One time option to change to CPI Compound or 5% Compound
        inflation for increased premium at age 65
      – Not available with FamilyCare II Benefit, Limited Pay Options or
        Survivorship and Waiver of Premium Rider

• No Inflation
      – Only available with Limited Pay Options or the Survivorship and
        Waiver of Premium Benefit

Policy benefits may vary by state
Enhanced GPO Inflation Example
GPO with CPI Compound Conversion at age 65

• Applicant age 55
       – Have ―need‖ of parental experiences with LTC
       – Children college expenses
       – Limited premiums available in current situation

• Premium for CPI Compound @ age 55 = $1,654
       – ($150 DB, 5 Year BP, 90 Day EP, Partner not applying, Select)

• GPO w/CPI Compound conversion at 65 = $935
   – Premium then goes to $1,834 at 65

• Alternative is ―to wait to age 65‖
       – Premium for CPI Compound at age 65 = $2,697

Policy benefits may vary by state
    Custom Care II Enhanced vs. “The Industry…”
    5-Year, 90 day Elimination Period, $4,500 Mo. Max.,
    5% Compound Inflation, Married Select
160%
        Percentage (%) to CCII Enhanced Premiums
140%

120%

100%

80%

60%

40%

20%

 0%
         Allianz         GNW            GNW            GNW             Met            Met             Met           Met        MedAm         Pru
        Generation      Privileged      Classic        AARP           Value2          Ideal2       Premier2       LifeStage:   Simplicity2   LTC-3
        Protector II     Choice         Select                                                                     Custom
                                                                 45      50      55      60      65               Advantage

   Competitor information is accurate to the best of our knowledge as of 6/1/08. For complete details, please refer to the
   company’s outline of coverage or policy
                                                  Continues to be Competitive…
       CCII Enhanced w/CPI Compound vs “The Industry…”
       5-Year, 90 day Elimination Period, $4,500 Mo. Max.,
       5% Compound Inflation, Married Select
200%    Percentage (%) to CCII Enhanced w/CPI Compound
        Premiums
180%
160%
140%
120%

100%
80%
60%
40%
20%
 0%
        Allianz         GNW            GNW            GNW             Met            Met             Met           Met         MedAm         Pru
        Generation      Privileged      Classic        AARP           Value2          Ideal2       Premier2       LifeStage:   Simplicity2   LTC-3
        Protector II     Choice         Select                                                                     Custom
                                                                45      50      55      60      65                Advantage

   Competitor information is accurate to the best of our knowledge as of 6/1/08. For complete details, please refer to the
   company’s outline of coverage or policy
                                                        Extremely Competitive!!
CC II Enhanced - Built-In Benefits
• Double Accident Benefit prior to age 65
      – 100% Reimbursement up to two times the maximum daily or monthly
        benefit if care is the result of an accident prior to age 65
      – Benefits paid in excess of the LTC Benefit Amount will not be deducted
        from the Total Pool of Money
      – For the entire duration of the claim
      – Lifestyle underwriting and ability to issue without benefit to preserve
        case
      – Not available with Lifetime Benefit Period or with FamilyCare II
• Return of Premium prior to age 65
      – Total premiums paid less policy benefits paid when death occurs prior
        to age 65
      – Not available with FamilyCare II Benefit

Policy benefits may vary by state
CC II Enhanced - Built-In Benefits
• “New” - Caregiver Support Services (Supporting
  Clients and Their Family)
        – Personalized telephone & website support
        – Access to quality reports and ratings on over 90,000 nursing
          homes, assisted living facilities, hospice, and home health care
          providers nationwide
        – Access to exclusive provider discounts ( 7%-35% )
        – Care advisory services
        – Family members include Spouse or Partner and their parents,
          stepparents, grandparents, siblings, children, step children,
          grandchildren, and their respective spouses

Policy benefits may vary by state
CC II Enhanced - Built-In Benefits
• Care Advisory Services (CAS)
      – The benefit eligible policyholder may chose an independent
        professional to assist in determining the care and treatment plan
              1/3 the Monthly or 10X the Daily LTC Benefit Amount,
               annually
              May be paid before the EP is satisfied
              Does not reduce the Pool of Money!!!
              Does not count towards the EP




Policy benefits may vary by state
CC II Enhanced - Built-In Benefits
• Additional Stay at Home Benefit
      – Home modifications, durable medical equipment, caregiver
        training, home safety checks, provider care checks, and medical
        alert systems
           1X the Monthly or 30X the Daily LTC Benefit Amount
           May be paid before the EP is satisfied
           Must be benefit eligible
           Does not reduce the Pool of Money!!!
           Does not count towards the EP




Policy benefits may vary by state
CC II Enhanced - Built-In Benefits
• Respite Care
      – Short-term temporary care to provide relief to the primary
        uncompensated caregiver
              21 days per calendar year
              Is not subject to, nor does it satisfy the Elimination Period
              Reduces the Pool of Money

• Bed Hold Benefit
      – Actual covered charges will be paid to ensure your room will be
        available at a facility when a stay is interrupted for any reason
              Up to 60 days per calendar year
              Subject to the elimination period and does reduce the
               Pool of Money
Policy benefits may vary by state
CC II Enhanced - Built-In Benefits
• Waiver of Premium
      – Begins once the Elimination Period is satisfied
      – Ends once benefits are no longer payable
• International Coverage
      – Receive coverage for care anywhere in the world
              Reimbursement basis for actual expenses
              Up to 100% of the LTC Benefit Amount for 1 year
              Payment in U.S. currency
                      All benefits except Double Coverage for Accident Benefit,
                       Stay at Home, Respite Care, and Care Advisory Services

Policy benefits may vary by state
CC II Enhanced - Consumer Protection Features

• “New” - Alternate Services Benefit
        – Benefit helps to ensure that policyholder has access to emerging
          services that may develop over time, but are not currently
          identified in their policy
        – Example, in certain circumstances, benefits for services not
          specifically covered under the policy (like robotics) may be
          authorized at the time of the claim
• “New” - Lifestyle Benefit Changes
        –    Allows annual increases in LTC Benefit Amount
        –    Subject to underwriting/additional premium at attained age.
        –    Policyholder can also elect to decrease coverage
        –    Effective on policy anniversary
        –    Coverage selection change forms need to be submitted
Policy benefits may vary by state
CC II Enhanced - Consumer Protection Features

• “New” - Independent Third-Party Review
        – In the unusual event that a claim is denied, the policyholder
          will have the right to request an independent third-party
          review
        – Decision of that third party will be binding and must be
          upheld by John Hancock
• “New” - Timely Payment of Claims
        – In the unlikely event that a claims payment takes longer than
          30 days to process, we will pay the policyholder an interest
          penalty of 1% of the claim amount per month
        – State variations may apply

Policy benefits may vary by state
CC II Enhanced - Consumer Protection Features

• Contingent Nonforfeiture
        – In effect if the optional Nonforfeiture rider is not chosen
        – In the event of a rate increase exceeding a threshold % based
          on issue age
                 Two options
                            Reduce benefits
                            Convert to paid-up




Policy benefits may vary by state
CC II Enhanced - Consumer Protection Features

• “New” - Contingent Nonforfeiture for Limited Pay
        – Access to a Limited Payment Contingent Nonforfeiture
          Benefit should a rate increase occur that triggers the benefit
          based on issue age and the policyholder has paid at least 40%
          of their Limited Pay premiums
        – Benefit is equal to 90% of the percentage of premiums paid,
          times the LTC Benefit Amount
        – Example: if a policyholder paid 5 years (60 months) of a 10
          pay (120 months), they paid 50% of the premiums (120/60)
        – Multiply 50% by 90% (result is 45%) and multiply the Daily or
          Monthly LTC Benefit Amount by that percentage to get the
          reduced LTC Benefit Amount and Total Pool of Money
        – The reduced LTC Benefit Amount and Total Pool of Money
          are not subject to inflation increases going forward
Policy benefits may vary by state
CC II Enhanced - Consumer Protection Features

• Added Protection Against Lapse
        – The policyholder may designate a person to receive notice if a
          premium is overdue
• Thirty Day Free Look
        – If the policyholder is not satisfied, they may return the policy
          within 30 days for a refund
• Guaranteed Renewable
        – John Hancock cannot cancel a policy if the client pays their
          premiums on time
        – Company reserves the right to increase the premiums by
          class, subject to state approval

Policy benefits may vary by state
CC II Enhanced - Consumer Protection Features

• Grace Period
        – The policy has a 65 day grace period
        – If renewal is not paid within 30 days of due date:
                 We will notify designated person(s) and give 35 additional
                  days to pay the premium with the policy in effect




Policy benefits may vary by state
CC II Enhanced - Eight Optional Riders
• SharedCare
• Survivorship and Waiver of Premium Benefit
• Waiver of Home Care Elimination Period
• Additional Cash Benefit
• Enhanced Return of Premium
• Restoration of Benefits
• Nonforfeiture
• Family Care II Benefit


Policy benefits may vary by state
CC II Enhanced - Optional Riders
• SharedCare
      – Allows partners to access the benefits under the other’s policy
        once their benefits are exhausted
      – If either partner dies, survivors policy is automatically increased
        by the remainder of deceased Pool of Money
      – Both partners must have rider and identical benefit options
      – 60 Day offer of a 2-year benefit plan for policyholder whose
        benefits are exhausted by partner
          Not subject to underwriting, at attained age
          Prior to age 91, no claims in prior two years
      – Rider Cost 26%, 16%, 11%, 10%, 8% & 5% for 2/3/4/5/6 & 10
        year Benefit Periods, respectively
Policy benefits may vary by state
CC II Enhanced - Optional Riders
• Survivorship and Waiver of Premium Benefit
      – If partner goes on claim, the premium for the healthy partner is
        waived (both premiums are waived)
      – If partner dies, surviving partner’s policy becomes paid up
              Both policies must have been in force for 10 years with no
               claims in first 10 years
      – Rider Cost 9%




Policy benefits may vary by state
CC II Enhanced - Optional Riders
• Waiver of Home Care Elimination Period
      – Waives Elimination Period for Home Health Care
      – Creates a 0 day HHC EP
      – Days of HHC count towards the Facility EP
      – Waiver of Premium begins once the Facility Elimination Period is
        met
      – Not available 180/365 day EP, or to ages 80-84
      – Rider Price 9%




Policy benefits may vary by state
CC II Enhanced - Optional Riders
• Additional Cash Benefit *
     – Separate monthly pool of funds to help the prospect stay at home
     – Cash benefit equal to 15% the Monthly Benefit or 4.5 times the
       Daily Benefit if insured is receiving HHC and not receiving
       facility care
     – Separate additional Pool of Money for use at the discretion of the
       insured
     – LTC Benefit Amounts at time of purchase greater than $4,500 per
       month or $150 per day may have tax implications**
     – Rider cost 10 %



* Option varies by state
** Please consult your professional tax advisor
CC II Enhanced - Optional Riders
• Enhanced Return of Premium upon Death Benefit
      – Pays beneficiary the benefit upon death
      – Regardless of age at death
      – Pays all premiums paid, less any benefits paid prior to the date of
        death
      – Accumulated without interest
      – Rider cost based on age is 35-150%




Policy benefits may vary by state
CC II Enhanced - Optional Riders
• Restoration of Benefits
      – Pool of Money is restored (one time) if insured is ―fully
        recovered‖ and does not meet benefit triggers for 180 days
      – Rider Cost 4%
• Nonforfeiture
      – Insured receives policy with reduced Pool of Money if the policy
        lapses after it has been in force for at least 3 years (one year with
        Limited Pay policies)
              Reduced Pool of Money is the sum of all premiums paid, less
               benefits received
      – Rider Cost 6%

Policy benefits may vary by state
FamilyCare II Benefit
• Revolutionary multi-generational LTC insurance benefit
• Select up to three family members to add to a policy
• Monthly or daily maximum benefit can be shared by all covered
  family members out of a single Pool of Money
• Affordable way to pool resources and protect multiple family
  members
• Benefit bequethment feature
• Cost based upon number of insureds and their ages




Policy benefits may vary by state
FamilyCare II Benefit*
• One Applicant & One Policy - Can add three insureds
• Primary applicant chooses all benefits and options
• All insureds have access to the benefits
• Each additional family member must fill out an application
• Benefits can be paid on behalf of any covered person after the
  Elimination Period is met
   – The Elimination Period must only be satisfied once
• Originating policyholder is responsible for premium payments
• In case of death, or policy cancellation, ownership of the policy can
  be transferred
• Any insured can be removed and premiums reduced
* Benefits are capped for the one policy - regardless of how many family members are on claim.

Policy benefits may vary by state
FamilyCare II Benefit
• Applicant Age
      – All applying family members must be ages 18-79
• Benefit Periods
      – Multiplier for the LTC Benefit Amount
          4 years (1,460 days or 48 months)
          5 years (1,825 days or 60 months)
          6 years (2,190 days or 72 months)
          10 years (3,650 days or 120 months)
• Inflation Options
      – All options except Enhanced GPO and GIO
      – No Inflation is an option
Policy benefits may vary by state
FamilyCare II Benefit – Built-in Features
• Same as Custom Care II Enhanced*
      – Nursing Home, Assisted Living, and Home Care Benefits
      – Additional Stay at Home Benefit, Waiver of Premium,
        International Coverage, Care Advisory Services, Respite
        Care Benefits, Bed Hold Benefit, Caregiver Support Services,
        Alternate Services Benefit, Lifestyle Benefit Changes,
        Independent Third-Party Review, Timely Payment of
        Claims, Contingent Nonforfeiture, Loyalty Credit
      – No Double Coverage for Accident Benefit or Return of
        Premium prior to age 65


* Benefits are capped for the one policy - regardless of how many family members are on claim.

Policy benefits may vary by state
FamilyCare II Benefit - 3 Optional Riders
• Waiver of Home Health Care Elimination Period
• Additional Cash Benefit
• Nonforfeiture




Policy benefits may vary by state
CC II Enhanced - Ratings and Discounts
  • Underwriting Classes
        –    Preferred (Discounted 15% of Standard)
        –    Standard (Select)
        –    Class I (125% of Standard Premium)
        –    Class II (150% of Standard Premium)




Policy benefits may vary by state
CC II Enhanced - Ratings and Discounts
  • Partner Discounts
        – Defined as:
            Spouse of a married couple (or)
            Same sex or opposite sex partners that have lived together 3
             years (or)
            Family members of the same generation that have lived
             together 3 years
        – 15% discount for a partner applying
        – 30% if both applying and approved
        – 40% Cap Discount for Preferred, Both Apply & Approved
        – Discounts are based on Select Rates



Policy benefits may vary by state
Additional 5% Discount Programs
• Sponsored Group Discount – for employers with 5 or more
    employees participating or associations with 10 or more members
    participating
• Family Discount – Available when 3 or more immediate family
    members purchase individual JH long term care insurance
• Valued Client Discount – Existing JH and Manulife annuity
  and life clients are eligible for this discount
• Sponsored Group, Family and Valued Client discounts can’t be
  used in conjunction with one another
   – There is a commission reduction with the Family Discount and
     Sponsored Group Discount

Please refer to the LTC Producer Guide LTC-2722 for discount parameters and combination details.


Policy benefits may vary by state
CC II Enhanced - Discounts
• Loyalty 5% Credit
      – Allows current John Hancock LTC insurance policy holders to
        replace a prior series product with the Custom Care II Enhanced
        product
              With a 5% annual reduction in premium
              Original policy must be in effect for 2 years
              Rates at attained age and fully underwritten




Policy benefits may vary by state
CC II Enhanced - Payment Options
• Limited Payment Options
      – 10 Pay
      – Paid-Up at Age 65 (available through age 55)
              Both are guaranteed renewable during the premium paying period
              Non-cancelable thereafter
• Modal Options *
      –   Annual
      –   Semi-annual
      –   Quarterly
      –   Monthly Bank Draft
      –   Credit Cards (Monthly & Quarterly)
* Modal options other than annual have a service charge.


Policy benefits may vary by state
CC II Enhanced - Illustrations
  • eHansel
        – Custom Care II Enhanced can be illustrated, in
          approved states using eHansel, ltc.ehansel.com
  • Hansel
        – Hansel CDs (LTC-HanselCD), version 10.2, have
          been mailed to our normal distribution list and is
          also available for download from the producer
          website, www.jhltc.com




Policy benefits may vary by state
CC II Enhanced - Optional Reports
  • Policy Option Spreadsheet – illustrates premiums by each of the
    inflation options for each benefit period
  • Inflation Projection –Required for CPI Compound Inflation with
    future CPI increases illustrated at 2%, 4% and 6%.
  • Cost of Waiting with Inflation – shows the impact of waiting to
    purchase both by age and LTC Benefit Amount impacted by
    inflation (2%, 4% and 6% used for CPI Compound)
  • Break Even Analysis – Assumes 2%, 4% and 6% growth when CPI
    Compound Inflation is illustrated
  • Target Premium Comparison –shows the change in LTC Benefit
    Amount for each inflation option for approximately the same
    premium
  • Premium Tables – rates for all ages with option to show 3 different
    policy designs
Policy benefits may vary by state
CPI Compound Inflation

The Inflation
Protection                          The future LTC
report will be a                    Benefit Amounts
required part                       and Pool of
of the LTC                          Money will be
illustration                        projected
when CPI                            assuming CPI
Compound                            growth rates of
Inflation is                        2%, 4% and 6%
selected



Policy benefits may vary by state
CPI Compound Inflation


                                    An explanation
                                    of how the CPI
                                    changes impact
                                    the Benefit
                                    Amount and
                                    Pool of Money
                                    is provided in
                                    this footnote




Policy benefits may vary by state
When to Sell Leading Edge
  • Simplified product offering
        – 2 Inflation Options , 3 Optional Riders
        – 1 Elimination Period
        – 1 Application for couples, Credit Card payments for all modes
  • Automatic Inflation (CPI) lower priced at younger ages
  • 5 Plus $1 Million Benefit Period vs Lifetime
  • Home care coverage more flexible
        – Homemaker services not required to be incidental
        – Independent HHC covers unlicensed providers and covers
          Personal Care Services where provider qualification is not
          required
  • Corporate Solutions
Policy benefits may vary by state
                                           Custom Care II Enhanced

                                              Helping you meet a broader
                                                    range of client needs




LTC-3775 6/08   Long-Term Care Insurance is Underwritten by John Hancock Life Insurance Company, Boston, MA 02117.
                For financial professional use only. Not for use with the public.

				
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