Long-term care insurance rate action information center

You may have purchased your long-term care insurance policy to help you support the cost of covered long-term care services when needed, such as home health care or a covered long-term care facility, including an assisted living facility. You may also have purchased long-term care insurance to:

• Help reduce the burden of care that often falls on family members
• Help you to take control of your long-term care decisions and maintain the ability to choose where you receive care.

The cost of long-term care services can be significant and vary by location and provider. You can find the average cost of services in your state here.

Long-term care insurance premiums are determined when the coverage is issued. Because LTC insurance claims are generally not incurred until many years after the coverage is issued, certain assumptions need to be made about expected future claims when the policy is being priced. Such assumptions include the frequency and severity of particular medical conditions, the expected lifespan of insureds, the length of time insureds are expected to keep their coverage and the cost of care.

If the factors that informed your LTC insurance premiums turn out to be less favorable than predicted, a premium rate increase may become necessary. That is why all LTC insurance policies include a provision that allows insurers to raise rates when needed. To raise rates, insurance companies are required — in most states — to file premium rate increases on policy series with the Department of Insurance in the state where the policy was issued — along with actuarial justification.

Over the years, comprehensive studies of our long-term care experience have found that more insureds are initiating claims at older ages and claims are lasting longer than previously expected. These and other factors have lead to an increase in our expected future claims and, as a result, we have determined that it is necessary to increase premiums so that we can meet our future claims obligations.

No individual has been singled out for a rate increase, nor is the increase due to any individual’s advancing age, changing health or prior claims status.

No. We are increasing premium rates solely due to the claims trend, which indicates higher-than-expected future claims on your policy series.

Yes — if you are among the group of insureds whose premiums are deemed inadequate to support future claims obligations. Long-term care insurance premium rates are not guaranteed and could be increased again in the future. Rate increases are filed with the states for review and approval, as applicable, and based on actuarial justification.

Your policy or certificate of insurance indicates that your coverage is guaranteed renewable. This means that while John Hancock cannot change coverage or refuse to renew coverage for reasons other than nonpayment of premiums, the company can increase premiums so long as the increase applies to an entire class of policies. To raise rates, insurance companies are required — in most states — to file premium rate increases for review and approval, as applicable, and based on actuarial justification.

We encourage you to consider why you originally bought long-term care insurance. Perhaps it was part of your overall financial plan to help protect your assets or maybe you had a personal family experience that compelled you to buy coverage. Either way, the cost of this type of protection is relatively low compared to the out-of-pocket expenses that can be incurred without insurance. With these points in mind, we urge you to discuss the matter with your agent, a financial professional or a family member before giving up your policy.

Yes. We are offering benefit reduction alternatives and – in most cases – at least one option that will enable you to keep your premiums at or close to the same level as what you are paying today. The Options Package you received outlines some of the alternatives available to you.

The increase in your premium will take effect on the date indicated in your notification letter.

Unfortunately, we cannot return any of your premiums paid to date. Your policy provisions do not provide for a return of premiums to you.

The Coverage Change Request Form needs to be completed and returned to John Hancock should you decide you want to adjust your benefits. Otherwise, no action is necessary on your part because the premium rate increase will take place automatically on the date specified in your letter.

If you want to make changes to your coverage, we ask that you return the Coverage Change Request Form provided in your notification package by the date specified in your letter.