Welcome to the John Hancock long-term care insurance rate action information center. This site is intended to be a general guide for insureds who have been notified of a rate increase on their long-term care (LTC) insurance coverage. Our goal is to provide information and support to help you make a well-informed decision about your coverage. For specific information related to your personal situation and coverage, please contact us.
John Hancock is committed to ensuring that long-term care insurance benefits will be there for our insureds when they need them. To uphold this responsibility, we continuously monitor the claims experience on our inforce long-term care insurance policies. 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.
We sincerely regret having to take this action and understand that some insureds may not be willing or able to pay the higher premium. Therefore — in most cases — we are offering options to help keep premiums at or close to their current rate by adjusting the benefits. For more information on this — and other options available to you — please refer to the "Options Package" that you should have received in the mail recently.
Long-term care insurance helps protect you from the high cost of long-term care services. This coverage may support a desire to remain at home for as long as possible due to the flexibility provided in reimbursements for different care settings in some contracts. It also helps reduce the burden of care that often falls on family members.
We want to assure you that John Hancock is committed to providing you with this important coverage - in addition to support and service that you can depend on when you need it.
It's been a while since I bought my policy. What coverage does my policy provide?
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:
What do long-term care services cost?
Why are you raising my premium rates?
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.
Is my recent rate increase related to my age, health, or prior claim status?
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.
Is the premium rate increase due to the prevailing economic environment?
No. We are increasing premium rates solely due to the claims trend, which indicates higher-than-expected future claims on your policy series.
Could my premiums be increased again in the future?
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.
What is the policy provision that allows you to raise my premiums?
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.
Why should I keep my long-term care insurance coverage?
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.
Is there an alternative to paying higher premiums?
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.
When will my bill reflect the rate increase if I choose to pay the higher premium?
The increase in your premium will take effect on the date indicated in your notification letter.
Can I get a refund on prior coverage premiums?
Unfortunately, we cannot return any of your premiums paid to date. Your policy provisions do not provide for a return of premiums to you.
What is the purpose of the Coverage Change Request Form included with my letter?
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.
How much time do I have to decide about my rate and coverage options?
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.
Group Long-Term Care Insurance is underwritten by John Hancock Life Insurance Company (U.S.A.), Boston, MA 02116 (licensed in all states except New York; permitted in New York to service existing insureds and clients).
John Hancock Life and long-term care insurance products are issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA 02116 (not licensed in New York); and in New York by John Hancock Life Insurance Company of New York, Valhalla, NY 10595 (Life insurance) and John Hancock Life & Health Insurance Company, Boston, MA 02116 (Long-term care insurance).