John Hancock Long-Term Care Rate Increases


John Hancock Long-Term Care Rate Increases

In December, John Hancock will begin petitioning State Departments of Insurance for in-force long term (LTC) care rate increases.

John Hancock anticipates an average increase of approximately 30% across most of its LTC business. The approval process could be as short as six months, or take as long as a couple of years. The increases will only be implemented in a particular state once they are permitted to do so.

John Hancock plans to offer benefit adjustment options to help insureds mitigate the impact of the rate increase. We anticipate plans to offer at least two premium neutral options: the shared cost option and reduced inflation landing spots.

Many of you have already dealt with LTC in-force premium increases. You understand the strain and confusion a premium change can bring to your clients. Ash Brokerage can help. We can provide the resources to help evaluate the options presented to your clients. There are many factors that should be taken into consideration before a decision is finalized.

  • What is the current age of your client
  • What is their current benefit level
  • What policy benefits do they currently have?

John Hancock will offer a limited number of options, but you may find additional options by contacting John Hancock directly.

The Ash Brokerage LTC team is prepared to help you and your client navigate the increase options. When the notification arrives, please let us help answer the questions and evaluate the options. Contact the Ash LTC team for help.