The JH LTC Opportunity Series - Part 3: Counting the Cost

We have shared with you the statistics that support the need for long-term care planning, and you have now seen the Cost of Care Calculator. So how does John Hancock address the long-term care need in their product offerings?

Their Long Term Care Rider can be added to any individual permanent life insurance product and it is approved for sale in all 50 states. The rider provides a dollar for dollar acceleration of the death benefit to pay for qualified long term care expenses. They utilize a reimbursement model for the rider, which means they will handle all of the claims administration directly with your client's care provider on their behalf. At policy issue clients simply elect 1, 2 or 4% of their death benefit as their Monthly Maximum Benefit Amount available to cover expenses, up to a $50,000 per month maximum.

So, what is the cost? Take a look at the chart below. You may be surprised to learn that the average cost to add this rider to a life policy is 7–9%.

$500,000 Life Insurance Death Benefit with 2% LTC Rider

Super Preferred NonSmoker  

Issue Age  Annual Premium
Without LTC Rider
Annual Premium
With LTC Rider 
Max. Monthly
Benefit (2%)
% Difference $ Difference
40 Male  2,548  2,717 10,000 7%  169
45 Male  3,082  3,312 10,000 7%  230
50 Male  3,977  4,274 10,000 7%  297
55 Male  5,153  5,570 10,000 8%  417
60 Male  6,676  7,225 10,000 8%  549
65 Male  9,207  9,977 10,000 8%  770
40 Female  2,069  2,204 10,000 7%  135
45 Female  2,509  2,688 10,000 7%  179
50 Female  3,353  3,587 10,000 7%  234
55 Female  4,548  4,867 10,000 7%  319
60 Female  5,746  6,163 10,000 7%  417
65 Female  7,650  8,229 10,000 8%  579

Preferred NonSmoker  

Issue Age  Annual Premium
Without LTC Rider
Annual Premium
With LTC Rider 
Max. Monthly
Benefit (2%)
% Difference $ Difference
40 Male  2,832  3,034 10,000 7%  202
45 Male  3,452  3,727 10,000 8%  275
50 Male  4,418  4,762 10,000 8%  344
55 Male  5,698  6,169 10,000 8%  471
60 Male  7,345  7,965 10,000 8%  620
65 Male  10,042  10,919 10,000 9%  877
40 Female  2,306  2,461 10,000 7%  155
45 Female  2,895  3,108 10,000 7%  213
50 Female  3,722  3,993 10,000 7%  271
55 Female  4,886  5,246 10,000 7%  360
60 Female  6,185  6,651 10,000 8%  466
65 Female  8,182  8,830 10,000 8%  648

Standard Plus NonSmoker  

Issue Age  Annual Premium
Without LTC Rider
Annual Premium
With LTC Rider 
Max. Monthly
Benefit (2%)
% Difference $ Difference
40 Male  3,234  3,474 10,000 7%  240
45 Male  4,087  4,419 10,000 8%  332
50 Male  5,241  5,655 10,000 8%  414
55 Male  6,849  7,431 10,000 8%  582
60 Male  8,730  9,480 10,000 9%  750
65 Male  11,808  12,853 10,000 9%  1,045
40 Female  2,712  2,899 10,000 7%  187
45 Female  3,432  3,692 10,000 8%  260
50 Female  4,320  4,649 10,000 8%  329
55 Female  5,571  6,011 10,000 8%  440
60 Female  7,226  7,778 10,000 8%  552
65 Female  9,834  10,591 10,000 8%  757

For those of you who were not able to attend the May 5th LTC Webinar hosted by the Advanced Markets team, here is a link to access the recorded presentation, a printable copy of the powerpoint and other important materials on the LTC rider.

As always, we are here to assist you. We would love to hear your feedback on this series. Let us know what you think so far!

Contact Kirk to get started!

If you missed parts 1 & 2 you can view them here:


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