Why Sell John Hancock's Long-Term Care Rider?

While John Hancock does not offer a traditional long-term care insurance policy, they do offer a hybrid life with long-term care rider that functions with the same purpose: to protect your clients against expensive long-term care costs.

Long-Term Care Rider

The Long-Term Care (LTC) rider is designed to help clients concerned with protecting themselves and their families from the high costs of long-term care.

When combined with a John Hancock permanent life insurance policy, the optional LTC rider allows policy owners to accelerate their death benefit to help pay for long-term care expenses, should that need ever arise.

Many clients recognize the importance of purchasing both life insurance and long-term care protection. If they’re looking to address both needs in a single policy, a permanent John Hancock life insurance policy with the LTC rider could be the solution. Adding the LTC rider to a permanent life insurance policy makes a portion of the policy’s face amount available monthly to help pay long-term care expenses.

When you apply for the LTC rider, you'll select an Accelerated Benefit Percentage – this is the portion of the death benefit you can use to pay for long-term care costs. That percentage can range from 1%-100%. Next, they select a Monthly Acceleration Percentage, which determines the maximum monthly amount they can use for LTC services every month. That can be 1%, 2%, or 4% of the Accelerated Benefit Pool.

Important features:

  • Issue ages 20-75
  • Fully-underwritten permanent life insurance policies are eligible for this rider
  • Must choose the rider at issue
  • Additional underwriting guidelines are used for this rider
  • Eligibility is 2 of 6 ADLs
  • 100-day elimination period

John Hancock requires that all LTC Training courses be approved by ClearCert to be accepted as valid training. Visit www.clearcert.com/search-courses. To take an approved course at a discount, visit www.JHInsuranceCE.com.

Need forms for this product? Visit John Hancock's Life Insurance page.