John Hancock Custom Care 3

[Arthur Rudnick]

It was just announced that John Hancock is rolling out Custom Care 3, replacing Custom Care 2 Enhanced, in 35 states on May 2nd.

Here are the "Highlights"

Inflation Options:
1) CPI compound for life
2) CPI compound through age 75
3) 5% compound for life
4) GPO
All options, including GPO are at additional cost. GPO was automatically included in CC2 at no additional cost, if no other inflation riders were chosen. There is no 5% simple available

Spousal/Partner Discount:
There is a 30% spousal/partner discount (20% in NY) if BOTH apply, are BOTH approved and BOTH accept policies. There is no longer a discount for a married person applying alone.

Independent Provider:
CC2 paid for a licensed, independent provider who was not required to be affiliated with a home health care agency.
CC3 requires a licensed provider who IS affiliated with a licensed home health care agency, unless there is no licensed home health care agency within 40 miles of the policyholder's residence.
In that case, Hancock will pay for an independent licensed provider, at 75% of the benefit amount.

Elimination Period:
CC2 applied 7 days if during the course of a week, at least 1 day of home care services were used. CC3 is 1 day of home care services equals 1 day of satisfying the elimination period. And, these are Service Days, NOT Calendar days.

The software rates are not out yet, but I've been informed by reliable sources that CC3 will be 15% higher than CC2 Enhanced.

A personal comment:
CC2 Enhanced is one of the top 2 or 3 most expensive policies available, at least in NY. They now come out with a new policy, with less benefits at higher premiums. I'm not certain what these people are thinking. I have my own thoughts on the concept, but it's probably not to wise for me to share them on a public forum.

 

[STIBROKER]

the need the biz.....hahahahaha....

Texas Life Insurance

John Hancock Settles an Insurance Dispute


Nearly two dozen states have reached an agreement with the John Hancock Life Insurance Company to settle a dispute over how the company pays life insurance policies and annuities. John Hancock’s executive vice president and general counsel, Jonathan Chiel, said Friday that the company would improve its claims practices under the agreement with 22 states and the District of Columbia. He said the settlement was reached Thursday. The move comes after an audit by 35 states and the District of Columbia alleged abuses with life insurance policies and annuity contracts. The California controller’s office revealed the settlement in a statement released on Friday.

 

[billberry12]

Looks like JH is trying to price themselves away from LTCI risk. Similar to what Metlife did before they existed the market. Just my opinion.

 

[Arthur Rudnick]

"Looks like JH is trying to price themselves away from LTCI risk. Similar to what Metlife did before they existed the market. Just my opinion".




It's not only your opinion Bill.............

 

[billberry12]

The number of companies serious about this business continues to shrink. Where is this taking us?

 

[Arthur Rudnick]

"The number of companies serious about this business continues to shrink. Where is this taking us?"

This is nothing more than my personal opinion but I think in reality, LTCi is a very minor part of the financial giant's total revenue. Companies like MetLife, John Hancock, Mutual of Omaha, Transamerica, Prudential, Mass Mutual to name a few do billions of dollars worth of business on products other than LTCi.

And, the ROI on LTCi is nowhere near the ROI of their other products. MetLife gave it a shot and ultimately decided it wasn't worth the effort. I think down the road, you'll see the other major carriers come to the same conclusion.

So where is this taking us? If Genworth can continue to keep their products competitive and their premiums affordable, I believe that they will eventually own about 70% of the business. Genworth is not a financial giant like the above mentioned carriers, but they will wind up being the #1 producer of LTCi in the country by the end of the year. LTCi is a very large and important part of their total business so I don't see them bailing out. They've got a bunch of smart players throughout the company and a top-notch management team.

MediAmerica only does LTCi. In the scheme of things, they are a very small company. But, they have a market niche and if the can continue to grow in small increments each year and continue to stay profiable, they will become a much larger part of the mix.

I think you will have Genworth with 70% of the market and the rest of the field fighting for the remaining 30%.

For one company to own 70% of an industry is not a good thing, whether it's the LTCi business or the shoe industry.
Just my 2 cents.

LET THE DEBATE BEGIN!