MOO Vs. John Hancock LTC

Jul 12, 2016

  1. C A Story
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    C A Story New Member

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    I have my quotes on both companies; premiums within $100 of each, benefits almost identical. My question is from a consumer point of view which of these companies are easier/better to deal with when filing a claim? Saving a $100 annually is not enough to make up the difference of it being a hassle when you file a claim, IMHO.

    Thanks
     
  2. Mr_Ed
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    Mr_Ed Guru

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    The benefits are not almost identical.
    The JH policy has a 3% compound inflation benefit that is designed to increase the premium every year for at least the first 15 to 20 years.
    The MofO policy has a 3% compound inflation benefit that is designed to remain level for life.
     
    Mr_Ed, Jul 12, 2016
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  3. ltcadviser
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    ltcadviser Guru

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    For benefits, I would write the Omaha policy in a heartbeat. Level premiums; cash alternative benefit; waiver of premium included; Omaha allows independent caregivers; JH requires using a home care agency.

    Regarding claims, I have had a few claims with JH that have not been totally smooth affairs from a processing standpoint, but I can't say MOO would be better or worse.

    Good luck.
     
    Last edited: Jul 12, 2016
  4. C A Story
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    C A Story New Member

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    Mr. Ed you are correct about the 3% compound inflation benefit. I stand corrected.

    ltcadvisor, thank you for your opinion on both products it is very much appreciated.

    Thank you,
     
  5. kpbdy99
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    kpbdy99 Expert

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    MOO for me, every time. Better benefits - monthly max, cash alternative, calendar day EP, level premium. There's NO waiver of premium built into the JH plan, and I'm not quite sold on the Flex Credit approach yet.
     
    kpbdy99, Jul 13, 2016
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  6. C A Story
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    C A Story New Member

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    Thanks! I have done some MOO since coming to this practice but it is not the product we used where I came from before (pre-independent side).
     
  7. bherr
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    bherr New Member

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    The key words you used are "is designed to" ... which basically means "under current assumptions."

    Under current assumptions, Hancock's net premiums are designed to remain relatively stable for 15-20 years, then decrease and go to zero. Afterward, there may be a full/partial return of premium, depending on longevity of life.

    Under current assumptions, Mutual's net premiums are designed to remain the same until death or claim.

    True, JH has withdrawn the "waiver of premium" on claim. But if your client never claims, or only claims a short period, then they paid 8-12% higher premiums over the life of the policy for the WOP. (the cost of WOP was never itemized in LTC policies, but it was always figured into the total premium cost)

    I do like the cash benefit of Mutual, and wish JH had that.

    However, I'm puzzled by your premium comparison, "within $100" annually. What I see is WAY different. Example, Single Female, age 60. $4500/mo, 4 yrs, 3% comp, 90EP :
    MOO - Custom Solution = $4323.36
    MOO - Secure Solution = $4304.60
    Hancock PLTC = $3216.49

    How are you seeing premiums so close?
     
    bherr, Jul 13, 2016
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  8. C A Story
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    C A Story New Member

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    Thank you, more food for thought. I am not where I can get to my work emails or my request for a quote from our FMO. In the morning I will post the information because I really do want input.

    I will be the first one to say this is not my first line of business. But I do want to be educated and informed. Commission is very low on my list of concerns it is more about what is actually best for the client (premium wise and claim wise)--hence the question.

    Again, thank you and additional feedback regarding my original question is appreciated.

    Now I have to go wrangle my chickens.
     
  9. ltcadviser
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    ltcadviser Guru

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    Write Mass Mutual for a single female applicant; write Mutual of Omaha for a single male applicant.
     
  10. C A Story
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    This is what I requested. Female, 62, BP and Thyroid meds, $120 a day, no inflation 90 day elimination, and a 3 & 5 year plan. I received back (these are annual premiums) MOO $2828, JH $2894, and Genworth $3517.
     
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