John Hancock, Canadian
insurer Manulife Financial’s US unit, has launched a new option for
its long-term care (LTC) insurance policy, Custom Care
III.
The additional feature
is an alternative to a traditional inflation option and provides
automatic increases in benefits that occur gradually over time, as
well as voluntary buy-up options.
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Benefit Builder enables
a policyholder’s benefits to grow through an automatic crediting
formula tied to the investment earnings of a segment of John
Hancock’s general account, without a corresponding increase in
premiums.
Marianne Harrison,
president of John Hancock Long-Term Care Insurance, said the
rollout of the new feature was spurred by a drive to offer
lower-cost LTC protection that provided “meaningful
coverage”.
As a result, Harrison
said: “Boomers in their 50s or 60s, who often are taking care of
parents and children while saving for retirement, would feel
financially able to address their own LTC planning
needs.”
Harrison argues that the Benefit Builder
option will expand the LTC insurance marketplace, by appealing to
younger consumers who may have competing financial priorities and
cannot afford more traditional policies.
