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John Hancock Exiting the LTC Insurance Business

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  • John Hancock Exiting the LTC Insurance Business

    Yet another carrier leaving the Long-Term Care (LTC) Insurance business. Unfortunately, these policies are not what they used to be and the incidence and duration of claims is higher than expected. It is not uncommon for existing policyholders to find that their premiums have increased by 40% or more (and can potentially be increased again).

    Unlike disability insurance which is generally Non-Cancelable and Guaranteed Renewable, this type of insurance is Guaranteed Renewable and with insurance department approval, premiums can be changed by class.

    Important Notice: Discontinuance of Individual LTC Insurance Sales

    After a recent analysis of the macro-economic trends facing the long-term care (LTC) insurance industry, John Hancock has made the difficult decision to discontinue sales of their individual LTC insurance policies in all states.  As many of you well know, the distribution landscape for LTC insurance has shrunk significantly since the peak of the industry in 2002.  Today, there are far fewer outlets through which individual LTC insurance is sold, impacting the growth potential of the product.  In addition, consumer demand for individual LTC insurance has fallen and remains stagnant. These trends, combined with the significant capital requirements of the LTC insurance business, are the primary reasons for this decision, which was not taken lightly.

    Lawrence B. Keller, CFP, CLU, ChFC, RHU, LUTCF

  • #2
    WCICON24 EarlyBird
    Another good reason to save enough to be able to self-insure this risk.
    Helping those who wear the white coat get a fair shake on Wall Street since 2011