New Option Offers Ability to Increase Policy Benefit Amount without Underwriting BOSTON, July 30 /PRNewswire/ -- John Hancock Life Insurance Company hasintroduced a new guaranteed increase option (GIO) to its Leading Edge longterm care insurance policy. This innovative option provides clients whohave automatic inflation coverage the opportunity every three years toincrease their current policy benefit amount by 10 percent withoutunderwriting. The option remains available, regardless of how many times aclient declines the offer. "Leading Edge was designed to fit in with the lives of younger, BabyBoomer buyers," said Laura Moore, senior vice president, John Hancock LongTerm Care Insurance. "The new GIO option is valuable to them because, laterin their lives when they no longer are worrying about the mortgage, collegefor their kids and helping to care for their parents, they can increasetheir coverage for any reason," said Moore. "We see this being particularlyhelpful if policyholders decide to retire to an area where the cost of careis higher than originally anticipated." The GIO option will be available to existing as well as future LeadingEdge policyholders. There is no cost to the benefit unless an increase iselected. If the benefit amount is increased, the policyholder's premium forthe increase will be based on current age, original risk category andpremium rates in effect on the option date. "While our clients may neverchoose to exercise the option, they and their advisors can rest assuredknowing they will have it available to them every three years," said Moore. Leading Edge was created with Baby Boomers, who often have competingfinancial priorities and limited budgets, in mind. Traditionally, inflationprotection and longer benefit periods such as "lifetime" coverage were twoof the biggest contributors toward higher costs. In Leading Edge, Hancockhas simplified and reduced the cost of inflation coverage - with built-in,compound inflation protection linked to the Consumer Price Index (CPI).Every year on the policy anniversary, a policy owner's benefit and totalpool of money is automatically adjusted according to the CPI, which has astrong association with housing and labor costs, two of the key drivers oflong term care costs today and in the future. As an alternative to lifetime coverage, John Hancock developed a newbenefit period for Leading Edge: 5 Years Plus $1 Million Dollars. This new,less expensive option is designed for consumers who feel they might needlong term care for a long time. If the pool of money from a policyholder's5-year benefit period runs out, an additional $1 million is added to thepool, allaying concerns about outliving financial resources. One Leading Edge feature geared specifically to Baby Boomers isCaregiver Support Services. Because younger buyers will likely be calledupon to provide care for parents and other older relatives before they needcare themselves, this benefit provides valuable support during what can bea very stressful time. Benefits include personalized telephone and websiteassistance regarding caregiving questions or concerns, access to qualityreports and ratings on more than 90,000 nursing home and assisted livingfacilities nationwide, and exclusive provider discounts and care advisoryservices for family members that can help them to save between 7 and 35percent on the cost of long term care provider services. For more consumer information on the need for long term care and basicsof LTC insurance coverage, John Hancock maintains a consumer website at:
John Hancock Introduces a Guaranteed Increase Option to Leading Edge Long Term Care Insurance Policy
August 08, 2007, 1:06 a.m. EDT 4 Min Read
