Welcome to the John Hancock Long-Term Care Insurance Rate Action Information Center. This site is intended to serve as a general guide for policyholders who have been notified of a rate increase on their long-term care (LTC) insurance policy. Our goal is to provide you with information and support to help you to make a well-informed decision about your policy. If you are looking for specific information related to your personal situation or policy, please click contact us.

About the Rate Action 
John Hancock is committed to ensuring that LTC insurance benefits will be there for our policyholders when they need them most. To uphold this responsibility, we continuously monitor the experience of our 
LTC insurance policies to make sure the premiums are adequate to pay future claims. After a recent, detailed analysis of our LTC insurance business, we have confirmed there is a need to increase premiums on certain policy series to reflect the future claims expected on these policies.

Options to Avoid or Minimize the Premium Increase 
We sincerely regret having to take this action, and understand that some policyholders may not be willing or able to pay the higher premium. Therefore, we are offering policyholders the option to keep their premium at or close to the same level as what they are paying today through an adjustment to benefits. Please refer to the ‘Options Package’ you received in the mail for more information on this, as well as the other options available to you. 

The Value of LTC Insurance Coverage 
An LTC insurance policy helps protect you from the high cost of care. This coverage also helps give you control over where you receive care, and can support the desire to receive care at home for as long as possible. It also helps reduce the burden of care that often falls on family members. 

We want to assure you that John Hancock is committed to providing you with this important coverage, in addition to support and service that you can depend on, when and where you need care. 

Cost of Care

Use our interactive tool to find the approximate costs of different services specific to your geographic region.

Frequently Asked Questions

  • LTC insurance helps to cover the cost of care in a long-term care setting or at home when an insured meets the required benefit triggers. It can provide you with the control and security to help cover the cost of long-term care services and the independence to choose where to receive care. It’s likely you considered this insurance to:

    • Help protect your retirement savings and assets
    • Help reduce the burden of care that often falls on family members
    • Help you to take control of your long-term care decisions and maintain the ability to choose where you receive care
  • Long-term care services can be significant, and vary by location and provider. To find the average cost of services in your state, click here.

    Why do you need to raise my premium rates? 

  • Long-term care insurance premiums are determined when the coverage is issued. Because LTC insurance claims are generally not incurred until many years after the coverage is issued, certain assumptions need to be made about expected future claims when the policy is being priced. Such assumptions include the frequency and severity of particular medical conditions, the expected lifespan of insureds, the length of time an insured is expected to keep his or her coverage, and the cost of care.

    If actual and expected experience differs in an unfavorable way from the assumptions used to price LTC insurance, a premium rate increase may become necessary. That is why all LTC insurance policies include a provision that allows insurers to raise rates when needed. In order to raise rates, insurance companies are required (in most states) to file premium rate increases on policy series, along with actuarial justification, with the Department of Insurance in the state where the policy was issued.

    Over the years, comprehensive studies of our LTC experience have found that more insureds than expected are submitting claims at older ages, claims are lasting longer than expected and more of our insureds are living to the ages where claim usage is higher. These factors have led to an increase in our expected future claims and, as a result, we have determined that there is a need to increase premiums so we can meet our future claims obligations.         

  • No individual has been singled out for a rate increase, nor is the increase due to your advancing age, changing health, or prior claims status.

  • No. We are increasing premium rates solely due to our claims experience, which indicates higher-than-expected claims on your policy series in the future. State regulation does not permit in-force premium rate increases that are for the purpose of bolstering the insurer’s financial position. 

  • Long-term care insurance premium rates are not guaranteed and could be increased again in the future, subject to actuarial justification and state acceptance, if you are among the group of insureds whose premiums are determined to be inadequate to support future claims obligations. 

  • Your certificate of insurance indicates that your coverage is Guaranteed Renewable. This means that, while John Hancock cannot change coverage or refuse to renew coverage for reasons other than nonpayment of premiums, the company is allowed to increase premiums so long as the increase applies to an entire class of policies. Insurance companies are required (in most states) to file premium increases on policy series, along with actuarial justification, with the Department of Insurance in the state where the policy was issued. 

  • We encourage you to consider why you originally bought long-term care insurance. Perhaps it was part of your overall financial plan to help protect your assets, or maybe you had a personal family experience that compelled you to buy coverage. Either way, the cost of this type of protection is relatively low compared to the out-of-pocket expenses that can be incurred without insurance. Therefore, we strongly encourage you to maintain your coverage and not give up the valuable protection that it provides.          

  • Yes. We are offering benefit reduction alternatives and, in most cases, at least one option that will enable you to keep your premiums at or close to the same level as what you are paying today. The Options Package you received outlines some of the alternatives available to you. 

  • The increase in your premium will take effect on the date indicated in your notification letter.          

  • Unfortunately, we cannot return your premiums paid to date. Similar to homeowner’s or auto insurance, your premiums have paid for the coverage that you would have accessed prior to this point had you required long-term care services. In addition, your specific contract provisions do not allow for return of premiums paid as a result of voluntary cancellation.           

  • The Coverage Change Request Form needs to be completed and returned to John Hancock should you decide you want to adjust your benefits. Otherwise, no action is necessary on your part, as the premium rate increase will take place automatically on the date specified in your letter.          

  • If you want to make changes to your coverage, we ask that you return the Coverage Change Request Form provided in your notification package by the date specified in your letter.          

  • No. If you pay premiums through payroll deduction, your new premium amount will be deducted beginning with the first premium due on or after the rate increase effective date. 

    No. If you have authorized payment via automatic bank withdrawal through John Hancock, we will deduct the new premium from your bank account beginning with the first premium due on or after the rate increase effective date.