Arthur Rudnick
Guru
- 1,652
July 27, 2012
We are pleased to announce Custom Care III featuring Benefit Builder - a new product that will be available in 36 Interstate Compact states starting August 13, 2012. The current Custom Care III product will be replaced by Custom Care III featuring Benefit Builder in approved states (see below) at time of the launch on August 13, 2012.
The centerpiece of the new Custom Care III product is Benefit Builder, which is a first-of-its kind feature that provides an affordable alternative to more costly traditional inflation options.
We believe this feature is so unique and innovative, that we have recently filed for a patent with the United States Patent Office.
The low price point of Benefit Builder will give you access to a whole new market of potential buyers, particularly those who are highly price sensitive. What’s truly unique about Benefit Builder is that along with the low price point, it gives clients the potential to grow their benefits gradually over time through an automatic crediting process.
Here’s why Benefit Builder is a powerful solution that can help expand your sales reach into new markets. It offers:
• A truly innovative approach to providing comprehensive LTC insurance coverage with the potential for growth for price-sensitive consumers
• Access to new markets through a price point that is about half of what policies with traditional inflation options cost today for buyers in their late 40s and 50s
• Helps to overcome the #1 obstacle to closing the sale: price. This gives younger buyers the ability to buy now, and not postpone the decision until it is too late.
Benefit Builder
* includes two components:
*Automatic Crediting allows a policyholder to gradually grow their benefits over time when the investment returns earned on John Hancock's general account portfolio supporting this feature exceed certain thresholds. Through this process, benefit increases are determined by a specific formula and are applied annually.
Voluntary Buy-up Options allow for additional flexibility by providing the policyholder with the opportunity every three years through age 75 to increase benefits by 10%, for any reason, without medical exams or questions about health or underwriting.
(Subject to continued acceptance of buy up offers. Not available if the policyholder ever received benefits or was chronically ill in the prior two years.)
Further important disclosures and details of how Benefit Builder's automatic crediting mechanism and buy-up options work will be provided in several weeks, prior to the launch of the product. The sale of the Benefit Builder feature does not require any additional licensing or training.
Custom Care III featuring Benefit Builder will be available effective August 13th in the following states:
Alabama, Kentucky, Missouri, Pennsylvania, Washington,
Alaska, Louisiana, Nebraska, Rhode Island, West Virginia,Colorado, Maine, New Hampshire, South Carolina, Wisconsin, Georgia, Maryland, New Mexico, Tennessee Wyoming, Idaho, Massachusetts, North Carolina, Texas,
Illinois, Michigan, Ohio, Utah, Iowa, Minnesota, Oklahoma, Vermont, Kansas, Mississippi, Oregon, Virginia
About the Custom Care III featuring Benefit Builder Product
Custom Care III featuring Benefit Builder offers the same comprehensive coverage of the current product and also includes the CPI, CPI to 75, and 5% Compound Inflation options, making this a truly flexible product that will allow you to customize a plan to fit virtually any client’s needs. (Please note: these inflation options are not available in combination with the Benefit Builder feature.)
Please note: The Benefit Builder option does not currently meet the DRA Partnership requirements for ages 76 and over. However, it is being filed with the individual states. We will notify you via Newslink when this becomes available.
We would like to mention that the prolonged low interest rate environment continues to present pricing challenges for the LTC Insurance market. Due to this current environment, there will be a premium adjustment on new business rates of an average of 9% for the CPI Compound Inflation Options and a 15% average adjustment on the 5% Compound Inflation Option. Also, the Limited Pay Options of 20-Pay and Paid Up at 75 will no longer be available.
We are pleased to announce that the following new built-in benefits are being added to the Custom Care III featuring Benefit Builder product
Paid-up at 95 Benefit - After a policyholder reaches age 95, the coverage remains in effect, but premiums will no longer be payable. This is our new standard-pay option.
•
Hospice Care Benefit - Hospice Care Services not reimbursable by Medicare can now be paid before the Elimination Period at 100% of the Benefit Amount.
Transition Guidelines for Custom Care III applications
The current Custom Care III product will be replaced by Custom Care III featuring Benefit Builder in the above states on August 13, 2012. All Custom Care III applications for current rates must be signed no later than August 12, 2012, and received in the Home Office by August 20, 2012.
Also, effective August 13th, Core Care will no longer be available for states with Custom Care III featuring Benefit Builder.
IMO, the key to this announcement is that if a policyholder reaches the age of 95, premiums are no longer required. Talk about "innovation". Brilliant minds over there at Hancock, huh?
Oh, and don't forget the "Premium Adjustment" New rates with CPI +9% and 5% Cmp. +15%. Certainly worth a trip to the Patent Office.
We are pleased to announce Custom Care III featuring Benefit Builder - a new product that will be available in 36 Interstate Compact states starting August 13, 2012. The current Custom Care III product will be replaced by Custom Care III featuring Benefit Builder in approved states (see below) at time of the launch on August 13, 2012.
The centerpiece of the new Custom Care III product is Benefit Builder, which is a first-of-its kind feature that provides an affordable alternative to more costly traditional inflation options.
We believe this feature is so unique and innovative, that we have recently filed for a patent with the United States Patent Office.
The low price point of Benefit Builder will give you access to a whole new market of potential buyers, particularly those who are highly price sensitive. What’s truly unique about Benefit Builder is that along with the low price point, it gives clients the potential to grow their benefits gradually over time through an automatic crediting process.
Here’s why Benefit Builder is a powerful solution that can help expand your sales reach into new markets. It offers:
• A truly innovative approach to providing comprehensive LTC insurance coverage with the potential for growth for price-sensitive consumers
• Access to new markets through a price point that is about half of what policies with traditional inflation options cost today for buyers in their late 40s and 50s
• Helps to overcome the #1 obstacle to closing the sale: price. This gives younger buyers the ability to buy now, and not postpone the decision until it is too late.
Benefit Builder
* includes two components:
*Automatic Crediting allows a policyholder to gradually grow their benefits over time when the investment returns earned on John Hancock's general account portfolio supporting this feature exceed certain thresholds. Through this process, benefit increases are determined by a specific formula and are applied annually.
Voluntary Buy-up Options allow for additional flexibility by providing the policyholder with the opportunity every three years through age 75 to increase benefits by 10%, for any reason, without medical exams or questions about health or underwriting.
(Subject to continued acceptance of buy up offers. Not available if the policyholder ever received benefits or was chronically ill in the prior two years.)
Further important disclosures and details of how Benefit Builder's automatic crediting mechanism and buy-up options work will be provided in several weeks, prior to the launch of the product. The sale of the Benefit Builder feature does not require any additional licensing or training.
Custom Care III featuring Benefit Builder will be available effective August 13th in the following states:
Alabama, Kentucky, Missouri, Pennsylvania, Washington,
Alaska, Louisiana, Nebraska, Rhode Island, West Virginia,Colorado, Maine, New Hampshire, South Carolina, Wisconsin, Georgia, Maryland, New Mexico, Tennessee Wyoming, Idaho, Massachusetts, North Carolina, Texas,
Illinois, Michigan, Ohio, Utah, Iowa, Minnesota, Oklahoma, Vermont, Kansas, Mississippi, Oregon, Virginia
About the Custom Care III featuring Benefit Builder Product
Custom Care III featuring Benefit Builder offers the same comprehensive coverage of the current product and also includes the CPI, CPI to 75, and 5% Compound Inflation options, making this a truly flexible product that will allow you to customize a plan to fit virtually any client’s needs. (Please note: these inflation options are not available in combination with the Benefit Builder feature.)
Please note: The Benefit Builder option does not currently meet the DRA Partnership requirements for ages 76 and over. However, it is being filed with the individual states. We will notify you via Newslink when this becomes available.
We would like to mention that the prolonged low interest rate environment continues to present pricing challenges for the LTC Insurance market. Due to this current environment, there will be a premium adjustment on new business rates of an average of 9% for the CPI Compound Inflation Options and a 15% average adjustment on the 5% Compound Inflation Option. Also, the Limited Pay Options of 20-Pay and Paid Up at 75 will no longer be available.
We are pleased to announce that the following new built-in benefits are being added to the Custom Care III featuring Benefit Builder product
Paid-up at 95 Benefit - After a policyholder reaches age 95, the coverage remains in effect, but premiums will no longer be payable. This is our new standard-pay option.
•
Hospice Care Benefit - Hospice Care Services not reimbursable by Medicare can now be paid before the Elimination Period at 100% of the Benefit Amount.
Transition Guidelines for Custom Care III applications
The current Custom Care III product will be replaced by Custom Care III featuring Benefit Builder in the above states on August 13, 2012. All Custom Care III applications for current rates must be signed no later than August 12, 2012, and received in the Home Office by August 20, 2012.
Also, effective August 13th, Core Care will no longer be available for states with Custom Care III featuring Benefit Builder.
IMO, the key to this announcement is that if a policyholder reaches the age of 95, premiums are no longer required. Talk about "innovation". Brilliant minds over there at Hancock, huh?
Oh, and don't forget the "Premium Adjustment" New rates with CPI +9% and 5% Cmp. +15%. Certainly worth a trip to the Patent Office.
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