Transcript Long Term Care Insurance Program for Employer Name

John Hancock
Long Term Care Insurance
Program for
(Employer Name)
Presented by:
(Agent Name, Designation)
(Agent License # required for CA, FL and MT)
(Date)
Policy Series: LTC-03
In Idaho: Policy Form LTC-03ID
In Pennsylvania: LTC-03FRPA
Long term care insurance is individually underwritten by John Hancock Life Insurance Company, Boston, MA 02117.
For use with employers only. Not for use with consumers.
LTC-2613 ER 12/04
In New York: SG-03NY
In North Carolina: LTC-03NC
In Oklahoma: LTC-03OK 10/03
John Hancock’s Corporate Solutions
Specifically designed for the business
market
 An easy way to provide long term care
insurance to valued employees
 Employer pay or voluntary options
available
 Flexibility to meet your business objectives
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Why John Hancock Long Term
Care Insurance Program?
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John Hancock Life Insurance Company-Financial
Strength and Stability
 Rate “A++” (Superior) by A.M. Best (as of
April, 2004)
Experience you can rely on
 More than 140 years of service
 More than 700,000* long term care insurance
policyholders
* Based on year-end 2003 LIMRA sales data, including individual, group and the Federal Long Term Care Insurance Program
What is long term care?
Long Term Care
…is care needed when someone is losing their
independence due to a physical or cognitive
impairment.
…it could be needed as a result of a serious
health condition, an accident, or later, as the
aging process takes its toll.
What Does LTC Insurance Cover
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Nursing Home
Alzheimer’s Facility
Assisted Living Facility
Home Health Care
Adult Day Care
Respite Care
Other community-based Supportive Services
John Hancock’s LTC Insurance Program
fills a “gap” in coverages.
Health insurance covers skilled, medically
necessary care.
 LTCI picks up where health insurance
ends.
 Disability insurance replaces a portion of an
employees salary.
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Why consider installing an LTCI
Program?
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Of those needing LTC Services:
 60% are 65 or older
 40% of people who need LTC are working age adults between 1864*
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Average Cost of Care:
 Private room nursing home care cost on average $66,000 annually
in 2003**
 24 hour home care can cost as much or more as nursing home
care**
* U.S. General Accounting Office, “Where Does the Population Live and Who Cares for Them?” January 2001.
** Congressional Budget Office Financing long term care for the elderly , April 2004
Cost of Long Term Care Issues
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U.S. businesses lose as much as $29 billion annually in lost
productivity due to employees having care-giving
responsibilities*
The Cost of replacing a managerial employee can reach
250% of annual salary.**
Cost of replacing a non-managerial employee can reach
150% of annual salary**
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*National Caregiving Alliance before the U.S. Senate Finance Committee, 3/27/01.
** Work and Family, 12/00, citing management consultant William Bliss.
What does John Hancock’s LTC
Insurance Program mean to your
employees?
Provides a plan that helps employees
protect for unexpected long term care
services.
 Extends coverage to eligible family
members
 Allows employees to pick the amount of
coverage that meets their needs for
protection and affordability
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Value to your employees
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Allows approximately 52% of LTC recipients to stay
at home*
68% of informal care givers reported a decrease in
stress when the care recipient had long term care
insurance**
98% of enrollees said they felt more secure about
their future***
*Health Ins. Assoc. of America, Benefits of LTC Insurance: enhanced care for disabled elders, improved quality of life for care givers and savings to
Medicare and Medicaid, p7, 9/02
**Dept. of Health and Human Services. “Informal Caregivers of Elders with Long Term Care Insurance.” Final Report to the Assistant Secretary for
Planning and Evaluation, Aging and Disability Policy, Department of Health and Human Services (Washington, D.C. Department of Health and Human
Services, October 2000).
***Health Insurance Association of America, ‘Who Buys Long Term Care Insurance in the Workplace? A Study of Employer Long Term Care Insurance
Plans, 2000-2001” (Washington, D.C., Health Insurance Association of America, 2001).
Program Benefits: Value to your
employees
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Offers a program that provides:
 Discounted premiums
 Streamlined enrollment
 Coverage portability
 John Hancock Long Term Care Insurance
protection
Who can participate?
Actively at work employees
 Retirees**
 Their spouse or partner**
 Their adult children**
 Their parents and grandparents**
 Their spouse or partner’s parents and
grandparents**
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*Under our sponsored group discount program or also called Marketing Distribution Discount Program in NY and TX.
Actively at Work Employees*
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Employees between the ages of 18-64
Actively at work 30 hours per week
Employees must have not been absent from work
due to sickness or injury for 10 days or more in
the last 6 months.
Employees must be U.S. residents or citizens
Employees must have been employed (full-time)
for at least six months
Two Simplified Approaches
MGTI or Modified Guaranteed To Issue
 Best for voluntary (employee pay)
 Access to preferred rates
 Simplified application, with slightly expanded
underwriting
 Offers minimum guaranteed coverage for
declines if group meets minimum participation
requirements (15 employees or 3%, which ever
is greater)
Two Simplified Approaches
MGSI or Modified Guarantee Standard Issue
 Best for employer pay enrollment
 Limited health questions; no further
underwriting
 No preferred or substandard rates (just
one rate class for all)
 Minimum participation requirements (15
employees or 3%, which ever is greater)
Premium Payment Methods
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For Employees and their Spouse or Partner
 List Bill
 Direct Bill (Annual, Semi-Annual or
Quarterly)
 Monthly Bank Draft
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For all other eligible persons
 Direct Bill (Annual, Semi-Annual or Quarterly)
 Monthly Bank Draft
Custom Care II Product
Innovations*
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Appeals to employees
 Double Coverage for Accident Benefit
 Return of Premium at Death
 Convertible Guaranteed Purchase Option
at age 65
 Additional Stay at Home Benefit
*Not all riders or benefits are available in every state or to all ages.
CCII not available in all states
Tax Advantages of LTCI
Tax deductible employer contributions
 Flexibility for employer to determine
eligible class
 Policyholder benefits non-taxable
 Voluntary employee contributions receive
preferential tax treatment
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Clients should consult with their financial advisor or tax consultant regarding tax issues.
Keys to Successful Program
Employer Endorsement
 Simplicity in Plan Design
 Employer may choose plans to be offered
to employees
 Education-based Enrollment Process
 Continuing support for new hires and
terminating employees
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John Hancock’s Long-Term Care
Corporate Solutions
Flexible Plan Design
 Modified Underwriting &Simplified
Application Process
 Favorable Tax Advantages
 Discounted Rates
 Minimal Participation Requirements (3% or
15 eligible employee applications, which
ever is greater)
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Long Term Care Insurance
Program for (Employer Name)
Underwritten by John Hancock
 Financial Strength, Stability
 Commitment to Long Term Care
insurance
 Quality LTC products
John Hancock
Long Term Care Insurance
Program for
(Employer Name)
Presented by:
(Agent Name, Designation)
(Agent License # required for CA, FL and MT)
(Date)
Policy Series: LTC-03
In Idaho: Policy Form LTC-03ID
In Pennsylvania: LTC-03FRPA
In New York: SG-03NY
Long term care insurance is individually underwritten by John Hancock Life Insurance Company, Boston, MA 02117. In North Carolina: LTC-03NC
For use with employers only. Not for use with consumers.
In Oklahoma: LTC-03OK 10/03
This is a general description of coverage and is not an insurance contract. Refer to an Outline of
Coverage for an explanation of features and options. Only the individual long term care insurance
Policy contains governing contractual provisions.
LTC-2613 ER 12/04