HSBC Bank Launches Simplified LTC Product From Hancock

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John Hancock Life Insurance Company has teamed with HSBC Bank USA to offer a simplified long-term care insurance product to the banks customers.

Headquartered in Buffalo, N.Y., with 430 branches statewide, HSBC introduced the plan, “SimpleCare,” late last month.

David Fried, president of HSBC Insurance Agency (USA) Inc., says the bank introduced the product to serve a growing need for a simplified LTC product to provide nursing, home care and assisted living for older customers.

“Only about 1% of those who need it purchase long-term care insurance,” Fried says. “We felt the LTC products on the market offer too many options as to dollar amounts for daily nursing home care and for benefits provided, and this left the consumer confused. Its important to come to the consumer with a product thats easily understood and digested.”

SimpleCare is also easy for HSBCs 1,700 licensed representatives to sell, he adds.

“Its ideally suited for a bank, where youre providing point-of-sale convenience,” Fried says. “It also fits in well with the needs-based selling approaches that our retail system takes.”

HSBCs licensed reps can refer customers to the banks investment advisors and wealth-management consultants if they identify customer needs beyond a simple LTC product, Fried observes.

Benefits offered through SimpleCare include:

–A choice of $100 or $150 daily benefit for nursing home coverage.

–Automatic at-home care coverage at 80% of the nursing home benefit.

–Inflation adjustments.

–Up to two years of benefits after a 100-day waiting period.

John Hancock developed SimpleCare in response to a request from HSBC for a product suitable for licensed bank reps to sell, says Lisa Hadrick, director of institutional relations for the Boston-based insurer.

She foresees Hancock developing more such products for banks.

“Banks are looking for an easily accessed LTC product for a fairly broad market,” says Hadrick. “We developed one with an application asking simple yes-and-no questions and immediate pre-approval.”

HSBC Bank USA and its U.S. holding company, HSBC USA Inc., report combined assets of $84.5 billion. The bank says it is the third largest depository institution in New York, with the most extensive branch network in the state. It also has eight branches in Florida, two in Pennsylvania, three in California and 17 in Panama.

It is an indirectly held, wholly owned subsidiary of HSBC Holdings plc, headquartered in London.


Reproduced from National Underwriter Life & Health/Financial Services Edition, June 4, 2001. Copyright 2001 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.


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