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John Hancock Links LTC Benefits To CPI

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An insurer is offering a new approach to long term care inflation protection.

John Hancock Life Insurance Company, Boston, a unit of Manulife Financial Corp., Toronto, says its new Leading Edge long term care insurance policy offers built-in compound inflation protection linked to the federal government’s Consumer Price Index.

“Every year on the policy anniversary, a policy owner’s benefit and total pool of money will be automatically adjusted according to the CPI,” John Hancock says

Hancock also is introduced a “5 Years Plus $1 Million Dollars” alternative to lifetime coverage.

If an insured ends up using 5 years of coverage, John Hancock will add $1 million to the benefit pool, John Hancock says.

Other benefits include homemaker services benefits; coverage for a stay of up to a year in a long term care facility anywhere in the world; hospice care benefits; and up to 21 days of respite care for insureds who normally receive care in the home from friends or relatives.

The policy also will provide access to LTC advice services and provider discounts for healthy insureds who provide informal long term care for others.

The policy also includes a contingent nonforfeiture provision. If the lapses because of a substantial premium increase, the insured will have the right to reduce policy benefits so that the premium payments are not increased, or convert to paid-up status under which no further payments are due, John Hancock says.