John Hancock is getting back into the individual long-term care insurance (LTCI) market in California Feb. 27.
John Hancock, Boston, a unit of Manulife Financial Corp., Toronto (TSX:MFC), says it will be offering both the California Partnership policy and the Custom Care III policy, which is a non-Partnership policy, in California.
A Partnership program gives holders the ability to coordinate private LTCI benefits with California Medicaid nursing home benefits. Insureds who have a Partnership policy, need long-term care (LTC) for an extended period and exhaust their benefits can keep more of their assets if they ended up needing Medicaid than they would be able to keep if they had no Partership LTC coverage.
Both the Partnership policy and the Custom Care III policy provide coverage for home care, assisted living care and adult day care as well as nursing home care. The policies also give holders and their families access to care planning support, and support for informal caregivers.
The Custom Care III policy has an inflation protection feature linked to increases in the Consumer Price Index.
John Hancock announced a suspension of individual product sales in California in June 2010.
John Hancock and other carriers have been coping in recent years with the low interest rate investment environment, the difficulty of projecting LTCI policy lapse rates, and the need to work with regulators to get approval for premium adjustments.