John Hancock/Federal LTCFEDS Long-Term Care Insurance Review

John Hancock has been a leader in Long-Term Care Insurance for decades and still services thousands of policyholders. Hancock discontinued sales of individual Long-Term Care Insurance several years ago. However, John Hancock administers the federal government's long-term care plan for government employees and families. In addition, John Hancock offers qualified long-term care riders on various life insurance products.

If you own a Long-Term Care Insurance policy from John Hancock, remember LTC Insurance is guaranteed renewable, so once issued, it cannot be canceled by the insurance company as long as the premium continues to be paid.

John Hancock/Federal Employee LTC Plan 

The Federal Long-Term Care Insurance Program (FLTCIP) does offer comprehensive benefits. Federal government employees and retirees can purchase this policy as a voluntary benefit with the ability to pay the premium through payroll withholding. 

Government Temporarily Suspends Program

The U.S. Office of Personnel Management (OPM) announced the suspension of applications for Federal Long-Term Care Insurance Program (FLTCIP) coverage. No applications for FLTCIP coverage will be accepted, and current enrollees may not apply to increase their coverage.

The suspension period will remain in force for 24 months from December 19, 2022. 

Federal employees interested in obtaining coverage for long-term health care should seek other options. This is especially true in any state considering implementing the LTC Tax.

Seek the assistance of a qualified Long-Term Care Insurance specialist to help you get accurate quotes from the top insurance companies, so you find appropriate and affordable coverage matching your age, health, and family history.

Underwriting

Full underwriting at the time of application is required for all applications except new employees. New and newly eligible employees have 60 days from the date of hire to apply with abbreviated underwriting. There is still underwriting but fewer questions about your health to determine eligibility for coverage.

What is Underwriting? How Does Current Health Impact Ability to Obtain Long-Term Care Insurance?

Please note: Since every company has different underwriting rules, you could be eligible for coverage with one company and not another.

Guaranteed Renewable and Portable

Like all Long-Term Care Insurance policies, the FLTCIP policy is guaranteed renewable for life. The policy cannot be canceled unless you fail to pay the premium. The policy is also portable. If you leave your job or retire, your policy goes with you as long as you continue to pay the premium.

The federal plan only offers a daily benefit to pay for future care. Most companies offer monthly benefits; this plan looks at the bills you receive on a daily basis. If you have multiple providers on one day, you could have uncovered out-of-pocket expenses that you would not have on another day.

The federal plan does not offer shared benefits for spouses/partners or spousal discounts.

Features and Benefits:

• Daily benefits from $50 to $450

• Offers a benefit pool up to $821,250 (based on $450 a day with a five-year benefit period - Choose between 2 years, 3 years, and 5-year benefit periods creating a pool of money

• Two inflation options - 3% compounded and a purchase option

• 90-day elimination period

• Unlicensed caregivers are covered as long as it is not a spouse or partner; other conditions apply 

• Full international benefits

Key Considerations

Federal employees should shop around before purchasing the FLTCIP John Hancock plan. The federal plan is NOT partnership certified in any state - meaning you will not have access to the additional dollar-for-dollar asset protection that the partnership program offers. 

Remember, there are no spousal discounts or shared spousal/partner plans are available. Shared spousal benefits are very popular for couples, saving them money and adding additional benefit flexibility.  

The FLTCIP has had multiple premium increases. Unlike all other available Long-Term Care Insurance plans, the Federal Government Long-Term Care Plan administered by John Hancock does not have to ask for approval from any state insurance department for rate increases. 

Another Concern

The trigger for benefits has a big wrinkle - the benefit trigger. In addition to your doctor's certification that your need help with two of six activities of daily living or supervision due to cognitive impairment, the policy adds the words, "and we agree." 

The wording in the policy places a federal gatekeeper involved in approving a potential claim. While in most situations, this would not be an obstacle, in some cases, it could. This wording does not exist with private Long-Term Care Insurance.

Claims

If you own a FLTCIP policy and seek help submitting a claim, LTC NEWS offers free - no-obligation assistance - including help finding quality caregivers and facilities. Since most agents have little or no experience in this area, this assistance can be beneficial for the entire family - Filing a Long-Term Care Insurance Claim | LTC News

John Hancock uses a foreign-based call center for claims - getting help will speed up the process.

Big Benefit of the FLTCIP

Other than the convenience of payroll deduction of your premiums, the most significant positive benefit of the John Hancock/federal plan is full international benefits. However, you must be an employee of the federal government, a retiree of the federal government, or a spouse in order to apply for coverage.

Be sure to speak with a qualified Long-Term Care Insurance Specialist to compare the federal plan with other major plans. 

John Hancock Hybrid

The John Hancock life option is not one of the more competitive in the market, although many consumers like the financial power and experience of John Hancock.

A single premium gives you either a death benefit or a long-term care benefit. The long-term care rider on the John Hancock life policy allows you to choose the total amount of long-term care coverage you would like to have in place. 

The plan generally provides a much larger death benefit and lacks a strong long-term care benefit. The policy comes with an assumed rate of return that will impact the performance of your policy if they don't meet.

Most experts suggest that if you are interested in a combination of life and long-term care plan, other companies have better available options. 

Partnership benefits are not available for either the FLTCIP plan or the John Hancock life insurance options. Without the partnership certification, you lose the additional dollar-for-dollar asset protection. 

Learn more about the federal/state partnership program:

What is a Long-Term Care Partnership Policy?

Find State-Specific Information

The LTC NEWS Cost of Calculator has state-specific information that includes the current and future cost of long-term health care services, available tax incentives, information on care providers, and other important information -  LTC NEWS Cost of Care Calculator.

Shopping for Long-Term Care Insurance?

When shopping for Long-Term Care Insurance coverage, keep in mind that numerous state and federal regulations impact Long-Term Care Insurance. Each state's department of insurance regulates products and premiums. Because of regulation, an insurance agent, agency, or financial advisor cannot give a consumer a special discount that is not available otherwise.

Be sure to use all the tools and resources available on LTC NEWS to help you in your research - Resources for Long-Term Care Planning.

There are more similarities than differences when it comes to features and benefits. However, options and benefits vary from company to company, and premiums can vary between companies by over 100% when comparing equal benefits.

Top Insurers for Long-Term Care Insurance

Qualified Long-Term Care Insurance Specialists can assist you in comparing options, underwriting, and costs with the top plans. The specialist will match your age, health, and family history in order to provide you with accurate quotes to consider.

State variations may apply.