A design that ticks all the boxes
At John Hancock, the design of our Long-Term Care (LTC) rider reflects our more than 35 years’ experience in long-term care insurance — allowing us to provide one of the most meaningful solutions to help protect your clients from the consequences of needing long-term care. Here’s how:
- Provides “qualified” LTC coverage: Unlike chronic illness riders, our LTC rider qualifies as “long-term care insurance” under IRC 7702B, an important distinction as more states consider legislation to help address escalating long-term care spending. As we saw in Washington, workers who purchased LTC insurance were able to opt out of the state LTC program and the payroll tax used to fund it
- Helps protect clients’ financial resources and legacy: Paying benefits based on LTC expenses incurred means unused benefits can remain in the policy to help pay for an extended LTC need — or eventually paid to beneficiaries as a death benefit
- Offers generous tax-free coverage: At the time of application, clients purchase the maximum monthly coverage of up to $50,000 and benefits paid are received income-tax free, even when they exceed the IRS per diem limit
- Can leave the paperwork for us: By electing the Assignment of Benefits, John Hancock can work directly with care providers to obtain receipts and pay invoices, alleviating the family of those responsibilities
View our updated seller’s guide for a closer look into how John Hancock’s LTC rider offers an ideal design to help protect your clients’ families and their finances.