HANCOCK LONG-TERM CARE IS BACK
After an absence of about two years, the nation’s number one insurer of long term care is marketing their contracts in California again, effective Feb. 27th. They continue to have an approved Partnership contract, as well.
Highlights of “Custom Care III”
- Return Of Premium- total premium (less claims, if any) paid when death occurs prior to age 65 (extra-cost rider to take it beyond 65)
- Elimination period-up to 3 years (1095 days for those of you that speak Genworth) for non-partnership contract.
- International Coverage-up to 75% of daily benefit for 6 years (most carriers only allow foreign care payment for 365 days)
- Shared Care
- Survivorship and spousal waiver of premiums
- Inflation riders- 5% Simple, 5% Compounded an GPO (Guaranteed Purchase Option)
- The Lifetime or Unlimited benefit period is gone. Maximum is 10 “years”.
- Multi-life minimum number is now 5; premium discount remains at 5%.
I did some quick illustrations on our LTC insurance comparison software and, as expected, Custom Care III is at the high end of the premium scale. Like Prudential, Mutual of Omaha, and United of Omaha, the new contract will offer the guaranteed purchase options (GPO) to keep costs down. With a GPO, the insured decides when and how much the benefits are to increase, if ever. No medical qualification is required to increase the benefits, but the additional coverage is priced at the attained-age of the insured. The other “cost-of-care” increase accommodations – 5% compound and 5% simple – are automatic and uncapped, roughly doubling the base price of the policy.
