John Hancock Long-Term Care Insurance has launched Benefit Builder, a new option on its Custom Care III LTC insurance policy. Benefit Builder is an alternative to a traditional inflation option and provides automatic increases in benefits that occur gradually over time, as well as voluntary buy-up options.
Policyholder's benefits grow through an automatic crediting formula tied to the investment earnings of a segment of John Hancock's general account, without a corresponding increase in premiums. Every three years through age 75, policyholders will have the opportunity to increase benefits by 10 percent without having to answer questions about health or undergo a medical exam, subject to restrictions. Premiums for the additional buy-up coverage will be based on the policyholder's age on the option date.