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.

Custom Care III featuring Benefit Builder includes the same consumer protection features found in John Hancock's other LTC insurance policies.