John Hancock Life Insurance Company has introduced a new guaranteed increase option (GIO) to its Leading Edge long term care insurance policy. This innovative option provides clients who have automatic inflation coverage the opportunity every three years to increase their current policy benefit amount by 10 percent without underwriting. The option remains available, regardless of how many times a client declines the offer.

"Leading Edge was designed to fit in with the lives of younger, Baby Boomer buyers," said Laura Moore, senior vice president, John Hancock Long Term Care Insurance. "The new GIO option is valuable to them because, later in their lives when they no longer are worrying about the mortgage, college for their kids and helping to care for their parents, they can increase their coverage for any reason," said Moore. "We see this being particularly helpful if policyholders decide to retire to an area where the cost of care is higher than originally anticipated."

The GIO option will be available to existing as well as future Leading Edge policyholders. There is no cost to the benefit unless an increase is elected. If the benefit amount is increased, the policyholder's premium for the increase will be based on current age, original risk category and premium rates in effect on the option date. "While our clients may never choose to exercise the option, they and their advisors can rest assured knowing they will have it available to them every three years," said Moore.

Leading Edge was created with Baby Boomers, who often have competing financial priorities and limited budgets, in mind. Traditionally, inflation protection and longer benefit periods such as "lifetime" coverage were two of the biggest contributors toward higher costs. In Leading Edge, Hancock has simplified and reduced the cost of inflation coverage - with built-in, compound inflation protection linked to the Consumer Price Index (CPI). Every year on the policy anniversary, a policy owner's benefit and total pool of money is automatically adjusted according to the CPI, which has a strong association with housing and labor costs, two of the key drivers of long term care costs today and in the future.



Get your questions answered at LongTermCareInsurancePros