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Introducing LifeCare from John Hancock: A New Hybrid LTC Solution

One of our carrier partners – John Hancock – recently launched LifeCare (Hybrid LTC), an innovative addition to AgencyONE’s hybrid long-term care (LTC) offerings. This hybrid Indexed UL with LTC benefits is designed for clients seeking a policy that provides multiple advantages: more growth, more choice, and more tax-favored treatment. LifeCare stands out from other carriers as it incorporates an indexed chassis, which may enhance future benefits based on positive index performance.

This product review will cover product specifications, underwriting paths, LTC payment options, pricing competitiveness, index options, and state availability.

Product Specifications

  • Issue ages: 30-75
  • Underwriting classes: 4 total (3 nonsmoker, 1 smoker)
  • Rated clients eligible
  • Couples discount available (only one applicant required to qualify)
  • Vitality program available to enhance policy value
  • Death benefit range: $50,000 – $500,000
  • Benefit periods: 2, 4, or 6 years
  • Premium payment options: 1, 5, 10, or 15 years
  • Inflation rider: 5% option available (6-year benefit period only)
  • Account options: 3 indexed accounts + 1 fixed crediting account

See Producer Product Guide for more details.

Underwriting Paths

John Hancock offers two underwriting paths for LifeCare submissions.

  1. Instant Underwriting Decision – In-good-order applications typically receive an approval within 5-7 business days.
  2. Referral to Underwriter – Additional review may be required for medical history clarification, outstanding evidence checks, or medical records.

LifeCare applications are digitally processed only via iGO. Once submitted, an email will be received within minutes that confirms the chosen underwriting path. See attached Pre-Qualification Guide for more information.

LTC Payment Options

LifeCare provides flexibility in how your clients receive benefits while most other carriers only offer one or the other.

  • Cash Indemnity – Clients receive 100% of their benefit payments as a set monthly amount, up to the monthly IRS per diem limit, without the need to submit receipts.
  • Reimbursement – If the qualified LTC expenses exceed the monthly IRS per diem limit, clients can submit invoices for reimbursement or arrange direct payments to care providers while avoiding the need to submit proof of payment, receive funds, and make payments.

Pricing & Competitiveness

LifeCare’s performance is difficult to compare to other products.  Most hybrid options use a fully guaranteed benefit for 4-6 years with some type of inflation rider (either 3% or 5%). LifeCare differs from these traditional hybrid LTC products by relying on indexed performance for potential benefit increases.

Key considerations are:

  • Guaranteed initial benefit with growth potential based on index performance.
  • Vitality program (Silver, Gold, Platinum) can further enhance policy value.
  • Best pricing occurs with the 4-year benefit period.

Index Options

LifeCare offers 3 indexed options for you to choose from based on your clients’ needs:

  1. Select Capped Indexed Account: Current cap rate is 8%, guaranteed multiplier is 32%
  2. High Capped Indexed Account: Current cap rate is 10.50%, guaranteed multiplier is 45%
  3. Barclays Global Multi Asset Classic Indexed Account: no Current cap and a 170% Participation Rate. 

State Availability

LifeCare is approved in all states except:

  • Not available in: CA, CT, DE, DC, FL, GU, IN, MT, NJ, NY, ND, PR, SC, SD.

Contact the AgencyOne case design team at 301.803.7500 for more information and to obtain detailed illustrations based on your case parameters.

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