Life New Business
February 2013
With long-term care costs continuing to rise, sales of John Hancock’s Long-Term Care (LTC) rider
are more popular than ever. Below are answers to some commonly asked questions about what
administrative requirements are needed when applying for an LTC rider with a life insurance policy.
1. What forms do I need to submit when applying for a life insurance policy with an LTC rider?
In addition to the core application for life insurance and Agent Report, the Long-Term Care Rider Application
Supplement (NB5018) is also required. In cases where a person or entity other than the life insured will own the
policy with the LTC rider, an additional application disclosure will be required — please see question 3.
2. Are there special licensing requirements?
Most states (with the exception of a few) require full LTC licensing and training when soliciting life insurance
products with a long-term care rider. The LTC rider does not qualify for the Partnership Program, but in order to
sell a life insurance policy with a LTC rider in states that have approved this program, you must complete the
required training. For complete details on long-term care licensing requirements, please refer to our Guide to Life
Licensing (available on JH SalesNet) or contact the Licensing Team at 1-800-505-9427, option 1.
3. Are there any ownership restrictions when applying for a life insurance policy with an LTC rider?
• John Hancock will issue life insurance policies with an LTC rider for most ownership scenarios, although
some restrictions do apply. For example, third-party ownership is not allowed inside a qualified plan and
in some business-owned policies; it is also prohibited in New York, where a person or an entity other than
the insured is not allowed to own such a policy.
• Please note that in states where a person or an entity other than the insured owns the policy, we require the
Third-Party Ownership Disclosure – Long-Term Care Riders (NB5193). This Disclosure outlines the uncertain tax
consequences of having a person or entity other than the insured own the policy and it encourages clients to
seek the advice of legal counsel. The disclosure — which needs to be signed by the insured and the owner —
is available on JH SalesNet, JH e-App/iPipeline’s iGO, and through all other forms’ vendors John Hancock supports.
If you have any questions, please contact your Case Manager at 1-800-505-9427, option 2
(in New York, call 1-800-743-5542, option 2).
For Agent Use Only. Not for use with the public.
The Long-Term Care (LTC) rider is an accelerated death benefit rider and may not be available in some states. Maximum face amount is $5 million with the LTC rider.
The LTC rider is not considered long-term care insurance in some states. When the death benefit is accelerated for long-term care expenses, the death benefit is
reduced dollar for dollar, and the cash value is reduced proportionally. The policy account value is also reduced proportionally. There are additional costs associated
with this rider. Please go to www.jhsalesnet.com for a complete list of up-to-date state approvals.
For prospective policyholders in New York, this product is a life insurance policy that accelerates the death benefit for qualified long term care
services and is not a health insurance policy providing long-term care insurance subject to the minimum requirements of New York Law, does
not qualify for the New York State Partnership for Long-Term Care program and is not a Medicare supplement policy.
This rider has exclusions and limitations, reductions of benefits, and terms under which the rider(s) may be continued in force or discontinued. Consult the state specific
Outline of Coverage for additional details.
Insurance policies and/or associated riders and features may not be available in all states.
Insurance products are issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA 02116 (not licensed in New York) and John Hancock Life Insurance
Company of New York, Valhalla, NY 10595. MLINY02121318234 02/13
Answering Your Questions About Administrative Requirements for the Long-Term Care Rider
Answering Your Questions About
Administrative Requirements for the Long-Term Care Rider