Tuesday, January 29, 2019

How 'bout that! LTCi edition

Recently, a long-time long-term client passed away. Many years ago, he and his beloved had purchased a pair of (linked) John Hancock Long Term Care insurance (LTCi) plans. In fact, it was so long ago that I'd forgotten a key feature.

Recently, Jack passed away, and we helped Jill alert the Hancock folks. Over the weekend, she received two premium refund checks, one for Jack's policy (of course) but also one for hers.

This was a problem: we certainly didn't want to lose her coverage, and we couldn't understand why they would have cancelled it and not just Jack's.

As we waited on hold yesterday for the Hancock rep to help us out, I casually mentioned to their son (who is also a client) that I had a vague recollection of a long-ago feature available on those plans that basically said that if one spouse dies, the survivor's plan is automatically paid up for life. but I couldn't recall any details or even if it was, in fact, a Hancock feature or option (although at least one compsny still offers this as an optional benefit).

After a few moments, Melissa came back on the line to let us know that this was, in fact, the case, and that Jill's policy is now completely paid up and in-force. She will never have another premium (or, one presumes, premium increase).

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