Introducing a new living benefit from John Hancock


John Hancock has added a new living benefit rider to offer clients more flexibility from their life insurance policy.

The new Accelerated Death Benefit for Chronic Illness rider, offers early access to a policy’s death benefit should the insured become chronically ill.

How does it work?

  • Clients elect the Accelerated Death Benefit for Chronic Illness rider at issue, no additional underwriting required; rider is available for applicants ages 18-85, with a life rating up to 200% or a $5 flat extra.
  • Allows for acceleration of a portion of the death benefit if the insured is chronically ill, requiring assistance:
    • To perform at least two of six activities of daily living for a period of 90 days or
    • Due to a cognitive impairment
  • Upon qualification, and satisfaction of a 90-calendar-day elimination period, client may request an accelerated benefit payment to a maximum of up to 75% of death benefit or $1M — limited to the annualized IRS per diem limit.
  • Payment may be requested once every 12 months while the insured is chronically ill, up to maximums allowed.
  • There is no monthly charge for this rider; charges to be assessed at time of claim, and deducted from the accelerated benefit payment. The death benefit will be reduced by the total accelerated death benefit amount and the policy value will be reduced proportionately.

In short, John Hancock has created a solution to help offer “just in case” protection for clients not currently focused on long-term care planning.

When to offer?

  • Option for clients focused on cash value accumulation or where the Long-Term Care rider may not be appropriate or available
  • Can help provide access to the death benefit on a tax-favored basis
  • Available on single-life, permanent products including:
    • Accumulation IUL
    • Accumulation VUL
    • Protection UL
    • Protection IUL
    • Protection VUL

Please give us a call at 1-800-792-6795 if you have any questions or if you'd like to see illustrations.