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Does John Hancock Long-Term Care Insurance Cover Assisted Living Facilities?
Date Updated: July 26, 2024
Written by:
With over a decade of dedicated experience, Andrea Miller boasts an extensive background in healthcare writing and editing. Her expertise spans various facets of the healthcare industry, with a particular focus on nursing, senior care, Alzheimer’s disease, and public health. Andrea has also contributed her editorial talents to reputable publishers in the Philadelphia region, complementing her extensive freelance work.
Reviewed by:
Gene Altaffer has a Masters in Gerontology from the University of Southern California and has worked in many avenues along the continuum of long-term care, assisting thousands of clients and their families since 1995. He also sold long-term care insurance from numerous carriers while also assisting families with retirement planning. Gene helps seniors navigate their Medicare plans, ensuring they understand their benefits and options.
John Hancock long-term care insurance covers assisted living facilities if you have an existing individual or group policy, but the company doesn’t sell new individual policies. John Hancock also offers a Premier Benefit index universal life policy with an optional long-term care rider. However, you can only buy this type of coverage through an employer.
How does John Hancock life insurance work to pay for assisted living?
John Hancock long-term care insurance works by including potential investment growth along with a long-term care rider. The account’s value changes based on the performance of an index fund tied to the S&P 500. As the index fund grows, your account earns the corresponding amount of interest. You can access these funds to cover the cost of assisted living when you need that level of care. The policy allows you to withdraw the money directly or take out a loan that you repay over time with interest.
How do you pay for assisted living with John Hancock life insurance?
You pay for assisted living with John Hancock life insurance by purchasing a universal life policy. If you need to move into an assisted living community, withdraw or borrow from the value of your policy. Failing to repay the amount you take out, however, reduces the amount of life insurance available for your beneficiaries in the future. Buying a policy 5 to 10 years before you think you’ll need long-term care helps ensure you have enough money to pay for assisted living when the time comes.