Consumer Research Confirms Lower Price Option Increases Interest in Long-Term Care Insurance

Consumer Research Confirms Lower Price Option Increases Interest in Long-Term
                                Care Insurance

Lower price option triples purchase interest of 45-51 year olds

PR Newswire

BOSTON, Jan. 31, 2013

BOSTON, Jan. 31, 2013 /PRNewswire/ -- New John Hancock research indicates that
lower price options increase purchase interest in long-term care (LTC)
insurance among 45-65 year olds, especially at younger ages.

Overall, among individuals at all ages, interest in buying a lower cost policy
vs. a traditional policy grew from 14 to 30 percent. For the group aged 45-51,
the interest tripled from 11 percent to 36 percent. The pricing study,
conducted for John Hancock by The Forbes Consulting Group looked at the
purchase interest in LTC insurance of 300 individuals, aged 45-65, who had a
household income greater than $70,000 and investable assets of more than

Except for the benefit increase option and corresponding price, the policies
compared were the same, offering a three-year benefit totaling $164,000, and a
90-day elimination period. They were not identified as John Hancock policies,
but the "traditional" policy reflected John Hancock's CPI inflation option
which grows on a compounded basis according to increases in the Consumer Price
Index and the "lower cost option," reflected a new option offered by John
Hancock which grows gradually over time based on the performance of the
general account that funds the policy.

For each example, respondents were given John Hancock's actual annual premium
costs based on their current age. They were then shown illustrations of how
potential benefit increases could differ between the two policies and how the
respective increases related to the anticipated increase in the cost of care.

"This study confirmed our belief that interest in LTC insurance would rise
quite significantly, particularly among younger buyers, when less expensive
alternatives are offered and explained. Perhaps this has been intuitively
understood, but now there is data to prove that lowering the cost of LTC
insurance is critical to making this coverage more accessible to a broader
population. ," said Laura Vail Wooster, vice president of Marketing, John
Hancock Long-Term Care Insurance. "Traditional LTC insurance options have
become more expensive over the years, so the industry must keep pursuing
innovative solutions to help more Americans prepare for and cover at least
some of this cost."

More than seven out of ten (71%) agreed that they are personally responsible
for preparing for any LTC services they may need. When asked more generally
which philosophy for purchasing LTC insurance was the best fit:

  o64% said basic coverage at an intermediate price – I would pay some
    portion of LTC costs out of pocket
  o22% responded full coverage at the highest cost – I wouldn't have to pay
    any LTC out of pocket
  o14% said catastrophic coverage at the lowest cost – I would pay a
    significant amount of the initial cost of LTC out of pocket and would be
    covered for some amount after that


The survey of 300 consumers aged 45 – 65 was conducted online in late 2012 for
John Hancock Long-Term Care by Forbes Consulting Group. Respondents had
household income of more than $70,000 and savings/investments of more than
$100,000. They were at least somewhat familiar with LTC insurance and did not
currently own an LTC insurance policy.

About Forbes Consulting Group

Founded in 1985 and based in Lexington, Massachusetts, the Forbes Consulting
Group is a strategic and innovative market research company providing clients
with deeper levels of insight about emotions and motivations - and helping
them gain strategic market advantage on the strength of this insight. In its
26-year history, Forbes Consulting Group has become a valued resource for
Fortune 500 companies.

About John Hancock Financial and Manulife Financial

John Hancock Financial is a division of Manulife Financial, a leading
Canada-based financial services group with principal operations in Asia,
Canada and the United States. Operating as Manulife Financial in Canada and
Asia, and primarily as John Hancock in the United States, the Company offers
clients a diverse range of financial protection products and wealth management
services through its extensive network of employees, agents and distribution
partners. Assets under management by Manulife Financial and its subsidiaries
were C$515 billion (US$523 billion) as at September 30, 2012. Manulife
Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under
'945' on the SEHK. Manulife Financial can be found on the Internet at

The John Hancock unit, through its insurance companies, comprises one of the
largest life insurers in the United States. John Hancock offers a broad range
of financial products and services, including life insurance, annuities, fixed
products, mutual funds, 401(k) plans, long-term care insurance, college
savings, and other forms of business insurance. Additional information about
John Hancock may be found at

Long-term care insurance is underwritten by John Hancock Life Insurance
Company (U.S.A.), Boston, MA 02117 (not licensed in New York) and in New York
by John Hancock Life & Health Insurance Company, Boston, MA 02117.

SOURCE John Hancock Long-Term Care

Contact: Melissa Berczuk, +1-617-663-4750,
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