INScompanies Blog

Caregiving Impacts Personal Life, Family, Work and Financial Situation

BOSTON, November 16, 2006 - Nearly two-thirds of respondents (or their spouses) who know family or friends in need of long term care are providing that care. And, almost one-third provide or have provided financial assistance to help pay for long term care, according to a new survey of 1,000 people ages 21 to 75, conducted by Greenwald & Associates in 2006 for John Hancock Life Insurance Company (John Hancock).

Long term care is the help someone needs when he or she can no longer perform activities usually associated with independent living, such as eating, bathing, or dressing. This kind of care is received at home, or in an assisted living facility, adult day care center or a nursing home.

“Providing care for our parents or other loved ones is a growing phenomenon and will become even more commonplace as our population ages,” said Laura Moore, senior vice president, John Hancock Long Term Care Insurance. “Our survey finds that providing this care can take a real toll on the caregiver, both financially and emotionally.”

Significant Impact of Caregiving Role

Nearly 7 in 10 (69%) respondents said that providing care and/or assistance significantly affected their personal lives, and 62 percent said that it had a significant impact on family. Almost half (45%) said that caregiving significantly affected their work, and 37 percent said it significantly changed their financial situation.

Of those who provide financial assistance, over one third (36%) pay more than $1,000 per month and, of those, 11 percent pay $3,000 or more per month.

When asked how they paid for this care, the caregiving respondents mentioned mostly personal sources:

27 percent used money set aside for immediate goals such as a new car or vacation
15 percent used money set aside for retirement
13 percent used current income/money out of pocket
12 percent gave up a job to care for them
7 percent used savings

“This data shows that people with caregiving experience do not want to place a similar burden on their own families,” said Moore. “In fact, caregivers are often the ones who are most likely to seriously plan for their own care, including considering long term care insurance.”

Knowing that caregiving has become more prevalent among Baby Boomers, John Hancock added new services to Leading Edge, its newest long term care insurance product, that provide real support for caregivers. The new Caregiver Support Services can be accessed by both insureds and their uninsured family members. These services include personalized telephone and website assistance for caregiving questions or concerns, and access to quality reports and ratings on more than 90,000 nursing home and assisted living facilities nationwide. In addition, this program offers exclusive provider discounts and care advisory services which can help save between 7 and 35 percent on the cost of long term care provider services.

“Most Baby Boomers understand the fact that they need to plan for their own care in the future, but care for their parents and other family members is a more immediate concern. Many are trying to juggle the demands of growing children and aging parents, and need all the help that they can get. We believe that Leading Edge will provide them with the support they need to better manage their caregiving responsibilities,” said Moore.

Leading Edge is currently available in 37 states. For more information, contact your financial advisor or visit the John Hancock Long Term Care website at www.johnhancocklongtermcare.com.

About John Hancock Long Term Care Insurance

Today, John Hancock, a unit of Manulife Financial Corporation, is one of the largest providers of LTC insurance overall with more than 912,000 policyholders and $1.1 billion of in-force premium. John Hancock has paid more than $1 billion in LTC insurance claims.

Having entered the retail LTC insurance market in 1987, John Hancock is the second-largest provider of individual coverage in the country. John Hancock began selling group LTC insurance in 1988 and today is the largest provider of employer-sponsored LTC insurance in the U.S.

In 2002, John Hancock and MetLife were selected by the Federal Government to offer Long Term Care Insurance to federal employees, retirees and various family members across the country. The program is the largest single employer-sponsored LTC insurance program of its kind.

About John Hancock and Manulife Financial

John Hancock is a wholly-owned subsidiary of Manulife Financial Corporation, a leading Canadian-based financial services group serving millions of customers in 19 countries and territories worldwide. Operating as Manulife Financial in Canada and Asia, and primarily through 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. Funds under management by Manulife Financial and its subsidiaries were Cdn$381 billion (US$341 billion) as at September 30, 2006.

Manulife Financial Corporation trades as ‘MFC’ on the TSX, NYSE and PSE, and under ‘0945′ on the SEHK. Manulife Financial can be found on the Internet at www.manulife.com.

The John Hancock unit, through its insurance companies, comprises one of the largest life insurers in the United States. John Hancock today offers a broad range of financial products and services, including whole life, term life, variable life, and universal life insurance, as well as college savings products, fixed and variable annuities, long term care insurance, mutual funds and various forms of business insurance.

Long Term Care Insurance is underwritten by John Hancock Life Insurance Company, Boston, MA 02117.

PR-2006-79 11-06

BOSTON, (October 3, 2006) - John Hancock Life Insurance company today introduced a new LTCI policy with industry-first benefits geared to the needs and budgets of Baby Boomers. Called Leading Edge, the product offers new features that significantly reduce both the expense and complexity of buying LTCI.

“When people have many competing financial priorities, they need long term care insurance protection that fits their personal needs and budget, and Leading Edge does that without sacrificing coverage,” said Laura Moore, senior vice president, John Hancock Long Term Care Insurance. “As a matter of fact, we’ve added benefits that expand coverage, reduce costs, and simplify the buying process for consumers.”

Traditionally, inflation protection and longer benefit periods such as “lifetime” coverage were two of the biggest contributors toward higher costs. For the first time in the industry, Hancock has simplified and reduced the cost of inflation coverage - with built-in, compound inflation protection linked to the Consumer Price Index (CPI). Every year on the policy anniversary, a policy owner’s benefit and total pool of money will be automatically adjusted according to the CPI which has a strong association with housing and labor costs, two of the key drivers of long term care costs today and in the future. When the CPI increases - even during periods of the highest inflation - the insured’s benefits increase accordingly. In the unlikely event that the CPI decreases (which last happened in 1955) the benefit amount remains level until the CPI increases again.

As an alternative to lifetime coverage, John Hancock developed another industry-first benefit: a new benefit period for 5 Years Plus $1 Million Dollars. This new, less expensive option is designed for consumers who anticipate needing long term care for a long time. If the pool of money from a policyholder’s 5-year benefit period runs out, an additional $1million is added to the pool, allaying concerns about outliving financial resources.

“Our many years in the LTC insurance industry combined with the global investment expertise of John Hancock and parent Manulife Financial has helped us create and offer these innovative benefits that we think will appeal not only to Baby Boomers, but anyone seeking LTCI protection,” said Moore.

One new feature geared specifically to Baby Boomers is the Caregiver Support Services Benefit. Because younger buyers will likely be called upon to provide care for parents and other older relatives before they need care themselves, this benefit provides valuable support during what can be a very stressful time. Benefits include personalized telephone and website assistance regarding caregiving questions or concerns, access to quality reports and ratings on more than 90,000 nursing home and assisted living facilities nationwide, and exclusive provider discounts and care advisory services for family members that can help them to save between 7 and 35 percent on the cost of long term care provider services.

The policy also has expanded home health care services. The total homemaker services benefit includes household duties, such as laundry, meal preparation, paying bills, and having someone to watch over the policyholder when taking your medications. This benefit expands traditional home health care coverage to include non-medical support services, so the insured can remain at home for as long as possible.

Additional stay at home services make it easier for consumers with LTC needs to stay home longer by paying for home modifications, durable medical equipment, caregiver training, home safety checks and medical alert systems. This benefit is helpful to many people who want to stay at home when they need care, but need to make some changes to their home in order to do so.

Additional benefits that are built into Leading Edge include:

International coverage - coverage anywhere in the world for up to a year
waiver of premium - once policyholder receives 100 days of care, LTC insurance premiums are waived
Hospice care - when the insured is receiving end-of-life care either at a hospice facility or at home
Respite care benefits - provide short term temporary relief to enable a primary uncompensated caregiver who may be a family member to take a break. Respite care will be covered for up to 21 days per policy year
Bed hold benefit - if insured is in a nursing home or assisted living facility, his/her room will be reserved for up to 60 days if he/she needs to leave it temporarily
Contingent non-forfeiture - if the policy is lapsed due to a substantial premium increase, the insured will have the right to reduce policy benefits so that the premium payments are not increased, or convert to paid-up status under which no further payments are due
Lifestyle benefit changes - if an insured’s lifestyle changes and coverage needs to be adjusted, it can be done at any time. Daily or monthly benefits can be increased once a year - the premium for the additional coverage will be based on age at the time of increase. Benefits can also be decreased - the new premium will be based on the reduced amount of coverage.

“Our research has shown that consumers know they should address their long term care needs but often don’t because they are overwhelmed with other priorities or are afraid of facing the issue. With its simple structure, affordable price and expanded home care coverage, we hope Leading Edge helps more people see the value in long term care insurance and the critical role it plays in the retirement planning process,” said Moore.

For more consumer information on the need for long term care and basics of LTCI coverage, John Hancock maintains a consumer website at: www.johnhancocklongtermcare.com.

About John Hancock Long Term Care Insurance

Today, John Hancock, a unit of Manulife Financial Corporation, is one of the largest providers of LTC insurance overall with more than 912,000 clients and $1.1 billion of in-force premium.

Having entered the retail LTC insurance market in 1987, John Hancock is the second-largest provider of individual coverage in the country. John Hancock began selling group LTC insurance in 1988 and today is the largest provider of employer-sponsored LTC insurance in the U.S.

In 2002, John Hancock and MetLife together were selected to administer an LTC insurance program for federal employees, retirees and various family members across the country. The program is the largest single employer-sponsored LTC insurance program of its kind.

About John Hancock and Manulife Financial

John Hancock is a wholly-owned subsidiary of Manulife Financial Corporation, a leading Canadian-based financial services group serving millions of customers in 19 countries and territories worldwide. Operating as Manulife Financial in Canada and Asia, and primarily through 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. Funds under management by Manulife Financial and its subsidiaries were Cdn$370 billion (US$332 billion) as at June 30, 2006.

Manulife Financial Corporation trades as ‘MFC’ on the TSX, NYSE and PSE, and under ‘0945′ on the SEHK. Manulife Financial can be found on the Internet at www.manulife.com.

The John Hancock unit, through its insurance companies, comprises one of the largest life insurers in the United States. John Hancock today offers a broad range of financial products and services, including whole life, term life, variable life, and universal life insurance, as well as college savings products, fixed and variable annuities, long term care insurance, mutual funds and various forms of business insurance.

PR-2006-64 09-06

Benefit selection may vary by state.

Long Term Care Insurance is underwritten by John Hancock Life Insurance Company, Boston, MA 02117