John Hancock collected about $2.2 billion worth of premiums for long-term care policies in 2018. It took steep losses on individual policies, according to NAIC data, but its group insurance was more profitable.
Manulife said on an earnings call in May that it saw “early indications” that new claims were slowing, but it was too soon to gauge what would happen over the longer term.
Since the virus arrived in the U.S., the Carofinos have lived in a tighter bubble than most. George leaves home only for medical appointments and said the side effects of his cancer treatment are dreadful. The exhaustion is so extreme that Dianne hesitates to leave him alone.
In-Home Care Risks
They’re better equipped to handle the situation than some families. Dianne, a former nurse, can assist George with daily needs, and their daughter lives with them and does the grocery shopping. They followed the advice of George’s doctor and declined home care, and let go of a cleaner they hired privately to assist with housework.
Their request to waive the premiums because of the Covid-19 risk was refused by John Hancock for weeks, with the company saying it would only do it if they accepted a home-care aide.
George filed a complaint with the Connecticut Insurance Department, and hired a patient advocate to help with an appeal. But after Bloomberg News inquired about their situation, John Hancock agreed to review their request.
John Hancock is working with the Carofinos, according to an email from company spokeswoman Ana Senior. Dianne said the resolution is satisfactory, though she wouldn’t share details on the terms.
“We understand and appreciate the difficulties our customers are facing as a result of the Covid-19 pandemic,” Senior wrote. “We are always working to find ways to make our customers’ decisions easier and lives better, especially during this time, and have extended grace periods for LTC premium payments in all states.”
--With assistance from Katherine Chiglinsky.
This article was provided by Bloomberg News.