John Hancock Long-Term Care Insurance: What Policyholders Need to Know in 2026

John Hancock was once one of the largest long-term care insurers in the United States. The company stopped selling traditional individual LTC policies in December 2016 — but it continues to manage an enormous in-force block, administer the Federal Long-Term Care Insurance Program, and file for ongoing rate increases. If you hold a John Hancock LTC policy, here's what the company's current situation means for your planning and your options when the next hike notice arrives.

Why John Hancock left the individual LTC market

John Hancock's exit in December 2016 reflected the same industry-wide actuarial reckoning that forced dozens of carriers to exit traditional LTC over the prior two decades. Three compounding problems broke the original pricing models:

1. Longevity exceeded projections. Policies priced in the 1990s and 2000s used mortality tables that underestimated how long people would live — and therefore how long they would collect benefits.
2. Investment returns collapsed. LTC insurance reserves are held in investment-grade bonds. When interest rates fell to near-zero and stayed there for a decade, the return assumptions embedded in original pricing evaporated.
3. Healthy policyholders didn't lapse. Like other carriers, John Hancock's original pricing assumed a significant percentage of healthy people would cancel their policies. Instead, policyholders most likely to claim — those approaching care age or with developing health conditions — kept their policies. Healthy people, who sensibly compared premiums to alternatives, were the ones who lapsed. This adverse selection dynamic left the in-force block heavily skewed toward high-risk policyholders.

The result was structural: the legacy block couldn't remain solvent without ongoing premium increases. John Hancock chose to stop writing new policies rather than continue adding to a block it couldn't price accurately. Existing policies remained guaranteed-renewable — John Hancock cannot cancel them as long as policyholders pay premiums — but the price of those premiums is subject to ongoing state-approved rate filings.

John Hancock rate increase history

Unlike Genworth, which reports cumulative rate increase figures in its quarterly earnings, John Hancock doesn't publish an aggregate number covering all state filings. But the documented pattern of individual state approvals is substantial:

• 2012–2015: 15% average increases approved in multiple states over successive years.
• 2017: 32.3% average increase approved, phased in with 15% annual caps in states requiring phased implementation.
• 2020: 43.8% average increase approved, phased over 3 years at 15% per year maximum in states that required it.
• 2024: Additional 15% approved in some states on specific policy cohorts, particularly those with inflation protection riders.¹

Individual experience varies significantly by state, policy vintage, and benefit design. Policyholders who have held their policies since the 1990s and stayed with their original coverage have absorbed multiple rounds compounding against each other. Some long-tenured policyholders have seen total cumulative increases of 100–200% or more above their original premium.

John Hancock and the Federal LTC Insurance Program (FLTCIP)

John Hancock Life and Health Insurance Company has administered the Federal Long-Term Care Insurance Program (FLTCIP) — the LTC plan for federal employees, retirees, and their families — since the program launched in 2000. This represents an entirely separate policy block from individual commercial LTC policies.

FLTCIP policyholders experienced one of the most dramatic premium increases in LTC insurance history: the 2023–2024 rate action increased premiums by up to 86% for enrollees who maintained their original coverage election, phased over three years.² The program was subsequently suspended to new enrollees — no new applications have been accepted since November 2022, with the suspension extended through December 2026.

John Hancock's financial strength rating in 2026

AM Best rates John Hancock Life Insurance Company (U.S.A.) at A+ (Superior) as of 2026 — a meaningfully stronger position than some other closed-block LTC carriers.³ John Hancock is a wholly-owned subsidiary of Manulife Financial Corporation, one of the world's largest insurance and financial services companies (headquartered in Toronto). The Manulife parent relationship provides capital and organizational depth that is not available to standalone U.S. LTC carriers in run-off.

An A+ rating reflects AM Best's assessment that John Hancock has superior ability to meet its long-term insurance obligations. This is materially better than carriers with B+ or B++ ratings. It does not mean rate increases are finished — the rating reflects financial strength, not pricing adequacy. An actuarially underfunded LTC block can still be held by a financially strong carrier; the mechanism for correcting the funding gap is ongoing premium increases, not insolvency risk.

Is John Hancock writing new individual LTC policies in 2026?

No. John Hancock stopped accepting new individual long-term care insurance applications on December 2, 2016.⁴ The traditional individual LTC policy you may have purchased in the 1990s or 2000s is no longer a product the company sells. If an agent quotes you a "John Hancock LTC policy," they are either discussing a legacy policy scenario or confusing the product line with a different carrier.

John Hancock does, however, currently market LifeCare — a hybrid indexed universal life insurance policy with long-term care riders. This is a structurally different product from the legacy closed-block individual LTC policies, and it is actively available in 2026. See below for details.

John Hancock LifeCare: the hybrid alternative in 2026

LifeCare combines indexed universal life (IUL) insurance with qualified long-term care benefits delivered as an acceleration of the death benefit. John Hancock enhanced the product in February 2026 with updated benefit features and a streamlined digital underwriting process.⁵

LifeCare's premium-stability guarantee — premiums are contractually fixed and can never increase — is the core structural advantage over traditional individual LTC policies. If you are evaluating LTC insurance for the first time, or replacing coverage, the IUL-based hybrid model addresses the rate-hike risk that legacy policyholders are now experiencing.

The IUL caveat: Unlike dedicated standalone LTC insurance (§7702B) or whole-life-based hybrid products, LifeCare is built on an indexed universal life chassis. The policy's internal performance is tied to an equity index (usually S&P 500 with a cap) rather than a guaranteed cash value schedule. In weak market environments, policy values grow more slowly. This is a meaningful distinction if you are comparing LifeCare to MoneyGuard (Lincoln Financial, whole life chassis) or Asset-Care (OneAmerica, whole life chassis). For a detailed comparison, see our hybrid LTC insurance guide.

Your options as a current John Hancock LTC policyholder

When you receive a rate increase notice from John Hancock, you typically have four options. The right answer depends on your benefit design, how much inflation value has accrued, your current health, and your overall financial plan. Our LTC premium increase guide covers the full decision framework; below are the John Hancock-specific considerations.

Option 1: Pay the increased premium

This is frequently the right choice when your policy carries substantial compound inflation protection that has been growing for 10–25 years. A John Hancock policy issued in 2000 with 5% compound inflation protection has roughly tripled its original daily benefit in nominal terms. You cannot buy that coverage in today's market at any price — no carrier currently offers unlimited or 5-year benefit periods with 5% compound inflation at affordable premiums.

John Hancock context: The A+ rating means the policy is backed by a financially strong carrier with Manulife's capital support. If you're on the fence about paying the increase, the carrier's financial strength removes one of the concerns that applies to weaker-rated closed-block carriers.

Option 2: Reduce benefits to hold the premium flat

John Hancock typically offers benefit reduction options — shortening the benefit period, reducing the daily benefit, or dropping the inflation protection rider — to offset the premium increase. The same general principles apply here as with any carrier.

Critical warning on inflation riders: Stripping compound inflation protection from a policy that has already accumulated decades of growth locks in a nominal benefit that erodes for the rest of the holding period. If you must reduce coverage to stay within budget, shorten the benefit period before eliminating inflation. A 2-year benefit period with 5% compound inflation still pays in today's dollars at claim time. A 5-year benefit period with 0% inflation pays in year-2000 dollars if you claim in 2035.

Option 3: Execute a 1035 exchange into a hybrid product

If you hold a non-qualified annuity or a paid-up life insurance policy with substantial cash value, a 1035 exchange allows you to convert those assets into a hybrid life+LTC product (such as LifeCare itself, MoneyGuard, or Asset-Care) without triggering income tax on the gain. This replaces the rate-hike-exposed traditional John Hancock policy with a product that has contractually fixed premiums and a death benefit if care is never needed.

The limitation: a 1035 exchange requires existing financial assets (cash value in life insurance or annuity) to fund the exchange. It is not available simply by paying new premiums into the hybrid product.

Option 4: Drop the policy

Dropping coverage makes sense only in limited circumstances: you have enough assets to self-fund LTC costs from your own reserve ($1.5M–$2M+ for singles, $2M–$3M+ for couples in most care scenarios), or your policy has been reduced through prior benefit adjustments to the point where the remaining coverage provides minimal economic protection. Most people who kept their John Hancock policies through multiple rate hike rounds specifically kept them because they lack those self-fund assets. Dropping forfeits all accumulated premiums and the inflation-adjusted benefit pool you've been paying into for decades.

If you have $2M+ in assets and are considering dropping, read our self-fund LTC guide first — the break-even math matters before making this decision.

Comparing John Hancock to Genworth for existing policyholders

Both companies represent the same general situation — closed-block traditional LTC carriers managing legacy policies while filing for ongoing rate increases — but with meaningful differences:

John Hancock's A+ rating and Manulife parentage provide more financial cushion than Genworth's standalone position. This matters for long-term policyholders: the risk of carrier insolvency — while tail-scenario in both cases — is lower with a Manulife-backed entity. For policyholders in both situations, the core problem (ongoing rate increases on a closed block) is identical; only the degree of financial backing differs.

What a fee-only advisor does with a John Hancock policy

The central question for most John Hancock policyholders is the same as any closed-block carrier: given what I've paid, what I'd pay at the new rate, and what I'd receive, does this policy still make sense as a piece of my LTC plan? That analysis requires:

• Calculating the current inflation-adjusted benefit value (what your daily benefit is worth today vs. what you originally bought)
• Projecting total lifetime premiums at the new rate vs. expected benefit payout
• Modeling the self-fund crossover: how much in liquid reserves would produce equivalent LTC protection?
• Evaluating hybrid alternatives: LifeCare or other hybrid products at your current age and health
• Assessing Medicaid fallback: what exposure remains if you drop coverage and eventually exhaust assets?

A commissioned agent earns nothing on the hold/pay analysis and earns a substantial first-year commission (typically 50–100%+) on a new product sale. The structural conflict is not specific to any agent — it's inherent in commission compensation. A fee-only advisor charges for the analysis itself and earns nothing from the recommendation. See our carrier comparison guide for context on the current market.

1. John Hancock individual LTC rate increase history: Maryland Insurance Administration hearing records; approvals documented at 15% (2012–2015), 32.3% (2017), 43.8% (2020), 15% (2024 on inflation-rider policies). insurance.maryland.gov
2. FLTCIP premium increases: Federal News Network, September 2023 — FLTCIP increases up to 86% phased over 3 years; suspension to new enrollees since November 2022. federalnewsnetwork.com
3. AM Best rating: AM Best, John Hancock Life Insurance Company (U.S.A.) financial strength rating A+ (Superior) as of 2026. Verify current rating at ambest.com
4. John Hancock exit from individual LTC: InvestmentNews, December 2016 — John Hancock ceased accepting new individual LTC applications effective December 2, 2016. investmentnews.com
5. LifeCare 2026 enhancements: John Hancock newsroom, February 2026 — LifeCare hybrid IUL+LTC product enhancements announced; streamlined digital underwriting, 3-business-day turnaround, $50K–$500K death benefit range. johnhancock.com
6. HIPAA per diem and LTC benefit triggers: IRS Rev. Proc. 2025-28 (2026 per diem limit $430/day); IRC §7702B (LTC insurance definition, benefit triggers); values verified against 2026 rules.

Rate increase figures and LifeCare product details verified as of June 2026. AM Best ratings are subject to change; verify current rating at ambest.com before making coverage decisions.