Frequently Asked Questions

Transferring with Credit
 

1. I already have a John Hancock or MetLife policy OR I already have a policy from a sponsoring organization that uses John Hancock or MetLife as the underwriter (such as AARP or WAEPA). Can I convert it to the Federal Long Term Care Insurance Program (FLTCIP) and/or get some credit for it?
    
2. If John Hancock or MetLife already have my premiums and the built-up reserves from the current policy I have with them, why can't they just transfer that money to this Federal program?
    
3. If I apply for the Federal program, can I pay premiums using the same age I was when I bought my other long term care insurance policy (either from John Hancock or MetLife or any other company)?
    
4. If I apply for the Federal Long Term Care Insurance Program, and I just recently went through underwriting for a John Hancock or MetLife policy (or any other long term care insurance policy), do I have to pass underwriting again?

1. I already have a John Hancock or MetLife policy OR I already have a policy from a sponsoring organization that uses John Hancock or MetLife as the underwriter (such as AARP or WAEPA). Can I convert it to the Federal Long Term Care Insurance Program (FLTCIP) and/or get some credit for it?

Unfortunately, the answer to all of these scenarios is no. Existing policies (from John Hancock or MetLife or any other company) cannot be converted to the Federal Program, nor can you get "credit" for any existing long term care insurance policy.

You can always drop your current coverage in favor of the FLTCIP, even though "transferring" or receiving "credit" is not possible. BUT if you decide to apply for enrollment in the FLTCIP, we advise you not to cancel your existing insurance UNTIL you have been informed in writing that your FLTCIP application was accepted and your enrollment is effective. Also, you should consult with your financial, legal and/or tax advisor on potential implications of dropping existing long term care insurance coverage.

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2. If John Hancock or MetLife already have my premiums and the built-up reserves from the current policy I have with them, why can't they just transfer that money to this Federal program?

Current policies were priced using the assumption that the reserves built up would always remain in their original risk pool. They cannot move monies from one pool to another pool. Doing so would be contrary to the pricing assumptions, and could result in the need to raise rates on the policies left in the original risk pool.

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3. If I apply for the Federal program, can I pay premiums using the same age I was when I bought my other long term care insurance policy (either from John Hancock or MetLife or any other company)?

No, you can't. Persons joining the Federal program will pay premiums based on their current age, even if they already have a policy with John Hancock or MetLife or any other company. They cannot preserve that "original" age.

The reason that you cannot preserve your "original" age when you bought another long term care insurance policy has to do with how long term care insurance is priced. The insurance is priced with the expectation that each person will pay a level premium as long as they have the insurance, and that the sum of all of the premiums paid (together with investment income earned by the program) will be sufficient to pay claims and all other program expenses.

The amount of premium varies with issue age, and is higher with increasing age. This is because, as issue age increases, the amount of time before claims are expected to occur gets shorter.

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4. If I apply for the Federal Long Term Care Insurance Program, and I just recently went through underwriting for a John Hancock or MetLife policy (or any other long term care insurance policy), do I have to pass underwriting again?

All applicants must go through the underwriting process for the Federal Long Term Care Insurance Program (FLTCIP), even if they recently applied for a John Hancock or MetLife or other long term care insurance policy.

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