My John Hancock LT policy has gone up effective August 2013 by 15%. They have applied for a total of 40+% and promise to raise rates by that much in the future. I had a rate hike in 2012. I am astonished to find that two friends with John Hancock have not had rates rise. Both in same 75-80 age bracket. One in my state CT and one in NYS. My raise seems capricious and discriminatory.
My question: what are John Hancock’s criteria for choosing whose rates will rise. And, is there a class action suit in this?
P.S. their document offers ways to cut back on insurance costs but I have equity in the policy of paying premiums of $2400/year since 2002 – nearly $20,000.
SAVAGE SAYS: I know what you’re going through — and I sympathize. There is no class action lawsuit in this — they are well within their rights. I did a series of articles last spring about this. They can raise premiums for ALL people who bought a certain class of policy in a state that gives them permission. I went to the Illinois Insurance Commissioner and berated them, but they said they were obligated to approve the premium increase if the insurance company could meet certain criteria showing that the company simply couldn’t keep the coverage in force if they didn’t raise premiums!
Yes, your only choices are to take fewer years coverage, drop the inflation protection, or take a lower daily benefit. None is a good choice — and it is happening after people paid in for years and years. I face that same issue on a policy I purchased for my Dad — no choice but to pay it! Or adjust.