Hancock Adds LTC Product To Variable Life Offerings.

John Hancock Life Insurance Co., Boston, introduced what it said was the first variable universal life insurance contract that also provides long-term-care protection.

With Unison, Hancock offers three types of products providing long-term-care protection. The others are standalone long-term-care policies and the Revolution variable annuity. Unison is targeted to baby boomers who want the convenience of a single policy to provide life insurance, long-term-care insurance and asset accumulation, said Kathy Graveline, executive vice president, retail sector. The product costs less than buying variable life and long-term policies separately, and it offers a single underwriting process.

It differs from existing universal life policies providing long-term-care protection in that those are positioned as wealth-transfer products appealing to older prospects and usually are paid with a single premium. "We've changed the target market to boomers, who understand they may need LTC in the future but aren't willing to spend money on a separate policy," said Paul Strong, vice president of life products.

A 45-year-old preferred male would pay a combined $2,326 annually for separate long-term-care and Hancock variable universal life policies with a $250,000 death benefit. He would pay $1,880 for Unison. The product is available with face amounts from $100,000 to $5 million.

Strong pointed out that the owner has the option of paying more than target premiums, and the death benefit could grow with decent investment performance. The advantage of covering long-term-care exposure inside a life insurance policy over a variable annuity is that with the life policy, the long-term-care pool of money is available from the first day, Strong said.

Hancock is the nation's fourth-largest seller of individual long-term-care insurance and the largest provider of employer-sponsored long-term-care insurance.