John Hancock Life Insurance Company Review 2018

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John Hancock Life Insurance company is a well-known brand recognized by most life insurance shoppers and brokers alike. We at Effortless Insurance recognize how crucial it is to choose the right company, the type of insurance, and the best possible rate for each. We do this by educating our readers about the life insurance companies and their product offerings along with displaying their rates and underwriting strength. Today, we review John Hancock Life Insurance.

John Hancock Life Insurance History

John Hancock Mutual Life Insurance Company was founded in 1862. John Hancock Life was the only one who survived out of six companies that year. In 1862, John Hancock was chartered in Massachusetts where its headquarters remains to this day. It was the first company to be regulated under two recent laws to help with times of uncertainty and dishonest business tactics of the past.

Moreover, they took the name of the Massachusetts native John Hancock, who was the first to sign the declaration of independence. John Hancock’s goal was always and still is to provide the highest quality of financial product to meet its clients’ needs by having access to the highest quality of services in the industry.

John Hancock Life Insurance Financial Ratings

  • A.M. Best: A+ (Superior)
  • Fitch: AA- (Very strong)
  • Moody’s: A1
  • Standard & Poor’s: AA- (Very strong)

Products Offered by John Hancock Life Insurance

John Hancock provides a broad range of financial services from annuities, mutual funds, and life insurance. Its life insurance products include term, variable, and universal life insurance. This post will only review the life insurance products offered by John Hancock Life.

John Hancock Term

Leaving things up in the air is a bad choice. If you have loved ones who depend on you financially, a mortgage balance, or young children and don’t have life insurance, term life insurance is the most economical coverage you could buy.

Term life by John Hancock Life gives you the peace of mind you need now with the option to convert it to whole life down the road should the need arises. Additionally, your premiums are locked in for 10, 15, or 20 years, and the death benefit remains level for the chosen time period. The accelerated death benefit is offered at no additional cost and allows the policyholder to withdraw up to 50% of the death benefit to a maximum of $1 million.

  • Minimum face amount: $100,000
  • Issue ages: 18–80 can buy a 10-year term
  • Issue ages: 18–75 can buy a 15-year term
  • Issue ages: 18–65 can buy a 20-year term

Universal Life Insurance

Universal life insurance, or UL for short, is a permanent policy which provides guaranteed death benefit for as long as the insured is alive. Moreover, it offers a cash value accumulation benefit that grows on a tax-deferred basis, which you can tap into via a loan, a withdrawal, or when you surrender your policy.

Apart from these advantages, the most prominent benefit UL presents is flexibility. The flexibility to increase or decrease your death benefit in the future if the need arises or to adjust or even skip a premium payment as long as you have enough cash value in the account to cover the policy’s ongoing expenses. John Hancock offers five types of universal life coverages:

  1. Accumulation UL: Offers a strong cash value accumulation for business protection such as key person life insurance, or estate planning. This policy comes with a 5-year no-lapse guarantee provision at no extra cost which means that, even if the cash value falls below zero, the policy would stay active. It also comes with two death benefit options from which to choose: A level death benefit, which is the original amount you purchase, or an increased one that grows each year as your cash value increases.
  2. Protection UL: This is an affordable UL policy with the option to modify the premiums to meet your ongoing needs. It also provides a no-lapse guarantee provision at no extra cost.
  3. UL-G: This is guaranteed universal life policy in which you can choose the length of time based on age. For instance, you can have your policy last to an age of 90, 95, or 121, and the guaranteed premium will be based on that. It is geared for those who are interested in the death benefit payout, not the cash accumulation growth.
  4. Protection SUL: An affordable survivorship UL policy which covers two individuals and pays after the death of the second insured. It is an ideal solution for estate planning or charitable inheritances.
  5. SUL-G: A guaranteed universal life policy for two individuals who are seeking guaranteed death benefit coverage without the need for cash accumulation.

Indexed Universal Life Insurance

The Indexed universal life policy has the same benefits and flexibility a traditional universal life has. The only difference between the two is the way your allocated cash is invested and grows. With UL, your cash value increases based on the company’s choice of investment vehicles. Typically, it’s a conservative approach to market risks and so are your returns. When you buy IUL, your money is invested directly in a market index, which tends to be riskier. John Hancock offers three types of IUL:

  1. Accumulation IUL: Provides no-lapse guarantee. By meeting the funding requirements, your policy will stay in force even if the cash account falls below zero. You will also have a significant opportunity for financial growth considering there are three indexed account options linked to the S&P 500 and one fixed account. It’s worth noting that all three indexed accounts have a minimum floor rate of 0%, meaning even if the index should decrease in value, your money would not be impacted negatively—it simply wouldn’t earn or lose anything.
  2. Protection IUL: Provides an affordable, flexible premium coverage to meet your financial goals. Just like the Accumulation IUL, it comes with a no-lapse guarantee provision. It has the same four crediting option to park your money, three in the S&P 500 and one fixed account. The significant difference between the two is that Protection IUL includes a Cumulative Guarantee which guarantees the policy to grow at a minimum cumulative rate of 2% regardless of how you allocated your money. Keep in mind this benefit only applies upon policy’s surrender.
  3. Protection SIUL: A survivorship indexed universal life policy that covers two individuals and pays a tax-free death benefit to heirs upon the death of the second insured. It has the same benefits as the Protection IUL policy.

John Hancock Vitality Program

john hancock vitality program

Source: John Hancock vitality client brochure

This is a unique program that rewards the insured for living a healthy life by choosing the things we all sometimes forget to do: walking, working out, and getting yearly screenings are some of the factors that keep us healthy. John Hancock has partnered with Vitality, a leader in integrating wellness benefits with life insurance products.

They are known for creating interactive, personalized programs for individuals around the world and have them track it and modify it based on goals and current fitness. It’s a win-win for both clients and John Hancock. The client is healthier and therefore lives longer, perhaps avoiding premature death, and the insurer avoids paying the death benefit because you are healthy and less likely to die. Here are a few other benefits John Hancock’s Vitality program offers:

  • An opportunity to lower your insurance premiums up to 15%
  • A personalized program that can help you achieve health goals which also comes with a free Fitbit to track your progress
  • As a member, you gain access to rewards and discounts such as health gear discounts, half-price hotel stays, cruise rewards, and many others

How Does the Vitality Program Work?

  1. Get started: Soon after your life insurance coverage is issued, you’ll be able to login to the member services and complete your Vitality review, which includes your age, individual goals, lifestyle and customize a plan on how to reach your projected goals. You will also get a free Fitbit to help you track your progress.
  2. Earn points: When you follow your plan to live a healthier lifestyle by getting annual screenings, walking, and staying tobacco-free, you will earn points. You will then be able to record your activity using an online tool or mobile app and earn points. Once the scores are calculated, you will gain a Vitality status (Bronze, Silver, Gold, or Platinum) based on the activities and earned points.
  3. Enjoy rewards: Go ahead and use your hard work to save on your premiums on your policy anniversary. The savings will continue each year as long as you keep living a healthier lifestyle.

John Hancock vs. Other Carriers’ Sample Monthly Rates

John Hancock life sample rates

Male 20-year Term $250,000

 CompanyAge 30Age 40Age 50Age 60
 Protective $13.12 $17.85 $41.50 $111.59
 Banner $13.33 $19.26 $40.85 $111.13
 AIG $13.54 $19.38 $42.73 $114.74
 Foresters $13.56 $18.81 $42.66 $114.84
 Lincoln$13.56 $18.38 $46.55 $190.53
 Mutual of Omaha $13.56 $20.08 $46.55 $134.05
 Principal $14.66 $19.03 $42.61 $110.03
 SBLI $14.79 $21.67 $51.68 $147.70
 John Hancock $15.78 $23.95 $54.40 $130.40
 Prudential $20.34 $24.50 $45.50 $128.84

Female 20-year Term $250,000

 CompanyAge 30Age 40Age 50Age 60
 Protective $11.83 $15.27 $31.18 $77.61
 Banner $11.74 $15.67 $31.17 $78.83
 AIG $11.81 $18.51 $35.59 $89.66
 Foresters $12.47 $16.63 $31.94 $85.97
 Lincoln$12.08 $16.14 $32.77 $160.13
 Mutual of Omaha $12.64 $19.21 $36.05 $94.02
 Principal $13.13 $16.63 $32.90 $77.92
 SBLI $13.31 $18.99 $36.46 $90.37
 John Hancock $14.59 $21.52 $42.42 $98.59
 Prudential $17.28 $22.53 $40.03 $89.25

Male 20-year Term $500,000

 CompanyAge 30Age 40Age 50Age 60
 Protective $20.21 $28.38 $75.68 $205.97
 Banner $20.12 $32.68 $74.39 $205.97
 AIG $20.24 $30.62 $77.76 $213.57
 Foresters $21.00 $31.50 $79.19 $223.56
 Lincoln$21.00 $30.28 $78.71 $214.33
 Mutual of Omaha $21.61 $33.42 $85.05 $249.55
 Principal $22.75 $31.50 $78.66 $213.50
 SBLI $21.32 $36.92 $96.06 $286.85
 John Hancock $25.08 $30.54 $76.26 $210.52
 Prudential $33.25 $41.56 $83.56 $250.25

Female 20-year Term $500,000

 CompanyAge 30Age 40Age 50Age 60
 Protective $17.63 $24.94 $55.47 $139.32
 Banner $17.11 $25.49 $55.47 $145.00
 AIG $17.21 $27.16 $63.06 $163.40
 Foresters $18.81 $27.13 $57.75 $165.81
 Lincoln$18.16 $26.16 $58.41 $148.05
 Mutual of Omaha $18.99 $28.61 $64.05 $169.93
 Principal $19.69 $26.69 $59.24 $149.27
 SBLI $19.14 $29.67 $65.87 $173.03
 John Hancock $22.60 $30.32 $75.79 $189.58
 Prudential $27.13 $37.63 $72.63 $171.06

Male 20-year Term $1,000,000

 CompanyAge 30Age 40Age 50Age 60
 Protective $33.97 $51.17 $142.33 $396.03
 Banner $37.84 $58.48 $140.61 $406.63
 AIG $34.95 $53.98 $144.80 $418.14
 Foresters $34.13 $56.00 $150.50 $438.38
 Lincoln$49.00 $70.00 $147.70 $418.78
 Mutual of Omaha $37.80 $59.68 $161.18 $481.43
 Principal $38.50 $55.56 $147.88 $418.78
 SBLI $35.24 $56.03 $147.73 $457.62
 John Hancock $37.87 $54.25 $144.33 $408.08
 Prudential $48.56 $70.44 $157.94 $467.69

Female 20-year Term $1,000,000

 CompanyAge 30Age 40Age 50Age 60
 Protective $28.81 $43.43 $101.91 $267.03
 Banner $28.72 $50.09 $110.51 $294.55
 AIG $28.89 $47.92 $117.12 $309.15
 Foresters $29.75 $47.25 $107.63 $322.88
 Lincoln$38.50 $53.38 $108.50 $283.33
 Mutual of Omaha $31.68 $50.93 $119.18 $324.80
 Principal $32.16 $46.81 $108.94 $283.50
 SBLI $29.67 $44.28 $104.57 $272.92
 John Hancock $34.21 $53.65 $136.99 $344.53
 Prudential $37.19 $59.94 $124.69 $319.81

*All rates quoted on this page are for a super-preferred healthy individual who does not use tobacco. Monthly rates are updated as of Oct 2018 and are subject to underwriting approval.*

Bottom Line

This is our John Hancock Life Insurance review. When it comes to the term life policies, they aren’t the most competitive, price-wise, and only offer 10-, 15- or 20-year terms. If you are after a 30-year term life, John Hancock Life Insurance isn’t for you. They offer a wide range of universal life policies, however, companies such as AIG and North American are better priced at the time of this post.

I appreciate the fact they have the Vitality program. However, this isn’t a valid reason to buy a policy from them just because you get a free Fitbit. We at Effortless Insurance work with John Hancock and more than 50 companies. We believe no one company fits every individual, instead, that each can be matched with the right company for his health, lifestyle, and goals.

You can give us a call at 866-326-3053 for unbiased quotes, or you can run the quotes yourself by entering your information on the form on the right-hand side.

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2018-10-08T06:46:11+00:00October 8th, 2018|Categories: Company Reviews|0 Comments

About the Author:

Ron is a licensed life & health insurance broker. He has two amazing rescued Pitbulls. He also enjoys real food, heavy squats, critical thinking, and reading.

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