This article will contain everything that you need to know from a John Hancock life insurance review. We will cover all the need-to-know details about the John Hancock Life Insurance Company. We will discuss the John Hancock Life insurance rating, their history, and how competitive John Hancock’s rates are.
There are hundreds of life insurance companies operating in the United States, and we review them all. That being said, is John Hancock Life Insurance Company the right company to protect your family?
That depends on what you are looking for. If you are considering purchasing life insurance with John Hancock Life Insurance Company, do not move forward without reading this review.
Shall we begin?
John Hancock Life Insurance History
The John Hancock Life Insurance Company was founded in 1862 in Massachusetts and is headquartered in Boston, MA. John Hancock has a proud history of over 150 years of making good on its promises to its policyholders.
John Hancock’s founders chose to name the company after the famous founding father of the United States, John Hancock, whole famously signed the Declaration of Independence. This decision was made to showcase the company’s integrity and commitment to its policyholders.
Throughout the years, John Hancock grew and began to offer more services to its clients outside of life insurance, such as investments and retirement planning. In 2004, John Hancock merged with Manulife Financial Corporation, a Canadian financial services company.
Today, John Hancock operates as a subsidiary of Manulife. John Hancock manages a whopping $483 billion in assets under management.
John Hancock Financial Strength Ratings
John Hancock has been in business since the 1860s and has an iron-clad financial strength. John Hancock has been ranked with some of the best marks from rating agencies like A.M. Best, S&P, Moody’s and Fitch.
AA- (Very Strong)
A1 (Low Credit Risk)
AA- (Very Strong)
These rating agencies provide their opinions on an insurer’s ability to meet its obligations to its policyholders. All of John Hancock’s financial strength ratings are considered investment grade, which is an important consideration when choosing a life insurance company.
John Hancock is also an A+ accredited business with the Better Business Bureau since 1996. You do not stay in business as long as John Hancock has if your not doing right by your customers so this is no suprise.
How Does John Hancock Works With its Customers?
John Hancock has evolved since its founding into more than just life insurance. Often John Hancock’s life insurance products are usually sold by financial professionals or independent life insurance brokers. Financial professionals typically can sell securities, like mutual funds and variable annuities, in addition to traditional life insurance.
If you are are looking for a one-stop shop for all your financial needs, this may be the route for you. However, it does have some disadvantages. A financial professional who is more of a generalist may not have the niche industry knowledge that an independent life and health broker has who only works on life insurance.
If you do not need a comprehensive financial service, we would advise working with an independent life insurance broker who is preferably in the industry over 2 years. Most people leave the life insurance profession in under a year so when your interacting with an insurance agent who has been around for 3, 4, or 5 years, you are dealing with a grizzled veteran.
Independent life insurance brokers are up to speed with the constantly changing life insurance market. Our agency represents over 25 companies each with a specific niche to give you a great rate. Unlike career or “captive” agents, we have no biases to one company since we are not employed by a life insurance company.
John Hancock Life Insurance Options
John Hancock offers various life insurance, annuities, and investment options. For the scope of this review, we are going to solely focus on John Hancock’s term life insurance and permanent life insurance options.
John Hancock offers some unique underwriting. For starters, John Hancock has their own proprietary underwriting manual just on coronary artery disease, which is traditionally more aggressive than the industry average.
John Hancock also is friendly to tobacco users. John Hancock may consider moderate cigar and chewing tobacco usage for non-tobacco rates. John Hancock also has a “quit smoking incentive” that offers cigarette users non-tobacco rates during the first 3 years of their policy.
In order to maintain non-tobacco rates beyond year 3, you must complete and sign a tobacco usage supplement stating that you have quit smoking for a minimum duration of 12 months with a clear urinalysis certifying that you are smoke-free.
While John Hancock has accelerated underwriting for qualified applicants, this is not true no-exam life insurance underwriting.
Term Life Insurance Coverage
Term life insurance only covers a duration of your life. Since you are often covering years of your life with a lower probability of death, this helps keep the cost down. We suggest term for temporary risks like replacing your income if you die prematurely.
Term life is the most straightforward type of life insurance you can buy. There is usually no cash surrender value. Simply put, you pay the premium, and if you pass away while the contract is active, the life insurance company pays the death benefit.
John Hancock offers their Term Series as a solution for temporary life insurance needs. John Hancock’s term can be purchased in 10-year, 15-year, or 20-year guaranteed level-premium periods. After the stated term, your premiums will increase year-to-year as illustrated in the contract.
John Hancock’s term policies are convertible to one of their permanent policies available during the time of conversion. This is a valuable feature that offers excellent flexibility in the future. This guarantees that you will have a coverage option available if your health excludes you from life insurance coverage otherwise.
John Hancock also includes the terminal illness rider at no additional premium within their policy. This rider allows the owner to accelerate a portion of the death benefits if they are terminally ill.
While a nice feature to have, terminal illness riders are pretty standard in most policies today so this is nothing out of the ordinary. However, there are companies with better living benefit riders available that include critical and chronic illness. If you want to include heartier protections within your life insurance policy, check out our Ameritas Life Insurance and Living Benefits review.
One exciting term life insurance option that John Hancock offers is their vitality program. The vitality program is an incentive program that encourages policyholders to live a healthy lifestyle in exchange for discounted policy premiums. The healthier you are, the more you save.
The John Hancock Vitality program offers a number of perks outside of reliable death benefit protection such as:
John Hancock Universal Life
Today, John Hancock focuses on universal life to provide lifetime protection for their policyholders with cash value accumulation potential. Universal life is more flexible than whole life policies that are more rigid. For example, with universal life you can set your own monthly premium and run your policy as conservative or tight as you want.
However, there is a risk to lowering your premium because it requires the policy to generate greater investment returns to build enough cash value to sustain the policy for your life. Remember that interest rates are not locked in. If rates go lower and stay low, your premiums might not be enough to carry the policy for the rest of your life.
In order to prevent the policy from being underfunded, you should review the performance every so often to make sure it is being funded adequately. Otherwise, the policy could lapse.
Key benefits of universal life insurance
John Hancock Indexed Universal Life
John Hancock’s indexed universal life is similar to current assumption universal life. Indexed universal life still has the flexible premium payments feature, it still can potentially accumulate cash value accumulation, and can provide lifelong death benefits.
However, unlike current assumption universal life insurance that only has a fixed interest rate set annually by the insurance company, indexed universal life credits interest annually based on the performance of a specific indexed strategy, the most common being a point-to-point strategy with the Standard and Poor’s 500.
The indexed strategy can has the ability to perform better than a fixed interest strategy; although, most indexed universal life policies give you a fixed rate option as well. While the indexed account usually tracks a stock market index, your cash value is not directly invested in the equity market, which is how the insurance company protects your principal from investment loss. Protecting your principal on the downside means limiting your upside, but most of our clients are OK trading some upside potential to never lose money.
Again, you need to keep an eye on these types of policies. If they index strategy does not perform well or your premiums are set too low, you can run into problems with your coverage down the road.
Key benefits of universal life insurance
Survivorship Life Insurance
Survivorship life insurance, also known as joint-life policies, is a specific type of life insurance that is not used much outside of estate planning these days. Survivorship policies cover two lives at one time. Only after the death of the second insured (sometimes called second-to-die) does the life insurance company pay out the death benefit to your beneficiary!
Second-to-die policies are a great estate planning tool if you need to leave cash in your estate; for example, to care for a special-needs child. Survivorship policies are also great for people who have estates with little liquidity, for example, if the majority of the family estate is in real estate properties, farmland, or businesses. You might not want to sell those assets to pay to cover estate and inheritance taxes. That makes life insurance the perfect tool to get cash fast to your heirs.
The John Hancock survivorship life insurance policy allows the potential for cash accumulation with either indexed strategies or a fixed interest account. The cash value allows additional flexibility. If your estate plan changes, you can remove the cash value within the policy through withdrawals or tax-advantaged loans. This allows the policy to be used as a source of income.
Variable Universal Life
Variable universal life insurance provides death benefit protection and is life insurance first and foremost. However, many variable life policyholders are drawn to it due to the return potential on the cash value.
You can allocate a portion of your premiums into investment sub-accounts that usually offer different investment options depending on your risk tolerance. Usually, you have a choice of different types of stock and bond sub-accounts. Some policies will even include alternative investment strategies like real estate or natural resources as an option.
Since variable universal life insurance is a security, they are issued with a prospectus and contain varying levels of investment risk to your cash value. Like any investment, purchasing a variable life insurance policy should be thoroughly evaluated.
Key benefits of universal life insurance
Sample John Hancock Life Insurance Quote
We have included some sample John Hancock term life insurance quotes. Please note that you need to qualify for these rates based on specific criteria.
Sample John Hancock Life Insurance Quote: Term (Age 30)
|DEATH BENEFIT||MALE 10-YEAR||MALE 20-YEAR||FEMALE 10-YEAR||FEMALE 20-YEAR|
Please note that these John Hancock Life Insurance quotes are for the preferred best non-tobacco health class.
The Final Word
Thank you for reading our John Hancock life insurance review. We hoped our John Hancock life insurance review helped you decide what the best life insurance company is for you.
John Hancock offers some unique life insurance options through their financial advisors. The John Hancock vitality program is a game changer for sure. Not only can you get really great rates on your life insurance, but it encourages you to live a healthy lifestyle. Who does not like perks?
If you are looking for broad financial services that include insurance and investments then John Hancock is a great option due to its simplicity. You can learn more about John Hancock’s product and services at the John Hancock’s phone number 1-800-732-5543 or the John Hancock website.
However, if you are looking for specialized life insurance knowledge then working with an independent life insurance broker is a better way to go. You will get access to dozens of different life insurance companies through your broker that all have specific niches. Your broker can help you narrow down the right company to apply with and take it from there.
Each life insurance company has different opinions on rates and underwriting. A knowledgeable independent life insurance agent will know what companies will offer you the best value to protect your family.
If you are looking for life insurance, don’t hesitate. Request a free no-obligation quote, or call on of our veteran life insurance agents for a consultation today.
Joe is a lifelong learner with a passion for sharing what he has learned with others. Joe has publicly spoken on life insurance in the past to both colleagues at industry conferences and to consumers in educational settings and as a contributor to industry blogs. Additionally, Joe is studying for certifications such as the CFP, CLU, and RICP to further his professional knowledge.