John Hancock Life Insurance | Not Worth the Hefty Price-tag
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John Hancock Insurance company is among the nation’s top 10 largest insurers, covering millions of people for retirement, life insurance, and other financial resources. Bigger does not always mean better and we at Final Expense Benefits are committed to making sure you are getting the best insurance for your money.
History of John Hancock Life & Health Insurance Company
John Hancock Insurance Company was founded in 1862 in Massachusetts and was one of the first of its kind in US History. They are the only business to still be standing with a foundation date of 1862. For over a century, John Hancock has been selling insurance and even helped launch the first group insurance business by offering insurance to employers of other companies and businesses.
By the 1950s, John Hancock Insurance had almost $4 billion in assets and was investing over $4 million a week. Today, John Hancock Life & Health Insurance Company has roughly 112.9 billion in assets. The company has been wildly successful but what does all of that mean for you?
Coverage Options with John Hancock Life Insurance
John Hancock Life Insurance offers term and universal life insurance policies. They lack any type of whole life insurance policy. They do, however, have an extensive wellness benefit which many other insurance companies do not have.
What is Term Life Insurance?
Term life insurance is a type of life insurance that does not last your whole lifetime and instead has a set time limit that is set to end. Like most term insurances, John Hancock Life term insurance policy has no value outside of the death benefit and has no saving component like with whole life insurance policies. Coverage lengths are typically 10, 15, 20, and 30 year periods.
John Hancock Life Insurance offers fixed premiums throughout the life of the policy. Their renewal system, however, means you will have to pay a higher premium each time to renew your policy. Base minimum face amount for coverage John Hancock Life Insurance is $250,000 (it was once $750,00 but they have since lowered the amount).
What is Permanent Life Insurance?
Permanent life insurance is a type of life insurance policy that provides you with coverage so long as you pay the monthly premiums. It is designed to last your entire life so you can provide your loved ones with financial support upon your passing. John Hancock Life insurance offers a few types of permeant life insurance.
What is Universal Life Insurance?
John Hancock Life Insurance offers universal life insurance. This is a type of permanent life insurance where a portion of your premium covers the insurance cost and the other portion accumulates interest. It allows you flexible payment options and to adjust your face amount. Unlike John Hancock’s Term Insurance, their universal life insurance accumulates a cash value over time. This insurance plan allows you the option to adjust the cost of your premiums as well as how often you pay using your cash value as leverage.
John Hancock Universal Insurance also allows you to borrow against your cash value on the policy but you have to pay that back. This particular variety of John Hancock Life Insurance policies has a “no-lapse guarantee” ensuring that you do not lose coverage even if the policy no longer has a cash value or a negative cash value.
What is Variable Universal Life Insurance?
Variable Universal Life Insurance (VUL), like the standard version, has a flexible premium with a savings account that allows you to invest your cash value. The key difference is that it allows you to invest your cash component in the stock market.
John Hancock’s Variable Universal Life insurance functions similarly to a piece of stock within the stock market. These types of John Hancock life insurance policies tend to be on the riskier side since the cash value of the policy fluctuates based on stock market performance. The high risk does have a high reward, though, as this policy has the largest potential for cash growth. This also allows you to transfer that money into other investment opportunities. John Hancock life insurance also includes a “no-lapse guarantee” to prevent your policy from ending as long as you pay your monthly premiums.
What is Final Expense Insurance?
Final expense insurance, also known as burial insurance or funeral insurance, is a type of life insurance policy that specifically assists with end-of-life expenses. From funeral services to final medical bills, these fixed-rate policies last as long as the insured lives.
John Hancock Final Expense Life Insurance touts having a simple application process with a flexible payment schedule. This policy is considered guaranteed acceptance and requires no medical questioning. John Hancock final expense insurance also has access to wellness benefits that provide you bonuses for being active and living a healthy lifestyle.
John Hancock Life Insurance Vitality Program
John Hancock life insurance has a wellness benefit program called Vitality. In this program, you earn “Vitality Points” by doing healthy activities such as going to the gym or buying healthy foods, or attending “wellness webinars”. Points can be used in exchange for discounts and reducing the amount of your monthly premium of a John Hancock life insurance policy. There are two different parts of John Hancock’s Insurance Vitality program.
Vitality GO
Vitality Go is a feature included on all plans at no extra cost. This wellness benefit that John Hancock Insurance offers gives you discounts on fitness devices like FitBit, discounts on grocery shopping at eligible stores, and health and wellness tips provided by experts. You can either stay with Vitality Go or upgrade to Vitality Plus.
Vitality PLUS
Vitality Plus has all of the benefits of Vitality GO but with more rewards for a fee. Vitality Plus starts at $2 a month but is subject to change depending on the type of John Hancock life insurance policy that you have. Plus members can enjoy a reduced-cost Apple Watch, a free subscription to Headspace which is a mindfulness app, and additional discounts. Plus members who have reached enough milestones to achieve Platinum status three years in a row also get a free one-year membership to Amazon Prime.
Best $10,000 Burial Insurance Companies
These $10,000 coverage policies have steady and affordable premiums for the life of the policy. If you are looking for great coverage with low monthly premiums, we recommend these top carriers for all of your final expense needs. This is Final Expense Benefits’ best $10,000 insurance policies for seniors.
| Company | 50 y/o Male | 50 y/o Female | 60 y/o Male | 60 y/o Female | 70 y/o Male | 70 y/o Female |
|---|---|---|---|---|---|---|
|
$49 |
$39 |
$74 |
$59 |
$107 |
$85 |
|
|
$58 |
$49 |
$76 |
$60 |
$127 |
$96 |
|
|
$44 |
$34 |
$64 |
$47 |
$110 |
$78 |
|
|
$51 |
$43 |
$64 |
$53 |
$119 |
$88 |
|
|
$82 |
$56 |
$101 |
$79 |
$158 |
$119 |
These figures were obtained from the NFDA and are estimates only. For a detailed quote, please contact an agent.
John Hancock Life Insurance Pros and Cons
Pros
- Excellent Wellness Benefits
Vitality Plus is a great option for folks who are already healthy and able-bodied. John Hancock Life and Health Insurance Co is one of the few insurance companies to have such extensive wellness benefits. However, you would not find much use for it if you have a disability or find it difficult to stay active.
- Extended Age Range for Guaranteed Acceptance
John Hancock Life Insurance does offer non-medical exam options for folks 60 and younger. However, their health point program makes it exceptionally difficult to find accurate information on premium rates.
- Dedicated Program for Diabetics
People suffering from Type 1 or Type 2 diabetes will find that they are covered under John Hancock Insurance, particularly their Aspire Program. This program grants you access to their diabetes health management tools, discounts on certain foods, and consultations with health experts.
Cons
- Confusing Online Functionality
Online functionality on the John Hancock Insurance website is severally lacking. If you tried to navigate the website looking for information on John Hancock life insurance, you are directed to a page that is more suitable for current customers. It gives little to no information on current policies available if you were looking to purchase life insurance.
- Poor customer service ratings.
With a 2.49 rating from NAIC and a power rating from JD Power, John Hancock Insurance is severely lacking in good customer service skills.
- No Quote Information Online
In addition to being unable to navigate the site well, you are unable to find a quote online for John Hancock Life Insurance or any of their insurance options for that matter. Not having a quote tool will make considering them as an option incredibly difficult if you are trying to compare quotes and premium rates.
- Incredibly High Premium Rates
The average cost of a $1,0000,000 policy for a healthy 65-year-old man is a little over $300 for a 20-year term. That same 20-year term policy for a 65-year-old man for John Hancock Life Insurance would cost $1,184. That is more than 3 times the average price point. If you are a smoker looking for insurance, you can expect that monthly premium amount to increase by at least 35%.
Ratings for Credit and Customer Service Satisfaction
AM Best Rating
AM Best can best be described as a rating agency focused on the creditworthiness of insurance companies worldwide. Their grading system is similar to the education system where they go from A+ to F. They measure the likelihood of a company defaulting on its financial obligations to its consumers.
John Hancock Life Insurance Company has a ranking of A+, which is considered superior. Their financial outlook is considered stable and they are on track to continue to meet all financial obligations.
JD Power Rating
JD Power uses data and AI (artificial intelligence) to understand complex consumer behavior. They are committed to providing unbiased information and embody the highest ethical and professional standards.
According to a press release dated October 2022, JD Power remarked how customer satisfaction for companies sinks year after year, and John Hancock Life & Health insurance company is no exception. Regarding overall customer satisfaction for individual life insurance, John Hancock Insurance ranks far below average. Out of 23 ranked companies, John Hancock Life Insurance ranked 19th putting it in the top 5 worst in terms of customer satisfaction.
NAIC Rating
The National Complaint Index (NAIC) records complaint trends for companies every year. At Final Expense Insurance, we noticed that John Hancock Insurance ranked above average in the number of complaints. In fact, with a 2.49 index rating, their complaints were twice as high as expected within the insurance market.
This number has grown since their 2019 and 2020 index numbers. This means John Hancock Life & Health insurance company has consistently ranked higher and higher for complaints, suggesting that their quality of customer service has steadily decreased.
John Hancock Insurance Reviews
Our Review and Final Thoughts
Coupling the lackluster reviews with their incredibly high price point, we cannot in good faith recommend John Hancock Life Insurance. Sure, they have excellent benefits for folks who are healthy well into their senior years but it is unrealistic for everyone to match their high standards. John Hancock Life Insurance seems to fit a very small niche of people.
You also may not get the customer service experience that should come with such a high monthly premium. John Hancock life insurance customer satisfaction ratings have been following a downward trend and do not seem to be moving upward anytime soon.
Final Expense Benefits partners with over 20 carriers with customer satisfaction guaranteed. They offer no medical exam options at much more affordable rates that fit your needs. Some of our highly-rated carriers include:
If you are looking for trusted and affordable final expense insurance, the experts at Final Expense Benefits have got you covered. Call one of our talented agents today at 1 (866) 311-4338 to get an affordable quote with one of our highly-rated insurance carriers.
Frequently Asked Questions
Is burial insurance worth getting?
If you have family or dependents who you want to support should you pass, then burial insurance is absolutely worth it.
Do I need a medical exam?
Most final expense insurance policies do not require a health exam. You will have to answer some simple health questions in their application.
How quickly will my death benefits be paid to my loved ones?
Death benefits from a burial insurance policy are not held in probate. So your loved ones should receive the death benefit very quickly.
What happens if I miss my premium payment?
Typically there is 30-day grace period where you can pay the premium with no penalty or fee. Note that failing to pay the insurance premium during this time results in your policy being terminated.