John Hancock is a great life insurance choice for people who have found it difficult or expensive to get insurance, including folks with diabetes or those over 50. The company emphasizes "interactive life insurance" policies that encourage people to tally their exercise, log their doctor's visits, and wear a fitness monitor.
Business Insider compared John Hancock Life Insurance against the best life insurance companies and found it to be a mixed bag with high policy limits and perks for maintaining your health. However, be wary of higher rates and its poor customer reviews.
John Hancock Life Insurance Overview
John Hancock Life Insurance has sold policies for 160 years. It offers generous policy limits of up to $65 million. However, its policy restrictions may detract from its appeal.
John Hancock offers specialized coverage for seniors and diabetics with rates lower than competitors. However, it balances this coverage with higher premiums for other buyers. Remember, policy limits may also be more limited for seniors and buyers with conditions like diabetes.
One of John Hancock's unique features is its Vitality wellness program, which provides discounts of up to 25% for meeting healthy-living benchmarks, including staying active and visiting your healthcare provider regularly. The Aspire with Vitality program also offers specific support for people with type 1 or type 2 diabetes, including health coaching through an app called Onduo.
It's worth noting that John Hancock's track record for customer satisfaction falls below the industry standard. It placed 15 out of 22 life insurance companies in a 2023 JD Power study of customer satisfaction and receives far more complaints than expected for a company of its size, according to the NAIC.
John Hancock Life Insurance Pros and Cons
John Hancock Pros
- John Hancock Vitality wellness program can help policyholders save money on premiums
- Aspire with Vitality offers support and coaching for people with type 1 or type 2 diabetes
- No lapse guarantees
- Up to $65 million in coverage
John Hancock Cons
- Minimum death benefit for term life is $250k
- Vitality program is unavailable in New York
- No online quotes available
- Reports of poor customer service
John Hancock Life Insurance Plans and Coverage
John Hancock offers term life, universal life, indexed universal, and variable universal life insurance options.
Keep reading to break down John Hancock's life insurance options and see what might be right for you.
Term Life Insurance
John Hancock offers term life insurance with 10, 15, 20, or 30-year terms. These policies have coverage amounts between $250,000 and $65 million and are available to applicants ages 18-80. Applicants under 60 may be eligible for policies with no medical exams.
The critical thing to remember is all term policies eventually expire. Applicants should discuss conversion options with an agent ahead of time.
Universal Life Insurance
John Hancock's universal life insurance policy offers adjustable premiums and cash value that grows over the policy's lifetime. Coverage amounts range from $50,000 to $65 million, and policyholders can accrue cash value.
Accruals can vary, but John Hancock guarantees they will never fall below 1%.
Indexed universal life insurance
This is similar to universal life insurance, but the policy funds are not invested. Instead, growth is tracked according to an index fund. John Hancock offers a variety of indexes to track, including the S&P 500 Index and the Barclays Index.
John Hancock offers three indexed universal life options:
Protection IUL: This policy is best for people who are prioritizing the death benefit over the investment/cash value aspect of their life insurance policy. Policyholders can take out standard loans and fixed index loans, which have an interest rate set at 5%.
Accumulation IUL: John Hancock's Accumulation IUL is best for people who want a higher cash value accumulation than the Protection IUL. It offers a greater variety of index options than the Protection IUL. Notably, policyholders can take out standard loans, fixed index loans, and index loans, which have an interest rate set to the index with the greatest rate of return.
Protection Survivorship IUL: This policy is similar to the Protection IUL, but offers coverage for two people. It pays out when both covered individuals have died.
Variable universal life insurance
John Hancock's universal insurance policy offers over 55 options for investing your cash value.
Variable universal life comes with more potential for growth but is more risky. However, John Hancock's VUL policy comes with a no-lapse guarantee rider, so even if your investments fail and your cash value hits zero, your death benefit is still protected.
Additional Coverage Options from John Hancock Life Insurance
John Hancock offers two programs that may reduce premiums by up to 25%. Although participation is optional, the company encourages policyholders to take advantage of all available benefits. The two programs include:
- Vitality: Gives health incentives to policyholders who track their fitness, doctor visits, and other metrics. The idea is to reward policyholders and encourage them to make healthy choices.
- Aspire with Vitality: Offers health coaching, glucose testing supplies, and other benefits to people with type 1 or type 2 diabetes.
To enroll in either of these programs, you'll need to decide what type of life insurance you're looking for. Then contact the company for more information on Vitality and Aspire.
John Hancock Life Insurance Riders
John Hancock offers riders to provide additional coverage and protections. As a result, buyers may be subject to a slight increase in premiums. Here's an overview of the insurance riders:
Disability benefit: Disability benefits kick in and cancel payments if you become disabled before 65 for at least six months. All policies offer this rider to protect your policy from being revoked when you can't make payments due to a disability.
Accelerated death benefit: Sometimes called "living benefits," accelerated death benefits are available on all permanent policies. Policyholders can access up to $1 million of built-up coverage if they are diagnosed with a terminal illness and have less than a year to live.
Particularly for term policies, this could be the difference between protecting your family and collecting no benefit at all. Only about 1% of term policies pay out.
Unemployment waiver of protection rider: This waives premiums if you become unemployed and meet specific qualifications. It's only available on term policies.
Critical illness benefit rider: This offers a one-time payout of up to $250,000 if diagnosed with seven qualifying conditions, including cancer, heart attack, or stroke. It's only available on permanent policies.
Long-term care rider: This rider helps cover the cost of long-term care, like nursing homes.
Return of premium rider: Available for term life insurance, this rider returns a portion of your paid premiums if you outlive your policy's term.
John Hancock Life Insurance Cost
John Hancock's policy rates are above average for people under 50. That means other insurers may offer lower premiums. However, John Hancock's premiums are lower than average for people 50 or older, making it a good life insurance choice for seniors. Business Insider recommends comparing quotes with all preferred riders, as the base prices may change dramatically.
The Vitality program is an excellent cost-saving option if you're comfortable participating. Some policyholders can reduce their premiums by up to 25% with Vitality PLUS.
As you'll find with many biggest life insurance companies, you cannot get a John Hancock quote online. Instead, the company asks buyers to fill out an application, after which a licensed insurance agent will reach out. Having an agent on your side is essential for difficult-to-insure (or previously impossible-to-insure) populations.
Life insurance is often poorly understood. A qualified life insurance agent can take you by the hand and guide you where you want to go with life insurance. Ultimately, agents might even save you money.
How to File A Claim with John Hancock Life Insurance
John Hancock's team has simplified the claims filing process.
To make a claim, notify John Hancock of the insured's death online or over the phone at 888-887-2739. Once you report the death, you'll need to fill out your state-specific claims form and provide any necessary documentation, such as a death certificate or tax forms. According to the company, claims typically take seven business days to process.
You may also qualify for express claims, which are available for claims under $100,000.
John Hancock Life Insurance Customer Reviews and Ratings
John Hancock's life insurance customer reviews are overwhelmingly negative. It received an average rating of 2.2 out of five on Trustpilot and a 1.09 on its Better Business Bureau page.
The National Association of Insurance Commissioners' complaint index rates a company based on how many complaints it receives against its share of the market. The average NAIC complaint index score is 1.00, meaning if a company scores below 1.00, it has fewer complaints than expected for a company of its size. If the company scores above 1.00, it has more complaints than the industry average. John Hancock scored 12.99, indicating that it has far more complaints than expected.
Additionally, John Hancock came in 15th in customer service in JD Power's 2023 survey of 22 insurance companies, receiving a score of 782 out of 1,000, where 790 was the average score.
Overall, the company's track record of customer service falls below the industry standard.
Alternatives to John Hancock Life Insurance
John Hancock Life Insurance vs. USAA Life Insurance
According to AM Best, John Hancock and USAA are both reputable life insurance companies with solid financial status. In addition, both companies offer relatively limited policies and a handful of riders you can opt into to enhance your policy.
John Hancock is considered a good fit for seniors but may have higher premiums for healthy people under 50. On the other hand, USAA is regarded as a good option for military members and their families. However, its life insurance is also offered to civilian applicants.
USAA provides products like the Essential Term Policy specifically designed for young people. In addition, USAA delivers coverage for active duty military members who might not have other individual life insurance options.
John Hancock has higher available policy limits, but USAA consistently offers lower prices. Both companies provide coverage to difficult-to-insure groups, but different ones.
Read our USAA life insurance review.
John Hancock Life Insurance vs. New York Life Insurance
John Hancock and New York Life offer robust life insurance policy options for people who want to use life insurance as a tool for retirement planning. Both companies offer multiple policies that allow you to accrue cash value and invest your contributions. The two have been named some of the best insurance policies for seniors.
Like John Hancock, New York Life has a proven track record, and its future seems bright. AM Best gives New York Life an A++ rating, even better than John Hancock's. The primary differentiator between the two companies is agents.
New York Life is known for its extensively trained and knowledgeable life insurance agents. Its policies are designed for retirement planning and wealth building with life insurance, consistently outperforming competitors. However, it may not offer some of the more modest plans with lower premiums you might expect from John Hancock. John Hancock's health programs that reward policyholders for healthy behaviors are also unique.
Read our New York life insurance review.
John Hancock Life Insurance FAQ
If you don't participate in the Vitality program, you'll still get coverage, but you won't receive Vitality's rewards and discounts for maintaining good health.
Yes, eligible applicants can get life insurance from John Hancock without a medical exam.
John Hancock offers comprehensive health insurance policies, or up to $65 million. However, smaller policies starting at $50,000 are also available.
Why You Should Trust Us: How We Reviewed John Hancock Life Insurance
The four primary criteria we use to review life insurance providers are affordability, customer service, reliability, and company offerings.
Companies receive five stars for cost when premiums are close to the industry average cost of life insurance. According to our guide on the average cost of life insurance, a life insurance policy may run you about $40 to $55 a month. However, cheap life insurance doesn't mean you're getting quality coverage. So we weigh affordability against the company's offerings, customer service, and other factors.
We used the latest JD Power life insurance study to determine which company offers quality customer service. Approximately 3,000 life insurance customers score insurance companies yearly based on communication, interaction, price, product offerings, and statement satisfaction. Companies ranking above the industry average of 774 points have strong customer service.
We also used AM Best, a renowned credit rating agency, and the NAIC's complaint index to evaluate a company's financial stability and trustworthiness. AM Best tells us a company's financial health, and the NAIC's complaint index scores a company based on the aggregate total of complaints it receives.
Finally, we looked at what each company has to offer, including policy options, riders, and features like medical exam waivers. We also determined which demographic would most benefit from the company based on its product and prices.
Read more about how Business Insider rates life insurance.
