This is the place if you are looking for an unbiased John Hancock Life insurance company review. John Hancock is a premier life insurance company but not the cheapest if your are searching for lowest price life insurance policy. Here are the pros and cons about this company.
Probably one of the most famous signatures in the world belongs to John Hancock. He was the first signer of the Declaration of Independence along with 56 other patriots who dared to defy England in search of America’s freedom. From his inspiration and bravery, a life insurance company was formed in 1862 and named after one of our nation’s forefathers – John Hancock Life Insurance Company.
The original name, John Hancock Mutual Life Insurance Company has been around in the insurance industry for more than 150 years, making it one of the oldest life insurance companies still doing business today.
John Hancock offers many types of insurance products and even offers financial services such as investment management, 401K’s and IRA’s. If you are looking for a financially stable company that is on par with some of the big guys such as MetLife, Mass Mutual, Northwestern Mutual and so on, then this company is top class.
Financial Strength of John Hancock
There is something to be said about choosing a company with high financial ratings. It’s important to know that the policy you purchased will pay out in the future. On the other hand, a company like Hancock tries hard to compete on price but rarely does. If you are looking for low price, this is probably not the company for you.
The company is extremely strong and financially stable. In 2004, John Hancock merged with Manulife one of the largest insurers in Canada, making them one of the top financial companies in the world. In 2016, Hancock had core earnings of more than $1.2 billion and policies in force over $56 billion. Due to its healthy financial position, as well as its long reputation of claims paying ability, John Hancock is very highly rated by the insurer rating agencies.
A+ from A.M. Best – Superior (second highest out of a total of 13 ratings)
A1 from Moody’s – Low credit risk (fifth highest out of a total of 21 ratings)
AA- from Standard and Poor’s – Very strong (fourth highest out of 21 total ratings)
AA- from Fitch Ratings – Very Strong (fourth highest out of a total of 19 ratings)
Life Insurance Products Offered By John Hancock
As one of the leading life insurance providers in the nation, John Hancock offers a wide variety of life insurance products to choose from. These include the following:
Term Life Insurance
John Hancock tries to compete with other term life specialty companies but does not have very competitive term rates. However, they do have very good rates for seniors, those over age 65.
Term life insurance is considered to be the least expense type of life insurance. It is basic coverage that offers pure death benefit protection and at low fixed premium. There is no cash value account associated with term life insurance.
John Hancock offers several variations of term life insurance like most other carriers. They offer level term for 10, 15, 20, 25, and 30 years. These policies also provide the policyholder with the ability to convert the policy over to permanent life insurance.
There are several types of permanent life insurance to choose from. Surprisingly, John Hancock does not offer a whole life product but instead, offers a few different types of Universal Life insurance:
Universal Life Insurance (UL)
This is generally a flexible premium policy where the policy owner can pay a minimum premium. The premium goes towards a death benefit and a cash value account.
The policyholder may choose how much of the premium will go to the death benefit and how much will fund the cash value account. Depending on the policyholders needs, the policy death benefit can change over time by increasing or decreasing the premium deposits, within certain guidelines.
The higher the premium, the higher the death benefit and cash value. Lower premiums will decrease the death benefit and cash value. However, this could work well as the policy owner gets older and does not need a higher amount of coverage later in life.
Indexed Universal Life Insurance (IUL)
Indexed universal life insurance works very similar to universal life with the exception that the cash value account is linked to the performance of an underlying stock market index. This means the account has the opportunity to grow with the stock market within limits called “Caps.” The policyholder will never receive the full growth of the stock market because these accounts have contractual limits on how much can be credited to the cash value.
However, if there is a market downturn, the funds in the account will not lose value. Not losing value is the “trade off” for limited stock market gains. The cash value account also grows on a tax-deferred basis. This allows the funds to grow and compound faster than money that is in a taxable account. Also, policyholders can choose between different stock index options to meet their investment needs.
Variable Universal Life Insurance (VUL)
This is another type of universal life that works very much like indexed UL however, there are no cash value guarantees. There is a death benefit and a portion of your premium goes towards mutual fund type accounts. Variable UL allows you to participate in the full growth of the stock market but also market downturns.
With VUL, you can lose your cash value as well as your death benefit value during market declines. This type of policy is for people who understand the stock market and are not afraid to lose money.
Is A John Hancock Policy Right For You?
As mentioned, John Hancock does not sell the cheapest life insurance policies compared to some of the other smaller companies. Companies such as Banner Life, Protective Life or William Penn will offer cheaper policies, but Hancock does lead the way for certain specific health risks.
These are some of the specific niches that John Hancock specializes in:
Term life insurance for Diabetics: Preferred rates available for diabetics provided the applicant is over age 60 and is being treated with oral medication. Diabetic complications such as neuropathy, kidney disease or insulin dependent applicants will receive rated policies or be possibly declined.
High Blood Pressure: High blood pressure treated with medication can still receive a preferred plus rate class if the condition is well controlled.
Hepatitis C: Applicants diagnosed within the past 3 years, over the age of 70 can receive favorable rates provide they have favorable liver function results. In addition, a standard plus or even preferred rate is available f there are favorable biopsy records.
Parkinson’s Disease: An applicant over age 80 with very minor can be approved at preferred rates. The requirements are; the applicant lives independently, is fully active, and is not on any medication.
Bottom Line About John Hancock Life Insurance
John Hancock does not make our Best Life Insurance Companies list because it might not be the best fit for people searching for the cheapest life insurance. However, John Hancock’s underwriting department is extensive and detailed so they might offer a policy in certain niches where others might automatically decline the policy.
Feel free to call us for a free quote from John Hancock or any of the 30 or more insurance companies that we represent.