John Hancock life insurance review 2020
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John Hancock is a Boston-based company that is best known for offering life insurance, investment and retirement products. The company was founded in 1862 and is currently the eighth-largest life insurance company on the market, with 2.77% of the market share. According to its website, John Hancock provides insurance coverage to more than 2.6 million policyholders around the country.
John Hancock Quickpoints
- Date established: 1862
- Insurance products offered: Individual
- AM Best financial strength rating: A+
- J.D. Power rating for overall satisfaction: 2/5
- Availability: 50 states
John Hancock insurance is a reputable life insurance provider. However, the company has advantages and drawbacks worth consideration. The table below highlights a few pros and cons of John Hancock life insurance to keep in mind as you compare providers:
|Available in 50 states||Policy offerings limited in some states|
|Excellent financial strength||Below-average customer satisfaction ratings|
|Online quotes||Does not offer whole life insurance|
|Discount program for healthy living|
John Hancock life insurance coverages
John Hancock financial offers three types of life insurance: term, permanent, and final expense life insurance. Policyholders can customize their coverage with riders and choose coverage levels based on their financial needs. Currently, John Hancock does not offer whole life insurance, which is one of the most popular policies. You can save money on John Hancock life insurance policies with the Vitality program, which offers discounts for healthy living.
Here are the life insurance policies offered by John Hancock:
Term life insurance
John Hancock’s term life insurance policies offer coverage for 10-, 15- or 20-year periods, and coverage levels range from $25,000 – $65,000,000. Anyone who needs $3,000,000 in coverage or less can get an instant rate quote and apply online. Term life insurance is designed for people who want an affordable policy that will provide valuable financial support for their family at a time when their dependents’ needs are the greatest.
Permanent life insurance
Permanent life insurance offers protection for your entire lifetime. It includes a guaranteed death benefit and a cash value component that grows over time. Permanent life insurance is a good option for people who want to supplement their income during retirement, leave money for heirs or financially support their family after passing away.
John Hancock offers three types of permanent life insurance: universal, indexed universal and variable universal. All three policies have cash value that grows over time. Universal life insurance cash value grows with interest, and indexed universal life insurance cash value grows in an index fund. Variable universal life insurance cash value is invested in a stock portfolio, which means it has the highest growth potential.
Final expense life insurance
Final expense life insurance covers end-of-life costs, like final medical bills, funeral services and outstanding debt. It is usually a good option for anyone who does not qualify for traditional life insurance, but wants to help their family members pay for end-of-life costs. John Hancock’s final expense life insurance is guaranteed for anyone between the ages of 55-80, with no medical exam required. Coverage is available from $2,000 – $20,000, and there is an optional cash value component.
John Hancock life insurance riders
John Hancock offers several life insurance riders that allow policyholders to customize their coverage. Riders fill gaps in coverage and offer protection for specific situations. Adding riders to a life insurance policy will increase your premium, but you are getting a higher level of coverage.
Here are the life insurance riders available from John Hancock:
Accelerated death benefit rider
The accelerated death benefit rider allows you to claim money from your death benefit while you are still living, if you get diagnosed with a terminal illness. John Hancock includes this rider for free with every life insurance policy, which is a nice perk. You are eligible to receive up to 50% of your death benefit, with a lifetime maximum of $1,000,000. In order to use this rider, your doctor must certify your diagnosis and prove that you have less than two years to live.
Disability benefit rider
The disability benefit rider offered by John Hancock allows you to use money from your death benefit to pay for services that help you with everyday activities. This rider is typically used when someone is chronically ill or paralyzed, and needs daily assistance with things like traveling to appointments, using the bathroom, eating and dressing.
Long-term care rider
The long-term care rider allows you to use money from your death benefit to pay for long-term care, like a nursing home, hospice care or in-home care. Similar to an accelerated death benefit, you will need a doctor to prove you have a terminal or chronic illness, and there may be provisions around life expectancy. Additionally, you can only use the long-term care rider if you need permanent care.
John Hancock life insurance customer and claims satisfaction
Overall, John Hancock insurance does not have the best customer and claims satisfaction ratings by J.D. Power metrics. In the 2019 U.S. Life Insurance Study, John Hancock scored 2 out of 5 Power Circles, which is considered below average for the industry. Customer satisfaction accounts for factors like policy prices, coverage options, claims handling and customer service.
Additionally, John Hancock insurance has higher-than-average customer complaints. The National Association of Insurance Commissioners’ (NAIC) Company Complaint Index shows that John Hancock’s individual life insurance complaints are twice as high as the industry average.
Other insurance products available
Besides life insurance, John Hancock also offers retirement and investment products. The company does not offer any other types of insurance at this time.
- John Hancock offers term life insurance, permanent life insurance and final expense insurance.
- The Vitality program can help policyholders save money by making healthy lifestyle choices.
- John Hancock’s customer satisfaction ratings are below average.
If you are shopping for life insurance, John Hancock is a good provider to look at. Despite subpar customer satisfaction reviews, John Hancock does have several strengths. Namely, it is a long-standing company with excellent financial strength. When it comes to something as important as life insurance, it’s important to know whether or not your provider will be able to pay out your claims, and financial strength is a critical indicator. The company also offers a unique reward program for healthy individuals, which is ideal if you are looking for savings opportunities.