John Hancock Adds Vitality Solution to Indexed Universal Life Insurance Product Portfolio
July 15, 2015 by John Hancock Financial
John Hancock Insurance announced today that the John Hancock Vitality solution, a new approach to life insurance that rewards people for healthy living, is now available on its indexed universal life (IUL) products, Protection IUL and Accumulation IUL. John Hancock had initially launched the Vitality solution on its Protection UL and term insurance products in April 2015.
With the John Hancock Vitality solution, policyholders have the opportunity to save on their annual premiums and earn valuable rewards simply by taking steps to improve their health. Now, for the first time, the Vitality solution is available on a product optimized for cash value growth potential, Accumulation IUL, further enhancing retirement income.
“As Americans are living longer than ever before, they are increasingly concerned about outliving their savings in retirement,” said Michael Doughty, President, John Hancock Insurance. “By expanding the John Hancock Vitality offerings to include an accumulation product, we can better prepare them to meet their future financial needs, while also encouraging them to take a more active role in their health, physical and emotional well-being,” said Doughty.
John Hancock’s IUL products offer a simple, straight forward design, providing policyholders with death benefit protection and an opportunity to increase cash value by linking to the performance of the S&P 500(1) – without risking market loss. This gives clients the potential for strong cash value accumulation, even in down markets, because the credited rate will never be less than zero.
John Hancock’s Accumulation IUL is designed to maximize cash value accumulation and help consumers meet financial goals, including supplementing their retirement income or paying for college. Adding Vitality to Accumulation IUL can help policyholders enhance their income by up to 10 percent per year.
For example, healthy clients in their 40s who need $1,000,000 in life insurance coverage as well as supplemental retirement income, can purchase an Accumulation IUL with Vitality policy and potentially enhance their income by almost $50,000 by the time they reach 60, assuming they reach gold status in all years.
John Hancock’s Protection IUL combines growth potential with some of the lowest premiums in the industry. And with the addition of the Vitality program, policyholders can save even more, while earning valuable rewards and discounts while they pursue a longer, healthier life.
For example, by engaging in the Vitality program, healthy clients in their 50s buying a $1,000,000 Protection IUL with Vitality life insurance policy could potentially save more than $20,000 on premiums by the time they reach 75.
“Research has shown most Americans know they need more life insurance, and we know that nearly all consumers feel they could be living a healthier life. Our products help them to achieve both of those goals with one simple solution,” said Doughty.
As of today, Hancock’s IUL products with Vitality are available in 25 states and John Hancock will continue to roll them out across the country as they are approved throughout the year. In addition, Protection UL with Vitality is now available in 39 states, and John Hancock Term with Vitality is now available in 32 states.
With John Hancock’s life insurance products with Vitality, policyholders immediately begin accumulating “Vitality Points” after their policy is issued and when they complete health-related activities like exercising, getting an annual health screening or even a flu shot. The number of Vitality Points a policyholder earns over the course of a year determines their program status level. The healthier their lifestyle, the more points they can accumulate to earn valuable travel, shopping and entertainment-related rewards and discounts from leading retailers.
As part of the program, policyholders receive personalized health goals and can easily log their activities using online and automated tools, which are integrated with personal health technology. In fact, John Hancock is giving every new policyholder a free Fitbit® as one easy way to track their progress.
To learn more about John Hancock with Vitality products, visit www.JHRewardsLife.com.
About John Hancock Financial and Manulife
John Hancock Financial is a division of Manulife, a leading Canada-based financial services group with principal operations in Asia, Canada and the United States. Operating as Manulife in Canada and Asia, and primarily as John Hancock in the United States, our group of companies offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents and distribution partners. Assets under management by Manulife and its subsidiaries were C$821 billion (US$648 billion) as at March 31, 2015. Manulife Financial Corporation trades as ‘MFC’ on the TSX, NYSE and PSA, and under ‘945’ on the SEHK. Manulife can be found on the Internet at Manulife.com.
The John Hancock unit, through its insurance companies, comprises one of the largest life insurers in the United States. John Hancock offers and administers a broad range of financial products, including life insurance, annuities, investments, 401(k) plans, long-term care insurance, college savings, and other forms of business insurance. Additional information about John Hancock may be found at johnhancock.com.
About Vitality
The Vitality Group is a member of Discovery Ltd., a global financial service organization offering an incentive-based wellness program to employers as part of their benefits program. With a foundation based on actuarial science and behavioral economic theory, Vitality encourages changes in lifestyle that reduce health care costs, both in the short run and long term, by rewarding members for addressing their specific health issues. Vitality wellness programs serve companies in a wide range of sizes and industries, improving individuals’ health and wellbeing as well as employers’ bottom lines.
Vitality brings a global perspective through successful partnerships with large employers and best-in- class insurers around the world, in countries including the United States, United Kingdom, South Africa, China and more recently Singapore and Australia. Additional information can be found at www.thevitalitygroup.com.
(1) Standard & Poor’s®, S&P®, S&P 500®, Standard & Poor’s 500 and 500 are trademarks of Standard and Poor’s Financial Services LLC, a subsidiary of The McGraw-Hill Companies, Inc. and have been licensed for use by John Hancock. The Product is not sponsored, endorsed, sold or promoted by Standard & Poor’s, and Standard & Poor’s makes no representation regarding the advisability of purchasing the Product. The S&P 500® Index is an index of 500 stocks that are generally representative of the performance of leading companies in leading industries within the U.S. You cannot invest directly in the S&P 500® Index.
Insurance products are issued by John Hancock Life Insurance Company (U.S.A.), Boston, MA 02117 (not licensed in New York) and John Hancock Life Insurance Company of New York, Valhalla, NY 10595.
Vitality is the provider of the John Hancock Vitality Program in connection with policies issued by John Hancock.
Insurance policies and/or associated riders and features may not be available in all states. The John Hancock Vitality Program is available with select John Hancock policies. Please consult your financial representative as to product availability.
Premium Savings and Enhanced Income Potential will apply based on the Status attained by the life insured. Please consult your financial representative as to how these may affect the policy you purchase.
Loans and withdrawals will reduce the death benefit and the cash surrender value, and may cause the policy to lapse. Lapse or surrender of a policy with a loan may cause the recognition of taxable income. Withdrawals in excess of the cost basis (premiums paid) will be subject to tax and certain withdrawals within the first 15 years may be subject to recapture tax. Additionally, policies classified as Modified Endowment Contracts may be subject to tax when a loan or withdrawal is made. A federal tax penalty of 10% may also apply if the loan or withdrawal is taken prior to age 59½. Cash value available for loans and withdrawals may be more or less than originally invested. Withdrawals are available after the first policy year.
John Hancock Vitality Program rewards and discounts are only available to the person insured under the eligible life insurance policy.
Rewards may vary based on the type of insurance policy purchased for the insured (Vitality Program Member), the ownership and inforce status of the insurance policy, and the state where the insurance policy was issued.
