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Vitality with John Hancock…Lower premiums, healthy living

By July 10, 2018July 12th, 2018Life Insurance

Vitality with John Hancock is starting to change the way that our clients and advisers look at life insurance. The Vitality program with John Hancock provides the opportunity to lower premium payments throughout the life of the policy, plus receive a number of different rewards.

First lets go into why John Hancock is seeing the Vitality program work with their life insurance policies.

Personal Behaviors Drive Health and Life Outcomes

Data shows that unhealthy behaviors are causing Americans to age faster. On average, Americans are 5 years older than their actual age according to the Volatility Institute, and 25% of Americans are 8 years older than their actual age. This is due largely as a result of poor health and lifestyle choices. Things like heart disease, cancer and diabetes are often linked to inactivity, poor diet, excess alcohol use and smoking. These unhealthy trends can be reversed, but that requires us to make better choices and changes in our personal health related behaviors.

Science Shows That Rewards and Incentives Can Motivate Change in Behavior

The Vitality Program looked at how people make decisions through global studies and realized that people are more willing to make the decision to change if there is an incentive. There was a study run that showed a 22% increase in individuals using the gym over a 4 year period if there was an incentive to go. That means that when rewards and incentives are applied to life insurance people can get back on the road to better long-term health.

By providing immediate rewards and incentives (gift cards, shopping discounts, hotel discounts, cruise discounts) for basic healthy behaviors, like walking more and going to the doctor, we are encouraged to adopt healthy behaviors that lead to a lasting change.

Insurance Industry Using This Concept Elsewhere

We all love Flo from Progressive! Progressive has the SnapShot program to follow a drivers activity for up to 6 months that helps create a custom auto insurance rate for them. Progressive and other auto insurance carriers are rewarding safe driving through lower premiums. The Vitality program with John Hancock is rewarding policy holders with a healthy lifestyle with lower premiums as well.

How Does It Work?

Vitality can be added to either a Term or Permanent policy with John Hancock. Each year of the policy, the policy owner will have the opportunity to earn “Vitality Points.” These points range from Bronze, which is a normal premium level, and work up to Silver, Gold and Platinum.

The policy holder will have the option of receiving a Fitbit or Apple Watch Series 3, the Apple Watch will cost $25 out of pocket! The wearable device whichever you choose will help track your steps, and movement to provide Vitality Points!

  • Save $600 a year or $50 a month on Healthy Foods at 16,000 stores across the nation including NutriSavings, and Walmart.
  • Partner Gym Discounts! The Vitality Program will provide discounts to Lifetime Fitness, LA Fitness, 24 Hour Fitness, Curves and Title Boxing Clubs.
  • Shopping & Entertainment Rewards! Policy owners are rewarded for healthy successes with gift cards, movie tickets and other prizes. The more policyholders accomplish the more opportunities for rewards. Some of the gift cards are to CVS, Amazon, Starbucks, and a number of movie ticket vendors.
  • Half-Price Hotel Stays – depending on your Vitality Status, you will earn Bronze – 0 nights, Silver – 2 nights, Gold – 4 nights, Platinum – 8 nights of HALF PRICE stays at Hyatt.
  • Cruise Rewards – Save 20% to 50% on all Royal Caribbean International, Celebrity Cruises, Crystal Cruises, Seabourn and Azamara Club.

How Are Premium Dollar’s Saved?

At the end of year depending on your Vitality Status ranging from Bronze to Platinum will determine your premium discount. Platinum will provide the biggest discount for policy owners.

For example, with John Hancock’s Universal Life Policy, a policy holder can save up to 29% on their premiums over the course of the first 20 years of the policy. On the John Hancock 20 year Term policy, policyholders can save up to 10% off their initial premium.

When you look over the course of a lifetime of a policy, a policy holder can be saving tens of thousands of dollars on their premiums by using the Vitality Program.

Call us today to see if the Vitality Program can work for you! 908-698-0477

Tyler Berntsen

Managing Director Gladstone Coverage Group