Offering a nice range of policy features and coverage options for its term and universal life insurance products, John Hancock life insurance is a great choice for customers who know what they want in a life insurance policy. That said, the lack of whole life policies and the company's relatively high coverage minimums may drive some potential customers away.
A strong financial footing and a favorable credit outlook are important factors to consider in your search for a life insurance company. John Hancock delivers on both counts, earning strong reviews from all of the nation's top financial ratings companies. A.M. Best awarded John Hancock the coveted rating of Superior for both its financial strength and its credit outlook. S&P and Moody's also gave John Hancock very favorable ratings when evaluating the company's ability to meet current and future financial obligations. Such high marks are a good indication that John Hancock is a company you can trust over the long term and should ease the mind of even the most cautious insurance buyer.
Reasonable coverage and policy features:
John Hancock's term and universal policies are quite thorough. Term conversion, return of premium, and survivorship and joint coverage options are available, as is a cash surrender option. The company's policy features include many of the industry's standard offerings, including level and variable death benefits, guaranteed level premium and graded premium options, and an interest rate guarantee option. Additional policy features include a term renewal guarantee, an expiration or lapse guarantee, and an exam-free term conversion guarantee.
No whole life insurance coverage:
John Hancock is one of the few major insurers without whole life policies, which is quite a significant omission. Whole life policies are ideal for addressing long-term goals, since they offer predictable annual premiums and a guaranteed cash value. Universal policies, on the other hand, are designed for flexibility, offering policyholders the option to reduce their premiums, though at the cost of giving up guarantees on cash values and death benefits. By not providing a whole life option, John Hancock life insurance ignores a large group of potential policyholders who value predictability over flexibility.
Poor online tools and materials:
While some companies offer exhaustive beginner's guides and highly functional tools and calculators, John Hancock provides little more than a glossary and a poorly organized FAQ page. If you're already very knowledgeable about life insurance, the lack of helpful resources may not affect you much. On the other hand, if you're not an insurance expert or if you simply value easy access to helpful information, John Hancock is likely to disappoint you.
Restrictive policy level limitations:
John Hancock life insurance imposes minimum coverage levels of $100,000 or more across their term and universal products. Such high minimum policy levels make it difficult for younger individuals who want a small permanent policy started in order to lock in insurability. With minimum coverage levels in the $100,000 range, the cost of a policy becomes very hard to justify for these types of buyers who can find many other insurers offering affordable policies in denominations as low as $5,000 or $10,000. If you're looking for a policy with low minimum coverage requirements, you'll have to consider other companies.
A.M. Best FSR Rating
A.M. Best ICR Rating
Standard & Poor's Rating
A.M. Best "Excellent" or Better - The insurance company has an A.M. Best rating of "A-" or better.
ICR Rating "Stable" - The insurance company has an A.M. Best Credit Rating of "Stable" or better.
Moody's "Very Strong" - The insurance company has a Moody's rating of "Aa3" or better.
S&P Rated "Very Strong" - The insurance company has an S&P rating of "AA-" or better.
Cash Value Access - The policy owner can access or borrow against the value of policy accounts.
Dynamic Premium Amount - You decide the amount and date of premium payments, subject to basic minimums.
Expiration or Lapse Guarantee - The policy does not expire if premiums paid are insufficient.
Graded Premium Option - The life insurance company offers a policy that starts with a low initial premium and gradually increases over time.
Guaranteed Level Premiums - Premiums do not increase over time but remain constant for the entire life of the policy.
Interest Rate Guarantee - You receive a guaranteed minimum level of interest in the contract.
Level Death Benefit - A policy where the death benefit remains level is available.
Limited Premium Payments - Whole life insurance premium payments can be limited to a fixed number of years.
No Exam Term Conversion - The insurance company guarantees conversion of a term policy to a cash value or permanent policy offered by the life insurance company without a physical exam.
Partial Surrenders - You can withdraw funds up to a certain percentage of the policy value.
Tax-Deferred Growth - The cash value of the policy grows tax-deferred.
Term Renewal Guarantee - You are guaranteed a renewal option annually after term expiration.
Variable Death Benefit - A policy where the death benefit increases or decreases with your policy account value is available.
Dividends - The policy owner can receive periodic dividends based on account performance.
Paid-Up Additions - You can purchase additional insurance with paid-out policy dividends.
Waiver of Monthly Deductions - Future monthly deductions are waived in the event of disability.
Accelerated Benefit for Terminal Illness - A rider which grants early access to the death benefit to defray the cost of a terminal illness is available.
Accidental Death Benefit - A rider that pays an additional death benefit in the event of the accidental death of the insured is available.
Additional Insured Rider - A rider that extends coverage to an additional person/spouse is available.
Child Rider - An added rider that covers the death of your child is available.
Disability Income Rider - An added rider that provides income in the event of a bodily injury that prevents you from working is offered.
Estate Protection Rider - A rider that provides extra coverage to offset estate taxes if the policy is included in the insured's estate is offered.
Final Expenses Policy - A rider or a policy that covers funeral expenses is available.
Long-Term Care Rider - A rider is available that covers the cost of long-term care if needed during the policy term.
Whole Life Guaranteed Insurability Rider - An option to guarantee future insurability at standard rates without further proof of insurability is available.
Cash Surrender Option - Policyholders of lapsed or surrendered policies can request immediate cash disbursement or remaining balances.
Mortgage Life Option - A policy in which the death benefit stays level for a fixed number of years but then decreases over the remainder of the term is available.
Return of Premium Option - An option is available where the premiums paid over the life of the policy are returned at the end of the term less any deductions or loans taken.
Survivorship/Joint Coverage Option - The policy covers two people and is paid when the first or the last of the two people covered in the policy dies.
Term Conversion Option - Conversion to a cash value or permanent policy is offered by the life insurance company.
All Policy Types - Term, whole, and universal coverage options are available.
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