September 24, 2018
John Hancock will stop selling traditional life insurance policies and all new policies will provide policyholders with discounts for taking steps to improve their health.
After its initial success, California’s fifth-largest life insurer is now including the program in all its life insurance policies at no additional cost.
The Vitality Life Insurance Program allows consumers with active and healthy lifestyles the option to lower their premiums by accumulating Vitality Points for health-related activities such as exercising, getting a flu shot and logging their annual visit to the doctor. The points are translated into discounts.
Since initiating the program, John Hancock reported their policyholders with the program take nearly twice as many steps as the average American, have logged more than 3 million healthy activities including walking, swimming, or biking, and engage with the program approximately 576 times a year.
“The remarkable results of our Vitality offering convinced us this is the only path forward for the industry,” said Brooks Tingle, president and CEO of John Hancock Insurance. “We have smart phones, smart cars and smart homes. It’s time for smart life insurance that meets the changing needs of consumers. We are very appreciative of the thorough and expedited review and approval by the California Department of Insurance, which made California one of the first states to approve our innovative new product.”
This life insurance program does not penalize or shift costs to consumers who are less active, but instead offers an actuarially sound method to provide discounts for those policyholders who choose to live a healthy lifestyle, and are therefore likely to increase life expectancy. The product has been available in other countries for some time.