Disclaimer: Willamette Life is a direct competitor of John Hancock. This post is written to help you make a purchasing decision and to understand your options better.
There is no shortage of selections when it comes to life insurance. It seems like every company has a great burial insurance plan to offer. When determining who has the best final expense insurance, there are specific details that should be reviewed.
Not all life insurance companies are forthcoming with the information you need to know when deciding. This article will take out the guesswork and review John Hancock’s final expense policy to see if it is a viable coverage option.
John Hancock Final Expense Review
John Hancock is a reputable company and, as of 2020, has over 3.5 million life insurance and long-term care policies in force. Including $7.2 billion of distributions paid out to policyholders and their families.
- Established: 1862
- Financial Rating: A+ (Superior)
- Headquarters: Boston, MA
John Hancock has a long list of financial service offerings, but our attention will focus on the carrier’s final expense insurance product for this specific review.
John Hancock Final Expense Insurance
The John Hancock guaranteed acceptance life insurance plan is meant for applicants with severe pre-existing health conditions.
- Age Eligibility: 55 – 80
- Coverage Amount: $2,000 – $20,000
- Medical Exam: No
- Health Questions: No
- Waiting Period: 2-years
- Permanent Coverage: Yes
- Builds a Cash Value: Yes
- Smoking Rates: No
No Medical Questions
No medical questions will be asked, and every applicant will be approved. This is a standard feature for all guaranteed acceptance plans.
Some companies market “no medical questions” as a really positive feature, but most seniors do not need this product type. Finding a policy that asks medical questions could earn you immediate coverage and help lower your monthly premiums.
Whole Life Benefits
When learning how funeral insurance works, it is key to understand the basics. This plan is whole life insurance which means every policy comes with three key benefits.
Price Lock: The price will never increase and is an important feature for any seniors on a fixed income. This plan will give you a guaranteed price month in and month out with no rate increases.
Coverage Lock: The death benefit will never decrease, giving the policyholder peace of mind knowing their funeral costs will be covered no matter how long they live.
Builds Cash Value: For every funeral insurance premium made, a portion of the payment will go towards the cash value. Over time this amount will grow and can be borrowed from if the policyholder chooses.
Two-Year Waiting Period
With no medical questions and guaranteed approval comes a two-year waiting period. If the policyholder were to pass away during the waiting period, the beneficiary would receive a partial distribution.
Death Benefit Payout Schedule
- Year One: All paid premiums returned plus 10%
- Year Two: All paid premiums returned plus 10%
- All Other Years: Full coverage amount
John Hancock Burial Insurance Rate Chart
The monthly premiums are at a higher price point than some of its competitors. This product’s starting age is 55, and it will issue initial coverage until 80 years old.
$10,000 of Coverage
Do I Need John Hancock Burial Insurance?
The only time one would need a John Hancock burial insurance plan is if the applicant has a serious pre-existing condition.
List of Pre-Existing Conditions:
- Assistance with activities of daily living
- Bone marrow transplant
- Cancer (presently)
- Congestive heart failure
- Heart attacks
- Organ transplant
- Stroke (within the past 12 months)
- Taking oxygen (sleep apnea not included)
Even if you have one of these conditions, there are other guaranteed acceptance plans on the market that are much cheaper options than the John Hancock final expense product.
Other Final Expense Insurance Plan Options
If the applicant does not have any of the previously listed medical conditions, there is a chance they could qualify for a more favorable plan. There are three other plan options one can qualify for.
Level: This plan offers immediate coverage and the lowest monthly premiums. To qualify requires answering a series of medical questions.
Graded: With a progressive two-year waiting period, the graded plan is right for those with specific pre-existing conditions.
Modified: Offering the same plan structure as a guaranteed acceptance policy, this option is typically best to avoid. Specific medical conditions can make this plan viable but speak with a professional to find the best option for you.
Comparison: John Hancock vs. AIG
Both the AIG and John Hancock plans are guaranteed acceptance products that ask no medical questions and have similar benefits. However, the AIG Guaranteed Issue plan is at a lower price point and an overall better option.
$10,000 of Coverage
$10,000 of Coverage
Applying for Funeral Insurance Coverage
You will need to work directly with the John Hancock company or their licensed agents. This can be a problem because they will only show you the products from John Hancock and no other company. There are more cost-effective plan options on the market, starting with the AIG’s guaranteed issue plan.
Why Willamette Life
Working with an independent agency will give seniors the best opportunity to find an immediate coverage plan. This is because every insurance company has different underwriting standards. Highly rated independent agents and agencies can shop around and find the best plan for your health and budget.
At Willamette Life, our specialty is finding high-risk seniors affordable coverage. Even applicants who cannot qualify for one of our many immediate coverage plans still have more affordable options than John Hancock’s guaranteed acceptance plan.
Call Willamette Life at 844-576-0019
FAQ: John Hancock Final Expense Life Insurance
Is John Hancock Life Insurance Good?
While John Hancock Life Insurance Company is financially stable with a good reputation, the prices are higher than competing products from other life insurance companies. This plan is considered an overpriced guaranteed issue product.
What is the John Hancock Life Insurance Rating?
The John Hancock life insurance rating from A.M. Best is an A+ (Superior). This is one of the best ratings a company can have, making this carrier very financially stable. You can have confidence your claim will be paid when due.
Are John Hancock Final Expense Life Insurance Reviews Favorable?
The final expense product from John Hancock is overpriced compared to its competitors. It is best to work with an independent agent that will shop around to find the lowest priced plan with the best policy structure.
Is John Hancock HIV Life Insurance Available?
The guaranteed acceptance plan asks no medical questions and will approve every applicant. The pre-existing condition of HIV will be approved for coverage. However, there will be a two-year waiting period.
How Much is John Hancock Life Insurance?
Depending on age and how much coverage is taken out can change the monthly premium cost greatly. On average, males can expect to pay between $70 – $230 a month and females $50 – $180. There are much cheaper no-medical-question plans on the market including AIG or Gerber Guaranteed Acceptance.
What is the John Hancock Vitality Program?
The Vitality Program is science and technology-based that encourages policyholders to live healthy lives. The insured can earn rewards and use program benefits.
What is the John Hancock Life Insurance Phone Number?
To reach the John Hancock customer service representatives, dial 1-800-732-5543.
Final Thoughts On John Hancock Funeral Insurance
a. This John Hancock final expense review showed there are much better plan options on the market. It is an overpriced guaranteed issue plan and should be avoided.
b. There may be no need for the applicant to apply for a guaranteed acceptance plan. These policies are marketed to everyone as an easy coverage option, but in reality, these plans may not be needed.
c. This carrier has a solid financial rating and can be trusted to pay out their claims promptly.
Stacie manages the content for Willamette Life by keeping it up to date and accurate. By taking the questions frequently asked by clients she has been able to assist in developing a series of blogs that will hopefully be able to help more people than just those we are able to speak with.
We would be happy to answer your specific questions if there is anything we haven’t covered yet.