John Hancock's Term Life Insurance Portfolio
The John Hancock Term life insurance product portfolio consists of 10, 15 and 20 yr. term periods. The minimum face amount is $750,000 with a minimum issue age of 18 and maximum issue age of 80. Available riders include Disability Waiver of Premium, Accelerated Death Benefit Rider and Conversion Extension Rider.
John Hancock term life insurance policies are convertible to any permanent product available through the 10th policy year or attained age 70, whichever occurs first. The Conversion Extension Rider is available on the 15 and 20 yr. term policies and extends the conversion period to the full level term period or attained age 75, whichever occurs first. The Conversion Extension Rider requires an additional charge that will vary by issue age, face amount, term period and gender. The Conversion Extension Rider terminates at the end of the level term period or at age 75.
Conversion of a single life term insurance policy may be convertible to a survivorship policy (a policy that insures two people and pays a benefit on the death of the second insured). The face amount of the new survivorship policy can be up to twice the original face amount of the term policy contract subject to underwriting and retention limits. Underwriting is only required on the life not previously covered under the original term policy. The second life must be an insurable risk.
Face amount increases are not permitted, however, face amount decreases up to 50% of the original face amount as long as the remaining face amount meets the minimum $750,000 policy size is allowable during years 4 – 6. Beginning in year 7; any reduction amount is allowable subject to maintaining the minimum $750,000 policy size.
Policyholders may take advantage of the liberal face amount reduction guidelines if their needs reduce over time due to changes reducing the total need of life insurance protection. Premium payment changes due to face amount reductions will be based on the insured’s original issue age and rating class.
John Hancock has some niches that make their life insurance products competitive in some areas such as:
- Individuals above the age of 60 with diabetes who are treated with oral medication, with no complications of neuropathy, kidney disease or retinopathy may be eligible for a Preferred rating class. Individuals above age 50 meeting the same conditions may be eligible for a Standard Plus rating class.
- Individuals experiencing seizures can qualify for a Preferred rating if it has been over 3 years since the diagnosis of seizures with 3 or fewer seizures and no seizures in the past 12 months.
- Individuals treated with medication for high blood pressure may be eligible for a Preferred Plus rating class if the condition is well controlled.
About the author: Ken Buccico holds a LUTC designation and has been in the life insurance business for 39 years. His wealth of experience empowers clients to make best possible decision regarding a life insurance policy. To explore the best life insurance option, contact Ken at 1-800-651-1953 or KBuccico@Pivot.com.