If there was one company who embodied a long standing American history and a bold, noble name, it might that of John Hancock Financial, and it’s subsidiary, John Hancock Life. Even incorporating the famous signature of John Hancock in their logo, the company continues to represent trust, legacy and continuing to do what is right for its consumers.
So, how do they fair in the life insurance industry?
Our review of John Hancock Life Insurance Company will help you decide. Just remember, the totality of the company, their products, and their service are what make or break a carrier, since there are so many different life insurance companies to choose from. As we insist each time, make this company just one of many you inspect before applying.
Our John Hancock Life Insurance Company Review
The original name, John Hancock Mutual Life Insurance Company has been around in the insurance industry since 1862, making it one of the longest history’s of a life insurance company still doing business today. The name John Hancock, that of the man with the famous signature on the Declaration of Independence, remains one of the iconic symbols used by the company for marketing and trust building, namely in it’s logo.
John Hancock had a very stable history, with a long legacy in business under its original title and way of business, but changed at the turn of the millennium, transitioning its model to a demutualized one, where it would begin offering shares in the company on the open market. Anyone who was previously a policyholder was a part owner, however these same clients were given shares as it changed over.
While it would trade for a few short years on the NYSE under the ticker symbol of JHF, the company would eventually be acquired by Manulife Financial just 3 years later, and now trades under the Manulife ticker of MFC:CN. While the company John Hancock, as it had always been operated as, was disassembled, Manulife continues to use the same name for marketing and brand recognition.
John Hancock is licensed to do business in all 50 states, but operates under John Hancock Life Insurance Company of New York in the state of New York, where regulations are more strict. Their products are offered through independent agents and in-house employees alike.
John Hancock Financially
Up to date, John Hancock has greater than three and half million consumers who own a policy through them, with as much as $2B being paid out every year in death benefits and claims.
The company has remained strong over it’s 150 year course, and this has been confirmed by all four major credit rating agencies. With “A” or better rankings and scores from A.M. Best, Fitch, Moody’s, and Standard & Poor’s, it remains among the best of the best. It holds a Comdex score of 93, meaning it’s in the top 7% of all insurers nationwide. Not even many of the best rated life insurance companies will ever get this high of a score.
Here’s the breakdown:
- A.M. Best: A+
- Fitch: AA-
- Moody’s: A1
- S&P: AA-
While these ratings are not a guarantee any company will make good on their promises, it’s a strong indication.
Life Products Available from Hancock
There is a wide variety of products to choose from at John Hancock, including:
- Variable Universal
- Indexed Universal
Your traditional term life insurance products are for low cost, affordable coverage for short durations.
The permanent products are either fixed or tied in someway to the stock market. The universal and indexed universal are considered fixed, meaning there are some levels of guaranteed minimum interest, but the indexed has extra growth potential by tying portions of the cash value to market indices.
The variable life products are offered through registered representatives to consumers who are looking to more aggressively grow cash value inside of their life insurance for later access or policy growth. They use mutual funds, stocks and bonds in an effort to grow cash more aggressively in the long run, but come with their own level of risk.
John Hancock is also one of the top contenders for Long Term Care Insurance (LTCi), a growing necessity for the elderly which protects those from the financial burden of living in a senior aided facility, retirement home, or for at home assistance expenses.
Long term care insurance is a growing concern, especially with the ever changing state of our healthcare system. The financial burden of healthcare costs in the retirement years is a need many have, and a long term care policy is one way to hedge bets against debilitating diseases and end of life care.
Our Final Thoughts on John Hancock Life Insurance Company
Currently, John Hancock is not as competitive as it once way. In fact, they have taken on more on the investment side, and slowly decreased their efforts in the life insurance side of things, even going so far as to make deals with other companies like New York Life to offhand portions of their book of business.
Prices are likely better from other carriers, especially for term. As mentioned above, it’s just not a primary focus any longer, and better value can be found elsewhere for term, like Banner, Protective, Principal and Sagicor.
While they are still strong in the long term care market, it’s partly due to the fact they are more heavily focused on retirement, investment, and other more strictly financial planning aspects.
|Company Name (and Subsidiaries)||John Hancock Life Insurance Company|
John Hancock Life Insurance Company of New York
|Company Ratings||A.M. Best (A+)|
Moody’s Investors Services (A1)
Standard & Poor’s (AA-)
|Headquarters (Address, Phone, Web)||197 Clarendon Street|
Boston, MA 02116
|Policy Types Available||Term|