Category: John Hancock life

John Hancock’s High Performance Protection UL

by

July 28, 2016

5:55 PM

Leave a comment on John Hancock’s High Performance Protection UL

2016, current assumption UL or CAUL, John Hancock Life Insurance Company, universal life insurance


John Hancock recently sent out to life insurance agents and brokers an impressive comparison of its “Protection UL”, Universal Life product crediting rates compared eight other carriers, as well as a comparison of those rates 5 years ago.  Protection UL, a current assumption UL or CAUL, is currently crediting 5.05%.  The other carriers were much lower: two in the low 4% range, two the low 3% range and four carriers are at 3.00%. Back in 2011 John Hancock was crediting “Protection UL” at 5.20%.  Three carriers back then were in the 5% range; the fall off to current levels of all eight competing carriers since 2011 has been significant.  The continued narrative to justify these low rates and ongoing decreases has been the interest rate environment.  John Hancock uses the performance of its institutional investments to enable a better outcome.

The Castle Geyser, Upper Geyser Park, 1874, Thomas Moran, source Wikemedia Commons

 

Yet in evaluating cash value accumulation and policy values besides crediting rates there is cost of insurance (COI) to consider.  That’s harder to track, but this very useful article takes to task Banner/William Penn, AXA, Transamerica and Voya Financial for their huge rate hikes to COI in 2015.  Was that necessary?  John Hancock had better priorities.

Carriers clearly have other options, which protect rather than harm consumers. John Hancock, for instance, took a huge write-down in 2008-2009 that affected shareholders rather than clients. And since then, the company has been a prolific innovator of products and services that manage both interest and mortality risk. The latest example: John Hancock’s “Protection” series of policies, which offers a reduction of COI charges. This approach shows carriers can succeed by putting their clients’ needs above shareholder interests when necessary.

Having been so convinced, I made John Hancock’s “Protection UL” my recommended UL product.  There remains a lingering concern about the challenges to their long-term care insurance policy performance.

Keep in mind COI is a vital component to cash value accumulation for Indexed Universal Life (IUL) as well.  It’s much harder for agents and consumers to follow the trail of a company’s track record for cost of insurance charges, but it’s of a vital importance when choosing a UL or IUL, any products with non-guaranteed elements.

 

 

Sean Drummey

Best Life Insurance for Other Nicotine Products

by

May 22, 2013

10:13 AM

Comments Off on Best Life Insurance for Other Nicotine Products

Cigar, e-cigarettes, electronic cigarettes, John Hancock Life Insurance Company, nicotine gum, nicotine patch, pipe, Pruco Life Ins. Co., Prudential life insurance, smokeless tobacco users, Tobacco Users


Prudential has the best life insurance rates for those who use cigars, pipes, chewing tobacco, electronic cigarettes, nicotine patches or nicotine gum.  If the applicant has not used cigarettes in the last 12 months, and admits on the application the use of a tobacco or nicotine product, “Non Smoker Plus” rates are available.  That rate classification, generally called standard plus, is only rate class above the preferred non tobacco rate.  John Hancock allows their Standard Nonsmoker rate for non cigarette users in the last 12 months, smokeless tobacco or other nicotine product users, but e-cigarettes are not included in that category.

What separates Prudential and John Hancock out from the competition is that the applicant can test positive for nicotine on the paramed exam and still qualify for the non tobacco rate.  Some carriers allow an occasional use of a non cigarette tobacco product, but the nicotine test result must be negative.  For occasional cigar use with a negative paramed test result, several carriers allow preferred best rates.

e-cigarettes

Electronic Cigarettes:  The Early Days

The FDA in an advisory has come out against electronic cigarettes.  A non smoker rights website believes e-cigarettes are not a safe alternative and has a useful compiler of news articles.  For some e-cigarettes may be a legitimate avenue to quit smoking cigarettes.  The ins and outs of the health issues won’t deter some from cashing in on its strong market potential.  The downside potential is that “vaping” will suck in some young or not so young people down the rabbit hole of abuse or addiction and use these devices as starter or bridge drug or favored delivery method for an alternate drug.

Please contact me for a free confidential quote.

sean's profile picLicensed Agent:  Sean Drummey
phone: (910) 328-0447
email:  spdrummey@gmail.com

Prudential to offer an Indexed Universal Life (IUL)

by

April 13, 2012

4:05 PM

Leave a comment on Prudential to offer an Indexed Universal Life (IUL)

1 year point-to-point, Cap, Cap Rate, crediting strategy, Index Cap Rate, Index Selections, Indexed Universal Life, John Hancock life, John Hancock Life Insurance Company, Prudential life insurance, S&P 500

Prudential starting in May will offer their first Indexed Universal Life (IUL) called PruLife® Index Advantage UL.  The indexed account will be S&P 500® Index with annual point-to-point crediting.  That’s a very basic design and similar to another late entry to the Indexed UL market John Hancock. Prudential  intends to be competitive in premiums and cash value accumulation.  They are already very competitive in premiums for guaranteed universal life and survivor universal life.

It’s important to judge which Indexed Universal Life carrier is best for the long haul.  Prudential indicates they are more going for superior overall design rather than focusing on a high cap rate. The highest cap rate doesn’t necessarily mean the best performing product.  Cost of insurance and the internal rate of return are something to review even more closely.

Indexed Universal Life (IUL) switching between variable and standard loans

by

February 28, 2012

1:57 PM

Leave a comment on Indexed Universal Life (IUL) switching between variable and standard loans

Index Loans, Indexed Universal Life, John Hancock life, John Hancock Life Insurance Company, Standard Loans

When selecting an Indexed Universal Life (IUL) for retirement income the loan rules are crucial. John Hancock this February announced a significant change in their loan features.  Policy holders are now allowed to switch between their “Index” loan, which is a variable loan, and the standard loan once per year on the policy anniversary.  Prior to that once a loan option was selected, the loan option could not be changed while any outstanding debt remains.

North American has a similar feature, although it’s much more flexible.  North American allows loans to switch between variable and standard interest rate at any time without a cash payoff.

An escalating variable loan rate could choke off and cripple an Indexed UL designed for retirement income.  North American has recently capped their variable rate at 6%.  In contrast many carriers, including John Hancock, the variable rate is uncapped.  Many carriers base their variable rate on Moody’s Corporate Bond Yield Average.   Historical rates for this bond yield have fluctuated considerably, and it’s quite possible they will do so again over the coming decades.

It’s favorable news that John Hancock has changed their rules on switching from variable to standard loan accounts without a payoff.   Standard loans do not tend to perform very well in the illustrations I’ve run with the exception of Lincoln.   North American has a far superior competitive edge with the variable loan rate capped at 6%.

A healthy lifestyle gets better rates for John Hancock life insurance

by

February 22, 2012

4:13 AM

Leave a comment on A healthy lifestyle gets better rates for John Hancock life insurance

John Hancock life, John Hancock Life Insurance Company, Longevity

30 minutes of exercise a day. 16 hours a day awake. 1/2 hour a day of vigorous exercise for health and longevity.

The American Heart Association guidelines are 30 minutes a day of exercise 5 days a week.  John Hancock’s HealthStyles Program credits regular exercise, along with other factors, for better life insurance rates.  This can be helpful if a parent died from heart disease or cancer prior to age 60 to allow their super preferred rate and in many other situations to improve health rate classification and save lots of money.

Annual check-ups and regular screening test are part of John Hancock’s program.   Annual blood tests identify health problems, and the earlier a problem is identified the better.  I wish I had done this for my children over the last year.  My 12 year old son was diagnosed with type 1 diabetes this month, and the months before his diagnosis were progressively harder on him physically and psychologically.  Nothing would have changed the diagnosis, but a routine annual physical sometime last year may have spared him that ordeal which was occurring right before our eyes but unidentified.