John Hancock with Vitality
Offering savings and rewards for healthy living
John Hancock Simple Term with Vitality Highlights, features and benefits
Vitality is the provider of the John Hancock Vitality Program in connection with policies issued by John Hancock.
LIFE-9407 4/20
Instant protection, cash back — and more!
Simple Term with Vitality 1 is the only life insurance product that combines an instant- decision 2 , a Return of Premium rider 3 offering cash back, and Vitality rewards for healthy living. Key highlights: • Instant underwriting decision • Face amounts ranging between $25,000 and $500,000 • 10-, 15-, 20-, 25-, 30-year term durations • Maximum issue age of 60 • Cash back with the Return of Premium (ROP) rider — refund of up to 75% of premiums paid during the level-term period (25- and 30-year durations) • Rewards through John Hancock's Vitality PLUS, which is included with every policy
Table of contents 3 simple steps
3 4 5 7 8
Protection and cash back with ROP
Vitality PLUS
Case study with Vitality PLUS
Product specifications
Frequently asked questions
10
Simple Term with Vitality
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3 simple steps
Get your clients the coverage they need in an instant decision
Go to JHSimpleTerm.com and click the "eApp" button to complete the electronic application
Submit the online application, which takes approximately 5-10 minutes to complete
Receive an instant decision
To access Vitality PLUS, clients go to JohnHancockVitality.com and register after their policy is issued. The policy package they receive will include detailed instructions on how to register for the John Hancock Vitality Program.
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Protection and cash back with the Return of Premium rider
Simple Term with Vitality is one of the only instant-decision life insurance products to offer coverage up to $500,000. With the optional ROP rider 3 , it offers clients the opportunity to earn cash value throughout the life of their policy — of up to 75% of premiums paid. Available on 25- and 30-year term durations, the ROP rider's cash value will grow from policy year four until the end of the level-term period, where it will provide up to 75% cash back of total premiums paid. And even if clients exit their policy before the end of the level-term period, they will still be eligible to receive a cash-back benefit.
How ROP works
Your clients choose a term duration of either 25 or 30 years (with the ROP rider), and pay a level premium throughout the entire term period
The policy earns cash value throughout the policy lifecycle, based on the premiums paid
The policy's death benefit passes to the client's beneficiaries , generally income- tax free 4
At the end of the term period, up to 75% of premiums will be returned
Clients who exit their policy before the end of the level-term period will still be eligible to receive a cash- back benefit
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• Up to 15% in premium cash back 5 each year for engaging in the program • The Apple Watch ® Series for as little as $25 6 by exercising regularly • A one-year Amazon Prime membership when your clients reach Platinum status three years in a row • A complimentary Fitbit ® device or another discounted fitness tracker like Garmin or Polar instead of the Apple Watch • Discounts of up to 25% at more than 350,000 eligible properties worldwide with Hotels.com 7 • Up to $600 in annual savings on fresh fruits and vegetables, with additional savings up to $120 a month on Healthy Savings weekly promoted items 8 • A HealthyMind™ benefit that rewards your clients for meditating as little as 10 minutes a day and for getting a good night’s sleep • A free subscription to Headspace ® , a top-rated meditation app with millions of users in more than 190 countries 9 • Entertainment and shopping rewards and discounts John Hancock's Vitality PLUS provides:
At John Hancock, we believe life insurance should help people live longer, healthier lives. That’s why we introduced John Hancock Vitality, a new kind of life insurance that rewards people for living healthy.
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How Vitality works It's easy for customers to achieve their healthy goals with John Hancock's Vitality PLUS. It starts with simple activities like taking the stairs instead of the elevator, choosing a healthy snack, or finding a few minutes to meditate each day. These small changes can make a big difference when it comes to overall health. Accumulate Vitality Points Your clients will earn Vitality Points for the everyday things they do to be healthy, like walking, exercising, or buying healthy food. Earn a Vitality Status Each year, the number of Vitality Points clients accumulate determines their Vitality Status (Bronze, Silver, Gold, or Platinum). Clients must accumulate 3,500 points to earn Silver status, 7,000 points to earn Gold status, and 10,000 points to earn Platinum status.
Get rewarded
Reward
Bronze status
Silver status
Gold status
Platinum status
Premium cash back 4
0%
Up to 5% per year up to 10% per year up to 15% per year
Apple Watch Series 5 or Series 3 * Complimentary Fitbit device * 12-Month Amazon Prime membership
N/A
N/A
N/A
**
Amazon.com Gift Cards 10 Fitness device discount * (Fitbit, Garmin, Polar) Healthy gear discounts (REI) 11
25% OR 40% 25% OR 40% 25% OR 40% 25% OR 40%
15% 10%
15% 10%
15% 10%
15% 10%
HealthyFood benefit 8
Hotels.com discounts 7 (On up 2 nights per program year)
10%
15%
20%
25%
Chooses 1 square per month
Choose 2 squares per month
Choose 4 squares per month
Choose 6 squares per month
Vitality Squares
up to $250 per year
up to $250 per year
up to $250 per year
up to $250 per year
Shopping and entertainment gift cards
Free subscription to Headspace Free subscription to Tufts Health & Nutrition Letter Free subscription to Live More magazine Free health check
year 1 only
year 1 only
year 1 only
year 1 only
*Clients can also get a complimentary Fitbit device instead of Apple Watch when they become a member. Or if they prefer a different wearable device, they can earn a 25%-40% discount on another style of Fitbit, Polar or Garmin. Discount based on device type. ** After earning Platinum status three years in a row
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Case study with Vitality PLUS
It's easy to save
Meet Linda, 35, a busy career mom, who wants her two young children to be financially protected in the event something happens to her. At the same time, she aspires to staying healthy so that
Linda's journey
Linda's policy is issued electronically within seconds .
she can enjoy life with her children for years to come. To help her achieve these goals, Linda purchased a 20-year Simple Term with Vitality policy, paying $46.30 a month for $250,000 of protection (or $555.60 annually). Linda’s cost vs. Vitality cash back & rewards Take a look at how much Linda could save through the Vitality PLUS premium-refund feature, rewards and discounts after a year of participating in the program.
Linda registers with Vitality online and chooses to earn an Apple Watch for an initial payment of $25.
She completes health-related activities like exercising, eating well and getting her annual flu shot.
Linda’s cash back, rewards & discounts
She saves
Received 15% premium cash back (by achieving Platinum Vitality status) 4
$83
Apple Watch Series 5 12
$186
Congratulations! After just six months, Linda reaches Platinum status.
Bought nutritious groceries throughout the year 8
$200
Received 25% off at Hotels.com 13
$180
Chose iTunes gift card through Vitality app (other options were Starbucks and Amazon)
She earns a premium cash back and rewards for the year ahead.
$5
$654
$556 Annual cost
Total potential savings
With her policy, Linda earned $83 in premium cash back as well as rewards and discounts through healthy living.
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Simple Term with Vitality specifications Features
Product design
Level premium for 10-, 15-, 20-, 25- and 30-year term durations
Ownership
Individual (non-entity) with insurable interest. No trust or corporation ownership allowed.
Issue ages
10-year 20 – 60
15-year 20 – 60
20-year 20 – 55
25-year 20 – 50
30-year
20 – 45 Renewability through age 94; must be a resident of the United States
Risk classes
Tobacco and Non-tobacco
Minimum face amount
$25,000
Maximum face amount
$500,000 (per life)
Payment frequency
Issued with monthly premium payments only*
Monthly policy fee
$7
Face amount increases
Face amount increases not permitted
Face amount decreases
Years 1–3 • No face amount reductions allowed during the first three policy years Years 4+ • Any reduction allowed, starting in year 4, as long as the remaining Face Amount is at least the contracted minimum face Amount of $25,000. Note: Decreases are processed only at the policy owner’s request. Provides a supplemental cash back benefit and provides a return of up to 75% of premiums paid during the level-term period. • Available at the time of policy issue and cannot be added post issue • Available for 25- and 30-year term durations • Rider premiums and benefits will cease after the level term period • Premiums must be paid through the year in which the percent of the ROP grading scale is greater than zero • The return-of-premium benefit will be offered in a grading scale, which scales to a maximum of 75% at the end of the level-term period • Rider rates will be based on the insured’s issue age, length of the level-term period, risk class, gender, and band
Return of Premium (ROP) rider
*Insureds can switch to annualized payments post issue
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Features (continued)
Vitality program (Also referred to as the Healthy Engagement Benefit)
Vitality is the provider of John Hancock's Vitality PLUS: • The Healthy Engagement Benefit determines the total premium refund received each year based upon the status achieved by the life insured, as shown below: Bronze: 0%, Silver: up to 5% , Gold: up to 10%, Platinum: up to 15% • The percentage will vary by issue age, gender and face amount. • There are four Vitality Status levels, here are the point caps for each level: Bronze 0 points, Silver 3,500 points, Gold 7,000 points and Platinum 10,000 points. The insured can earn a maximum of 18,000 points annually by engaging in the program. • The achievement of a status is dependent upon the life insured meeting the total number of points required for each status
• The discounts and rewards will be provided only to the life insured • The Vitality program will cease at the end of the term period
Accelerated benefit
Provides a “living benefit” if the insured is certified to be terminally ill with a life expectancy of one year or less. This provision allows the policy owner to receive 50% of the eligible death benefit. • Available to all issue ages • This benefit may be added at any time, regardless of current health, provided that the following conditions are met: – There must be a least one year remaining in the benefit period – The consent of the irrevocable beneficiary (if any) is required – The consent of the assignee (if any) is required • The death benefit is reduced by the rider benefit amount plus one year’s interest at current loan rates on the benefit paid, and an administrative-expense charge • Benefits may be taxable under current tax law. Policy owners should consult their personal tax advisors regarding the tax implications of benefits received under the accelerated benefit • There is no charge to elect this rider
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Frequently asked questions
What is Simple Term with Vitality?
• Simple Term with Vitality 1 is the only life insurance product that combines instant- decision 2 life insurance, a Return of Premium rider 3 offering cash back and Vitality rewards for healthy living. • Simple Term with Vitality offers exceptional value with a focus on providing a consumer-friendly experience This product is an ideal solution for consumers between ages 20 to 60 looking for up to $500K of cost-effective life insurance protection and who aspire to live healthier — or want to be rewarded for their healthy lifestyle. At John Hancock, we believe life insurance should help people live longer, healthier lives. That’s why we introduced John Hancock Vitality, a new kind of life insurance that rewards people for healthy living. Since our launch in 2015, John Hancock Vitality policyholders: • Took an average of 9,323 steps per day, 14 compared to 5,000 steps for the average American 15 • Completed over 412,000 total reward transactions, valued at over $2.8 million in rewards 14 The ROP rider is an optional feature that provides your clients cash back of up to 75% of premiums paid during the level-term period (available for 25- and 30-year durations). In fact, even if your clients exit their policy before the end of the level-term period (but after year four), the rider allows them to receive a cash-back benefit. Producers complete the application with each customer through the JHSimpleTerm.com website, which provides a premium-quoting tool and all relevant information. The entire process is digital and can be completed in minutes. Your clients receive an instant decision after the application is submitted: • You submit an electronic application consisting of pre-qualifying questions that take approximately 5-10 minutes to complete • Once you submit the application at JHSimpleTerm.com, the policy will be either approved or declined in a matter of seconds • If approved, the policy is delivered to the customer via email
Who is the ideal target customer for this product?
What is John Hancock's Vitality PLUS?
What is the Return of Premium rider?
How does the customer apply for Simple Term with Vitality? How quickly does the customer receive the policy?
Where do I go to quote a premium and access the application?
The JHSimpleTerm.com is a website that provides a premium-quote tool and access to a an electronic application (eApp).
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Frequently asked questions (continued)
How does the Vitality PLUS cash back reward work?
Your clients can earn premium cash back for healthy living. The total cash back amount is based upon the achieved status of the life insured, as shown below: • Bronze: 0%
• Silver: up to 5% • Gold: up to 10% • Platinum: up to 15%
How to earn the Apple Watch reward with Vitality PLUS
John Hancock is excited to offer Simple Term with Vitality policy owners the opportunity to earn Apple Watch Series 5 or Series 3. Here is a brief overview of how the program works: • When your clients earn 500 Vitality Points from Standard and Advanced Workouts each month, they pay nothing for their Apple Watch. Otherwise, their payments will be based on the watch they choose and the number of points they earn • There are two great options for your clients to choose from, the Apple Watch Series 5 with a 40 mm case or the Apple Watch Series 3 with a 38 mm case. Additional fees will apply if your clients choose upgraded watch features like GPS, cellular, case sizes, and certain bands and case materials • The more points they earn, the less they’ll pay for their Apple Watch. See the table below for detailed payment information
Series 5 (40 mm case)
Series 3 (38 mm case)
$15.50 $12.25 $7.00
$0
$7.25 $5.75 $3.25 $0
0 pts 240 pts 360 pts 500 pts
0 pts 240 pts 360 pts 500 pts
Note: Monthly charges vary based on the number of Vitality Points your clients earn and the Apple Watch model they choose (38mm or 40mm case size).
Can all Simple Term with Vitality customers get a new Apple Watch Series 5 or Series 3?
Yes. Both Apple Watch Series 5 and Series 3 are available.
How do my clients order an Apple Watch?
Once your clients have registered on our Vitality member website and completed the online Vitality Health Review (VHR), they will be given the option of choosing an Apple Watch, a complimentary Fitbit device, or a different discounted fitness tracker such as Garmin or Polar.
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Frequently asked questions (continued)
What is considered a Standard or Advanced Workout?
Your clients’ monthly Apple Watch payments will be based on the number of Standard or Advanced Workouts they complete each month. The chart below details the many ways they can accomplish this:
Standard workout (20 Vitality points)
Advanced workout (30 Vitality points)
Active calories burned using Apple Watch
Personalized between 200 – 1,250
Personalized between 300 – 1,875
Steps using any supported device
10,000
15,000
Minimum calories burned using an approved vitality device Minutes of exercise @ 60% of max heart rate
200
300
30
45
Verified gym visit
30 minutes
Not Applicable
Note: Points earned from Light Workouts cannot be applied towards Apple Watch payments. Clients can earn Vitality Points through their Active Calories found in the John Hancock Vitality app: click the More tab, and then select Health app . They can also use the number of steps tracked or calories burned on any other supported device, exercise with a heart rate monitor, or log a verified gym visit to receive credit for a Standard or Advanced workout. For even more ways your clients can earn Vitality Points, please refer to our Earn Vitality Points for Healthy Living flyer.
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Strength. Stability. John Hancock. John Hancock is among the highest-rated companies for financial strength and stability as demonstrated by it’s A+ rating from A.M. Best. * Financial strength ratings are a comprehensive measure of a company’s financial strength and stability and are important as they reflect a life insurance company’s ability to pay claims in the future. With over 155 years of experience, John Hancock offers clients a diverse range of insurance products and services through its extensive network of employees, agents, and distribution partners. For more information visit JHSimpleTerm.com.
* Second highest of 13 ratings (superior ability to meet ongoing insurance obligations). Financial strength rating is current as of March 31, 2020, is subject to change, and applies to John Hancock Life Insurance Company (U.S.A.) as a measure of the company’s financial ability to pay claims and to honor any guarantees provided by the contract and any applicable optional riders. The company has also received additional financial strength ratings from other rating agencies. Financial strength ratings are not an assessment, recommendation, or guarantee of specific products and their investment returns or value, do not apply to individual securities held in any portfolio or the practices of an insurance company, and do not apply to the safety and performance of separate accounts. 1. Insurance policies and/or associated riders and features may not be available in all states. Some riders may have additional fees and expenses associated with them. 2. Policy issuance is not guaranteed as any life insurance purchase is subject to completion of an application, including health questions, and underwriting approval. John Hancock may conduct a post-issue quality review to verify the accuracy of the information in the application received. This may include — but is not limited to — a request for medical records. A policy may be rescinded if the review of post-issue information reveals a material misrepresentation. 3. The Return of Premium (ROP) rider allows for a return of a portion of the premiums at the end of the level term period or earlier if the policy is terminated prior to that point. The ROP benefit will generally begin by year 4 and the percentage of premiums available to be returned increases gradually over the term duration to a maximum of 75% at the end of the level term period. The ROP Rider is only available for term durations 25 and 30. There is an additional cost for this rider. 4. Life insurance death benefit proceeds are generally excludable from the beneficiary’s gross income for income tax purposes. There are few exceptions such as when a life insurance policy has been transferred for valuable consideration. Comments on taxation are based on John Hancock’s understanding of current tax law, which is subject to change. No legal, tax or accounting advice can be given by John Hancock, its agents, employees or licensed agents. Prospective purchasers should consult their professional tax advisor for details. 5. Premium refunds for the Simple Term with Vitality is based on factors like underwriting, the terms of the policy, and the level of the insured’s participation in the John Hancock Vitality Program. 6. Apple Watch program is not available in New York or Puerto Rico. Apple Watches ordered through John Hancock Vitality may not be shipped to addresses in Guam. Once your clients become a Vitality PLUS member and complete the Vitality Health Review (VHR), they can order Apple Watch by electronically signing, at checkout, a Retail Installment Agreement with the Vitality Group, for the retail price of the watch. After an initial payment of $25 plus tax, over the next two years, monthly out-of-pocket payments are based on the number of Standard Workouts (10,000 to 14,999 steps) and Advanced Workouts (15,000 steps) completed or the applicable Active Calorie thresholds. The step counts required for Standard and Advanced Workouts are reduced for members beginning at age 71+. One-time upgrade fees plus taxes apply if your customers choose (GPS + Cellular) versions of Apple Watch, larger watch case sizes, certain bands and case materials. For more information, please visit JHSalesHub.com. Apple is not a participant in or sponsor of this promotion. Apple Watch is a registered trademark of Apple Inc. All rights reserved. 7. Hotels.com discounts are valid for two nights per program year. The amount of discount will vary based upon the coverage amount, and the Vitality Member’s Vitality status (Bronze, Silver, Gold, Platinum). 8. HealthyFood savings are based on qualifying purchases and may vary based on the terms of the John Hancock Vitality Program. The HealthyFood program is currently not available in Guam. 9. Based on internal data from Headspace.com, About Us, accessed from: https://www.headspace.com/about-us. 10. For Amazon.com Gift Cards, restrictions apply, see Amazon.com/GC-legal. 11. REI is not affiliated with the John Hancock Vitality Program. REI does not sponsor, endorse or have any responsibility for this promotion. 12. After an initiation fee, the balance of the cost of Apple Watch Series 5 (GPS) is spread out over 24 months. Stated savings for Apple Watch Series 5 (GPS) is based on a $15.50 monthly rate, paying $0 per month, which is a $186 savings in year one with potential for additional $186 savings in year two for a $372 total savings over two years. 13. Based on a two-night stay booked on hotels.com at hotel in Key West, FL (February 2019), room rate $359 per night, excluding applicable taxes. 14. Based on policyholder experience since inception in US, April 2015. 15. BusinessInsider.com, Here’s how much the average American walks every day, July 2015, accessed from: http://www.businessinsider.com/heres- howmuchtheaverage-american-walks-every-day-2015-7.13. For agent use only. Not for use with the public. Vitality is the provider of the John Hancock Vitality Program in connection with policies issued by John Hancock. John Hancock Vitality Program rewards and discounts are available only to the person insured under the eligible life insurance policy. Rewards and discounts are subject to change and are not guaranteed to remain the same for the life of the policy. Insurance products issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA 02116.
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Simple Term with Vitality
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