Senior consumers are very sensible when they purchase final expense insurance or burial insurance. They think of family and do not want their loved ones to be burdened by large funeral burial expenses. Burial and final expense insurance is not something purchased on a whim. In this article, we will review John Hancock Final Expense Life Insurance.
Frankly, final expense insurance is an integral part of financial planning. It is as critical as having a simple will or a living will. Funerals and all the costs incurred can take thousands of dollars from an estate. Beneficiaries of final expense insurance may need the money for college tuition or other expenses. The insurance policy safeguards what a person leaves behind.
How Can You Find the Best Final Expense Coverage?
We believe a senior citizen should be a smart shopper. Insurance companies that sell burial insurance products heavily rely on advertising. An older adult can be easily swayed by a celebrity spokesperson or a hard-sell marketing campaign. It is essential to ignore the glitter and look behind the curtain. You might be paying more for a burial policy that another company will offer for a much lower premium.
You should receive what you are paying for with the policy. John Hancock’s financial ratings permit it to charge a higher premium due to its solvency. You will be spending a little bit more on John Hancock’s final expense insurance policy.
Understanding that the benefit should justify the cost, we ask that you take a close look at the John Hancock Final Expense Insurance with Guaranteed Acceptance. It is the policy a person will purchase if they are shopping for burial insurance.
John Hancock Company Background
John Hancock, without question, is one of the leaders in the final expense insurance industry. It has an A.M. Best rating of A+, a Moody’s Investors Service rating of A1, and an AA S&P Global Rating.
John Hancock is financially sound and can pay any claim an insured will submit. It is well-known for integrity and does not need to rely on a hard-sell marketing campaign to promote its product. John Hancock is a good burial insurance company.
John Hancock Insurance Ratings
- M Best Company: A+
- DBRS Limited: AA
- Fitch Ratings Inc: AA-
- Moody’s Investors Service Inc: A1
- S&P Global Ratings: AA-
How Does John Hancock Final Expense Work?
A guaranteed acceptance final expense policy is a product that many insurance companies offer. Essentially, you’re not required to answer any health condition questions, and John Hancock will not pry into your lifestyle. This is something that anyone in their golden years would appreciate.
Once you start paying premiums, 24 months must pass before a claim can be submitted for payment. If you died before that waiting period expires, John Hancock final expense life insurance would return the paid premium with a 10% interest on those premiums paid.
Medical conditions that could disqualify them for a policy simply are not there. Your lifestyle is your own business, and John Hancock has no desire to know about it. We know that there are people who may be shy about any policy that requires providing information on medical conditions. Someone in poor health does not want to share that data, knowing that it might lead to being disqualified or a higher premium.
Features of John Hancock’s Final Expense Policy
John Hancock final expense is a whole policy. There are some features to the whole life insurance policy that make this product attractive.
- The coverage will not decrease. You’re not buying a $20,000 policy to see it drop to $15,000 as you get older.
- Premiums are set. The amount of premium you pay at the beginning remains the same until the end. There is no increase in premium costs.
- A policy will not expire. There are term insurance policies that will expire when the insured reaches a certain age. That ordinarily is around 90 years old, but insurance companies require a term policy to end at age 80.
This information can help you shop a little bit better. Term policies charge less in premiums, but there is no chance of reimbursement of premiums when you die. A term policy is set for a given period, and the premiums might increase depending on the insurance company. It might be to your advantage to have a burial insurance policy that is a whole life insurance policy, despite costing you a little bit more.
John Hancock whole life insurance is not available in Florida, Pennsylvania, or New York. The face amount ranges up to $20,000, and you can purchase the guaranteed acceptance final expense policy if you happen to be between 60 and 80 years old. This whole life final expense insurance policy is not available to purchase if you are 81 or older.
Is John Hancock Final Expense Insurance with Guaranteed Acceptance A Good Option?
John Hancock final expense life insurance with guaranteed acceptance has a standard 24-month waiting period. When looking at waiting periods in general, any insurance company asking for three years or more waiting period is taking your cash, pure and simple.
We are saying that the John Hancock 24 month waiting period has a risk inherent in it. Your beneficiaries might get anything more than return to premiums and the 10% interest on them.
We are not casting shade on John Hancock. This is a reputable company with solid financial stability. We suggest that there are reasons that you should think carefully before signing on the dotted line and pay the premium. The John Hancock final expense product might not be worthwhile for two essential reasons.
- You Might Not Need the John Hancock Policy: There are not just a few insurance companies in America; there are hundreds! The insurance industry is highly competitive, and insurance companies want your business. John Hancock is not the only company that offers a guaranteed acceptance final expense insurance product. Other companies offer the same benefits, but offer them at a lower price than John Hancock. If you can find an insurer offering the same product at a lower price, why not go with that company? It only makes sense to buy a better bargain.
- Why Even Have a Guaranteed Acceptance Policy? John Hancock final expense life insurance has a 24-month waiting period, a requirement to provide information on your medical condition, and you are asked to pay a high premium. Pardon us for asking, why do you need this type of insurance?
- You Don’t Have Specified Health Conditions: Anyone who does not have heart conditions, cancer, or other medical condition specified in the John Hancock questionnaire can look at the waiting period as an inconvenience but nothing more than that. Nevertheless, that same person is paying for someone who is not healthy. A guaranteed acceptance final expense policy charges the high premium to mitigate risk. A healthy person is not much of a risk and will probably live well beyond the waiting period. Then, why bother with the waiting period and take a policy that costs more?
Price Quotes for John Hancock Final Expense Policy
You can compare the price quotes under different categories in these tables.
How to Apply for John Hancock
For fast approval, prefer working with a licensed agent when applying for John Hancock final expense insurance. Being a guaranteed issue policy, it requires some demographic information, and you can receive online quotes after providing the required information.
But before you proceed, check out other options that may be better than John Hancock and available at a lower price.
Why Is AIG a Better Alternative to John Hancock Final Expense Insurance?
John Hancock final expense life insurance is a guaranteed issue policy with a two-year waiting period. But, that’s not new because all guaranteed issue plans, irrespective of the company, have this provision. The only difference exists in their monthly pricing that may vary from one carrier to another.
If you compare John Hancock with other leading providers like AIG, here is what you will find.
|AGE||$5,000 with John Hancock||$5,000 with AIG||$10,000 with John Hancock||$10,000 with AIG|
|AGE||$5,000 with John Hancock||$5,000 with AIG||$10,000 with John Hancock||$10,000 with AIG|
Frequently Asked Questions about John Hancock Final Expense
1. What Type of Coverage Will You Get?
John Hancock provides up to $20,000 in coverage with a limitation of 80 years.
2. Will the Policy Rates Increase or Coverage Reduce As You Get Older?
Irrespective of your age, the coverage and rates will remain the same.
3. Is There an Expiry Date for the Policy?
John Hancock final expense policy never expires if you make timely payments.
4. What Information Should You Provide When Applying?
John Hancock has a simple application process where you need your contact information, beneficiary’s name, preferred payment method, and the coverage amount.
5. How Can You Make Payments?
You can set up automated payments or pay by your credit card.
6. How Can the Beneficiaries Use the Policy Amount?
There is no restriction on how your beneficiary can use the funds. It may be spent on paying the funeral bills, debts, or medical costs.
Keep in mind, above quotes were taken in 2020 and are subject to change over time. John Hancock is a superior company, with great coverage, but you might be able to find more affordable coverage. Fill out the quoter on the right hand side of the page to find out for yourself.
Gary P. Cubeta