BOSTON, Feb. 12, 2018 /PRNewswire/ -- John Hancock
Insurance entered the critical illness market with an
innovative benefit that provides consumers with additional
financial protection when faced with a serious medical diagnosis,
such as a heart attack, cancer or stroke.
The Critical Illness Benefit rider is an optional feature that
consumers can add to a permanent life insurance policy. Statistics
point to a growing need for such a benefit. While nearly 40 percent
of people will be diagnosed with cancer sometime in their lifetime,
the number of people living beyond a cancer diagnosis reached
nearly 14.5 million in 2014 and is expected to rise to almost 19
million by 2024.2
What sets this rider apart from traditional offerings is the
lump-sum, income tax-free1 payment that is separate from
-- and in addition to -- the life insurance benefit. Policyholders
can use this payment for any purpose they choose, including
supplementing lost earnings, helping to pay for health care costs
not covered by insurance, and providing continued savings or
retirement contributions.
"The good news is that with improvements in medicine, the
survival rate for many once-fatal conditions has improved
dramatically," said Brooks Tingle, President and CEO of John
Hancock Insurance. "At the same time, those who survive face a
myriad of expenses that could significantly impact their long-term
financial plans. The new Critical Illness Benefit is designed to
help provide consumers in this situation with financial security
and peace of mind so the primary focus can be on their
recovery."
The Critical Illness Benefit provides a lump-sum of up to
$250,000 for policyholders ages 18-65
when they are diagnosed with one of seven conditions: heart attack,
stroke, cancer, coronary artery bypass grafting, major organ
failure, kidney failure or paralysis. Initially available on
John Hancock's Protection IUL and
Accumulation IUL products, the rider will be available on
additional single-life permanent products in the future.
This new offering is one of several innovative living benefit
riders available on John Hancock's
life insurance policies. Other optional living benefits include a
rider which allows policyholders to accelerate their death benefit
to help pay for long-term care expenses, and the John Hancock
Vitality program, which offers significant savings and rewards for
taking steps to live a healthy life.
The Critical Illness Benefit Rider provides a one-time lump sum
benefit if the insured experiences a covered critical illness and
meets the benefit eligibility requirements. There is a 30-day
waiting period that begins on the rider effective date. The benefit
will not be paid for critical illnesses initially diagnosed before
the rider effective date or during the waiting period. The
policyholder may elect 10% or 25% of the total face amount as the
critical illness benefit amount with a maximum benefit amount of
$250,000. The rider will terminate at
attained age 65 or 5 years after the issue date, whichever is
later. There is an additional cost for this rider. The rider is not
available in all states and state variations may apply.
This material does not constitute tax or legal advice and
neither John Hancock nor any of its
agents, employees, or registered representatives are in the
business of offering such advice. You should consult with your own
tax advisor.
Insurance policies and/or associated riders and features may not
be available in all states.
Insurance products are issued by: John Hancock Life Insurance
Company (U.S.A.), Boston, MA 02210 (not licensed in New York) and John Hancock Life Insurance
Company of New York, Valhalla, NY 10595. MLINY012918158
About John Hancock and
Manulife
John Hancock is a
division of Manulife Financial Corporation, a leading international
financial services group that helps people achieve their dreams and
aspirations by putting customers' needs first and providing the
right advice and solutions. We operate primarily as John Hancock in the
United States, and Manulife elsewhere. We provide financial
advice, insurance and wealth and asset management solutions for
individuals, groups and institutions. Assets under management and
administration by Manulife and its subsidiaries were over
$1.04 trillion (US$829.4 billion) as of December 31, 2017. Manulife Financial Corporation
trades as MFC on the TSX, NYSE, and PSE, and under 945 on the SEHK.
Manulife can be found at manulife.com.
One of the largest life insurers in the United States, John Hancock supports approximately 10.7 million
Americans with a broad range of financial products, including life
insurance, annuities, investments, 401(k) plans, and college
savings plans. We also offer advice through Signator, a network of
independent financial advisors. Additional information about
John Hancock may be found at
johnhancock.com.
1 John Hancock
anticipates that the Critical Illness Benefit paid under this rider
will generally be excludable from income under Internal Revenue
Code Section 104(a)(3). However, the benefit may not qualify for
this exclusion with certain third-party ownership arrangements.
2 National Cancer Institute. Cancer Statistics.
March 22, 2017.
https://www.cancer.gov/about-cancer/understanding/statistics
PR-2018-10
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SOURCE John Hancock Insurance