Speak with an experienced advisor! Figuring out the best company for your final expense life insurance options can seem overwhelming.
But what if I told you… almost all final expense products work the same and that once you figure out the formula, you might find that final expense life insurance through John Hancock might not be the best option.
In this article, we’ll cover:
- How all final expense policies work
- Why John Hancock final expense might not be the best option
- A more affordable company for final expense life insurance.
Quick Navigation
What is Final Expense Life Insurance?
How Does John Hancock Final Expense Work?
A Better Alternative to John Hancock
Final Expense Rate Chart
How to Find the Best Final Expense Life Insurance
What is Final Expense Life Insurance?
Final expense life insurance is a type of whole life insurance policy that is offered to people usually between the ages of 50 to 85. Payments and coverage remain level for the rest of your life.
With final expense life insurance, coverage amounts will usually only go up to $25,000 which is generally enough to cover a funeral and a few remaining final expenses.
John Hancock offers a type of final expense policy called “Guaranteed Issue” life insurance where there are no medical questions asked and everyone qualifies.
Who Needs a “Guaranteed Issue” Final Expense Policy?
The reason someone would need a guaranteed issue final expense policy is that they can’t qualify for traditional life insurance due to their current medical situation.
If you’re in good health, you likely don’t need a guaranteed issue final expense life insurance policy. You can likely qualify for a traditional final expense policy that is much more affordable and doesn’t have a 2-year waiting period to receive benefits (we’ll go more into this below).
How Does John Hancock Final Expense Work?
John Hancock is an A-rated insurance carrier based on their financial stability, this rating is given by AM Best.
John Hancock has been around for over 150 years and below is a quick layout of how their final expense product works.
It Is A Guaranteed Level Whole Life Policy
Like most final expense policies, the John Hancock final expense product is a whole life product.
This means that your policy will last for your whole life as long as your monthly premiums are paid.
The guaranteed level part of the policy means that your premiums will never increase, and your coverage amounts will never decrease either, as long as the policy is active.
Guaranteed Issue with 2 Year Waiting Period
The John Hancock Final Expense product is a guaranteed issue product, this means that you are guaranteed your approval without any medical exams or health questions.
However, this policy will come with a 2-year waiting period before death benefits payout.
If you pass away by accident during the first 2 policy years, the policy will pay out 100%.
But, if your death is caused by anything else, the policy will only pay out 110% of the premiums paid into the policy.
If you pass away after the first 2 policy years, the policy will pay out 100%.
For example:
You purchase a policy with a benefit of $10,000 for $50.00 per month. If you pass away 8 months after your policy is purchased, your beneficiaries will receive $440.00 as a benefit payout.
This would have been $50 per month, times 8 months at a 110% return.
If you pass away by accident during the first 2 policy years, your beneficiaries will receive the full $10,000 benefit payout.
If you pass away after the first 2 years of the policy, your beneficiaries will receive the full $10,000 benefit payout.
No Major Differences from Competitors
John Hancock doesn’t offer any significant differences in their final expense policy from other life insurance companies except pricing and the age ranges they will cover.
When it comes to pricing, there are several companies with just as good of a reputation and financial stability that have a lower monthly premium.
For whole life insurance policies, just a $5.00 difference in premium can save you thousands of dollars over your lifetime.
Below we discuss a better alternative for your guaranteed issue final expense needs.
Why AIG is a Better Alternative to John Hancock Final Expense Insurance
AIG is also an A-rated insurance carrier based on their financial stability according to AM Best.
AIG has been around for over 100 years and below is a quick layout of how their product works.
Same Guaranteed Issue Product (2 Year Waiting Period)
The AIG final expense product is guaranteed issue as well so you don’t need to worry about an exam or health questions.
You also get a guaranteed level policy where the premiums can never increase, and the coverage amounts will never decrease.
Basically, AIG works precisely like the John Hancock final expense product, but it also covers people up to age 85.
Same Death Benefit Payout
Just like with the John Hancock policy, if you pass away during the first 2 policy years due to an accident, 100% of the death benefit will pay out.
However, if you pass away during the first two years from any other cause, the policy will only pay out 110% of the premiums paid into the policy.
If you pass away after the first two policy years, the policy will pay 100% of the death benefit.
Much Lower Rates
Outside of being able to cover people over the age of 85, this policy also has lower rates.
When it comes to shopping, if we find 2 products that work the exact same way, it’s obviously best to choose the most affordable option. The same should be true about life insurance, and AIG is the most affordable option between the two companies.
Another great feature that AIG offers is that it only takes a few minutes to complete the application process and you can have coverage in 1 day.
If you are between the ages of 50 to 85, your approval is guaranteed, and you can get coverage amounts ranging from $5,000 up to $25,000.
The worst thing to do is to get stuck in a policy that is more expensive on a monthly basis but has the exact same benefits.
AIG vs. John Hancock Final Expense Rate Chart
We put together a quick sample rate chart below to help you understand the price differences between the John Hancock final expense and the AIG guaranteed issue products.
Sample Rates For Women
Below are the sample monthly premiums for women. This is for final expense policies with $5,000 and $10,000 in coverage from both AIG & John Hancock at different ages.
Note: Coverage amounts can range from $2,000 to $25,000 or more. Use our quote tool to see more rates.
| Coverage | $5,000 John Hancock | $5,000 AIG | $10,000 John Hancock | $10,000 AIG |
| Age 60 | $30.00 | $26.00 | $59.00 | $50.00 |
| Age 65 | $38.00 | $32.00 | $74.00 | $62.00 |
| Age 70 | $49.00 | $38.00 | $95.00 | $75.00 |
| Age 75 | $65.00 | $55.00 | $129.00 | $107.00 |
Sample Rates For Men
Below are the sample monthly premiums for men with the same coverage amounts.
| Coverage | $5,000 John Hancock | $5,000 AIG | $10,000 John Hancock | $10,000 AIG |
| Age 60 | $42.00 | $33.00 | $82.00 | $63.00 |
| Age 65 | $53.00 | $43.00 | $105.00 | $84.00 |
| Age 70 | $68.00 | $50.00 | $135.00 | $98.00 |
| Age 75 | $88.00 | $70.00 | $175.00 | $139.00 |
How to Find the Best Final Expense Life Insurance
We aren’t saying that John Hancock isn’t a great company; however, there isn’t any reason to pay a much higher monthly premium for the exact same product.
Simply put, when it comes to John Hancock’s final expense life insurance, there are better options.
We have been offering our customers final expense products for years, and we can help guide you through this entire process while comparing different companies to find the best rates.
And guess what… Our service is free of charge to you.
Give us a call, and we can get you set-up with the best final expense product for the most affordable price with immediate coverage.
