Hancock - Life Insurance
Hancock - Mission, Values, & Ethics
The mission of John Hancock is to be the highest quality
financial services Company. John Hancock offer a broad range
of insurance and financial products and services nationally
and internationally to meet the needs of their customers and
provide John Hancock customers with the highest quality service.
John Hancock maintain superior financial strength, offering
those products and services that provide attractive rates
of return, competitive product value and expectations for
growth. John Hancock offer challenging career opportunities
and personal development for all associates, enable all associates
to contribute to their fullest potential and promote open
cooperative relationships among all associates, customers
and the public. In all that John Hancock do, they exemplify
the highest standards of business ethics and personal integrity,
and recognize their corporate obligation to the social and
economic well-being of our community.
Customers are the reason John Hancock are in business.
In order to establish lasting relationships, John Hancock
provide the best customer service in the financial industry.
John Hancock care about the dignity of each person in this
organization. In order to be successful, they treat others
with the same respect we seek for ourselves.
order to exemplify the highest standards of business ethics,
John Hancock conduct the Company's affairs in strict compliance
with both the letter and the spirit of the law, and will at
all times treat policyholders, customers, suppliers, and all
others with whom the Company does business fairly and honorably.
Recognizing that their reputation of unquestioned integrity
and honesty is John Hancock's most valued asset, under no
circumstances will what they achieve be allowed to take precedence
over how John Hancock achieve it.
John Hancock Life Insurance - LEARNING THE BASICS
best way to make an informed decision about buying life insurance
is to become familiar with the basics.
do I need life insurance?
insurance is an essential part of financial planning. One
reason most people buy life insurance is to replace income
that would be lost with the death of a wage earner. The cash
provided by life insurance also can help ensure that your
dependents are not burdened with significant debt when you
die. Life insurance proceeds could mean your dependents won't
have to sell assets to pay outstanding bills or taxes. An
important feature of life insurance is that there is no federal
income tax on proceeds paid to beneficiaries.
much life insurance do I need?
buying life insurance, you should assemble personal financial
information and review your family's needs. There are a number
of factors to consider when determining how much protection
you should have. These include:
immediate needs at the time of death, such as final illness
expenses, burial costs and estate taxes;
for a re-adjustment period, to finance a move or to provide
time for family members to find a job; and
financial needs, such as monthly bills and expenses, daycare
costs, college tuition or retirement.
there is no substitute for a careful evaluation of the amount
of coverage needed to meet your needs, one rule of thumb is
to buy life insurance that is equal to five to seven times
your annual gross income.
is term insurance?
insurance provides protection for a specific period of time.
It pays a benefit only if you die during the term. Some term
insurance policies can be renewed when you reach the end of
a specific period which can be from one to 20 years. The premium
rates increase at each renewal date. Many policies require
that evidence of insurability be furnished at renewal for
you to qualify for the lowest available rates.
is permanent insurance?
insurance provides lifelong protection and is known by a variety
of names, described later. As long as you pay the necessary
premiums, the death benefit will always be there. These policies
are designed and priced for you to keep over a long period
of time. If you don't intend to keep the policy for the long
term, it could be the wrong type of insurance for you.
permanent policies -- including whole, ordinary, universal,
adjustable and variable life -- have a feature known as "cash
value" or "cash surrender value." This feature,
which is not found in most term insurance policies, provides
you with some options:
can cancel or "surrender" the policy -- in total
or in part -- and receive the cash value as a lump sum
of money. If you surrender your policy in the early years,
there may be little or no cash value.
you need to stop paying premiums, you can use the cash
value to continue your current insurance protection for
a specific period of time or to provide a lesser amount
of protection to cover you for as long as you live.
you may borrow from the insurance company, using the cash
value in your life insurance as collateral. Unlike loans
from most financial institutions, the loan is not dependent
on credit checks or other restrictions. You ultimately
must repay any loan with interest or your beneficiaries
will receive a reduced death benefit.
cash values of many life insurance policies may be affected
by your company's future experience, including mortality rates,
expenses and investment earnings.
in mind that with all types of permanent policies, the cash
value of a policy is different from the policy face amount.
Cash value is the amount available when you surrender a policy
before its maturity or your death. The face amount is the
money that will be paid at death or at policy maturity.
are the types of permanent insurance?
are many different types of permanent insurance. The major
ones are described below:
Life or Ordinary Life
is the most common type of permanent insurance. The premiums
for a whole life policy must be paid periodically in the amount
indicated in the policy. These premium amounts generally remain
constant over the life of the policy.
Life or Adjustable Life
variety of permanent insurance allows you, after your initial
payment, to pay premiums at any time, in virtually any amount,
subject to certain minimums and maximums. You also can reduce
the amount of the death benefit more easily than under a traditional
whole life policy. (To increase your death benefit, you usually
will be required to furnish the insurance company with satisfactory
evidence of your continued good health.)
type of permanent policy provides death benefits and cash
values that vary with the performance of an underlying portfolio
of investments. You can choose to allocate your premiums among
a variety of investments which offer varying degrees of risk
and reward -- stocks, bonds, combinations of both, or accounts
that provide for guarantees of interest and principal. You
will receive a prospectus in conjunction with the sale of
a variable product.
cash value of a variable life policy is not guaranteed, and
the policyholder bears that risk. However, by choosing among
the available fund options, the policyholder can create an
asset allocation that meets his or her objectives and risk
tolerance. Good investment performance will lead to higher
cash values and death benefits.
policies guarantee that death benefits cannot fall below a
minimum level. There are both universal life and whole life
versions of variable life.
are the advantages and disadvantages of term and permanent
premiums are generally lower than those for permanent
insurance, allowing you to buy higher levels of coverage
at a younger age when the need for protection often is
good for covering specific needs that will disappear in
time, such as mortgages or car loans.
increase as you grow older.
may terminate at the end of the term or may become too
expensive to continue.
the policy doesn't offer cash value or paid-up insurance.
long as the necessary premiums are paid, protection is
guaranteed for your entire life.
costs can be fixed or flexible to meet personal financial
accumulates a cash value that you can borrow against.
(Loans must be paid back with interest or your beneficiaries
will receive a reduced death benefit.) You can borrow
against the policy's cash value to provide paid-up insurance.
policy's cash value can be surrendered -- in total or
in part -- for cash or converted into an annuity. (An
annuity is an insurance product that provides an income
for a person's lifetime or for a specific period of time.)
provision or "rider" can be added to a policy
that gives you the option to purchase additional insurance
without taking a medical exam or having to furnish evidence
premium levels may make it hard to buy enough protection.
may be more costly than term insurance if you don't keep
it long enough.