Sitting is the new smoking. Your well being is of utmost importance, and insurance companies are innovating how they cover individual health. The popularity of processed foods is increasing, so fighting for your health is harder than ever. A new program to reward your healthy lifestyle is the future of insurance.
The Crossover to Modern Underwriting
When you apply for life insurance, an underwriter evaluates and analyzes the risk of insuring you and your assets. These are the professionals that ultimately establish a price for coverage. Most commonly, the application for life insurance is a basic health check and provides narrow insight to your overall wellbeing. The company will test your blood, note your height and weight, review your medical records and measure blood pressure. From there, they will place you in a risk category that carries through the next 10, 20, or 30 years or the rest of your life. Therefore, your “risk” to the company is established at a point in time: fixed, not variable. Someone can be a TB12 follower and doing all the right things for their health today, qualify for the companies best rates, but over time lose enthusiasm and make more trips to Costco than the gym. Here is a secret, insurance companies and their actuaries know this so even their super preferred rates need to price in the percentage of healthy people that won’t stay that way. So if you are committed to your health and continue that into the future it is possible you will be overpaying for your insurance.
On the other hand a less healthy individual may be tested and placed in a high risk category, but 2 years later decide to work out and eat healthy. If he or she were reassessed after 2 years, the risk valuation would be much lower, leading to lower prices. One company is shifting their outlook on life insurance, moving toward a variable wellbeing model.
John Hancock Vitality
John Hancock insurance has just become a lot more promising thanks to their new Vitality program. Their new initiative gives you all the traditional benefits to a life insurance policy plus additional savings and rewards. After your policy is issued, John Hancock will give you a Fitbit or an Apple watch for just $25 to keep track of your health and activity and prompt you to take a Vitality Health Review online to see how your health compares to those of the same age. You will get personal health goals for the year, simple tips to help you achieve your goal, and tools such as a health portal linked to your Apple watch that keeps track your progress. Keeping up with healthy habits such as walking, exercise, regular check-ups, and buying healthy foods will earn you points in the Vitality system. The more you do, the more Vitality points you will earn. This translates to a higher status and savings on your premium up to 15 %. Your progression through Vitality can earn you discounts and rewards with partner companies: Amazon, Starbucks, Hyatt, iTunes, REI, Royal Caribbean International and more.
The variable model—the healthier you are, the more you are rewarded—is designed to benefit those who already live a healthy lifestyle and encourage those who want to be healthy, but need more incentive. John Hancock’s Vitality not only promotes the wellbeing of its clients, but also provides savings for engaging in their policy.
M3 as an Advocate
Our purpose at M3 is to look after your wellbeing.
Part of your financial plan should include a solid foundation of insurance to protect you and the people you care about from financial devastation in the event you become sick or injured and can not work, or die. Our online goals program and M3 Command Center provide a digital portal to help calculate your life insurance needs, so you have the peace of mind of knowing you and your family are protected.
We believe it should not stop at finance, but extend to a physical dimension. We are confident in our ability to provide each member of our services with absolute satisfaction. From financial growth to tax planning to insurance, we realize the importance of maintaining a state-of-the-art business that caters to all of your needs. As new programs and ideas circulate, our innovative and reactive culture strives to incorporate the best services that are suitable for you and your family. That being said, M3 sees great value in a new insurance-incentivizing agenda. This is yet another direction we may go to protect your wellbeing. To learn more about life insurance options customized for your goals and lifestyle click here to request information.