Prudential vs. John Hancock Life Insurance

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  • Prudential and John Hancock have both been in business for well over a century. Learn more about these two industry players to make an informed policy decision.

Purchasing a life insurance policy can be a complicated, confusing process if you go in unprepared. Although Prudential and John Hancock have both been selling insurance for well over a century, some consumers may find one company better suited to their unique needs than the other. By educating yourself about life insurance policies and the companies that sell them, including these two industry giants, you can become a more confident consumer and get the coverage you need to protect your family.

Prudential Life Insurance Summary

With a solid reputation and a stable financial standing, Prudential has sold insurance solutions to customers for more than 145 years and is currently the largest provider of life insurance policies in the United States, based on assets. The company offers term and permanent coverage, including several universal life insurance plans and options designed to support the needs of business owners.

One highlight of the company’s offerings is its SimplyTerm coverage, which provides affordable protection over a limited duration and may be purchased online using an automated system. These no-nonsense policies feature level payments and a death benefit that can be used for any purpose, and policyholders may convert their policies to permanent coverage during the contractual conversion period without undergoing a medical exam. On the other end of the coverage spectrum, Prudential's VUL protector provides permanent life insurance protection combined with the potential to grow cash value. Policyholders can choose from more than 60 investment options, and premium payments may be adjusted based on need. The company also offers several survivorship plans, which cover two people and pay out the death benefit only after both have died.

John Hancock Life Insurance Summary

With more than 160 years of experience in the life insurance industry, John Hancock offers customers a generous selection of innovative financial products and services. The company sells both term and permanent plans, with coverage ranging between $50,000 and $65 million or more, depending on the policy and the purchaser’s net worth. Coverage is available for seniors up to 90 years of age, and plans may be purchased on behalf of kids as young as 3 months old. The company's term policies can be purchased in 10- to 30-year durations.

John Hancock’s permanent coverage options include several types of universal policies, which can accommodate investors with varying risk tolerances. These plans offer flexible premium payments and cash value investment components, but the way they grow value differs. The company’s standard universal plans grow based on a credited interest rate, while its indexed universal plans accrue wealth based on a linked indexed account’s performance. John Hancock also offers a variable universal plan, which has a higher growth potential and lets investors choose from investment options with a range of risk profiles.

Prudential vs. John Hancock Life Insurance Comparison of Accessibility

Prudential makes it easy for life insurance shoppers to apply for basic term coverage through its SimplyTerm product. The company has a simple online quote system and an automated application process for qualified applicants who need less than $1 million of coverage. However, Prudential's universal policies, which are available to applicants through the age of 85, must be purchased through the company’s financial professionals. Additionally, although Prudential doesn’t offer guaranteed issue plans, younger applicants may not need to undergo a medical exam to be approved for term coverage.

John Hancock’s term policies may also be purchased online, but permanent coverage must be purchased through a local insurance agent or by contacting the company directly. However, the website features a calculator that helps shoppers determine how much coverage they may need prior to applying. Many of the company’s policies are available to individuals between the ages of 3 months and 90 years, while other plans are aimed at individuals living with type 1 and 2 diabetes.

Prudential vs. John Hancock Life Insurance Comparison of Company Ratings

U.S. News & World Report named Prudential and John Hancock among the best life insurance companies for 2022. Prudential tied for 12th place on this yearly list, while John Hancock landed slightly higher, coming in 5th. Both companies also made it on the organization’s lists of best term and universal life insurance companies, and Prudential came in 7th on its list of the best no-exam life insurance companies of 2022.

Additionally, Prudential has repeatedly been named one of the world’s most ethical companies by Ethisphere Institute, one of only six financial companies among the honorees. Both Prudential and John Hancock also receive high marks from industry credit rating agencies, including an A+ from AM Best, indicating superior financial strength.

Prudential vs. John Hancock vs. Mutual of Omaha Life Insurance Comparison of Policies and Rules

Life insurance is typically regulated at the state level, and most of the rules and policies set by companies are overseen by state regulatory agencies. However, plans may also have company-specific rules, such as what information is required when filing a death benefit claim or whether the underwriting process includes a medical exam. Company rules may also include limitations and exclusions, which are laid out in the contract you sign at purchase.

Rules and policies may also vary by plan type. For example, both Prudential and John Hancock typically let policyholders borrow against plans that have a cash value component or convert coverage from term to permanent without an additional medical exam or fee. These companies also permit online claims filing and management of basic account information, such as changes to personal information or contact details for beneficiaries. Customers who want to know more about the policies set by either of these companies may contact customer service via phone or in writing through U.S. mail.

Choosing the Right Insurance Company for You

Choosing the right insurance policy starts with choosing the right provider. Although cost is a top priority for many families, when you're shopping for a policy, you may also want to consider a company’s financial stability and overall reputation, so you can feel confident investing your hard-earned money. Exploring the company's websites, consumer advocacy organization pages and online customer reviews are great places to start. Plus, by educating yourself about prospective companies and what they have to offer, you’ll be able to make informed policy decisions, so you can rest assured that your family will have the financial security they need when you’re gone.

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