Life Insurance Company Uses Incentives to Promote Healthy Living

A life insurance company aims to use incentives to encourage customers to adopt healthy habits, ultimately benefiting the company’s financial performance.

John Hancock’s Vitality Program

John Hancock has introduced the Vitality program, rewarding policyholders with points for engaging in healthy activities. These activities include visiting the gym, purchasing nutritious foods, monitoring sleep, and undergoing preventative screenings. Points earned can be exchanged for discounts on smartwatches, gift cards for Amazon and Starbucks, hotel discounts, and savings at retail stores.

Matt Hudack, a financial planner and John Hancock policyholder, is close to achieving a higher tier status in the program. “I’ve already got 5,400 points. I’m silver, almost approaching gold,” Hudack says. He appreciates the REI discount offered through the program.

Tier System and Incentives

The Vitality program employs a tier system. Participants progress from bronze to platinum as they build and maintain healthy habits. Hudack mentions a digital prize wheel feature, which adds an element of fun by offering spins for reaching activity milestones.

From Death Insurance to Living Benefit

John Hancock CEO Brooks Tingle discusses a shift in the company’s core business approach. Traditionally focused on preparing for death, the company now emphasizes living better. “We’ve turned this around,” Tingle says. This change aligns healthier customers who live longer with the company’s financial interests.

According to Tingle, healthier customers are more profitable, paying premiums over a longer period. “The longer we’re able to collect and invest the premiums, the more money we make.”

Gamifying Health

Cardiologist Dr. Dariush Mozaffarian, involved in the Vitality program’s dietary incentives, highlights the benefits of gamification. He notes that an engaging, prize-based approach can be effective. “Growing evidence shows that it actually works quite well,” Mozaffarian says.

Mozaffarian points to research supporting financial incentives that foster healthier eating habits. Discounts on fruits and vegetables are part of these incentives.

Behavior Change and Its Complexities

Dr. Samir Sinha, a geriatrician, emphasizes that it’s still early to determine whether reward programs will result in longer lives. “There’s not enough evidence right now,” Sinha says. However, ingrained healthy behaviors might lead to a “longevity dividend.”

Vitality program members reportedly walk twice as many steps daily compared to the average American, and about half with high blood pressure have reduced it to healthy levels.

John Hancock collaborates with companies offering advanced screenings, providing discounts on tests that detect multiple conditions.

Changing the Conversation

Hudack observes a positive shift in discussing life insurance with clients. The program transforms life insurance into a tool for promoting healthier living, rather than merely a mortality reminder. “They like the idea that their life insurance is now a tool for healthier living,” Hudack says.

On Monday mornings, Hudack views his activity counter reset as motivation. “I’ve got to get going,” he says. The new week marks a fresh start.