Engaging the stay-at-home spouse

Transcription

1 ADVANTAGE Engaging the stay-at-home spouse Noreen and Bill, a couple in their 40s with two young children (ages 3 and 5), recently hired a new advisor who, as part of a financial review, identified that the couple owned life insurance only on Bill. At the advisor s direction (and with the help of a needs analysis), the couple quickly estimated the financial toll that Noreen s absence as a stay-at-home parent could have on the family particularly given the cost of child care and other household services like cooking, cleaning, shopping, etc. To address this need, the couple decided to purchase a John Hancock Term with Vitality policy on Noreen s life. Not only are John Hancock s Term rates very competitive, but Noreen was particularly excited by the idea that she could save money on premiums and earn additional discounts and rewards by staying active and leading a healthy lifestyle. There are over 5 million stay-at-home parents 1 $ $115,000 Salary equivalent for work performed by stay-at-home parents 2 LIFE-7307A 3/17

2 ADVANTAGE FOR WOMEN The Takeaway Life insurance planning for a stay-at-home spouse is often overlooked. The loss of a non-income-earning spouse can have a devastating financial impact on a family. Advisors should take into consideration the financial value of the non-income earning spouse s contributions to the family unit. This includes: Child care (Who would take care of any children? How much would that cost?) Household care (Who would handle the day-to-day management of the household? What would that cost?) Ask your clients what the annual cost would be to hire someone to perform the multitude of services the stay-at-home spouse provides on a daily basis. Then multiply that approximate annual cost by the number of years those services would be needed. At John Hancock, we will cover as much as 75% to 100% of the insurance in force on the employed spouse subject to the overall family financial situation and ability to fund a policy (household income and net worth). HOW JOHN HANCOCK CAN HELP The John Hancock Vitality solution allows a stay-at-home spouse to save on premiums and earn valuable discounts and rewards for healthy living. Talk to your clients today about providing life insurance protection for a stay-at-home spouse! 1. According to the 2009 U.S. Census Bureau 2. Jenna Goudreau, Why Stay-At-Home Moms Should Earn A $115,000 Salary, May 2, 2011, jennagoudreau/2011/05/02/why-stay-at-home-moms-should-earn-a salary/#6cab436675f4 For Agent Use Only. This material may not be used with the public. Insurance policies and/or associated riders and features may not be available in all states. Vitality is the provider of the John Hancock Vitality Program in connection with policies issued by John Hancock. Insurance products are issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA (not licensed in New York) and John Hancock Life Insurance Company of New York, Valhalla, NY MLINY

3 ADVANTAGE Finding success with the LTC Rider Anna is a 50-year-old owner of a financially successful optical store. Anna s 85-year-old mother recently went into a nursing home and now requires around-the-clock care. Her mother s declining heath has made Anna think about the impact on both her family and her business if she were to have a major health crisis. In discussing this concern with her insurance advisor, Anna learned about the living benefits of permanent life insurance, including the ability to accelerate the policy s death benefit to pay for qualified long-term care expenses with a long-term care (LTC) rider. This conversation led Anna to purchase a John Hancock accumulation-based life insurance policy with an LTC rider for maximum flexibility. The policy could be used to equalize her estate, protect her business, supplement her retirement income, and help pay for long-term care costs, if needed. Most importantly, it gave Anna the peace of mind that she had a flexible plan in place that would protect her family from financial hardship no matter what the future holds. Approximately 75% of those providing home care are female most often a daughter. Women spend 50% more time giving care than men do. 1 LIFE-7307B 3/17

4 ADVANTAGE FOR WOMEN The Takeaway Life insurance policies have changed a lot over the years and your clients may not be familiar with all the benefits such as an LTC rider that life insurance has to offer. A study recently found that one-third of individuals polled have done no planning for their own long-term care needs. 2 Individuals who have had prior experience with long-term care (e.g., taking care of an aging parent) express higher levels of concern about aging and who will provide care. Advisors should be proactive in discussing long-term care with their clients, particularly with those who have had personal experience with this type of need. Talk to your clients about how a John Hancock permanent life insurance policy can offer protection for a wide range of needs, including death benefit protection and income replacement, estate equalization and liquidity, supplemental income via cash value, long-term care protection, and more. HOW JOHN HANCOCK CAN HELP A John Hancock life insurance policy combined with an LTC rider provides a single solution to meet the critical needs your clients face. Talk to your clients today to help provide for their long-term care needs! AP/NORC Long-Term Care Poll: Long-Term Care in America: Expectations and Preferences for Care and Caregiving found at For Agent Use Only. This material may not be used with the public. The Long-Term Care (LTC) rider is an accelerated death benefit rider and may not be considered long-term care insurance in some states. There are additional costs associated with this rider. The Maximum Monthly Benefit Amount is $50,000. When the death benefit is accelerated for long-term care expenses it is reduced dollar for dollar, and the cash value is reduced proportionately. (Please go to to verify state availability). Insurance policies and/or associated riders and features may not be available in all states. Insurance products are issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA (not licensed in New York) and John Hancock Life Insurance Company of New York, Valhalla, NY MLINY

5 ADVANTAGE Using Vitality as a conversation starter Jane and Sam, both in their 60s, have been working with Craig, their financial advisor, for many years. Jane does not regularly attend meetings with Craig, and he wants to include her more directly in the financial planning process. Knowing that Jane loves yoga and indoor cycling and writes a food blog, Craig decided to invite Sam and Jane to a joint meeting to discuss John Hancock s partnership with Vitality. 41% of women do not have life insurance, but say they need it. 1 At the meeting they discussed the couple s need for more life insurance. Sam and Jane agreed on the need for additional life insurance, and Jane, in particular, loved the idea of a policy that rewarded them for healthy living. Because of the potential to save thousands of dollars on premiums, the complimentary Fitbit device, the Vitality HealthyFood benefit, and the ability to earn additional discounts and rewards for things Jane and her family were already doing, she and Sam decided to each purchase a policy with the John Hancock Vitality Program. LIFE-7307C 3/17

6 ADVANTAGE FOR WOMEN The Takeaway Take another look at your existing book of business and use the John Hancock Vitality Program as a catalyst to engage a non-participating spouse. Request a joint meeting and focus the conversation more on lifestyle goals. Explain how in addition to helping meet financial goals, the John Hancock Vitality solution offers savings and rewards for the everyday things she does to stay healthy, including: Complimentary Fitbit Device & Wearable Device Discounts Shopping & Entertainment Discounts HealthyFood Benefit Discounts on Hotel Stays Cruise Rewards Healthy Gear Discounts Partner Gym Discounts Free Health Check By engaging a non-participating spouse, advisors can help protect their book of business and avoid losing clients due to lack of engagement. HOW JOHN HANCOCK CAN HELP Encourage your clients to use the John Hancock Vitality App to easily manage health goals, track progress, and claim rewards anytime and all in one place! Talk to your clients today to help engage the non-participating spouse! 1. For Agent Use Only. This material may not be used with the public. Rewards may vary based on the type of insurance policy purchased for the insured (Vitality Program Member) and the state where the insurance policy was issued. Rewards and discounts are subject to change and are not guaranteed to remain the same for the life of the policy. Insurance policies and/or associated riders and features may not be available in all states. Vitality is the provider of the John Hancock Vitality Program in connection with policies issued by John Hancock. Insurance products are issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA (not licensed in New York) and John Hancock Life Insurance Company of New York, Valhalla, NY MLINY