The myths and realities of guarantees
When adequately explained, 9 out of 10 consumers interviewed prefer a life insurance policy with lower costs and more flexibility, even if it has shorter guarantee durations.*
Discover the truth behind three common myths about life insurance guarantees and explore research* that offers valuable insights into what consumers truly value, as well as the language that resonates most when presenting alternative products.
Myth 1
Myth: Guaranteed products are risk-free.
Reality: Guaranteed products are often more expensive — introducing a substantial and ongoing opportunity cost to the client. They may also limit payment flexibility and carry funding risks; any adjustments may potentially cause an unintended policy lapse.
What resonates with clients
Cumulative savings: Save $[XX,XXX] over [XX] years.
Myth 2
Myth: My client just wants “guarantees.”
Reality: Your client wants a solution for their unique situation. When the need is permanent death benefit protection, flexible premium UL policies can offer many features beyond guarantees.
Research shows that flexibility and control are key
Consumers prefer products that offer flexibility, allowing them to adapt in the future rather than being "locked-in," to a fully guaranteed product.*
What resonates with clients
Clients have control/are not “locked-in,” so they can adjust their policy as needed.
Myth 3
Myth: Guarantee duration = policy duration
Reality: Flexible premium UL products are designed to outperform their guarantees and can be a superior alternative to a rigid "guaranteed" product.
Research shows that clarity on how premiums may change helps reduce uncertainty
Educating consumers on when and how premiums can change on a flexible premium product helps alleviate uncertainty and builds a sense of stability.
What resonates with clients
It’s a long-term product that's fixed for [XX] years and doesn't need to be managed day-to-day.
Research findings
Explore "Unlocking Consumer Preferences for Different Types of Life Insurance Guarantees" for key insights into consumer choices.
Case study
See this case study that debunks Myth #2 — "My client just wants guarantees"
Protection product suite
Discover the value of John Hancock’s protection product suite
For more information, call National Sales Support at 888-266-7498, option 2.
*The 2024 Research: "Unlocking consumer preferences for life insurance guarantees" was a mixed methodology iterative approach. It began with exploratory nationwide online survey of 399 prospective end consumers fielded via Qualtrics panel (Sep-Oct 2024), followed by qualitative in-depth interviews and focus groups with 26 target consumers (Oct-Nov 2024) moderated by Zeldis Research Associates commissioned by John Hancock. All target consumers were screened for recent or intended purchase of permanent life insurance, access to a financial professional, and a household income of at least $150K+ or $500K+ in investable assets, with responsibility for financial decision-making. The hypothetical life insurance product description without a lifetime guarantee that was discussed in the research presumed to have a guarantee to age 90, with the possibility of a one-time premium change at age 90. All descriptions were blinded and did not reference any brands. John Hancock is not affiliated with Qualtrics or Zeldis Research Associates.
FOR AGENT USE ONLY. THIS MATERIAL MAY NOT BE USED WITH THE PUBLIC.
Guaranteed product features are dependent upon minimum premium requirements and the claims-paying ability of the issuer.
Insurance policies and/or associated riders and features may not be available in all states. Some riders may have additional fees and expenses associated with them.
Insurance products are issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA 02116 (not licensed in New York) and John Hancock Life Insurance Company of New York, Valhalla, NY 10595.
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This material is for Agent and Institutional / Broker – Dealer use only. Not for distribution or use with the public.
Insurance products are issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA 02116 (not licensed in New York) and John Hancock Life Insurance Company of New York, Valhalla, NY 10595. Variable insurance products are offered through John Hancock Distributors LLC through other broker/dealers that have a selling agreement with John Hancock Distributors LLC, 197 Clarendon Street, Boston, MA 02116.
Insurance policies and/or associated riders and features may not be available in all states.
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