1. Highland VP Perspective: Transforming your Business with Vitality Jeff Orr, JD, VP Highland Capital Brokerage Meredith Elliott, CLU, VP National Accts, John Hancock
Today I’m going tell you about a new life insurance solution and why it is such an important breakthrough in our industry.

2. Vitality: Overview & Having the Conversation
“Vitality is a life insurance rider for clients
who are willing to make healthy lifestyle choices to receive discounts and rewards, including reduced premiums on their insurance policy.”
“Rewards programs are not new to the insurance industry, think about programs currently offered for health & auto insurance that provide discounts and cash back – it’s a similar concept for life insurance, tied to your overall lifestyle choices.”
Accumulate Points: Earn Vitality Points by completing simple health-related activities
Achieve a Status: Each year, your status level will be determined based on the number of points accumulated: bronze, silver, gold, platinum
Enjoy Rewards: The higher your Vitality Status the more you can earn in potential premium savings and rewards
“Executing Vitality is easy for clients, if you can download an app, you can participate in Vitality.”
INCREASE
YOUR
STATUS
LIVE
HEALTHY
EARN
POINTS
GET
REWARDED
How the John Hancock Vitality Program Works
What is it and conversation starters

3. Get Vitality Rewards
The higher your client’s Vitality Status the more they can save on premiums — up to 15% — and the greater their rewards
PLATINUM 10,000 POINTS
GOLD 7,000 POINTS
SILVER 3,500 POINTS
BRONZE 0 POINTS
…and the higher their status, the greater their premium savings – up to 15% a year -- and the greater their rewards!
Premium savings are in comparison to the same John Hancock policy without the Vitality program. Annual premium savings will vary based upon policy type, the terms of the policy, and the level of the insured’s participation in the John Hancock Vitality program.

4. Clients can earn significant savings year after year
Protection UL with Vitality
Premium savings by status as compared to a Bronze status
MALE, 45, PREFERRED, $1,000,000, LIFETIME COVERAGE, 10-PAY
$14,931
$14,383 4% SAVINGS
$13, % SAVINGS
$12,780 14% SAVINGS
Premium savings and guarantee duration based on maintaining specific status in each year. Protection UL with Vitality’s premiums are based on current assumptions solve to $1 at age 121 at each of the four status levels and include a guarantee to age 81 assuming Bronze funding level, 80 assuming Silver funding level, 78 assuming Gold funding level, and 77 assuming Platinum funding level. This is a supplemental illustration. Not all benefits and values are guaranteed. The assumptions on which the non-guaranteed elements are based are subject to change by the insurer. Actual results may be more or less favorable.
They can also earn significant premium savings year after year. This can add up to thousands of dollars over the life of the policy. This example here is Protection UL, our industry leading low-cost UL product. It shows the premium at a Bronze Vitality status, which is similar to the product without Vitality. As you can see, the more your clients engage in the program, the greater the premium savings as they move from Bronze to Silver to Gold, and to Platinum.

5. What is a Master Class? Why HCB?
An opportunity to discuss how the program works and why its advantageous to your practice
A chance to learn how clients behave and the science behind their attraction to Vitality
Group discussions with your peers around potential objections, how to position, and how it helps grow your business
The customer perspective on participating in the program.
It’s a new kind of life insurance that 9 out of 10 people say they would prefer JHV over a traditional life product… and 85% of those 65 and older are more likely to purchase it as well! But what is perhaps most compelling is that 50% of people are more motivated to buy life insurance when presented with this unique offering…
Now, let me tell you why..

6. Behavioral Science: What have we learned?
A new kind of life insurance that 9 out of 10 customers prefer, so, why does it work?
Personal Behaviors drive health and life outcomes. An estimated 66% of deaths are primarily driven by behavioral lifestyle choices.
The science shows that rewards and incentives can motivate people to change behavior.
The concept is already working in other segments of the insurance industry. Health and Auto industries are leading the way with incentive driven premium discounts.
Backed by Vitality’s 20 years of experience in other markets, this works for life insurance (40% adoption in US after 3 years). Vitality members in other markets have 68% fewer claims and 60% fewer policy cancellations.
It’s a win for the insured, John Hancock, and Society, and now you!
It’s a new kind of life insurance that 9 out of 10 people say they would prefer JHV over a traditional life product… and 85% of those 65 and older are more likely to purchase it as well! But what is perhaps most compelling is that 50% of people are more motivated to buy life insurance when presented with this unique offering…
Now, let me tell you why..
Consumer survey conducted by John Hancock Insurance from 7/17/17 to 8/11/17.

7. Helping clients live longer, healthier lives
At John Hancock, we believe life insurance should extend beyond financial protection to include helping people live longer, healthier lives.
At John Hancock we believe, that your life insurance company should have an interest in helping your clients living a long and healthy life.
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8. Great fit for all your clients: JH Average Issue age 56
YOUNG CLIENTS/
FAMILY PROTECTION
(ages 25 to 45)
MIDDLE AGE/
PRE-RETIREMENT
(ages 45 to 65)
OLDER AGE/
POST-RETIREMENT
(ages 65+)
You might be saying “Not all of my clients are physically fit.” or “I only would show this to my young, Super-Preferred clients.” The John Hancock Vitality Program is not just for athletes or people who are already living a healthy life. It’s designed to be a great motivator for everyone – at all stages of life – from millennials and Gen Xers to those customers planning or in retirement. In fact, our policyholders range from age 20 to our oldest Vitality member who is 82-years-old. And we’ve even customized the program for our older clients so they can get rewarded at a pace that makes sense to them – the program doesn’t use the same yard stick for a 55 year-old, that it does for a 75 year-old – it evolves and grows WITH your clients.
There is a 2017 Study completed by Merrill Lynch and Age Wave that has 81% of respondents over the age of 65, listing HEALTH above all other considerations for a happy retirement.

9. What’s my motivator? Engaged clients lead to more referrals and stronger relationships
But what does all this mean to YOU as an advisor? These engaged clients can lead to more referrals and stronger relationships with you…
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10. Clients are actively engaged
Members typically average 48 activities per month*
Members average
9,323 steps
per day* versus the average American at 5,000**
Over $2.3 million in rewards*
*Based on policyholder experience since inception in US, April **BusinessInsider.com, Here’s how much the average American walks every day, July 2015, accessed from: Based on John Hancock Vitality member experience since inception in US, April 2015.
Clients are actively engaged in the program and really benefiting from the savings and rewards the program has to offer. In fact, their John Hancock Vitality life insurance policy is now a part of their everyday lives. They’re averaging 48 activities per month, taking 9,323 steps per day versus the average American at 5,000, and together they’ve earned over $2.3 million in rewards.

11. Ongoing engagement builds stronger relationships
Every time your client reaches a new healthy milestone, earns a reward, or looks at their Apple Watch, they’ll think of you
It’s a great opportunity to build loyalty and lifelong relationships that can lead to new cross-sell opportunities
Clients are recommending their John Hancock Vitality life insurance 2x more often than traditional life owners.*
These engaged and happy clients can also lead to stronger relationships. Your customers will think of you every time they reach a new healthy milestone or earn a reward. This gives you a great opportunity to build lifelong relationships and meet your clients ongoing needs. These touchpoints are a way for you to stay top of mind with your clients, even when you aren’t physically present.
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12. What clients & producers are saying about Vitality
Life insurance in the past focused more on the death side, this form of insurance
(Vitality) actually is the life side. It encourages you to be healthy and is a win-win for everybody.
I don’t even make Vitality an option, I tell the client we are adding a benefit that sits along side the policy. Then I outline the benefits to the client, not the policy!
It’s not only an insurance company that’s protecting your financial future, but rewarding you for healthy living now.
Prior to coming to this Master Class, I really thought Vitality was a gimmick. Now that I have invested the time here, I see that it’s so much more than that and really has a place in the market.
Why wouldn’t you add Vitality on every eligible policy? There really is no down side.
We’ve heard from many clients about how this life insurance is literally changing their lives! I won’t go through each one of these but they are saying that are getting motivated to stay healthy, it’s a program that fits in with their lifestyle and is adding value to their financial future.

13. How do I start selling Vitality?
Lean on your support team at HCB and JH
Tips from Jeff Orr Conversation
Banking on Bronze (Handout)
It’s a new kind of life insurance that 9 out of 10 people say they would prefer JHV over a traditional life product… and 85% of those 65 and older are more likely to purchase it as well! But what is perhaps most compelling is that 50% of people are more motivated to buy life insurance when presented with this unique offering…
Now, let me tell you why..