One life insurance company is utilizing incentives to motivate its customers to adopt healthier habits, ultimately benefiting both the customers and the insurer. The Vitality program, provided by John Hancock, offers rewards for engaging in healthy behaviors, bridging the gap between intentions and actions. Customers earn points for activities like gym visits, healthy food purchases, sleep tracking, and preventive health screenings. These points translate into discounts on products and services such as smartwatches, gift cards, hotel deals, and more.
‘I’ve already accumulated 5,400 points. I’m nearly at gold level,’ shared Matt Hudack, a policyholder and financial planner with John Hancock, as he checked his app. He enjoys the REI discount as an outdoor enthusiast. The program tiers, ranging from bronze to platinum, reward consistent healthy habits similar to frequent flyer programs.
John Hancock’s CEO, Brooks Tingle, explains the shift in focus from death insurance to emphasizing living better. Elevated health leads to longer life spans, extending premium payments and enhancing profitability for the company. Tingle asserts there is alignment between profitability and customer well-being.
Cardiologist Dr. Dariush Mozaffarian lends his expertise by advising on dietary incentives. Gamification generates engagement beyond financial rewards, offering excitement and prizes. Mozaffarian highlights research indicating monetary incentives promote healthier eating in a society burdened by diet-related diseases.
John Hancock provides members with discounted access to advanced screening tests, further investing in their health. Geriatrician Dr. Samir Sinha acknowledges the potential of such programs yet emphasizes the lack of conclusive evidence that rewards translate to longer lives. Nonetheless, ingrained healthy habits might contribute to longevity benefits.
Sinha draws comparisons to car insurance companies offering reduced rates to drivers with safe habits. John Hancock’s Vitality offers similar benefits, offering up to 25% premium savings, serving as another financial motivator. Hudack has experienced professional benefits, where life insurance shifts from a morbid topic to a tool for promoting health. He now dedicates staff to manage Vitality clients, viewing the Monday morning reset as motivation to commence a healthier week once again.