Even though competitors had seen their sales slow down from a peak during an earlier period of the pandemic, when consumers sought out policies to protect themselves from COVID-19, John Hancock continues to see increases in its life insurance sales.

The U.S. annualized premium equivalent of Hancock Financial's parent company, Manulife Financial Corp. (NYSE: MFC), jumped by 58% to $161 million in the third quarter.

The gains have arrived, but a plateau seems to be starting in interest for life insurance. The volume of life insurance applications in the United States remained flat in the third quarter compared with the same period in 2020,  Braintree-based MIB Group reported. While activity levels remain high, the industry has not matched the record growth it achieved in 2020, primarily due to younger people buying insurance during the pandemic.

Brooks Tingle, chief executive officer of Hancock's insurance business, attributes the company’s continued growth to many factors, including the incentives its products provide policyholders who make choices that are good for their well-being.

With Hancock's Vitality program, for example, policyholders can receive discounts on their premiums for things like exercising or visiting the doctor. (All Hancock policies now come with Vitality, with customers able to pay more for a version with enhanced rewards.) 

That has proven a strong selling point, Tingle said, considering that surveys show that most Americans are more interested in life insurance because of COVID-19 and that most of them are striving to live healthier lives because of the virus.
In the third quarter, Vitality Plus, the enhanced version of the product, saw an 84% increase in sales year over year.

Due to the pandemic, the insurer had amended its Vitality program to offer policyholders points for getting vaccinated and allow users to submit selfies for issues when gyms were closed due to Covid.

Tingle reports that interest in so-called "survivorship" products has increased due to tax reform talks in Washington. Survivorship products payout when the second member dies, an advantage for wealthy Americans facing the estate tax. 

In Hancock, Tingle said sales of the products are nearly double what they were a year ago. Customers are trying to get ahead of possible legal changes that would expose more people to the tax.

Luckily for them, Hancock hasn't been badly affected by death claims from Covid, Tingle said.