It’s 5 AM. Does Your Insurer Know Where You Are?

How much privacy would you sacrifice to save money on your life insurance premium?

Hey – money is money, right?

And life insurance can be pretty expensive!

And don’t you deserve a lower rate if you get healthier?

But would you let an insurance company monitor you 24/7 to get it?

AT LAST! An underwriting innovation.

fitbitInsurer John Hancock just rolled out its new health incentive program in partnership with Vitality.

For those policyholders who sign up, a premium savings as high as 15% is available for good health.

You simply provide them with the data needed to prove you qualify, with a Fitbit tracking device. As reported by KSL.com:

For the first time ever in the United States, a life insurance company is offering a discount — if you’re willing to let it track your health, location and body. It was only a matter of time. It’s increasingly popular to wear a fitness tracker that measures your footsteps, heart rate or body movements. Now, the life insurance company John Hancock is offering deal if you’ll wear one: 15 percent off in some cases. The company unveiled its optional, new program Wednesday morning. John Hancock is partnering with Vitality, which many people probably know as one of those work-related wellness programs. The program is available in 30 states. If you sign up for this, John Hancock will send you a free Fitbit monitor. That’s a tiny, pill-shaped device that some people wear in sleek-looking bracelets to track how far they walk/run, the calories burned, and the quality of sleep.

Premium discount for good health?

For sure.

Giving policyholders more control over their cost?

Can’t argue with that.

But plugging yourself into insurance company computers so they can monitor your body functioning?

Let’s wait a minute.

DO YOU want to sleep with your underwriter?

As you well know, I sell life insurance for a living.

And I am a big fan of this industry because over the centuries, it has poured zillions of dollars into the economy to help families, business, and charities remain self-sufficient.

Good for us!

But let me tell you why we should PROCEED WITH CAUTION with this new program:

  • What goes up, can come down. Sure, you can reduce your premium by proving better health. But you can also lose that savings if you don’t keep that good health. And many people go up and down with their health maintenance. Who wants to get a higher bill next time around?
  • The more they know, the more they can share. Hancock is certainly assuring everyone they will not share your data. Last I heard Facebook and Google did the same thing. But doesn’t the fine print change sometimes?
  • You may not be alone at the gym. No doubt insurance companies take great precautions to protect their data. But unfortunately, hacking does happen. Can you imagine if some bad guy was able to track your whereabouts throughout the day and know when you were sleeping or out jogging at 5am?

IS it worth it?

I can’t blame our life insurance companies for pushing hard to get more business.

We have, after all, lost market share over the years.

And immediate gratification is a big attraction, especially for young people.

But as with many fun and fancy things, there is more behind the scenes to consider before “hooking up.”

What about you?

Would you plug into your life insurance company to save money?

 

Want to learn more?
Read my free guide, How To Get Great Life Insurance Rates and learn how you can get life insurance companies to compete for your business, at no risk or extra cost.