Life insurer offering more incentive to live longer

Brian and Carla Restid, a couple in their mid-60s, bought life insurance four years ago to protect their lifestyle in retirement. A year later, they upgraded to a pilot program offered by the insurer to get fitter, healthier and more energized.

In exchange for working to improve their well-being and providing details about the process, they have saved $700 so far in premiums.

“It provided a way for me to be accountable to myself,” said Carla Restid, 67, who has an autoimmune disease that has slowed her down. “It provided me a way to get going and keep going. I was exercising before, but it wasn’t at the forefront of my mind. This set me on a life-changing program.”

Starting Wednesday, the program they joined, known as Vitality, will be included in all new life insurance policies underwritten by John Hancock, the financial services company. The program was developed in conjunction with Vitality, a South African company that works with insurers around the world on similar programs.

“Vitality has been an optional benefit,” said Brooks Tingle, president and CEO of John Hancock Insurance. “Now, we’re saying we won’t issue life insurance policies without these Vitality benefits on them.”

If they participate, customers will be able to reduce annual premiums by as much as 15 percent, but they will also be asked to report their habits on eating, drinking and exercise — or lack thereof — to their insurance company.

“For an insurer, you’re going to get healthier people — that’s why they’re going to give you all their data,” said Katherine Milkman, professor of operations, information and decisions at the Wharton School at the University of Pennsylvania, who has no affiliation with the program. “The unhealthy ones are going to go to other insurers. The question is, how effective will it be once they’ve selected all the healthy people?”

For life insurance sales agents, this is a new pitch. No longer will they have to dance around the issue of death. Instead, they can put the buyer in charge, offering lower premiums and a range of financial