Life Insurance Policy Uses Behavioral Economics to Reward Healthy Living

Source: The New York Times, April 8, 2015 John Hancock Insurance Company announced a new program being operated through a partnership with Vitality, a global wellness company that works with insurers throughout the US. The new program rewards insurers points for continuously sharing wellness data. Achieving different levels of points lead to discounts on annual life insurance premiums. Kevin Volpp commented that the program “…changes the paradigm of life insurance, in some sense, it tries to change your insurance into less of a passive vehicle that pays the bills if something happens, into a more active vehicle to get people to lower their risk.”