The Apple Watch Series 3 with GPS and cellular costs $399. But if you’re a life insurance policyholder of John Hancock, you can get it at $25, which is the activation fee. From there, you can earn it for free. But you need to perform regular exercise. With this development, it shows that Apple is using insurers as its channel to sell Apple Watch.
John Hancock and Apple
The two companies are partnering to offer the latest version of Apple Watch to its members of Vitality program. It’s a program that provides rewards to individuals who are living a healthy lifestyle. If you have signed up for it, you could get the device for only $25.
You can keep it for free, as long as you exercise regularly for at least two years. However, if you couldn’t meet the requirements, you need to pay the device in installments. As mentioned earlier, the Watch could cost $399. The price can go up depending on the model you choose.
Last year, the insurer sold around 30,000 life insurance policies. However, it failed to reveal the total members of its Vitality program.
Why partner with an insurance company?
Apple is making insurers its partners as its sales channel for its Apple Watch. In August, Apple held meetings with Aetna, another health insurer, to talk about how to give out Apple Watches to its millions of members.
Although Apple Watch is only less than five percent of the company’s total revenue, it’s starting to show momentum because of its Series 3 that comes with a cellular connection. This move from Apple could boost its sales over time.
Several years ago, John Hancock offered Apple Watches to its selected members. These members purchased life insurance policies that are over $2 million. Because of an increase in activity under the program, it extended it to all members in the US.
Fifty percent (50%) of those who received Apple Watch achieved their fitness goals. Thus, they didn’t pay for the device. In the US, John Hancock is the first life insurance company that offers this smartwatch as part of its policies. With this partnership, John Hancock expects that it can assist in attracting new clients.
The insurance company surveyed its customers of term life insurance. The result revealed that 20 percent of them are planning to purchase an Apple Watch. Furthermore, the study found that half of the people who didn’t have any life insurance but realized they needed one were likely to purchase an Apple Watch if they could obtain it at a discount rate.
But privacy advocates are criticizing the insurer for offering it at a discount rate based on the policyholders’ physical activity. However, the company stated that it’s taking the privacy of its clients seriously. It added that it’s been transparent with its customers about the price.
These perks aren’t likely to be provided to low-income individuals who don’t have time to go to the gym.
If you’re a policyholder, would you take this deal? Why or why not?