Does John Hancock still pay structured settlements?
Yes. In early March 2013, John Hancock and Allstate both announced they would stop writing new structured settlement annuities, according to an industry press release published that month. That decision didn't end existing contracts. John Hancock's help center says plainly: "John Hancock will honor and send out all scheduled Annuity and Pension payouts as expected."
So if your settlement was funded with a John Hancock annuity before 2013, your payments continue on the original schedule. Nothing changes because the company stopped selling new ones.
The companies you'll see on paperwork and court filings include John Hancock Life Insurance Company (U.S.A.), John Hancock Life Insurance Company of New York and John Hancock Assignment Company. Your contract tells you which one issued your annuity and which one owes the payments. If you're unsure what those roles mean, see owner, payee and beneficiary explained.
How to update your John Hancock payments
John Hancock's help center resources page lists structured settlement forms you can submit online or download:
| Form | What it's for |
|---|---|
| Change of address | Update the address where checks and letters go |
| Electronic fund transfer | Set up or change direct deposit for your structured settlement payments |
| Change of beneficiary | Add or change who receives guaranteed payments if you die |
| Verification of income | Request a letter confirming your structured settlement payments |
For phone help, use the Contact John Hancock link on the same page and choose annuities. Have your contract number ready. If a payment is late, see what to do about a missing payment. For loans or rentals, a verification letter is usually what lenders want; see income verification letters.
Is your money safe if John Hancock isn't writing new business?
Stopping new sales is different from failing. Existing annuities stay on the insurer's books and are paid as scheduled. John Hancock is part of Manulife, one of the large North American insurance groups.
As an extra layer, every state has a life and health insurance guaranty association that protects annuity holders up to a limit if an insurer fails. Limits vary by state. If your settlement is large, it's worth knowing yours. For what happens when an insurer merges or sells a block of business, see annuity company mergers.
Don't sell because a caller tells you John Hancock is "getting out of the business." That's a sales line. The 2013 change doesn't put your payments at risk.
Can you sell John Hancock structured settlement payments?
Yes. Like every structured settlement, a sale needs a court order under your state's protection act. The buyer files the petition, John Hancock is notified, and a judge decides whether the sale is in your best interest. Without that order the buyer would owe a 40% federal excise tax under 26 U.S.C. § 5891.
What courts said about John Hancock payment sales
Two New York decisions show both sides.
Approved: Kings County, July 20, 2020. A payee sold three annual payments of $30,000 (2020 to 2022), a $100,000 lump sum due in 2026 and a $222,500 lump sum due in 2031, totaling $412,500, to Summercourt, LLC. The court approved the sale as in the payee's best interest, finding the discount rate and fees fair and reasonable. (Order)
Denied: Warren County, Oct. 26, 2021. J.G. Wentworth asked to buy 156 monthly payments of $1,221.29, rising 3% a year, from 2035 to 2048 ($228,886 in total) for $97,500. John Hancock was listed as an interested party. The judge refused. The seller had already made 14 earlier transfer applications, and those sales had turned $1,082,754.85 of payments into $250,176.63, about 23 cents on the dollar. The court doubted the seller could even keep track of which payments he still owned. (Decision)
The second case is the clearest warning in our records. Each sale can look reasonable on its own. A string of them can quietly sell off most of a lifetime settlement for a fraction of its value.
See how your offer compares with every court deal we've collected in the court deal benchmark.
Before you sell John Hancock payments
- Get a verification letter listing your remaining payments, so you know exactly what you own.
- Ask whether you really need to sell. Compare other options in structured settlement loan vs. selling.
- Sell the smallest slice that solves the problem. See partial sales.
- Get at least three written offers for the same payments and compare net cash and the effective annual rate with the payout calculator.
- If you've sold before, be careful. Judges look closely at repeat sellers, as the Warren County case shows.
A financial advisor who doesn't earn anything from the sale can help you weigh it before you commit.