Christina Farr for CNBC:
John Hancock, one of the largest life insurance providers, is partnering with Apple to offer all of its new and existing members of its Vitality program a steeply discounted Apple Watch.
The program offers perks and rewards to people who live healthy lifestyles. Any consumer who signs up for the program is eligible to get the device for $25.
As long as Vitality members exercise regularly for two years, they will be allowed to keep the device for free. If they don’t, they’ll have to pay it off in installments. The Series 3 costs upwards of $299.
It’s really $25 plus tax, so you’re looking at roughly $50 — $70. Still not a bad deal.
According to the same page, the way you pay it off is by earning 500 fitness-related Vitality Points per month over two years (12,000 total points). These points are applied towards the cost of the Watch, and you therefore avoid any additional charges. I’m not sure how the points system works in actuality, so it’s not exactly clear how attainable this is.
That said, they have had success with the pilot version of the program as Christina discusses:
John Hancock, which is owned by Manulife, first started offering Apple Watches to a limited set of members — people who purchased life insurance policies over $2 million — several years ago.
After logging a 20 percent increase in activity under the program, it decided to extend it to all U.S. members
About half of the people who received the device achieved their monthly goals and did not pay for the device, John Hancock senior vice president Brooks Tingle told CNBC.
I’m surprised the amount of people that hit their goals is so high. I would expect that to dip now that all their customers are eligible for this promotion. Some may even treat it as a deferred lease and just pay it off at the end.