John Hancock’s Indexed UL
Insurance products are issued by: John Hancock Life Insurance
Company (U.S.A.), Boston, MA 02116 (not licensed in New York) and
John Hancock Life Insurance Company of New York, Valhalla, NY
10595 and securities offered through John Hancock Distributors
LLC through other broker/dealers that have a selling agreement
with John Hancock Distributors LLC, 197 Clarendon Street, Boston,
MA 02116.
MLINY09291115633 10/11
For Agent Use Only. This material may not be used with the public.
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The Advantages of Indexed UL
$1,000 Invested Over 20 Years
Indexed Crediting:
Conserves Gains &
Protects Principal
While Minimizing
Volatility
S&P 500 (without
dividends)
Indexed Crediting
Source: S&P 500 from 1990 – 2010.
Indexed Crediting shows the annual S&P 500 returns (no dividends) and credits up to 13% in
years the S&P 500 experienced gains, and credits 0% in years where the S&P 500 declined.
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The John Hancock Approach
• Meaningful Choice for Managing Risk
– Fixed Account – Most Conservative
– Capped Account – Traditional Index Option
– Uncapped Account – Most Aggressive
• Streamline
– Focus on one Index (S&P 500®1) and one crediting
method (annual, point-to-point)
• Design Integrity
– John Hancock avoids many Indexed UL practices that
could hinder policy performance
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For Agent Use Only. This material may not be used with the public.
Fixed Account: For Safety
Male, Preferred, Age 45, $1,000,000, Level-Pay Solve to Endow at Lifetime,100% Fixed Account
Company
Premium
Difference
John Hancock’s Indexed UL
(Fixed Account)
$9,558
Aviva
$9,913
+4%
Pacific Life
$9,929
+4%
ING
$11,110
+16%
Penn Mutual
$11,447
+20%
Minnesota Life
$12,092
+27%
Lincoln
$13,293
+39%
AXA
$14,507
+52%
Current Fixed Account Crediting Rates for companies: John Hancock 5.00%, Minnesota Life 4.00%, Aviva 4.85%, Pacific Life 5.35%, Penn
Mutual 4.65%, ING 4.75% and AXA 3.25%, Lincoln 3.90%. Competitor information is current and accurate to the best of our knowledge as of
October 2011. The data shown is taken from various company illustrations. Current maximum illustrated rates may be different for each
company and unless indicated otherwise, all rates and values are not guaranteed. This comparison cannot be used with the public.
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Benefits of a Strong
Fixed Account
• Serves as “Holding Account” for Indexed
Account options
– Funds allocated to an Indexed Account earn Fixed
Account interest until designed to a Segment
• Provides safety, now or in the future
• Reduces volatility
• Fewer restrictions than Indexed Accounts
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Indexed Accounts:
For Opportunity
Capped
Uncapped
0% Floor / 13% Cap
All Upside Above 5.5%
Average Annualized
Return 1986-2010:
7.96%
Average Annualized
Return 1986-2010:
8.58%
Shaded blue area represents the annual amount of the S&P point-to-point return that would be
credited to the policy based on historical S&P 500 returns.
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Capped Account
40%
30%
20%
Upside Potential:
Up to a 13% Cap
10%
0%
-10%
-20%
-30%
Guaranteed 0% Floor
-40%
S&P 500 performance (excluding dividends) 1985-2010, ordered from lowest to highest return.
In New York, the current Cap Rate is 12% and the current Threshold Rate is 6%.
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For Agent Use Only. This material may not be used with the public.
Uncapped Account
40%
Full Gains, Less 5.5%;
No theoretical cap!
30%
20%
10%
0%
-10%
-20%
-30%
Guaranteed 0% Floor
-40%
S&P 500 performance (excluding dividends) 1985-2010, ordered from lowest to highest return.
In New York, the current Cap Rate is 12% and the current Threshold Rate is 6%.
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For Agent Use Only. This material may not be used with the public.
Example of Indexed Crediting
Example of Indexed UL Crediting
(Assumes current 13% Cap and 5.5% Threshold Rates)
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S&P 500
Price Change
Capped Indexed
Account
Uncapped
Indexed Account
25%
13%
19.5%
10%
10%
4.5%
5%
5%
0%
-20%
0%
0%
In New York, the current Cap Rate is 12% and the current Threshold Rate is 6%.
For Agent Use Only. This material may not be used with the public.
Competitive Position
Male, Best Class, Age 45: Pay $40,000 for 20 Years, Min Non-MEC Death Benefit
Company
Income (20 Yrs.)
Target
John Hancock (Uncapped Account)
$174,247
$15,942
Minnesota Life
$170,467
$ 14,634
Aviva
$ 158,193
$ 15,118
Pacific Life*
$ 153,462
$ 15,942
Hartford
$ 152,490
$ 8,953
ING
$ 145,660
$ 15,822
AXA
$ 143,825
$ 13,698
*Blended to JH Target
Targeting $100,000 at lifetime, Min Non-MEC death benefit switching from option 2 (increasing death benefit) to 1 (level death benefit) in optimal year and solving for
maximum monthly income in years 21–40. Optimal year may vary for each company. All products shown assume a one-year point-to-point crediting option based on the
S&P 500 Index. Income assumes withdrawal to basis and then taking Standard Loans. Company illustrated rates: John Hancock 8.58% (Uncapped Indexed Account),
Minnesota Life 8.73%, Aviva 7.65%, Pacific Life 7.96%, Hartford 7.66%, ING 7.57% and AXA 7.53%. The illustrated rate for all companies is based upon the last 25 years
of S&P 500® performance (with the exception of Aviva with a 20-year Look-back) and is not indicative of future results. Competitor information is current and accurate
to the best of our knowledge as of September 2011. The data shown is taken from various company illustrations. Current maximum illustrated rates may be different
for each company and unless indicated otherwise, all rates and values are not guaranteed. This comparison cannot be used with the public.
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In New York, the current Cap Rate is 12% and the current Threshold Rate is 6%.
For Agent Use Only. This material may not be used with the public.
Indexed UL: Typical Design
In New York, the current Cap Rate is 12% and the current Threshold Rate is 6%.
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For Agent Use Only. This material may not be used with the public.
Indexed UL: Allocation
Advantage
In New York, the current Cap Rate is 12% and the current Threshold Rate is 6%.
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For Agent Use Only. This material may not be used with the public.
Product Features
• Qualified Long-Term Care3 Rider
– One of only two IUL policies that has one
– Other riders: ROP, Disability, CVE
• High Targets
– Higher targets for DB Option 2
• Two Loan Options
– “Standard Loans” – Zero-net cost loan years 11+
– “Index Loans” – Substantially more risk
• 5% Current Fixed Account Rate
– Guaranteed Rate: 2.5%
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For Agent Use Only. This material may not be used with the public.
2% Cumulative Guarantee
• Ensures minimum average annualized rate of 2% over
life of policy, available upon surrender
– Also used in lapse testing
• Not available for loans or withdrawals
Male, Preferred Risk Class, Age 55, $1,000,000; Pay Target* in All Years, Assuming 7% & 0%
7%
0%
Year
Policy Value
Surrender Value
Policy Value
Surrender Value
5
$ 89,263
$ 68,204
$ 71,607
$ 55,185
10
$225,203
$224,501
$150,785
$168,139
15
$441,345
$441,345
$248,934
$291,684
20
$739,748
$739,748
$332,827
$414,781
*Target premium is $25,500. This is a supplemental illustration. Not all benefits and values are guaranteed. The assumptions
on which the non-guaranteed elements are based are subject to change by the insurer. Actual results may be more or less
favorable..
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For Agent Use Only. This material may not be used with the public.
Practices John Hancock Avoids
John
Hancock
Multi-Year Segments
Applying interest credits to
end-of-year Segment
value*
Pac
Life
AXA
Lincoln
Weaker Fixed Account
performance**
Minn.
Life
X
Aviva
ING
X X
X X X
X
Holding Account rate lower
than Fixed Account
No partial interest for
withdrawals/deductions
Penn
X
X
X X X
X X X X
X
*John Hancock applies interest on the cash value throughout the year.
**Due to crediting rates and or charges.
Competitor information is current and accurate to the best of our knowledge as of September 2011.
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For Agent Use Only. This material may not be used with the public.
John Hancock’s Indexed UL
A unique policy offering an unmatched blend of
Safety & Opportunity
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For Agent Use Only. This material may not be used with the public.
Disclosures
Insurance policies and/or associated riders and features may not be available in all states.
Loans and withdrawals will reduce the death benefit and the cash surrender value, and may cause the policy to lapse. Lapse or surrender of a
policy with a loan may cause the recognition of taxable income. Withdrawals in excess of the cost basis (premiums paid) will be subject to tax
and certain withdrawals within the first 15 years may be subject to recapture tax. Additionally, policies classified as Modified Endowment
Contracts may be subject to tax when a loan or withdrawal is made. A federal tax penalty of 10% may also apply if the loan or withdrawal is
taken prior to age 59½. Cash value available for loans and withdrawals may be more or less than originally invested. Withdrawals are available
after the first policy year.
1. Excluding dividends. Standard & Poor’s®, S&P®, S&P 500®, Standard & Poor’s 500 and 500 are trademarks of Standard & Poor’s Financial
Services LLC, a subsidiary of The McGraw-Hill Companies, Inc. and have been licensed for use by John Hancock. The Product is not
sponsored, sold, endorsed or promoted by Standard & Poor’s, and Standard & Poor’s makes no representation regarding the advisability of
purchasing the Product. The S&P 500® Index is an index of 500 stocks that are generally representative of the performance of leading
companies in leading industries within the U.S. You cannot invest directly in the S&P 500® Index.
2. In New York, the current Cap Rate is 12% and the current Threshold Rate is 6%.
3. The Long-Term Care (LTC) and Long-Term Care (LTC) Continuation riders are accelerated death benefits and may not be available in all states.
Maximum face amount: $5 million with the LTC rider; $1 million with the LTC Continuation rider. The LTC riders are not considered long-term care
insurance in some states. When the policy death benefit is accelerated for long-term care expenses, the death benefit is reduced dollar for dollar,
and the cash value is reduced proportionately. There are additional costs associated with these riders. The LTC Continuation rider is not available in
several states, including New York. Please go to www.jhsalesnet.com for a complete list of up-to-date state approvals. For prospective
policyholders in New York, this product is a life insurance policy that accelerates the death benefit for qualified long-term care services
and is not a health insurance policy providing long-term care insurance subject to the minimum requirements of New York law, does not
qualify for the New York State Partnership for Long-Term Care program and is not a Medicare supplement policy. This rider has exclusions
and limitations, reductions of benefits, and terms under which the rider may be continued in force or discontinued. Consult the state specific Outline
of Coverage for additional details.
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For Agent Use Only. This material may not be used with the public.
Disclosures Cont.
Some riders may have additional fees and expenses associated with them.
The Return of Premium Rider allows clients to select a percentage of the premiums paid to be returned to the beneficiaries in addition to the death
benefit. There are costs associated with the ROP rider, as well as limitations on the cumulative amount that can be returned. Not available in
conjunction with certain other riders.
Insurance products are issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA 02116 (not licensed in New York) and John Hancock
Life Insurance Company of New York, Valhalla, NY 10595.
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For Agent Use Only. This material may not be used with the public.