ACCUMULATION. Easy Issue VUL. Everything you need to sell SIMPLIFIED LIFE SELLER S GUIDE

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1 SELLER S GUIDE ACCUMULATION Everything you need to sell SIMPLIFIED LIFE Easy Issue VUL LIFE-1916WH 01/15 THIS MATERIAL IS FOR INSTITUTIONAL/BROKER-DEALER USE ONLY. NOT FOR DISTRIBUTION OR USE WITH THE PUBLIC.

2 John Hancock s answer is simple. Simplified Life is a quick and easy solution for clients seeking the protection, cash value accumulation potential, flexibility and tax advantages offered by a variable universal life insurance policy with no invasive medical screening or tests. Simplified Life s streamlined application is designed to simplify the process for your clients and help you place more business easily and promptly. Most policies will be issued in 8 days or less! Retire Comfortably Pay for College Start a Business Cover Unexpected Expenses Who are my prospects? High-income earners, ages 30-60, in good health, seeking a product that can provide financial flexibility and help protect other assets in their portfolio Have max-funded qualified savings plans and are looking for alternative means to accumulate cash Have the ability to pay between $10,000 and $20,000 of premium for 5 years or more Are seeking flexibility knowing their needs will likely change in the future Are looking for some liquidity, if needed, along with some upside potential Need a way to protect their heirs 1

3 The questions are complicated... What if I outlive my retirement savings? What if I decide to start a new business in the future? How can I leave my children and grandchildren a legacy and protect their financial future? What if I want to buy more property or a luxury item and need liquidity? How can I save more for my children s college education? These clients want to buy a product that can offer flexibility and address the concerns they have about the future. The real question becomes how can YOU help them come up with the right financial solution? 4

4 Target prospects Here are some examples of clients that would be a good fit for Simplified Life: Financial protection Julie, age 35 Primary wage earner concerned about creating a nest egg and protecting her loved ones. Facts You Should Know: 31% of U.S. households have no life insurance at all. 1 Situation: Julie wants to ensure that her loved ones have enough money to meet basic financial requirements in the event that she passes away. She is concerned about income replacement needs, child care costs, paying off the mortgage and future college funding. Solution: Simplified Life can offer Julie peace of mind in knowing that her family is protected should something happen to her. Simplified Life also offers cash value growth potential that can be accessed via tax-favored loans and withdrawals should her needs change or a family emergency arise. College funding Phil, age 40 Looking to fund his children s college education and is considering the options. Facts You Should Know: A four-year, private education is estimated to jump to a total of $416,888 by Situation: Many parents, like Phil, are concerned about the rising cost of college education. While there are a variety of products in the marketplace, Phil needs a plan that will give him the most flexibility as well as provide coverage for his family should something happen to him. Solution: Simplified Life can offer potential cash build up in the policy to help pay for college expenses. Unlike other college savings vehicles, premiums paid into a Simplified Life policy have little to no limitations. Best of all, the product s cash value can be used for a myriad of expenses associated with higher education. It can be used for travel expenses and spending money, for instance, and is not restricted to qualified higher education costs. If Phil s children decide to go to college, the money is there for him to access on a tax-favored basis. If his children change their mind and do not attend school, Phil can always use the cash value toward his own goals. Making it easier for you To get started, simply follow these THREE SIMPLE STEPS: 1. Identify and pre-qualify the client 2. Run a proposal 3. Complete and submit the ticket John Hancock then conducts a 20 minute phone interview. Most policies will be issued in 8 days or less with no invasive medical screening or tests. 5

5 Preparing for future life events Robert, age 45 Concerned about accumulating enough cash value growth potential to meet future financial needs. Facts You Should Know: In 1953, Walt Disney borrowed from his life insurance policy to help create Disneyland. 3 Situation: Robert is seeking a product that will provide him with death benefit protection as well as financial flexibility. He wants to be prepared in case he meets unanticipated expenses down the road. Solution: A Simplified Life policy builds a cash value account over time, based on premiums paid into the policy. Should Robert s protection goals change during his life, he can take distributions from his policy to help pay off a mortgage, start a business, purchase a boat or take care of any other needs that may come up in the future. Supplementing retirement income Laura, age 50 Wants to help alleviate the fear of outliving assets in retirement. Facts You Should Know: A 65-year-old has a 50% chance of living past Situation: These days, clients are living longer than ever. Plus, the higher their salary is today, the harder it may be to maintain their current lifestyle in retirement. If clients plan to cover 100% of their pre-retirement income, qualified plans and social security may not be enough. Laura realizes that retiring comfortably is now more challenging than ever. She wants the assurance of a secondary source of income should she outlive her primary retirement savings. Solution: Simplified Life can help address longevity concerns. By purchasing a Simplified Life policy, Laura can create a potential secondary source of income should she outlive other savings. If she does not need the income from the policy, she has valuable death benefit protection for her family. 6

6 Strength. Stability. John Hancock. John Hancock s strong ratings, as judged by the major rating agencies, are a comprehensive measure of the company s financial strength and stability. This is important because these financial ratings reflect the life insurance company s ability to pay claims in the future. With over 150 years of experience, John Hancock offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents, and distribution partners. 1. LIMRA Facts About Life College Savings Planner Calculator. 3. The Facts of Life and Annuities, LIMRA National Vital Statistics Report, Vol. 61, No. 4, May 8, This material is for institutional/broker-dealer use only. Not for distribution or use with the public. This material does not constitute tax, legal or accounting advice, and neither John Hancock nor any of its agents, employees or registered representatives are in the business of offering such advice. It cannot be used by any taxpayer for the purpose of avoiding any IRS penalty. It was written to support the marketing of the transactions or topics it addresses. Comments on taxation are based on John Hancock s understanding of current tax law, which is subject to change. Anyone interested in these transactions or topics should seek advice based on his or her particular circumstances from independent professional advisors. Loans and withdrawals will reduce the death benefit, 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. 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. Insurance policies and/or associated riders and features may not be available in all states. Variable universal life insurance has annual fees and expenses associated with it in addition to life insurance related charges. Variable universal life insurance products are subject to market risk and are unsuitable as a short term savings vehicle. Cash values are not guaranteed and will fluctuate, and the policy may lose value. Variable life insurance is sold by product and fund prospectus, which should be read carefully. They contain information on the investment objectives, risks, charges and expenses of the variable product and its underlying investment options. These factors should be considered carefully before investing. Insurance products are issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA (not licensed in New York) and John Hancock Life Insurance Company of New York, Valhalla, NY 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 MLINY