Life Insurance Illustration

Transcription

1 Life Insurance Illustration Prepared For: Prepared By: James Costello Independent Agent 123 Rosecrans Ave Suite 3 Manhattan Beach, CA 9266 ph: lic #: 12345

2 John Hancock Life Insurance Company (U.S.A.) A LIFE ISURACE POLICY ILLUSTRATIO Valuable Information About Your Life Insurance Illustration Female - Standard onsmoker Universal Life Insurance The Universal Life Insurance policy which you are considering provides flexible death benefit protection and premium payment flexibility. The values in the insurance contract grow based on the amount and timing of each premium payment, plus interest and other credits applied to the policy, less insurance and other charges. Certain aspects of the policy cannot be predicted with absolute certainty. These nonguaranteed elements are described on the following pages. For example, the interest rate credited may exceed the guaranteed rate and monthly charges may be less than the maximum guaranteed charges. This is an illustration only and is not intended to predict actual performance. Death Protection This policy illustration shows the Death Protection feature guaranteeing the policy death benefit to the Life Insured s attained age 92. As long as the Death Protection feature is in effect, your policy cannot lapse even if the et Cash Surrender Value falls to zero or below. The Death Protection feature will stay in effect as long as the reference value called the et Death Protection Value is greater than zero. The Death Protection Value is a reference value and is only used to determine whether or not the Death Protection feature will stay in effect. The policyowner cannot access the reference value. Like your Policy Value, the Death Protection Value is directly affected by the timing and amounts of premiums paid. To ensure that you have the Death Protection feature in effect for the period illustrated, it is important that premium payments are paid when they are due, otherwise your policy may lapse. Paying a different premium than illustrated may affect the attained age to which your policy's Death Protection feature guarantees the policy death benefit. Initial Death $ Face Amount $ Initial Planned Premium: $. / Billing Mode: Annual Death Option 1; Cash Value Accumulation Test Based on Current Charges and an Initial Current Rate of 4.95% For purposes of calculating your Death Protection Value, we will apply premiums retroactively to the beginning of the policy month in which they are received. Death benefit option changes, loans, withdrawals, rider termination or change, and/or face amount decreases will also affect the Death Protection feature. If a policy loan is outstanding, the Death Protection feature will not prevent your policy from lapsing if the et Policy Value falls to zero. et Death The life insurance provided in this illustration reflects a Total Initial Death of $. The Death is composed of $ in Face Amount (Option 1). The et Death reflects any Policy Debt (total loans plus any loan interest due). Planned Premium Outlay One of the advantages of Universal Life Insurance is premium payment flexibility, allowing you to vary the amount of your payments. This illustration assumes an Initial Planned Premium Outlay of $. and that all subsequent premium payments are made at the beginning of each modal period. Reduced or discontinued premiums in future years are only possible if the premiums paid and amounts credited are sufficient to cover the cost of insurance and administrative expenses. These factors, as well as any outstanding policy loans or withdrawals, could necessitate additional premiums to maintain your insurance coverage. Paying less than the planned premium can have a negative impact on the policy and its guarantees. Payments in excess of the planned premium are subject to underwriting approval. Guaranteed Coverage Premium Based on the initial death benefit shown in the illustration, the level annual premium to guarantee coverage for life is $2,11.4. Death option changes, loans, withdrawals, policy changes, and face amount changes will cause this premium to be THIS IS A ILLUSTRATIO OLY AD IS OT ITEDED TO PREDICT ACTUAL PERFORMACE. VALUES SET FORTH I THE ILLUSTRATIO ARE OT GUARATEED ULESS LABELED AS SUCH. This is your Basic Illustration and is valid only if all illustration pages are included. Version: S[ ] Page 1 of 11 12/1/218 7:2:48 AM

3 John Hancock Life Insurance Company (U.S.A.) A LIFE ISURACE POLICY ILLUSTRATIO Valuable Information About Your Life Insurance Illustration (cont'd) Female - Standard onsmoker amount changes will cause this premium to be recalculated. Premiums are subject to maximum guidelines allowed by the Internal Revenue Code. Minimum Initial Premium The Minimum Initial Premium is shown on the Basic Illustration Summary page and is the minimum premium needed to put the policy in force. Interest Rate Interest is illustrated at an initial assumed effective annual rate of 4.95%. We determine the rate of interest to be credited to the Policy Value based on our assessment of investment yields and other considerations as outlined in your policy. The current rate may increase or decrease, but at no point will the interest credited to the policy be lower than the guaranteed annual rate of 2%. Our obligations under your policy are backed by our general account assets. In addition to fixed income investments, such as corporate bonds, we expect to invest a portion of the premiums received under this class of policies in equities and other longer-duration assets. This investment approach, which may be different from the mix expected with other universal life policies, is intended to produce results that would permit us to credit values that maximize your policy s performance over the longer term. However, this approach could also cause the policy to experience a higher degree of variability of results year-to-year relative to other universal life policies. It is important to review your annual statement and request periodic in-force illustrations to make sure your policy continues to meet your objectives. Illustrations will be shown at the guaranteed minimum interest rate, and an assumed rate (or rates). An assumed illustrated rate will never be higher than the current rate, or lower than the guaranteed minimum rate. Values illustrated at the current or an assumed rate are not guarantees or estimates, but merely illustrate results on the basis of the selected assumption. Changes in the rate of interest that we declare will affect both the interest and Persistency Credit applied to your Policy Value. The table below shows how these changes could affect the continuation of your coverage, keeping other assumptions constant (including planned premiums, issue age, risk class and current charges): Interest Rate Assumption Attained Age at Lapse* 4.95% Initial Current Rate /A 4.45% % % % % 92 2.% Minimum Rate 92 Initial Death $ Face Amount $ Initial Planned Premium: $. / Billing Mode: Annual Death Option 1; Cash Value Accumulation Test Based on Current Charges and an Initial Current Rate of 4.95% * In this table, the attained age at lapse is hypothetical only, based upon the assumed factors, and is not guaranteed. For instance, the mortality charges used in these calculations are less than the maximum charges, and the Persistency Credit assumed is greater than the guaranteed minimum. Accessing Policy Value After your policy has been in force for one year, you can make partial cash withdrawals. You can surrender your policy for cash at any time. We will pay you the policy value less a Surrender Charge and any policy debt you may have. You can also borrow the available cash value at any time. Amount Credited This is the interest earned on the Policy Value including the amount of interest credited on the Loan Account, plus the Persistency Credit. Policy Loans Policy loans may be taken against the Policy Value at any time, and if projected on an illustration, are assumed to be taken at the beginning of the year. The maximum loan amount available is the Surrender Value less any indebtedness, one year of policy charges, and one year's loan spread. THIS IS A ILLUSTRATIO OLY AD IS OT ITEDED TO PREDICT ACTUAL PERFORMACE. VALUES SET FORTH I THE ILLUSTRATIO ARE OT GUARATEED ULESS LABELED AS SUCH. This is your Basic Illustration and is valid only if all illustration pages are included. Version: S[ ] Page 2 of 11 12/1/218 7:2:48 AM

4 John Hancock Life Insurance Company (U.S.A.) A LIFE ISURACE POLICY ILLUSTRATIO Valuable Information About Your Life Insurance Illustration (cont'd) Female - Standard onsmoker The net cost of a loan equals the loan interest rate charged less the loan interest rate credited to the portion of Policy Value securing the loan. This differential is guaranteed to be no greater than 1.25% in policy years 1-1. In subsequent years, the differential is currently.%, and guaranteed not to exceed.25%. Loan interest is payable in arrears. The loan interest rate used in this policy illustration is shown in the Policy Summary. Loan interest rates are variable and subject to change annually on the policy anniversary. Annual Loan Interest This is the interest charged on the outstanding Policy Debt. In the event that you do not pay the loan interest charged in any Policy Year, it will be borrowed against the policy and added to the Policy Debt in arrears at the Policy Anniversary. Withdrawals Withdrawals reduce the Policy Value and the Death. Withdrawals, if illustrated, are assumed taken at the beginning of the year. Policy Continuation at Age 121 Provided your coverage is in effect on the policy anniversary nearest the date on which the life insured reaches attained age 121, coverage will continue after age 121 and interest will be credited. o additional charges, other than those for any outstanding policy loans, will be deducted. The tax implications with respect to policies that continue beyond age 121 are not clear at the present time. We urge you to consult your tax advisor regarding this issue if there are questions about what happens after age 121. Taxation of Life Insurance The information contained in this illustration is based on certain tax and legal assumptions. We suggest that you seek professional counsel regarding the interpretation of current tax laws and accounting practices as they Initial Death $ Face Amount $ Initial Planned Premium: $. / Billing Mode: Annual Death Option 1; Cash Value Accumulation Test Based on Current Charges and an Initial Current Rate of 4.95% of current tax laws and accounting practices as they relate to your actual situation. The Technical and Miscellaneous Revenue Act (TAMRA) of 1988 classifies some policies as Modified Endowment Contracts (MECs). Distributions from these policies (excluding death benefits but including policy loans and withdrawals) are taxed differently and may be subject to a 1% penalty tax. TAMRA testing has been performed on the current scale only. The initial annual 7-pay premium for this policy is $3,573.. Based on our interpretation of TAMRA, this policy as illustrated would not be considered a Modified Endowment Contract (MEC). Employer-owned Life Insurance. Where the owner of the policy is the employer of the life insured, Section 11(j) of the Internal Revenue Code specifies a number of requirements that must be satisfied in order for life insurance death benefits to be excluded from income taxation. The life insureds must be the employer s directors and "highly compensated" employees (as is defined by law). If the life insured is not a director or highly compensated employee then the policy's death benefit must be paid out to the life insured (or to the life insured's designated beneficiary) or used to redeem an equity interest in the employer. Before the issuance of the policy, the insured must (1) be notified in writing that the employer/policy owner intends to insure the employee's life and the maximum face amount for which the employee could be insured; (2) give his/her written consent to being insured under the policy and agree that such coverage may continue after the life insured terminates employment; and (3) be informed in writing that the employer/policy owner will be a beneficiary of any proceeds payable upon the death of the life insured. Finally, the employer/policy owner is required to keep records and make an annual report concerning its employer-owned life insurance policies. Taxpayers should seek the counsel of qualified tax advisors to determine the applicability of IRC Section 11(j) or other provisions of federal tax law and/or compliance with the requirements of any such law or regulation. Important Disclosure THIS IS A ILLUSTRATIO OLY AD IS OT ITEDED TO PREDICT ACTUAL PERFORMACE. VALUES SET FORTH I THE ILLUSTRATIO ARE OT GUARATEED ULESS LABELED AS SUCH. This is your Basic Illustration and is valid only if all illustration pages are included. Version: S[ ] Page 3 of 11 12/1/218 7:2:48 AM

5 John Hancock Life Insurance Company (U.S.A.) A LIFE ISURACE POLICY ILLUSTRATIO Valuable Information About Your Life Insurance Illustration (cont'd) Female - Standard onsmoker o information provided by John Hancock to you or your advisors in connection with this sale is intended as tax, legal, or investment advice. This illustration and all other information and materials provided by John Hancock as part of this sale are not intended to be nor shall they be construed as providing impartial advice or recommendations as to the sale of and/or investment in John Hancock products and services. John Hancock and its representatives will receive compensation derived from such sales or services. Initial Death $ Face Amount $ Initial Planned Premium: $. / Billing Mode: Annual Death Option 1; Cash Value Accumulation Test Based on Current Charges and an Initial Current Rate of 4.95% For more than a century, John Hancock has offered security and high quality products to its customers. The company's experience and resources allow it to provide first class financial solutions to customers in every market in which it operates. Other Considerations This is an illustration only. An illustration is not intended to predict actual performance. Unless otherwise stated, amounts credited and other values set forth in the illustration are not guaranteed, except for those items clearly labeled as guaranteed. This illustration assumes that the currently illustrated nonguaranteed elements will continue unchanged for all years shown. This is not likely to occur, and the actual results may be more or less favorable. Future credits and deductions can vary at the company's discretion depending upon factors such as death claims, investment earnings and expenses, as well as policy owner actions such as the timing and amount of premium payments, policy lapse and reinstatement, loans and withdrawals, and contractual changes. To ensure that your policy continues to meet your objectives, we suggest that in addition to reviewing annual statements, you periodically request in force illustrations. In force illustrations will provide an updated projection of policy performance. Protection UL is issued by John Hancock Life Insurance Company (U.S.A.) of Boston, MA John Hancock Life Insurance Company (U.S.A.) consistently receives high financial strength ratings from independent rating agencies. For more information, please visit our website at THIS IS A ILLUSTRATIO OLY AD IS OT ITEDED TO PREDICT ACTUAL PERFORMACE. VALUES SET FORTH I THE ILLUSTRATIO ARE OT GUARATEED ULESS LABELED AS SUCH. This is your Basic Illustration and is valid only if all illustration pages are included. Version: S[ ] Page 4 of 11 12/1/218 7:2:48 AM

6 John Hancock Life Insurance Company (U.S.A.) A LIFE ISURACE POLICY ILLUSTRATIO Basic Illustration Summary Female - Standard onsmoker Coverage Summary Initial Initial Coverage Description Amount Premium Face Amount - Level for all years $ $. Policy Summary Initial Death $ Face Amount $ Initial Planned Premium: $. / Billing Mode: Annual Death Option 1; Cash Value Accumulation Test Based on Current Charges and an Initial Current Rate of 4.95% State California Death Option 1 From 1 Thru 53 Definition of Life Insurance CVAT Payment Mode Annual Charges Current Assumed Interest Rate 4.95% From 1 Thru 53 Loan Interest Rate 4.25% From 1 Thru 53 Owner Tax Bracket 35.% From 1 Thru 53 Initial 7-Pay Premium Target Premium $3,573. $1,434. Minimum Initial Premium $74.31 Death Protection Period Based on Illustrated Assumptions LifeTrack Billing Illustration Serial umber 24 Years Yes ABF2AF3FA Interest Adjusted Indexes on Insured at 5% Payment Year 2 Year Cost Year 2 Year Guaranteed Current on-guaranteed Element THIS IS A ILLUSTRATIO OLY AD IS OT ITEDED TO PREDICT ACTUAL PERFORMACE. VALUES SET FORTH I THE ILLUSTRATIO ARE OT GUARATEED ULESS LABELED AS SUCH. This is your Basic Illustration and is valid only if all illustration pages are included. PUL18 MAX UPY Version: S[ ] Page 5 of 11 12/1/218 7:2:48 AM

7 John Hancock Life Insurance Company (U.S.A.) A LIFE ISURACE POLICY ILLUSTRATIO Basic Illustration Summary (cont'd) Female - Standard onsmoker Initial Death $ Face Amount $ Initial Planned Premium: $. / Billing Mode: Annual Death Option 1; Cash Value Accumulation Test Based on Current Charges and an Initial Current Rate of 4.95% Interest Adjusted Indexes These indexes provide a means for evaluating the comparative cost of the policy under stated assumptions. They can be useful in comparing similar plans of insurance, a lower index being better than a higher one. These indexes reflect the time value of money. Indexes are approximate because they involve assumptions, including the rate of interest used. THIS IS A ILLUSTRATIO OLY AD IS OT ITEDED TO PREDICT ACTUAL PERFORMACE. VALUES SET FORTH I THE ILLUSTRATIO ARE OT GUARATEED ULESS LABELED AS SUCH. This is your Basic Illustration and is valid only if all illustration pages are included. UPY Version: S[ ] Page 6 of 11 12/1/218 7:2:48 AM

8 John Hancock Life Insurance Company (U.S.A.) A LIFE ISURACE POLICY ILLUSTRATIO umeric Summary Female - Standard onsmoker Initial Death $ Face Amount $ Initial Planned Premium: $. / Billing Mode: Annual Death Option 1; Cash Value Accumulation Test GUARATEED ASSUMPTIOS These policy benefits and values are GUARATEED O-GUARATEED ASSUMPTIOS based on the guaranteed interest of SUMMARY YEARS ASSUMPTIOS Midpoint Scale Assumed Scale 2.% and guaranteed charges. Based on your Planned Premium Outlay, the Years Premium Paid in Cash policy would remain in force until policy year 25, month 4*. O-GUARATEED ASSUMPTIOS Summary Year 5 These policy benefits and values are et Surrender Value ,2 based on non-guaranteed elements that et Death are subject to change by the insurer. Actual results may be more or less Summary Year 1 favorable. et Surrender Value 1,387 2,582 4,26 ASSUMED SCALE: et Death Policy benefits and values are based on the initial current interest rate of 4.95% Summary Year 2 and current charges. Based on your et Surrender Value 1,781 Planned Premium Outlay, the policy et Death would remain in force until age 121*. Summary Age 7 MIDPOIT SCALE: et Surrender Value Assumes the midpoint interest rate et Death and charges which are halfway between current and guaranteed. Based on your Planned Premium Outlay, the policy would remain in force until policy year 25, month 4*. Premiums are assumed to be paid at the beginning of each modal period. Policy values, including surrender values and death benefits, are illustrated as of the end of the year, unless otherwise noted. * See Policy Continuation at Age 121 on "Valuable Information" page. Representative's Address: James Costello License umber: Rosecrans Ave Suite 3 Manhattan Beach, CA I have received a copy of this illustration and understand that any non-guaranteed elements illustrated are subject to change and could be either higher or lower. The representative has told me they are not guaranteed. I further understand that the guarantees provided by the Death Protection feature are directly affected by the amount and timing of premiums paid. <ins1si> <ins1dt> Applicant: Date: (Signature) (mm/dd/yyyy) I certify that this illustration has been presented to the applicant and that I have explained that any non-guaranteed elements illustrated are subject to change. I have made no statements that are inconsistent with the illustration. <asi> <adt> Representative: Date: (Signature) (mm/dd/yyyy) THIS IS A ILLUSTRATIO OLY AD IS OT ITEDED TO PREDICT ACTUAL PERFORMACE. VALUES SET FORTH I THE ILLUSTRATIO ARE OT GUARATEED ULESS LABELED AS SUCH. This is your Basic Illustration and is valid only if all illustration pages are included. Version: S[ ] Page 7 of 11 12/1/218 7:2:48 AM

9 Policy Year John Hancock Life Insurance Company (U.S.A.) A LIFE ISURACE POLICY ILLUSTRATIO Guaranteed and onguaranteed Values Female - Standard onsmoker EOY Age Planned Premium ,38.73% 742 3,38.73% 2 7 1, % 1, % , % 2, % , % 2, % , % 2,858 1,2 69.1% , % 3,26 1, % ,335 1, % 3,51 2, % ,143 1, % 3,731 2, % ,835 1, % 3,882 3, % ,387 1, % 4,26 4, % Totals: 15,93 End of Year Guaranteed Assumptions 2.% Minimum Rate, Maximum Charges POLICY VALUE ET SURR VALUE ET DEATH BEEFIT IRR O DEATH BEEFIT Initial Death $ Face Amount $ Initial Planned Premium: $. / Billing Mode: Annual Death Option 1; Cash Value Accumulation Test End of Year on-guaranteed Assumptions 4.95% Initial Current Rate, Current Charges Policy Value et Surrender Value et Death IRR on Death % 4,717 4, % % 5,423 5, % % 6,142 6, % % 6,869 6, % % 7,68 7, % % 8,278 8, % % 8,943 8, % % 9,576 9, % % 1,17 1,17 4.8% % 1,781 1, % Totals: 31, % 11,326 11, % % 11,83 11, % % 12,291 12, % % 12,734 12, % ## ## ## ## 13,169 13, % ,592 13, % ,12 14,12 1.6% ,44 14,44.78% ,896 14,896.52% ,44 15,44.29% Totals: 47,79 The IRR on death benefit is equivalent to an interest rate at which an amount equal to the illustrated premiums could have been invested outside the policy to arrive at the net death benefit of the policy. ## Indicates that the policy has lapsed under the illustrated assumption. Additional premium would be required to maintain policy benefits. THIS IS A ILLUSTRATIO OLY AD IS OT ITEDED TO PREDICT ACTUAL PERFORMACE. VALUES SET FORTH I THE ILLUSTRATIO ARE OT GUARATEED ULESS LABELED AS SUCH. This is your Basic Illustration and is valid only if all illustration pages are included. Version: S[ ] Page 8 of 11 12/1/218 7:2:48 AM

10 Policy Year John Hancock Life Insurance Company (U.S.A.) A LIFE ISURACE POLICY ILLUSTRATIO Guaranteed and onguaranteed Values (cont'd) Female - Standard onsmoker EOY Age Planned Premium ,761 15,761.8% ,7 16,7 -.12% ,343 16, % ,594 16, % ,848 16, % ,145 17, % ,568 17, % ,234 18, % ,376 19, % ,194 2, % Totals: End of Year Guaranteed Assumptions 2.% Minimum Rate, Maximum Charges POLICY VALUE ET SURR VALUE ET DEATH BEEFIT IRR O DEATH BEEFIT Initial Death $ Face Amount $ Initial Planned Premium: $. / Billing Mode: Annual Death Option 1; Cash Value Accumulation Test End of Year on-guaranteed Assumptions 4.95% Initial Current Rate, Current Charges Policy Value et Surrender Value et Death IRR on Death ,86 21,86-1.1% ,827 24, % ,725 26, % ,487 28, % ,356 3, % ,338 32, % ,439 34, % ,668 36, % ,31 39, % ,537 41, % Totals: ,194 44, % ,12 47, % , % ,475 52,475 52, % ,73 55,73 55, % ,799 57,799 57, % ,66 6,66 6,66 -.6% Totals: The IRR on death benefit is equivalent to an interest rate at which an amount equal to the illustrated premiums could have been invested outside the policy to arrive at the net death benefit of the policy. ## Indicates that the policy has lapsed under the illustrated assumption. Additional premium would be required to maintain policy benefits. THIS IS A ILLUSTRATIO OLY AD IS OT ITEDED TO PREDICT ACTUAL PERFORMACE. VALUES SET FORTH I THE ILLUSTRATIO ARE OT GUARATEED ULESS LABELED AS SUCH. This is your Basic Illustration and is valid only if all illustration pages are included. Version: S[ ] Page 9 of 11 12/1/218 7:2:48 AM

11 John Hancock Life Insurance Company (U.S.A.) A LIFE ISURACE POLICY ILLUSTRATIO Glossary of Terms Female - Standard onsmoker Advance Contribution Charge An Advance Contribution Charge is assessed on each monthly processing date when the cumulative premiums paid exceed the Advance Contribution Limit times the current Policy Year. It is deducted for the first 2 Policy Years. The Advance Contribution Charge rates and Advance Contribution Limit are both shown in the policy contract. Face Amount Charge The Face Amount Charge is an additional $.5838 per $1, of Face Amount per policy month in years 1-3. In years 4+, the rate is $.8757.This charge varies by the insured's issue age, gender, risk classification, and the policy duration. Cost Of Insurance Current insurance charges are based on Company experience. The current rates may change, but are guaranteed never to exceed the maximum rates. Maximum rates are no greater than the 217 CSO Age earest Birthday Ultimate mortality rates, adjusted for any applicable ratings. Death Option Death Option 1 provides a level amount of coverage. It will increase only when necessary to maintain the definition of life insurance. Death Option 2 provides coverage equal to the Face Amount plus the Policy Value plus any amount necessary to maintain the definition of life insurance. Face Amount The Face Amount is the coverage provided by the base policy. Any decreases to the Face Amount after the first policy year must fall within policy minimums. Monthly Administrative Charge A monthly Administrative Charge of $2. will be assessed in all years, current and guaranteed. et Death This is your Basic Illustration and is valid only if all illustration pages are included. Version: S[ ] Initial Death $ Face Amount $ Initial Planned Premium: $. / Billing Mode: Annual Death Option 1; Cash Value Accumulation Test Based on Current Charges and an Initial Current Rate of 4.95% The Death illustrated is the Face Amount plus any Required Additional Death. This is the value that is payable upon the death of the insured as stated on the front page of the policy. The actual amount payable may be decreased by loans or increased by additional insurance benefits. Death s are illustrated as of the end of the year. et Death reflects the total loan plus any loan interest due. et Income et Income reflects any illustrated withdrawal, policy loan and/or loan interest due. et Surrender Value The et Surrender Value is the Policy Value less Surrender Charge(s), and is illustrated as of end of the year. This amount is shown net of withdrawals and total loans plus interest due. During the Surrender Charge period, there is a Surrender Charge assessed if all or part of the Face Amount is reduced. If the policy terminates for any reason, the amount of any outstanding loan (that was not previously considered income) could result in a considerable tax. Under certain situations involving large amounts of outstanding loans, you might find yourself having to choose between high premium requirements to keep your policy from lapsing and a significant tax burden if you allow the lapse to occur. Please consult your tax advisor for further information. Persistency Credit Beginning in Policy Year 6, a Persistency Credit is added to your Policy Value on each monthly Processing Date if the current cost of insurance charges are below the maximum rates. The Persistency Credit formula is guaranteed by the contract not to change with the minimum Persistency Credit being.25% of the et Policy Value per month. The amount of the Persistency Credit above the minimum is determined based on policy owner actions, including the timing and amount of premium payments, loans, withdrawals, lapse and reinstatement; as well as the rates of interest applied to the policy; and the Cost of Insurance rates. The manner in which these changes are reflected in the THIS IS A ILLUSTRATIO OLY AD IS OT ITEDED TO PREDICT ACTUAL PERFORMACE. VALUES SET FORTH I THE ILLUSTRATIO ARE OT GUARATEED ULESS LABELED AS SUCH. Page 1 of 11 12/1/218 7:2:48 AM

12 John Hancock Life Insurance Company (U.S.A.) A LIFE ISURACE POLICY ILLUSTRATIO Glossary of Terms (cont'd) Female - Standard onsmoker manner in which these changes are reflected in the Persistency Credit is specified in your policy. Initial Death $ Face Amount $ Initial Planned Premium: $. / Billing Mode: Annual Death Option 1; Cash Value Accumulation Test Based on Current Charges and an Initial Current Rate of 4.95% Basic Illustration prior to or upon delivery of your insurance contract. You can see a projection of the effect that different credited interest rates or policy owner actions would have on the Persistency Credit by requesting illustrations showing different scenarios. Planned Premium Outlay The Planned Premium Outlay is the amount which the policyholder plans to pay. This illustration assumes that planned premiums are paid at the beginning of each modal period indicated. Additional premiums may be paid while the policy is in force, subject to our minimum and maximum limits. Policy Value When premiums are paid, the balance, after premium charges are deducted, goes into the Policy Value. The Policy Value is credited daily with a guaranteed interest rate of 2.% or the current rate, whichever is greater. Also, once each month, administrative and insurance charges are deducted. Premium Charge A Premium Charge of 18% is deducted from each premium. Required Additional Death The death benefit will automatically be increased if necessary to maintain the minimum amount of insurance needed to comply with current federal tax law (Section 772 of the Internal Revenue Code). This will ensure that your policy maintains the favorable tax treatment associated with being a life insurance policy. Risk Class Classifications represent groups of people with similar risk characteristics and help to determine the cost of insurance. Final risk classification for a proposed insured is determined upon completion of the underwriting process, and may vary from what is shown on this illustration. If so, you will receive a Revised Basic Illustration prior to or upon delivery of your THIS IS A ILLUSTRATIO OLY AD IS OT ITEDED TO PREDICT ACTUAL PERFORMACE. VALUES SET FORTH I THE ILLUSTRATIO ARE OT GUARATEED ULESS LABELED AS SUCH. This is your Basic Illustration and is valid only if all illustration pages are included. Version: S[ ] Page 11 of 11 12/1/218 7:2:48 AM

13 John Hancock Life Insurance Company (U.S.A.) A LIFE ISURACE POLICY ILLUSTRATIO Death Illustration Female - Standard onsmoker Initial Death $ Face Amount $ Initial Planned Premium: $. / Billing Mode: Annual Death Option 1; Cash Value Accumulation Test Based on Current Charges and an Initial Current Rate of 4.95% Policy Year EOY Age Planned Premium , , , , , , , , ,26 Totals: 15,93 Face Amount Required Additional Death Policy Value Total Death et Death , , , , , , , , , ,781 Totals: 31, , , , , , , , , , ,44 Totals: 47,79 THIS IS A ILLUSTRATIO OLY AD IS OT ITEDED TO PREDICT ACTUAL PERFORMACE. VALUES SET FORTH I THE ILLUSTRATIO ARE OT GUARATEED ULESS LABELED AS SUCH. Version: S[ ] /1/218 7:2:48 AM

14 John Hancock Life Insurance Company (U.S.A.) A LIFE ISURACE POLICY ILLUSTRATIO Death Illustration (cont'd) Female - Standard onsmoker Initial Death $ Face Amount $ Initial Planned Premium: $. / Billing Mode: Annual Death Option 1; Cash Value Accumulation Test Based on Current Charges and an Initial Current Rate of 4.95% Policy Year EOY Age Planned Premium , , , , , , , , , ,194 Totals: Face Amount Required Additional Death Policy Value Total Death et Death , , , , , , , , , ,537 Totals: , , ,65 5, ,475 52, ,73 55, ,799 57, ,66 6,66 Totals: THIS IS A ILLUSTRATIO OLY AD IS OT ITEDED TO PREDICT ACTUAL PERFORMACE. VALUES SET FORTH I THE ILLUSTRATIO ARE OT GUARATEED ULESS LABELED AS SUCH. Version: S[ ] /1/218 7:2:48 AM

15 John Hancock Life Insurance Company (U.S.A.) A LIFE ISURACE POLICY ILLUSTRATIO Input Summary ~~ Agent Use Only ~~ Female - Standard onsmoker Product & Concept Concept Ledger Approved in California Product Type Universal Life -- Single Life Product Protection UL 18 Policy Design Insured ame Sex Female Issue Age / Birthdate 68 State California Risk Class Standard onsmoker Total Face Amount 5 Death Option Option 1 Premium Schedule -- Solve 1 A121 Premium Duration A121 LifeTrack Billing Yes Premium Mode Annual Target Cash Value 1 Target Year Lifetime Crediting Rate Schedule -- Current 1 A121 Agent ame James Costello Policy Options Estimated Policy Issue 1/1/219 Date Charges Current Lump Sum Month Year 1 1 Lump Sum Month 1 Years 2+ MEC Testing Allow MEC Target Cash Value 1 Target Year Lifetime Withdrawal Cap Basis Loan Cap one Loan Interest Payment Borrow Type Initial Death $ Face Amount $ Initial Planned Premium: $. / Billing Mode: Annual Death Option 1; Cash Value Accumulation Test Variable Loan Interest 4.25% Rate Owner Tax Rate 35% Optional Reports Optional Presentations o Presentation Optional Reports Yes Input Summary Yes Vitality Presentation Yes Summary Year 2 John Hancock used the fully allocated expense method to test and verify all products for compliance with the AIC Life Insurance Illustration Model Regulation. This is your Basic Illustration and is valid only if all illustration pages are included. Version: S[ ] /1/218 7:2:48 AM

16 LifeTrack Serial umber: Life ew Business 3 Dan Rd, Suite Canton, MA LifeTrack Election Form (hereinafter referred to as John Hancock or The Company ) Complete this form to participate in LifeTrack. Print and use black ink. Any changes must be initialed by the Owner(s). PROPOSED LIFE ISURED 1. ame First Middle Last OWER(S) - Complete information only if Owner(s) is other than Proposed Life Insured. 2. ame of Owner(s) About LifeTrack LifeTrack is an optional billing service from John Hancock that helps keep you on track with your stated insurance coverage objectives by automatically adjusting the LifeTrack Premium each year based on actual policy experience. The LifeTrack Premium calculation is based on the policy objectives listed on page 2 of this form, actual Policy Value, timing and the amount of premiums paid, and updated assumptions for the policy s nonguaranteed elements, such as the assumed crediting rate and charges. If the policy is issued with the Healthy Engagement Rider, then the Life Insured s Status will also be used in the LifeTrack Premium calculation. Changing or Terminating LifeTrack You may change your LifeTrack policy objectives at any time by contacting our Service Office at and obtaining an in-force illustration that reflects your new objectives. LifeTrack will use your new policy objectives in computing your LifeTrack Premium for each year following The Company's receipt of your new LifeTrack election form. You can change your policy objectives, or terminate LifeTrack, by contacting your financial representative or our Service Office. LifeTrack billing will terminate if you take a policy withdrawal or loan, or if the policy lapses. If LifeTrack terminates, you must notify us of your desired billed premium. If you do not, your future billed premiums will equal the most recent LifeTrack Premium. LTEFv4(4/218) Page 1

17 LifeTrack Serial umber: LifeTrack Policy Objectives & Illustrated Assumptions Your LifeTrack Premium will be calculated each year based on the following policy objectives and illustrated assumptions: Product: Pay premiums for: Targeting a cash value of: For a Death of: Assumed Interest Rate: Assumed Charges: Healthy Engagement Rider Status of the Life Insured : LTEFv4(4/218) Page 2

18 OWER(S) ACKOWLEDGEMET AD AUTHORIZATIO LifeTrack Serial umber: I acknowledge that: A. i. I read the disclosure in the accompanying illustration for information about the flexibility of my policy and about how nonguaranteed elements and the amount of and timing of premium payments impact the performance of my policy and the duration of the ii. iii. iv. Paying a LifeTrack Premium that is other than the planned premium in my initial as sold illustration could reduce the duration of my policy s LifeTrack takes into account the changes in the nonguaranteed elements and calculates a premium that is intended to help me achieve my objectives for the policy. While the accompanying illustration assumes the nonguaranteed elements do not change, it is likely that they will change and therefore the LifeTrack Premium will likely be different from the planned premium shown in the illustration. v. Changes in the nonguaranteed elements of my policy may affect the amount of my insurance benefits, the duration of my insurance coverage, and my policy value. The policy value may reduce to zero. If the net cash surrender value is insufficient to pay the charges when due, and the is no longer in effect, my policy will lapse and terminate unless more premiums are paid. At such time, I will have no insurance coverage. vi. LifeTrack will terminate if I take a loan or withdrawal from my policy, or if my policy lapses. B. If I completed a request for Pre-Authorized Payment Plan, I hereby authorize and request The Company to update the pre-authorized amount to be withdrawn to equal the LifeTrack Premium. OWER(S) SIGATURES X Signature of Owner (Provide title or corporate seal, if signing officer) X Print name of Owner X Signature of Owner (Provide title or corporate seal, if signing officer) X Print name of Owner AGET/REGISTERED REPRESETATIVE SIGATURE I certify that I have reviewed with the Owner the objectives for the policy. X Signature of Agent/Registered Representative Signed this date LTEFv4( 4/218) Page 3

19 Initial Death $ Life Insurance Illustration ame: Female Age : 68-Standard onsmoker Date: 12/1/218 Initial Payment $ on-guaranteed Interest Rate 4.95% Tax Bracket 35% Year Age et Annual Outlay Cumulative et Outlay Annual Cash Value Incr / Decr et Surrender Value et Death , , , , ,2 T@ 73 7,965 7,965 1,2 1, , , , , , , , , , ,26 T@ 78 15,93 15,93 4,26 4, , , , , , , , , , ,68 T@ 83 23,895 23,895 7,68 7, , , , , , , , , , ,781 T@ 88 31,86 31,86 1,781 1, , , , , , , , , , ,169 T@ 93 39,825 39,825 13,169 13,169 V2.51. C :2:48 AM Version: This supplemental illustration is not intended to predict actual performance and is valid only when accompanied by all pages of a Protection UL 18 illustration from John Hancock Life Insurance Company (U.S.A.). Presented by: James Costello Page 1 of 4

20 Initial Death $ Life Insurance Illustration ame: Female Age : 68-Standard onsmoker Date: 12/1/218 Initial Payment $ on-guaranteed Interest Rate 4.95% Tax Bracket 35% Year Age et Annual Outlay Cumulative et Outlay Annual Cash Value Incr / Decr et Surrender Value et Death , , , , , , , , , ,44 T@ 98 47,79 47,79 15,44 15, , , , , , , , , , ,848 T@ 13 55,755 55,755 16,848 16, , , , , , , ,142 19, ,194 T@ 18 2,194 2, ,612 21, ,21 24, ,898 26, ,762 28, ,869 3,356 T@ 113 3,356 3, ,982 32, ,11 34, ,229 36, ,363 39, ,56 41,537 T@ ,537 41,537 V2.51. C :2:48 AM Version: This supplemental illustration is not intended to predict actual performance and is valid only when accompanied by all pages of a Protection UL 18 illustration from John Hancock Life Insurance Company (U.S.A.). Presented by: James Costello Page 2 of 4

21 Initial Death $ Life Insurance Illustration ame: Female Age : 68-Standard onsmoker Date: 12/1/218 Initial Payment $ on-guaranteed Interest Rate 4.95% Tax Bracket 35% Year Age et Annual Outlay Cumulative et Outlay Annual Cash Value Incr / Decr et Surrender Value et Death ,657 44, ,818 47, ,988 5, ,475 52,475 52, ,598 55,73 55,73 T@ ,73 55,73 55, ,726 57,799 57, ,861 6,66 6,66 T@ 125 6,66 6,66 6,66 V2.51. C :2:48 AM Version: This supplemental illustration is not intended to predict actual performance and is valid only when accompanied by all pages of a Protection UL 18 illustration from John Hancock Life Insurance Company (U.S.A.). Presented by: James Costello Page 3 of 4

22 Illustration Concept: Life Insurance Illustration Concept Information Page December 1, 218 The Ledger concept illustrates non-guaranteed values and other nonguaranteed elements. The net annual premium outlay column includes total illustrated annual premium for the base policy and any riders less any loans, dividends and/or surrenders of other policy values, plus any tax consequences that might result from situations such as a Modified Endowment Contract. Please refer to the Basic Ledger and Supplemental Ledger for a complete description of non-guaranteed values including definitions of cash value and death benefit columns. John Hancock Life Insurance Company (U.S.A.) Page 4 of 4

23 Company: John Hancock Product: Protection UL 18 Input Summary December 1, 218 Insured Insured ame Sex Female Date of Birth 12/3/195 Age 68 Class Permanent Percentage Standard onsmoker Flat Extra Amount 1 to 53 - State of Issue Backdate to Save Age one California Estimated Policy Issue Date 1/1/219 Solve For Solve For Vitality Premium <a href=" target="_blank"><b>status Estimator</b></a> Total Face Amount 1 to Premium LifeTrack Billing 1 to Solve Target Cash Value 1 Disbursements Target Cash Value Year/Age Y Lifetime Disbursements Policy Options Crediting Rate 1 to Current Death Option Option 1 (Level) Premium Mode Annual Charges Current PV Rate for Cash Flows Prevent MEC Lump Sum 1 to Lump Sum Month Year 1 1 Lump Sum Month Years 2+ 1 Revised Basic Illustration Years to Print Lifetime Policy Riders Policy Riders Optional Pages Optional Pages Y Page 1 of 2

24 Company: John Hancock Product: Protection UL 18 Input Summary December 1, 218 Optional Pages Annual Account Summary Monthly Account Summary Alternate Rate Report Loan Details Report ecessary Premium Report Input Summary Y Cover Page Internal Rate of Return Death Illustration Tabular Midpoint Ledger TAMRA Page Financial Strength Report Vitality Presentation Y Summary Years Policy Year Year 2 Critical Illness Presentation Agent Info Agent ame James Costello Agent Company Independent Agent Agent License Agent Address1 123 Rosecrans Ave Agent Address2 Suite 3 Agent City Manhattan Beach Agent State California Agent Zip Code 9266 Agent Phone Bank Sale Affiliation one Concept Concept Ledger Tax Bracket 1 to Page 2 of 2