John Hancock Term with

Transcription

1 PRODUCER GUIDE John Hancock Term with Product Highlights, Features and Benefits LIFE /15

2 John Hancock Term with John Hancock Term with Vitality protects your clients while also recognizing and rewarding them for living a healthy life. Our highly competitive product offers 10, 15, and 20-year durations, and a guaranteed option to convert to a permanent John Hancock policy. Now, with the John Hancock Vitality Program, your clients can save even more and be rewarded for simply living a healthy life. The more engaged your clients are in the Vitality Program, the more premium savings and rewards they can receive. Product Highlights1 This innovative life insurance solution can differentiate you in the market, help grow your business, and benefit clients throughout their lifetime by providing: Highly competitive premiums for 10, 15, or 20-year durations Initial premium savings available for face amounts ranging from $250,000 - $20,000,000 Guaranteed conversion feature with an enhanced conversion privilege. Plus, the Conversion Extension rider gives clients additional flexibility to decide when they want to convert their policy. Total Disability and Accelerated Benefit riders for extra protection The John Hancock Vitality Program which offers: The opportunity to reduce premiums even further by living a healthy life Personalized health goals and a free Fitbit to track progress toward a healthy lifestyle Entertainment, shopping, and travel rewards and discounts

3 Live a Healthy Life and Save! Who is a Good Fit for This Product? John Hancock Term with Vitality is ideally suited for clients who are: Seeking an affordable solution to help protect their loved ones and plan for the future Inspired to save on premiums by living a healthy life Willing to actively engage in the Vitality Program Between the ages of Significant Savings Potential By purchasing John Hancock Term with Vitality, clients can save as much as 10% on their initial premium, depending on the terms of their policy, when compared to John Hancock Term without Vitality. Initial Premium Savings with John Hancock Term with Vitality Male, 45, Preferred Non Smoker, Term 20 John Hancock Term 2015 without Vitality John Hancock Term with Vitality 10% SAVINGS $4,540 $4,090 PREMIUMS 9% SAVINGS 8% SAVINGS $405 $373 9% SAVINGS $800 $725 $1,540 $1,400 $250,000 $500,000 $1,000,000 $3,000,000 FACE AMOUNT This example shows the difference in initial premium for varying face amounts of John Hancock Term with Vitality and John Hancock Term 2015 without Vitality. After the first year, premiums for John Hancock Term with Vitality are not guaranteed, because premiums will adjust annually based on a Life Insured s participation in the program and the Vitality Status they achieve. In order to maintain a level premium, a Gold Vitality Status must be achieved in all years. ABOUT VITALITY To help your clients in their pursuit of a longer, healthier life, we ve partnered with Vitality, the global leader in integrating wellness benefits with life insurance products. Vitality has an established track-record of creating interactive, personalized programs. Millions of Vitality members worldwide use their online tools to identify and track health and lifestyle goals. 1

4 Accumulate Points. Earn a Status. Enjoy Savings & Rewards. Accumulate Points: Your clients can earn Vitality Points by completing simple everyday activities like going to the gym, staying tobacco-free, or getting an annual health screening. We ll even send them a free Fitbit to track their progress toward a healthy lifestyle. Based on the number of points they accumulate, your clients will earn a Vitality Status Bronze, Silver, Gold, or Platinum. BRONZE STATUS SILVER STATUS GOLD STATUS PLATINUM STATUS 0 POINTS 3,500 POINTS 7,000 POINTS 10,000 POINTS Earn a Status: On their policy anniversary, they ll earn premium savings that reflect the status level they ve achieved. Below is an example of the types of simple activities clients can do to achieve a Gold status. START AT BRONZE STATUS 0 pts Don t use tobacco and record a healthy BMI 2,000 pts REACH SILVER STATUS 3,500 pts Complete four online nutrition and well-being classes 300 pts Get a dental screening 200 pts REACH GOLD STATUS 7,000 pts Complete first-time Vitality Health Review in 90 days 1,250 pts Get an annual flu shot 400 pts Complete three standard workouts each week for a year 3,120 pts bronze silver gold Enjoy Savings and Rewards: The higher your client s Vitality Status, the more they can potentially save on premiums, and the greater their rewards and discounts including: FREE FITBIT DEVICE FREE HEALTH CHECK 2 WEARABLE DEVICE DISCOUNTS HEALTHY GEAR DISCOUNTS 3 HALF-PRICE HOTEL STAYS 3 CRUISE REWARDS 3 SHOPPING & ENTERTAINMENT 3 2

5 Product Specifications FEATURES Product Design Vitality Program (Also referred to as the Healthy Engagement Benefit) JOHN HANCOCK TERM WITH VITALITY 10, 15 or 20-year term durations available Vitality is the provider of the John Hancock Vitality Program in connection with the life insurance policy and Healthy Engagement Benefit. The Healthy Engagement Benefit determines the Total Premium based upon the achieved status of the Life Insured. The Total Premium may vary from year to year. There are four status levels: Bronze, Silver, Gold, and Platinum. The achievement of a status is dependent upon the Life Insured meeting certain status qualification requirements in each year. The discounts, rewards, and Fitbit will be provided only to the Life Insured to encourage participation in the program. The Healthy Engagement Benefit will cease at end of term duration. Enhanced conversion privilege when achieving Gold or Platinum Vitality Status. See Convertibility section below for details. Issue Ages 10 Year Term 15 Year Term 20 Year Term Renewability through age 94 Risk Classes Non Smoker Smoker Super Preferred Preferred Standard Plus Standard Preferred Standard Minimum Face Amount $250,000 Maximum Face Amount $20,000,000; The Maximum Face Amount is subject to underwriting, retention limits and reinsurance considerations. Banding Band 1: $250,000-$499,999 Band 2: $500,000-$999,999 Band 3: $1,000,000-$2,000,000 Band 4: $2,000,001 + Payment Modal Factors Premiums may be paid annually, semi-annually, quarterly or monthly.* For premiums paid other than annually, the following modal factors apply: Semi-Annually Annual rate per thousand x.5150 Quarterly Annual rate per thousand x.2650 Monthly Annual rate per thousand x.0875 *Monthly payment mode requires electronic funds transfer 3

6 Product Specifications continued FEATURES JOHN HANCOCK TERM WITH VITALITY Policy Fee Band 1 and 2 Band 3 and 4 Annually $70 $100 Semi-Annually $35 $50 Quarterly $20 $27 Monthly $9 $12 Note: Policy fee is non commissionable Face Amount Increases Face Amount Decreases Years 1-3 Years 4-6 Years 7+ Convertibility Face Amount increases are not permitted. No Face Amount reductions are allowed during the first three policy years. Reductions allowed up to 50% of the initial Face Amount, as long as the remaining Face Amount is at least equal to the Minimum Face Amount stated in the contract. Beginning in policy year 7, any reduction is allowed as long as the remaining Face Amount is at least the Minimum Face Amount stated in the contract. Note: Decreases are processed only at the policy owner s request. Within the following guidelines, John Hancock Term with Vitality is convertible to fully-underwritten John Hancock permanent life insurance products currently offered to individual policy owners, including universal life, indexed universal life and variable universal life insurance (excluding Simplified Life, COLI or BOLI): The available conversion period is the lesser of 10 years or attainment of age 70. Term is convertible in the first 6 policy years to any single-life permanent product offered for sale by John Hancock at the time of conversion. In policy year 7 through 10, and for the remainder of the conversion period, the conversion options are dependent on the status achieved by the Life Insured, as follows: if the Life Insured has achieved either the Gold or Platinum Status on each of the three Annual Processing dates prior to the date of the conversion, then the policy can be converted to any John Hancock single-life permanent plan of life insurance offered for sale at the time of the conversion; if the Life Insured has achieved either the Silver or Bronze Status on any of the three Annual Processing Dates prior to the date of the conversion, then the policy can be converted to a single-life permanent plan of life insurance that John Hancock makes available for conversions. Clients whose Term insurance premiums are being waived under the Total Disability Waiver may convert their policy to a permanent plan; however, they cannot purchase the Total Disability Waiver on the permanent policy. Certain supplementary benefits or riders, including the Long-Term Care (LTC) rider 4, may be added on conversion subject to underwriting. If an insured has multiple Term policies, they may convert each to separate new permanent policies subject to the regular conversion rules. Multiple Term policies cannot be combined and converted to one permanent individual policy. There is no conversion option for issue age 70. 4

7 FEATURES Converting to a Survivorship Policy JOHN HANCOCK TERM WITH VITALITY Your client also has the option to convert a single-life Term policy to a survivorship policy (a policy that insures two people and pays a benefit on the death of the second insured). The Face Amount of the new survivorship policy can be up to the Face Amount of the Term contract subject to available retention limits. Underwriting is required only on the life not previously covered under the original Term contract. The new life must be underwritten for the full Face Amount, found insurable and be age 75 or younger. For more information, consult the John Hancock Term with Vitality Technical Guide. OPTIONAL BENEFITS/RIDERS Total Disability Waiver (TDW) Accelerated Benefit Conversion Extension JOHN HANCOCK TERM WITH VITALITY This rider provides for a waiver of required premiums should: the insured become totally disabled while the benefit is in force and before the policy anniversary nearest to the insured s 65th birthday, and the total disability lasts at least six months, without interruption, during the insured s lifetime. Maximum Face Amount is $5,000,000 There are limited benefits for insureds with a disability that begins between ages Issue ages Maximum Benefit $5,000 per month A separate charge is required if this optional rider is elected. The charge is based on age at issue and the Total Face Amount. Provides a living benefit if the insured is certified to be terminally ill with a life expectancy of one year or less. This provision allows the policy owner to receive 50% of the eligible death benefit to a maximum of $1 million. The death benefit is reduced by the rider benefit amount plus one year s interest at current loan rates on the benefit paid and any administrative expense charge. Benefits may be taxable under current tax law. Policy owners should consult their personal tax advisors regarding the tax implications of benefits received under the Accelerated Benefit. The Conversion Extension rider extends the normal conversion period to the earlier of the last day of the Term Period or the policy anniversary nearest the Life Insured s attainment of age 70. During the extended conversion period this policy can be converted to a single-life permanent plan of life insurance that John Hancock makes available for conversions. There is a separate charge for the rider. If the new policy includes a rider that is not in force on this policy at the time of conversion, evidence of insurability will be required. 5

8 1. Insurance policies and/or associated riders and features may not be available in all states. Some riders may have additional fees and expenses associated with them. Guarantees are based on the claims-paying ability of the issuer. 2. Subject to state availability. 3. John Hancock Term with Vitality policies with Face Amounts of $2,000,000 and below are not eligible for these rewards. 4. The Long-Term Care (LTC) rider is an accelerated death benefit rider and may not be considered long-term care insurance in some states. There are additional costs associated with this rider. The Maximum Monthly Benefit Amount is $50,000. When the death benefit is accelerated for long-term care expenses it is reduced dollar for dollar, and the cash value is reduced proportionately. Please go to your John Hancock producer website to verify state availability. For agent use only. Not for use with the public. Vitality is the provider of the John Hancock Vitality Program in connection with the life insurance policy and Healthy Engagement Benefit. Rewards may vary based on the ownership and inforce status of the insurance policy, and the state where the insurance policy was issued. 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 MLINY