Competitive Advantages and Winning Features

Transcription

1 REFERENCE GUIDE Competitive Advantages and Winning Features A Quick Reference Guide Highlighting the Competitive Advantages of John Hancock s Life Insurance Portfolio FOR BROKER/DEALER USE ONLY. NOT FOR USE WITH THE PUBLIC.

2 Instant Recognition At a glance, you ll know which John Hancock life insurance products will best meet your clients particular needs. These quick reference charts highlight the key benefits of each product as well as the ages and funding patterns where it is most competitive.

3 QUICK REFERENCE GUIDE 1 Universal Life Most Competitive 1 Competitive 1 Less Competitive 1 Protection UL Some of the most competitive premiums in the industry. Very competitive in a wide variety of funding designs, including full-pay, single-pay, 10-pay and dump-in scenarios. Also competitive when solving for lifetime (age 121) coverage or less than lifetime. Strong guarantees can last beyond life expectancy 2 at older ages (70+); guarantee duration depends on funding level. Enhanced target premiums for policies with a qualifying lump-sum payment in the first year. Optional riders include: Return of Premium 3 and Long-Term Care rider. 4 Based on full-pay, 10-pay and single-pay for lifetime coverage Advanced Markets Concepts: Estate Planning Irrevocable Life Insurance Trusts (ILITs), Wealth Transfer, Key Person UL-G Guaranteed universal life, designed to be competitive in full-pay scenarios. Offers a Policy Protection rider, Quit Smoking Incentive, Long-Term Care rider, 4 Disability Payment of Specified Premium rider, Late Payment of Premium feature and adjustable death benefit guarantees. Based on lifetime full-pay with lifetime guarantee Advanced Markets Concepts: Estate Planning Irrevocable Life Insurance Trusts (ILITs), Key Person Accumulation UL Current assumption universal life designed for cash value accumulation. Offers high early cash values; higher targets on Option 2. Designed for Advanced Markets concepts such as Premium Financing; works well in accumulation scenarios or 10-pay to endow solves. Offers an Overloan Protection rider 5 and Return of Premium rider. 3 Based on cash values at age 65 (10 years if less) assuming 7-pay premium for 7 years Advanced Markets Concepts: Life Insurance in Retirement Planning (LIRP), Buy-Sell Planning, Supplemental Executive Retirement Plans (SERP)

4 QUICK REFERENCE GUIDE 2 Indexed Universal Life Most Competitive 1 Competitive 1 Less Competitive 1 Protection IUL Some of the most competitive IUL premiums in the industry with strong guarantees and cash value growth potential. Choice of three indexed account interest crediting strategies (High Par, Capped and Uncapped Indexed Accounts). Optional riders include Long-Term Care rider 4 and Return of Premium rider. 3 Based on full-pay, 10-pay and single-pay for lifetime coverage Advanced Markets Concepts: Estate Planning Irrevocable Life Insurance Trusts (ILITs) and Spousal Access Trusts, Split Dollar Plans Accumulation IUL Offers strong cash values, accumulation potential and retirement income. Choice of three indexed account interest crediting strategies (High Par, Capped and Uncapped Indexed Accounts). Optional riders include Long-Term Care rider 4 and Return of Premium rider. 3 Based on high funding over target with high cash values at age 65 and income Advanced Markets Concepts: Life Insurance in Retirement Planning (LIRP), Supplemental Executive Retirement Plans (SERP), Salary Deferral, Executive Bonus Plans, Estate Planning Spousal Access Trusts Survivorship Universal Life Protection SUL Most competitive for top three risk classes; lifetime full-pay, 10-pay and single-pay premium solves. Strong guarantees often last beyond life expectancy at older ages (70+). Enhanced target premiums for policies with a qualifying lump-sum payment in the first year. Optional riders include Estate Preservation rider, Policy Split Option rider, Disability Payment of Specified Premium rider and Return of Premium rider. 3 Based on full-pay, 10-pay and single-pay for lifetime coverage Advanced Markets Concepts: Transferring the Family Business, Equalization of Inheritances, Wealth Transfer, Split Dollar Plans SUL-G Guaranteed survivorship universal life that is the most competitive in full-pay scenarios. Offers a Policy Protection rider, Quit Smoking Incentive, Estate Preservation rider, Late Payment of Premium feature and adjustable death benefit guarantees. Based on a lifetime full-pay with lifetime guarantee Advanced Markets Concepts: Estate Planning Irrevocable Life Insurance Trusts (ILITs), Split Dollar Plans

5 QUICK REFERENCE GUIDE 3 Survivorship Indexed Universal Life Most Competitive 1 Competitive 1 Less Competitive 1 Protection SIUL Some of the most competitive survivorship IUL premiums in the industry with strong guarantees and cash value growth potential. Choice of three indexed account interest crediting strategies (High Par, Capped and Uncapped Indexed Accounts). Optional Return of Premium rider. 3 Based on full-pay, 10-pay and single-pay for lifetime coverage Advanced Markets Concepts: Estate Planning Irrevocable Life Insurance Trusts (ILITs) and Spousal Access Trusts, Split Dollar Plans Variable Universal Life 6 Protection VUL Low-cost variable universal life; strong on all Non Smoker risk classes for males and females; competitive premium solves with built-in 20-year No-Lapse Guarantee and an optional Extended No-Lapse Guarantee (ENLG) rider while fully allocated to the Lifestyle Portfolios 7 or other approved investment options. Also offers Long-Term Care rider, 4 Disability Payment of Specified Premium rider and an adjustable death benefit guarantee. Based on full-pay solve and Extended No-Lapse Guarantee premium Advanced Markets Concepts: Estate Planning Irrevocable Life Insurance Trusts (ILITs) and Spousal Access Trusts, Wealth Transfer, Executive Bonus Plans Accumulation VUL Strong on all Non Smoker risk classes for males and females; highly funded cases with excellent cash values and income potential at age 65. Offers an Overloan Protection rider, 5 Long-Term Care rider 4 and Lifestyle Portfolios. 7 Based on high funding over target with high cash values at age 65 and income Advanced Markets Concepts: Life Insurance in Retirement Planning (LIRP), Supplemental Executive Retirement Plans (SERP), Salary Deferral, Restrictive Endorsement Bonus Agreement (REBA), Split Dollar Plans

6 QUICK REFERENCE GUIDE 4 Survivorship Variable Universal Life 6 Most Competitive1 Competitive 1 Less Competitive 1 Protection SVUL Strong on all Non Smoker risk classes for males and females; competitive premium solves with built-in 20-year No-Lapse Guarantee and flexible Extended No-Lapse Guarantee (ENLG) rider while fully allocated to the Lifestyle Portfolios 7 or other approved investment options. Also offers an Estate Preservation rider and an adjustable death benefit guarantee. Specialty Product Premier Life Designed to appeal to clients who want the predictable benefits of a whole life policy with the affordability of a flexible premium policy. Competitive full-pay premiums especially at age 65 and below. Guaranteed cash value, strong death benefit guarantees and current assumption performance. Offers Long-Term Care rider 4 and Return of Premium rider. 3 Term Life John Hancock Term Based on Extended No-Lapse Guarantee premium Advanced Markets Concepts: Estate Planning Spousal Access Trusts, Dynasty Trusts, Life Insurance in Retirement Planning (LIRP), Split Dollar Plans Accumulation SVUL Strong on all Non Smoker risk classes for males and females. Designed for top cash values and income potential at age 65 on highly funded cases. Offers an Estate Preservation rider, Policy Split Option rider, Overloan Protection rider, 5 and Lifestyle Portfolios. 7 Based on high funding over target Advanced Markets Concepts: Life Insurance Retirement Planning (LIRP), Wealth Transfer, Estate Planning Spousal Access Trusts Based on full-pay solve with guarantee to age 100 Advanced Markets Concepts: Estate Planning Irrevocable Life Insurance Trusts (ILITs), Spousal Access Trusts, Dynasty Trusts, Life Insurance Retirement Planning (LIRP) Designed to excel at face amounts of $3 million+. Offers a 10-, 15- or 20-year guaranteed level premium, the Total Disability Waiver rider, and an attractive conversion option to any of John Hancock s competitive permanent products. 10- and 15-year term based on face amount of $3,000,000+ Super Preferred NS Varies Preferred NS by Standard Plus NS Duration Standard NS Advanced Markets Concepts: Key Person, Buy-Sell Planning

7 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.

8 1. Most Competitive is one of the most competitive vs. competitors. Competitive is within approximately 5% of the lowest premium and Less Competitive is within approximately 10% of the lowest premium. 2. Life Expectancy based on 2008 VBT Primary Table. 3. The Return of Premium rider is available only at issue with a Level Death Benefit option. Not available in conjunction with certain other riders. 4. The Long-Term Care (LTC) rider is an accelerated death benefit rider. Maximum face amount is $5 million with the LTC rider. There are additional costs associated with this rider. These riders may not be available in some states and are not considered long-term care insurance in some states. When the death benefit is accelerated for long-term care expenses under these riders, the death benefit is reduced dollar for dollar, and the account value is reduced proportionally. Please go to for a complete list of up-to-date state approvals. This rider have exclusions and limitations, reductions of benefits, and terms under which it may be continued in force or discontinued. Consult the state specific Outline of Coverage for additional details. John Hancock s Long-Term Care rider is not a Partnership Qualified product. 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; it does not qualify for the New York State Partnership for Long-Term Care program and is not a Medicare supplement policy. 5. Overloan Protection rider is subject to availability limitations described in the policy. There may be additional costs associated with this rider. 6. 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. 7. The Lifestyle Portfolios in the John Hancock Variable Insurance Trust are not mutual funds available to the retail public and are available under John Hancock s variable life insurance policies or through participation in certain tax-qualified retirement plans. The investment advisor of the Lifestyle Portfolios also manages mutual funds available to the retail public with similar names and investment objectives. No representation is made, and no assurance is given, that any Lifestyle Portfolio s investment results will be comparable to the investment results of any other fund, including retail mutual funds with the same investment advisor. Past performance is no guarantee of future results. This information is current and accurate to the best of our knowledge as of September Protection UL, Protection IUL, Protection SUL, Protection SIUL and Premier Life policies automatically include a no-lapse guarantee called Death Benefit Protection (DBP). This feature guarantees that the policy will not default, even if the cash surrender value falls to zero or below, provided that the DBP value remains greater than zero and policy debt never exceeds the Policy Value. Once terminated, the DBP feature cannot be reinstated. See the product technical guide for additional details. The No-Lapse Guarantee (NLG) is automatically included with Accumulation IUL, Accumulation VUL, Accumulation SVUL, Protection SVUL and Protection VUL. The Extended No- Lapse Guarantee (ENLG) requires an additional cost; it is optional on Protection VUL and is automatically included on Protection SVUL. NLG and ENLG guarantee that your policy will not default, even if the cash surrender value falls to zero or below, as long as either the NLG or ENLG cumulative premium test (performed at the point of lapse) is satisfied. Once lapsed, the guarantees cannot be reinstated. The NLG duration varies by issue age; for Accumulation IUL the NLG is reduced to 5 years if you elect the Return of Premium rider or if you elect to increase the Supplemental Face Amount. See the product technical guides for additional details. Please contact , option 2 to obtain product and fund prospectuses or if you are interested in obtaining a selling agreement with John Hancock Distributors LLC (for New York, contact , option 5). The prospectuses contain complete details on investment objectives, risks, fees, charges and expenses as well as other information about the investment company. Please advise your clients to carefully read the prospectuses which contain this and other information on the product and the underlying portfolios, and consider these factors carefully before investing. Guaranteed product features are dependent upon minimum premium requirements and the claims-paying ability of the issuer. 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. Some riders may have additional fees and expenses associated with them. Refer to the product prospectus for additional information. 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 was not intended or written for use and 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. Anyone interested in these transactions or topics should seek advice based on his or her particular circumstances from independent professional advisors. This material is for Institutional / Broker-Dealer use only. Not for distribution or use with the public. Insurance products are issued by: John Hancock Life Insurance Company (U.S.A.) (not licensed in New York), Boston, MA 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 IM4103 MLINY /13 Scan this code to find out more.