PROTECTION SIUL - iGROUP Tools · 2016-04-05 · John Hancock’s Protection Survivorship IUL...
Transcript of PROTECTION SIUL - iGROUP Tools · 2016-04-05 · John Hancock’s Protection Survivorship IUL...
PRODUCER GUIDE
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For Agent Use only. not For Use with the pUblic.
PROTECTION SIULProtection for today. Legacy planning for the future.INDUSTRY-LEADING SURVIVORSHIP PREMIUMS
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Protection SIULPerformance and Features1
•OftenthemostcompetitiveSurvivorshipIndexedULpremiumsintheindustry
•Permanentdeathbenefitprotectionwithcashvaluegrowthpotential
• Substantialguarantees2thatcanprovidecoveragebeyondlifeexpectancyatolderages3
•Simpleannualpoint-to-pointinterestcreditingbasedontheS&P500®4
•MorestableHighParIndexedAccountwith160%participationrate5
• StrongcashvaluegrowthpotentialwiththeCappedIndexedAccount
•UnlimitedgrowthpotentialwiththeUncappedIndexedAccount
•CompetitiveFixedAccountprovidessafeandsteadygrowth
• StandardandIndexLoanoptions6
•Dynamicestateplanningsolution
JohnHancock’sProtectionSurvivorshipIUL(SIUL)isoftenthemostaffordableSurvivorshipIndexedULproductintheindustry.ProtectionSIULprovidesclientsthesafetyofasurvivorshipuniversallifepolicy,withdownsideprotectionofaguaranteed0%floor—meaning the policy will never realize negative returns.
ProtectionSIULcanalsohelphigh-net-worthclientsmaximizetheirpremiumdollarswithfeaturesandridersthataddresstheirestateandbusinessplanningneeds.
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Premium
LessPremiumCharge
LessPolicyCharges
LessPolicyDistributions (Loans&Withdrawals)
Opportunity
Oftenthemostcompetitivesurvivorshippremiumsintheindustry—withtheopportunityforcashvaluegrowthpotential.
Simplicity
Utilizesonebroad-basedU.S.marketindex—theS&P500—andanannualpoint-to-pointcreditingmethodthatgivesclientsquickeraccesstotheirinterestcredits.
Protection
Providesthreelayersofguaranteedprotection:ano-lapseguaranteethatoftenextendstoaboutlifeexpectancy,a0%minimumannualinterestratefloor,andaCumulativeGuaranteethatensuresaminimumaverageannualizedrateofreturnof2%overthelifeofthepolicy,uponsurrender.
How It WorksWhenclientsmakeapremiumpayment,apremiumchargeisdeducted.Premiumscanbeallocatedamongfouroptions:aFixedAccountandthreeIndexedAccountoptions.TheHighParIndexedAccount,CappedIndexedAccountandUncappedIndexedAccountoptionsformtheIndexAppreciationAccount.DesignatedpolicyvaluesareformedintonewSegmentsonthe15thofeachmonth.AtSegmentMaturity(oneyear),anIndexSegmentInterestCreditisappliedtotheSegmentandclientscanthenallocatetheirsegmentproceedsamonganyoftheaccountoptions.
Clientsarealsoabletoaccessthepolicyvalueviawithdrawalsorpolicyloans.Upondeath,thepolicy’sdeathbenefit,lessoutstandingloansandinterest,willbepaidtothebeneficiaries.
DeathBenefit
Note:TheIndexSegmentInterestCreditproceedsarecalculatedandearnedatSegmentMaturityonly.IfthepolicyterminatespriortoaSegmentMaturitydate,anyunmaturedSegmentswillnotearninterestcredit.
The Advantages of Protection SIUL
Uncapped Indexed Account
EarnsInterestat SegmentMaturity
Fixed Account
EarnsInterestDaily
High Par Indexed Account EarnsInterestatSegmentMaturity
POLICY VALUE
Capped Indexed Account
EarnsInterestat SegmentMaturity
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Interest Crediting Strategies JohnHancockofferstheflexibilityoffourinterestcreditingstrategies,givingclientstheoptiontoallocatepremiumstooneorallofthesestrategies.
Fixed AccountPolicyValueintheFixedAccountisdepositedinthecompany’sGeneralAccountatadeclaredratethatwillneverbelowerthantheguaranteedannualrateof2.00%.
High Par, Capped and Uncapped Indexed AccountsPolicyValueallocatedtoanyofthethreeIndexAppreciationAccountoptionsearnaninterestratelinkedtotheS&P500performancemeasuredonanannualpoint-to-pointbasis.DesignatedpolicyvaluesareformedintonewIndexedSegments onthe15thofeachmonthandeachhasa1-YearSegmentTerm.
EachtimeclientsallocatepremiumstoanIndexedAccount,itstartsanew1-YearIndexedSegment.These1-YearIndexedSegmentsearninterestbasedonpositivechangesintheS&P500.TheSegmentFloorRateisguaranteedtobenolessthan0%.TheSegmentCapRateandThresholdRatewillbereviewedbyJohnHancockperiodically,however,itwillneverchangeforanexisting1-YearSegmentTerm.
High Par Indexed Account
The1-YearHighParIndexedSegmentsrealizeanypositivegrowthintheS&P500betweentheguaranteedSegmentFloorof0%anduptothecurrentSegmentCapRatewithaparticipationrateof160%*.
Capped Indexed Account
The1-YearCappedIndexedAccountsegmentsrealizeanypositivegrowthintheS&P500betweentheguaranteedSegmentFloorof0%andthecurrentSegmentCapRatewith aparticipationrateof100%.
Uncapped Indexed Account
The1-YearUncappedIndexedSegmentscreditthefullS&P500performance,lessthecurrentSegmentThresholdRatewithaguaranteedSegmentFloorof0%withaparticipationrateof100%.
*Guaranteedparticipationrateof140%.
For clients who are optimistic about the S&P 500
and seeking unlimited upside potential
For clients seeking upside potential
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High Par Indexed Account
Capped Indexed Account
Uncapped Indexed Account
INdExEd ALLOCATION OPTIONS
For clients seeking more stable performance
linked to the S&P 500
0% Guaranteed Floor 0% Guaranteed Floor 0% Guaranteed Floor
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Policy Loans6 Policyownershavetheoptionofborrowingaportionoftheirpolicyvalueinoneoftwoforms:aStandardLoanoranIndexLoan.Thedifferencebetweenthesetwooptionsishowtheloansaresecured.StandardLoansaregenerallysecuredbyaloanaccountthatguaranteesthenetcostoftheloanwillnotexceed1.25%annually.IndexLoansaregenerallysecuredagainsttheIndexAppreciationAccount;therefore,thecostofanIndexLoancanvarysubstantiallyfromaStandardLoan.Thevariableloanratemayalsobedifferentforthesetwoloans.TheIndexLoanoptioncarriessignificantlymorerisktothepolicy’sperformanceduetothehigherpotentialnetcostoftheloan.
Standard Loan7
WhenpolicyownersborrowaportionoftheirPolicyValueintheformofaStandardLoan,JohnHancocktransfersthesameamountfromtheFixedAccountintoaLoanAccount.
• TheLoanAccountbalanceservesascollateralfortheoutstandingloan
• InterestiscreditedtotheLoanAccountandinterestis alsochargedonthePolicyDebtatavariableloanrate
•Thenetcostoftheloanisthedifferencebetweenthe loaninterestratechargedandtheinteresttheLoanAccount iscredited
• Thenetcostoftheloanisguaranteedtobenogreaterthan1.25%inPolicyYears1–10.Insubsequentyearsthedifferentialiscurrently0%andguaranteednottoexceed0.25%
Index Loan8
Indexloansareavailableafterthethirdpolicyyear.UnlikeaStandardLoan,whenpolicyownersborrowaportionoftheirpolicyvalueintheformofanIndexLoan,thereisnotransferofpolicyvaluetoaLoanAccountfromeithertheFixedAccountortheIndexAppreciationAccount.
• ThepolicyvalueremainsintheIndexAppreciationAccountandservesascollateralfortheloan
•NospecificrateofinterestiscreditedtothecollateralamountintheIndexAppreciationAccount;rathertheentirebalanceintheIndexAppreciationAccountstillearnsinterestcreditedateachSegmentMaturity
• LiketheStandardLoan,interestischargedonthePolicyDebtatavariableloanrate
• Thenetcostoftheloanisthedifferencebetweentheinterestchargedonthepolicyloanandtheinterestcreditedtotheportionofthepolicyvaluethatcollateralizestheloan
• IndexLoanscarrysignificantlymorerisktothepolicyownerthanStandardLoans
Example:AssumingnopartoftheloaniscollateralizedbytheFixedAccount,anIndexLoanscenariowithaloanrateof6%andanIndexSegmentInterestCredit(s)of0%wouldresultinanetloancostof6%—muchhigherthanthecostofaStandardLoan.Conversely,aloanrateof6%andIndexSegmentInterestCredit(s)of10%wouldresultinanetgainof4%tothepolicy.
Accessing Policy Values Policyvaluescanbeaccessedvialoansorwithdrawals.
Withdrawals6 WithdrawalsareavailableafterthefirstpolicyyearandarefirstdeductedfromtheFixedAccountandthenproportionatelyfromtheIndexAppreciationAccount.
• IfanunscheduledwithdrawalistakenfromtheIndexAppreciationAccount,policyownerswillnotbeabletocreatenewSegmentsinanyIndexedAccountforoneyear.ThisiscalledaLockOutPeriod
• ToavoidaLockOutPeriod,clientscanscheduleSystematicWithdrawals
• SystematicWithdrawalsarewithdrawalsthatarepre-scheduledatleast30daysinadvancewithascheduleof atleasttwowithdrawals
• IfaSystematicWithdrawalscheduleiscancelledpriortoitsenddate,policyownerswillnotbeabletorequestanewSystematicWithdrawalscheduleforoneyear
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NEEd My clients are looking for low-cost death benefit protection and an efficient way to help supplement their retirement income.
SOLUTIONSupplemental retirement income:ProtectionSIULcanprovidedeathbenefitprotectionandcashvalueaccumulationpotential—makingitagoodchoiceforsupplementalretirementincome.Thepolicycashvaluecanbeaccessedforemergenciesortosupplementretirementincomeviatax-favoredloansandwithdrawals.
SOLUTIONQualified Plan Maximization (QPlan Max):Thequalifiedplanwillbesubjecttobothestateandincometaxeswhentheclientspassaway,greatlyreducingtheamountofmoneytheheirswillreceive.UsinganincomestreamfromthequalifiedplantofundaProtectionSIULpolicywillpotentiallyincreasetheamountlefttoheirs.5
SOLUTIONProtect future earnings:ProtectionSIUL’sdeathbenefitcanprovidetheliquiditythatisneededtogiveeachheiraninheritance,helpingtobalanceoutthe“hard-to-divide”asset.Thepolicycanalsohelpprotectafamily’sincomeintheeventofprematuredeath.
NEEd My clients’ estate includes a family business which may not be practical to divide fairly among their children. If they leave it to only one child, this will create inequality and possibly conflict. My clients do not wish to sell the business they worked so hard to build.
NEEd My clients have a qualified plan that they no longer need for retirement income. They would rather pass the asset down to family although they will be required to take minimum distributions from the plan.
meeting Client NeedsProtectionSIULisadynamicestateplanningsolutionforindividualandbusinessclientsseekingsurvivorshipdeathbenefitprotectionwiththepotentialformaximumreturnsandminimalrisk.Itcanprovideincomeprotectionforfamiliesorretireesorprovideforestateplanningneeds.ProtectionSIULperformswellinavarietyoffundingscenarios,includinglimited-pay,full-pay,10-payandsingle-paydesigns.Itispositionedoptimallyforclientsages40–75.
Thismaterialdoesnotconstitutetax,legaloraccountingadviceandneitherJohnHancocknoranyofitsagents,employeesorregisteredrepresentativesareinthebusinessofofferingsuchadvice.ItwasnotintendedorwrittenforuseandcannotbeusedbyanytaxpayerforthepurposeofavoidinganyIRSpenalty.Itwaswrittentosupportthemarketingofthetransactionsortopicsitaddresses.Anyoneinterestedinthesetransactionsortopicsshouldseekadvicebasedonhisorherparticularcircumstancesfromindependentprofessionaladvisors.
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FEATURES1 PROTECTION SIUL
Product design FlexiblePremiumSurvivorshipIndexedUniversalLifeInsurancePolicy
Issue Ages 20–90
Risk Classes/Issue Ages NonSmoker
Smoker
Fully UnderwrittenSuperPreferred 20–80Preferred 20–90StandardPlus 20–90Standard 20–90
Preferred 20–90Standard 20–90
Flat Extras FlatExtras(temporaryandpermanent)areallowedonallfullyunderwrittenriskclasses,exceptSuperPreferred.Non-medicalflatextrasforaviation,avocationsandforeignrisksareallowedonallfullyunderwrittenriskclassesexceptSuperPreferred.MedicalFlatExtrasarenotallowedonriskclassesbetterthanStandard.
minimum Face Amount $250,000
definition of Life Insurance Test CashValueAccumulationTest(CVAT)
maximum First-Year Premium • First-yearpremiumsonMECpoliciesarelimitedtoamaximumof$5million
• First-yearpremiumsonallpoliciesarelimitedtoamaximumof20timestheTargetPremium
minimum Initial Premium (mIP) • Premiumamountrequiredtoissuethepolicyandkeepitinforceforthefirstpolicymonth
Note:agreateramountisrequiredifthepolicyisbackdated.
Face Amount Increases FaceAmountincreasesarenotpermitted
Face Amount decreases • Allowedafterfirstpolicyyear
•MinimumFaceAmountdecreasepermittedis$50,000
• FaceAmountmaynotbedecreasedbelowMinimumFaceAmount
• Pro-rataSurrenderChargewillapplyduringtheSurrenderChargeperiod
•A10%FaceAmountdecreaseispermittedwithoutaSurrenderChargeatthetime ofdecrease
death Benefit Options Option1
Option2
OptionChange(2to1only)
• TotalFaceAmount(plusROP,ifelected)
• TotalFaceAmountpluspolicyvalue(notavailablewithROPrider)
•Availableafterfirstpolicyyear.Thechangeiseffectiveonpolicyanniversaryonly
No-Lapse Guarantee (NLG) TheNo-LapseGuarantee(NLG),called“DeathBenefitProtection,”guaranteesthatthepolicywillnotdefaultduringtheNLGperiod,providedcertainrequirementsaremet.• TheNLGdurationwillvarybaseduponissueage,genderandriskclassaswellaschosenfundinglevel.Theno-lapseguaranteedurationisstatedontheillustrationandinthepolicycontract
•Maximumno-lapseguaranteedurationistoage121
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FEATURES1 (continued) PROTECTION SIUL
Coverage Beyond Age 121 Policydoesnotmature;providedthatfundingissufficient,thepolicywillremaininforceuntilinsured’sdeath.Atage121:• Policyandriderchargescease
• Premiumsarenotrequiredorpermitted
• Interestcontinuestoaccumulateonthepolicyvalue
• Loanrepaymentscontinuetobeacceptedonexistingloans
• Interestcontinuestobechargedonoutstandingloansuntiladeathclaimismade(thepolicymaylapseifpolicydebteverequalsorexceedsthepolicyvalue)
• Newloansandwithdrawalsareallowed
Quit Smoking Incentive TheQuitSmokingIncentive(QSI)allowsallStandardandPreferredSmokerstoreceiveStandardNonSmokerpolicychargesforthefirstthreepolicyyears.TomaintainNonSmokerpolicychargesbeyondyearthree,theinsuredmustprovidesatisfactoryevidence*thathe/shehasquitsmokingforatleast12consecutivemonthsandtheirmicrourinalysismustbefreeofnicotineormetabolites.Pleasenotethefollowing:• Availableforissueages20–70
• Notavailableforsubstandardratings
• TermConversionsandinternalreplacementswillrequireadditionalunderwritingiftheoriginalpolicy(replacedorconverted)wasissuedmorethanthreeyearsago
• PoliciesupgradedtoStandardSmokerviatheHealthStylesprogramwillrequireadditionalunderwriting
• TheearliestaninsuredcanrequestachangetoNonSmokerisonorafterthefirstpolicyanniversary
*Formoredetailsontheunderwritingevidencerequired,pleaserefertooursmokingclasschangeguidelines.
INTEREST CREdITING PROTECTION SIUL
Fixed Account Current
Guaranteed
PolicyvalueintheFixedAccountisdepositedinthecompany’sGeneralAccountatadeclaredrate.• Asdeclared
• 2.0%
Guaranteed Indexed Account multiplier
ThereisaGuaranteedIndexedAccountMultiplierthatwillbeappliedtointerestearnedintheIndexAppreciationAccountatthebeginningofpolicyyear6.• Beginninginpolicyyear6,themultiplierincreasestheinterestearnedineachmaturingIndexedSegmentby10.00%.
Persistency Bonus9 Thereisanon-guaranteedPersistencyBonusthatmaybeappliedtotheFixedAccountinterestratebeginninginpolicyyear11.• Thepersistencybonusisonlyappliedtotheun-loanedportionofPolicyValueallocatedtotheFixedAccountandanyIndexedAccountHoldingSegments
• Currentlyanadditional0.65%inyears11+
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INTEREST CREdITING (continued) PROTECTION SIUL
Asset Bonus Beginninginpolicyyear21,theAssetBonuswillbeappliedtothebalancesintheFixedAccount,HighParIndexedAccount,CappedIndexedAccountandUncappedIndexedAccount.• TheAssetBonusisaGuaranteed Feature
• TheAssetBonusratevariesbygender,riskclass,andpolicyduration
• TheAssetBonusisreducedanytimethePolicyValueexceedstheFaceAmount
Cumulative Guarantee ACumulativeGuaranteeensuresaminimumaverageannualizedrateofreturnof2%(lesspolicycharges)overthelifeofthepolicy,uponsurrender.
Index Appreciation Account PolicyvalueallocatedtotheIndexAppreciationAccountearnsaninterestratelinkedtotheS&P500usingayearlypoint-to-pointmethod.TherearethreeIndexAppreciationAccountoptions,theHighParIndexedAccount,theCappedIndexedAccountandtheUncappedIndexedAccount.• Upto12IndexSegmentscanexistineachIndexedAccount—oneforeachmonth
• EachSegmentmaturestwelvemonthsfromtheinitiationdate
• AtSegmentMaturity(after1year),theSegmentproceedsareallocatedtoanew1-YearSegmentalongwithanypolicyvalueallocatedtothesameIndexedAccount
• Allocationinstructionsandpaymentsmustbereceivedby4:00p.m.EST,onthethirdbusinessdaypriortotheSegmentinitiation(theLockinDate)inordertobeincludedinthenextSegment
• IndexedSegmentsarecreatedonthe15thofeachmonth,interestiscreditedseparatelytoeachSegment
• TransfersfromtheFixedAccountandnewpremiumsallocatedtotheIndexedAccount(s)willearninterestattheFixedAccountrateuntiltheycreateanewSegment
High Par Indexed Account 1-YearHighParIndexedSegmentsearninterestbasedonpositivechangesintheS&P500,subjecttothecurrentSegmentCapRateandprovidesaguaranteedSegmentFloorof0%.• TheSegmentCapRateandtheParticipationRateisestablishedatthebeginningofaSegmentTermandwillnotbechangedforanexistingSegment
• TheSegmentCapisguaranteedtobenolessthan2.5%
Capped Indexed Account 1-YearCappedIndexedSegmentsearninterestbasedonpositivechangesintheS&P500,subjecttothecurrentSegmentCapRateandprovidesaguaranteedSegmentFloorof0%.• TheSegmentCapRateisestablishedatthebeginningofaSegmentTermandwillnotbechangedforanexistingSegment
• TheSegmentCapisguaranteedtobenolessthan3%
Uncapped Indexed Account 1-YearUncappedIndexedSegmentsearninterestbasedonpositivechangesintheS&P500,lessthecurrentSegmentThresholdRateandprovidesaguaranteedSegmentFloorof0%.• TheSegmentThresholdRateisestablishedatthebeginningofaSegmentTermandwillnotbechangedforanexistingSegment
• TheSegmentThresholdRateisguaranteedtobenogreaterthan20%
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INTEREST CREdITING (continued) PROTECTION SIUL
Transfers to the Indexed Account(s)
• PolicyownersmaychoosetohaveapercentageoftheFixedAccountpolicyvaluetransferredtotheIndexAppreciationAccount
• AmountstransferredtotheIndexedAccount(s)priortotheLockinDatewillbeincludedintheinitialSegmentbalanceonthenextSegmentinitiationdate
Automated Transfers • AstrategythathelpsreduceexposuretomarketvolatilitybytransferringasetdollaramountfromtheFixedAccounttotheIndexedAccount(s)everymonth
RIdERS (separatechargesmayapply) PROTECTION SIUL
Return of Premium (ROP) Providesanadditionalinsuranceamountequaltoapercentageofpremiumspaid,upto100%.• ROPincreasesceaseatage100;atwhichpointthedeathbenefitbecomeslevel
• AvailableonlyatissuewithDeathBenefitOption1
• NotavailablewithPSOandEPRriders
Estate Preservation (EPR) Providesadditionalnon-convertiblecoverageduringthefirstfourpolicyyearstohelpcoverestatetaxesduringthisperiod.• Coverageissubjecttounderwritingrestrictionsandretentionavailability,andisnotavailablewiththeROPrider
• EPRhasthefollowingratinglimits(bothlives): Issueages20–65:500% Issueages66–75:200%
Policy Split Option (PSO) Intheeventofdivorceorestatetaxlawchange(within90daysofeitherevent),PSOallowsforthesplitofonesurvivorshippolicyintotwoequalpermanentsinglelifepolicies,withoutevidenceofinsurability.• Nosurrenderchargeappliesatthetimeofthepolicysplit
• Availableforissueages20–75,whenneitherinsuredisrated
• NotavailablewiththeROPrider
• Thereisamonthlychargeforthisrider
POLICY VALUES PROTECTION SIUL
Standard Loan Spread Current
Guaranteed10
Years1–10 1.25%Years11+ 0.00%
Years1–10 1.25%Years11+ 0.25%
Note:ThereisnopredefinedloanspreadforIndexLoans.
Policy Loans7,8 • Policyloansareavailableatanytimeafterthepolicyisinforce
• IndexLoansareavailableafterpolicyyearthree
•Minimumloanis$500
• Loaninterestchargeisbasedonavariableinterestrate
• LoaninterestmaybehigherforIndexLoans
• Loanoptionchangesarepermittedonceayear(onthePolicyAnniversary)
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POLICY VALUES (continued) PROTECTION SIUL
Withdrawals6 • Availableafterthefirstpolicyyear
•Minimumwithdrawalis$500
• ApartialSurrenderChargemayapply
• AvailableoncepermonthafterfirstyearifthereisapositiveNetCashValue
•WithdrawalsarefirstdeductedfromtheFixedAccount,thenfromamountsinanyIndexedAccountHoldingSegmentsandthenproportionatelyfromtheIndexedAccountSegments
• AnunscheduledwithdrawaltakenfromeitherIndexedAccountwilltriggera1-yearLockOutPeriod,duringwhichnonewIndexedSegmentscanbecreated
POLICY FEES ANd CHARGES PROTECTION SIUL
Premium Charge Year1–10 35%Years11+ 32%
Administrative Charge CurrentandGuaranteed Allpolicyyears:$15permonth
Per $1,000 Face Amount Charge (Contract Charge)
•Monthlychargeper$1,000ofcurrentFaceAmount
• Thedurationofthechargevariesbyissueage
• Ratevariesbyissueage,gender,andriskclass
Cost of Insurance Charge CurrentandGuaranteed
Achargeper$1,000ofnetamountatriskthatisdeductedmonthly.• Mortalitychargevariesbyissueage,gender,policydurationandriskclass
• Reflectthe2001CSOUnismokeGenderDistinctUltimateMortalityTable
Surrender Charge ASurrenderChargeisdeductedintheeventofafullsurrender,andischargedonapro-ratabasisforawithdrawalthatresultsinaBaseFaceAmountdecrease.• SurrenderChargeratesvarybyissueage,gender,faceamount,premiumspaidandpolicy
duration
• Thechargegradesdownmonthlyover10yearsandis0%inyears11andafter
Advance Contribution Charge • AnAdvanceContributionChargeisassessedoneachmonthlyprocessingdatewhenthecumulativepremiumspaidexceedtheAdvanceContributionLimittimesthePolicyYear.
• TheAdvanceContributionChargeratesandAdvanceContributionLimitarebothshowninthepolicy contract.
1. Insurancepoliciesand/orassociatedridersandfeaturesmaynotbeavailableinallstates.Someridersmayhaveadditionalfeesandexpensesassociatedwiththem.2. ProtectionSIULpoliciesautomaticallyincludeano-lapseguaranteecalledDeathBenefitProtection.Thisfeatureguaranteesthatthepolicywillnotdefault,evenifthecash
surrendervalue falls tozeroorbelow,providedthat theDeathBenefitProtectionValueremainsgreater thanzeroandpolicydebtneverexceedsthePolicyValue.Onceterminated,theDeathBenefitProtectionfeaturecannotbereinstated.Seetheproducttechnicalguideforadditionaldetails.
3. Lifeexpectancycalculationsarebasedon2008VBTmortalitytable.4. ExcludingDividends.Standard&Poor’s®,S&P®,S&P500®,Standard&Poor’s500and500aretrademarksofTheMcGraw-HillCompanies,Inc.andhavebeenlicensedforuse
byJohnHancockLifeInsuranceCompany.TheProductisnotsponsored,endorsed,soldorpromotedbyStandard&Poor’s,andStandard&Poor’smakesnorepresentationregardingtheadvisabilityofpurchasingtheProduct.TheS&P500Index®isanindexof500stocksthataregenerallyrepresentativeoftheperformanceofleadingcompaniesinleadingindustrieswithintheU.S.YoucannotinvestdirectlyintheS&P500Index®.
5. 140%guaranteed6. Loansandwithdrawalswillreducethedeathbenefitandthecashsurrendervalue,andmaycausethepolicytolapse.Lapseorsurrenderofapolicywithaloanmaycause
therecognitionoftaxableincome.Withdrawalsinexcessofthecostbasis(premiumspaid)willbesubjecttotaxandcertainwithdrawalswithinthefirst15yearsmaybesubjecttorecapturetax.Additionally,policiesclassifiedasModifiedEndowmentContractsmaybesubjecttotaxwhenaloanorwithdrawalismade.Afederaltaxpenaltyof10%mayalsoapplyiftheloanorwithdrawalistakenpriortoage59½.Withdrawalsareavailableafterthefirstpolicyyear.
7. StandardloanrequestsinexcessoftheFixedAccountbalancecanbetakenfromtheIndexedAccounts,buttheseloanswillbetreatedsimilarlytoanIndexLoanuntiltheSegmentMaturity,allowingtheIndexLoanportionoftheloantobeconvertedintoaStandardLoan.SeetheProtectionSIULTechnicalGuideformoreinformation.
8. IndexloanrequestsinexcessoftheIndexAppreciationAccountwillbesecuredbybalancestransferredfromtheFixedAccounttoaLoanAccount.Onlyonetypeofpolicyloanmaybeutilizedatagiventime.IfthereisanoutstandingStandardLoan,andthepolicyownerwishestotakeanIndexLoan,theexistingloanmustberepaidfirst.Theoppositeisalsotrue;anyexistingIndexLoanmustberepaidbeforeitispossibletotakeoutanewStandardLoan.IndexLoanrequestsinexcessoftheIndexAppreciationAccountpolicyvaluecanbetakenasStandardLoansfromtheFixedAccount.
9. InNewYork,thepersistencybonusisguaranteedandwillbeappliedbeginninginpolicyyear11tothethencurrentlycreditedFixedAccountinterestrateiftherateatthattimeisequaltoorgreaterthan3.00%.
10.TheguaranteedloanspreadforNewYorkis1.50%inyears1–10and0.25%inyears11+.Thecurrentrateisthesameasnon-NewYorkpolicies.Thereisnopre-definedloanspreadforIndexLoans.
Thepolicydoesnotdirectlyparticipateinanystockorequityinvestments.TheParticipationRateisthepercentageoftheIndexChange(changeinthevalueoftheIndexovertheSegmentTerm)thatwillberecognizedinthecalculationoftheIndexSegmentInterestCredit.Trusts should be drafted by an attorney familiar with suchmatters in order to take into account income and estate tax laws (including thegeneration-skippingtax).Failuretodosocouldresultinadversetaxtreatmentoftrustproceeds.For agent use only. Not for use with the public.Guaranteedproductfeaturesaredependentuponminimumpremiumrequirementsandtheclaims-payingabilityoftheissuer.InsuranceproductsareissuedbyJohnHancockLifeInsuranceCompany(U.S.A.),Boston,MA02116(notlicensedinNewYork)andJohnHancockLifeInsuranceCompanyofNewYork,Valhalla,NY10595.Im4156PG mLINY010914039 04/14 LIFE-5250
Strength. Stability. John Hancock.JohnHancock’sstrongratings,asjudgedbythemajorratingagencies,areacomprehensivemeasureofthecompany’sfinancialstrengthandstability.Thisisimportantbecausethesefinancialratingsreflectthelifeinsurancecompany’sabilitytopayclaimsinthefuture.Withover150yearsofexperience,JohnHancockoffersclientsadiverserangeoffinancialprotectionproductsandwealthmanagementservicesthroughitsextensivenetworkofemployees,agents,anddistributionpartners.
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