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%*.


The1-YearCappedIndexedAccountsegmentsrealizeanypositivegrowthintheS&P500betweentheguaranteedSegmentFloorof0%andthecurrentSegmentCapRatewith aparticipationrateof100%.


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



INdExEd ALLOCATION OPTIONS

For clients seeking more stable performance

linked to the S&P 500

0% Guaranteed Floor 0% Guaranteed Floor 0% Guaranteed Floor


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


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.


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


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+


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%


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)


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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PROTECTION SIUL - iGROUP Tools · 2016-04-05 · John Hancock’s Protection Survivorship IUL...

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Transcript of PROTECTION SIUL - iGROUP Tools · 2016-04-05 · John Hancock’s Protection Survivorship IUL...