Long-term care insurance is underwritten by John Hancock Life Insurance Company (U.S.A.), Boston, MA LTC-8750CA 1/14 Policy Form: CA-06 7/12 Long-Term Care Insurance Seminar & Sales Presentation, John Hancock Life Insurance Company (U.S.A.) California Help protect your assets, your family & your future

Slide 2 of 16 Your long-term care experiences  Who needed care?  Where was care received?  How was it paid for?  Who provided the care?  How long did the person need care?  Was the care expected or unexpected?  How did long-term care affect the family?

Slide 3 of 16 Today’s agenda  What is long-term care (LTC)? –What are the chances of needing long-term care? –What are the costs associated with long-term care? –Where is long-term care received?  What are the funding sources to pay for long-term care?  Is long-term care insurance right for me?  Why long-term care insurance?

Slide 4 of 16 What is long-term care (LTC)? Long-term care is the type of hands on assistance you would need if you were:  unable to perform some of the basic activities of daily living, or  if you require substantial supervision due to a cognitive impairment

Slide 5 of 16 Where is LTC received?  Your home 1  Adult day care center  Residential care facility  Nursing facility  Hospice facility 1. U.S. Department of Health and Human Services, National Clearinghouse for Long-Term Care Information,

Slide 6 of 16 What does long-term care cost? National average costs according to John Hancock’s 2013 Cost of Care survey, 2 these are national average costs:  Nursing home: –$94,000 annually, private room –$82,855 annually, semi-private room  Residential care: –$41,000 annually  Home care: –$29,600 annually 2. John Hancock 2013 Cost of Care Survey, conducted by LifePlans, Inc.

Slide 7 of 16 Who pays for LTC services?  Private/company health insurance/other  Medicare  Medi-Cal  Personal assets/family  Long-term care insurance

Slide 8 of 16 Covering the cost of LTC  Private/company health insurance –Skilled acute care only –Not designed to pay for long-term custodial care  Private/company disability insurance –Intended to replace income

Slide 9 of 16 Covering the cost of LTC Medi-Cal  State-run program intended to pay medical costs for the poor  Generally covers only those with very little income –Must “spend down” assets to state-required level  Usually only covers care received in approved nursing homes

Slide 10 of 16 Covering the cost of LTC Medicare  Federal program intended to pay medical costs for individuals over age 65  Primarily pays for acute care, for an injury or illness you can recover from  Requires prior hospitalization  Requires that you receive skilled care  Care typically only covered up to 100 days

Slide 11 of 16 Covering the cost of LTC Paying out-of-pocket  Impact on your income and assets  Impact on your family members

Slide 12 of 16 Benefits of John Hancock LTC Insurance Helps protect your income and assets  May free you from having to depend on government programs or loved ones Provides choice and control when you need care  Coverage in a variety of care settings, including your own home  Helps maintain independence and quality of life  Flexible benefit options to help meet your specific care needs

Slide 13 of 16 Benefits of John Hancock LTC insurance Provides the help and support you and your family will need if you need care, including:  A plan of care customized to your needs and preferences  Discounts at thousands of care providers nationwide 3  Quality reports and information on providers and facilities in your community  Caregiver Support Services to support you if you’re ever called on to care for a loved one 3.Caregiver Support Services is available after your policy has been in effect for 30 days, through a partnership between John Hancock and an independent third-party organization. Discounts and/or program may be discontinued at any time.

Slide 14 of 16 Reasons to consider buying now  The protection you buy for your future also covers you today, in the event of an unexpected accident or illness  Your premiums are based on your age  You must be in good health to qualify  LTC insurance provides coverage that may not be included in your current financial plan

Slide 15 of 16 4.Based on John Hancock internal data from 1987–2013. Total includes individual and group LTC insurance, and the Federal Long Term Care Insurance Program. Information available from John Hancock, upon request. 5.Based on analysis by major rating agencies such as A.M. Best, Fitch Ratings, Standards & Poor’s, and Moody’s. Financial strength ratings measure the Company’s ability to honor its financial commitments and are subject to change. The ratings are not an assessment or recommendation of specific policy provisions, premium rates, or practices of the insurance company. To view our most current financial ratings, please go to John Hancock: A Leader in LTC Insurance  More than 150 years of experience providing insurance products to meet people’s needs, and over 25 years in the LTC insurance industry  An unwavering commitment to our more than 1.3 million LTC insurance policyholders 4  More than $5.7 billion in claims paid on our LTC insurance policies 4  Financial strength ratings among the highest in the insurance industry 5

Slide 16 of 16 Thank You This is a general description of coverage and is not an insurance contract. Refer to the Outline of Coverage provided by our agent for an explanation of features and options. Only the individual long-term care insurance policy contains governing contractual provisions. You may request a sample policy to review such provisions. The long-term care insurance policy describes coverages under the policy, exclusions and limitations, what you must do to keep your policy in force, and what would cause your policy to be discontinued. Please contact the licensed agent or John Hancock for more information, costs, and complete details on coverage. This is an insurance solicitation. An insurance agent may contact you. Policy Form: CA-06 7/12 MLI