INNOVATION IN LIFE INSURANCE USING TECHNOLOGY & VITALITY TO MAKE INSURANCE EASIER, FASTER & STREAMLINED Meredith Elliott, CLU, CLTC Term & Eservices Director John Hancock Insurance Vitality is the provider of the John Hancock Vitality Program in connection with policies issued by John Hancock. Insurance products are issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA 02210 (not licensed in New York) and John Hancock Life Insurance Company of New York, Valhalla, NY 10595. MLINY081717084

Innovation: Changing the Insurance Marketplace Highlights for Discussion Drop Ticket Solutions: Shortened and Streamlined Submission Tools for Permanent and Term Insurance Eticket Paper Ticket Express Track: Shortened Underwriting on fully underwritten products for eligible clients (based on health history) Marketing Materials for Producer Meredith take 1 & 2

Innovation: Barriers to Buying & Selling Life Insurance It’s too invasive It takes too long There is nothing in it for the client today; it’s too morbid Erin

Innovation: We have a Real Opportunity U.S. households life insurance coverage gap1 30% of Americans say they need more life insurance 25% wish their spouse or partner would purchase more insurance Given the loss of a primary wage earner, over 40% of households: Would feel a significant financial impact within 6 months Includes nearly 40% of households with income over $100,0002 Clients are busy and want help through the process The life insurance process is viewed as cumbersome and invasive Over 50% of clients want to buy insurance from advisors vs. online3 75% of consumers said “yes” or “maybe” to buying life insurance from their financial advisor if they were just asked4 Misperception of cost 80% of consumers misjudge the price for Term life insurance5 erin 1. LIMRA Fact Sheet, Life Insurance Awareness Month 2015 2. 2016 Insurance Barometer Study, Life Happens and LIMRA, www.lifehappens.org 3. To Buy or Not to Buy Life Insurance – Buyer and Nonbuyer Differences, LIMRA Study 2012 4. Banks Offer Life Insurance – Who Knew? LIMRA Study 5. 2015 Insurance Barometer Study, Life Happens and LIMRA, www.lifehappens.org

Innovation: What’s the Challenge? Making it Easier Application is transmitted to JH – paramedical appointment is scheduled APP Third-party information (e.g., prescription and motor vehicle check) ordered AMY, 56 yrs. old BILL, 40 yrs. old Underwriter reviews 40-50 Days Amy and Bill complete the medical exam medical history, blood, and urine tests Lab tests and applicable reviews TEST RESULTS Meredith Final decision PROCESS IS Long Invasive Same for everyone

Innovation: What’s the Solution? Drop Ticket Two new ways to make it easier to apply for life insurance: JH Life eTicket for single-life term products JH Life Paper Ticket for single-life term & permanent products Both Ticket processes are available for all ages and face amounts Meredith

Innovation: Option 1, JH Life E-Ticket SUBMIT TELE-INTERVIEW QUOTE Producer clicks on JH Life eTicket link from GA site Producer runs a quote (Term and Term with Vitality) JH representative calls client to complete application within 24 hours A paramedical visit (fluid and vital assessment only) will be automatically scheduled for ages 61+ and/or face amounts greater than $1M Client eSigns the completed application Producer submits eTicket GA is notified/approves Ticket is tracked via existing case status tools Erin Slide – also will demo producer user guide handout

E-Ticket: Starting the Process

E Ticket: Client Details Page

E-Ticket: Policy Information

E-Ticket: Agent Information

E-Ticket: Submission Page

Preparing for your Telephone Interview

Innovation: Option 2, JH Life Paper Ticket SUBMIT TELE-INTERVIEW QUOTE JH representative calls client to complete application within 24 hours A paramedical visit (fluid and vital assessment only) will be automatically scheduled for ages 61+ and/or face amounts greater than $1M Client eSigns the completed application Producer/GA accesses JH Life Drop Ticket via forms vendor (i.e, iPipeline’s Forms Manager, JH SalesNet, etc.) Producer/GA runs a quote (term or perm) Producer submits ticket and signed HIPAA and Authorization to Obtain Information forms to GA GA submits to John Hancock Ticket is tracked via existing case status tools Meredith

Innovation: Option 2, JH Life Paper Ticket New “Paper Ticket package” available via JH SalesNet, JH Illustrator, and through the forms vendors we support (e.g., iPipeline Forms Manager, etc.) Two-page form that asks for basic information, including: Owner/insured/beneficiary details Product selection/Replacement information Purpose of insurance Ticket package will also contain additional forms that are necessary to initiate the app A consumer tip sheet to help prepare the insured for the Telephone Interview is available Meredith

Innovation: ExpressTrack Through E-Ticket & Paper Ticket Highlights Changing Process, not Product Simplified underwriting through the ExpressTrack process (as little as 3 days) Eligible cases include those for clients ages 18-60, and face amounts up to $1 million Permanent & Term products are eligible – providing a solution to streamline underwriting for your permanent case needs! Shortened paperwork – PaperTicket for permanent insurance as little as 3 pages LTC Rider is available via this process! Erin - Eticket, PaperTicket, and ExpressTrack

Who will most likely receive an ExpressTrack experience? Apart from the basic face and age parameters, applicants most likely to receive an ExpressTrack experience are those that: Do not have serious medical impairments or histories Do not participate in hazardous sports or occupations Do not have complex financials, or criminal histories  EXAMPLES OF MEDICAL IMPAIRMENTS REQUIRING FULL MEDICAL REQUIREMENTS* EXAMPLES OF NON-MEDICAL IMPAIRMENTS REQUIRING FULL UNDERWRITING REQUIREMENTS* Diabetes/gestational diabetes Cancer history (other than basal and squamouscell skin cancers) Stroke/TIA Lupus/autoimmune disorders COPD/emphysema CAD Moderate/severe ulcerative colitis Fatty liver Heart murmurs, valvular disease Hepatitis Rheumatoid arthritis Aviation & hazardous sports (resort diving is eligible) Professional athletes & entertainers Hazardous occupations History of DUI or bankruptcy Criminal histories Premium financing Increasing riders Prior submissions, including trial or formal applications, received in the past 12 months Previously rated or declined Histories of substance abuse Complex ownerships such as charities or “to-be- established” Trusts *These examples are illustrative and not exhaustive. John Hancock reserves the right to require additional underwriting requirements in connection with any application for insurance.

Innovation: Express Track Potential Outcomes Following telephone interview, underwriting path is determined based on age, face amount and health and lifestyle profile Underwriting makes offer in as little as 3 days, no additional medical requirements needed* ExpressTrack Paramedical appointment (blood and vitals only) and other applicable underwriting requirements will be ordered Traditional Underwriting Erin * John Hancock will be requesting a post-issue attending physician statement (APS) for every issued ExpressTrack case. A policy may be rescinded if information in the APS reveals a material misrepresentation in the application submitted.

Amy is offered Preferred in 3-5 days! Let’s Look at Some Examples: Amy, Non Smoker, Age 56, Florist, Applying for $1M UL Policy owner – business partner; purpose of insurance: Key Person Insured Build 5’9 185 lbs; BP 117/75 Family history – father alive, good health at 74; mother alive, good health at 73 Medical history: depression treatment – Zoloft ongoing since 2009. MIB /MVR is clear APP Ticket Submitted Telephone Interview Application and third-party data is processed/reviewed AMY, 56 yrs. Meredith Amy is eligible for ExpressTrack 3-5 Days* Amy is offered Preferred in 3-5 days! Underwriting decision *Elapsed time to generate underwriting decision from the time we receive the interview results

Let’s Look at Some Examples: Bill, Non-Smoker, Age 40, Accountant, Applying for $350,000 VUL Build: 5’5 149 lbs; BP: 100/67, cholesterol unknown Family history: father living, age 61; mother living, age 70 Medical history: asthma; albuterol prn; physical June 2016, normal Rx search: albuterol intermittently, Prednisone 50mg, last refill March 2016 (ER medicine) MIB/MVR are clear Reflexive questions on telephone indicate recurrent symptoms Ticket Submitted Telephone Interview Application and third-party data is processed /reviewed BILL, 40 yrs. Meredith JH will schedule the paramed and communicate any additional requirements to insurance representative (ex., APS etc) JH determines Bill needs additional requirements 30 Days* Underwriting decision is transmitted Bill is offered Table 2 *Elapsed time to generate underwriting decision from the time we receive the interview results

Innovation: How to Submit Business Summary Available only for Term and Term with Vitality* Available for all products* Available for all products All ages and face amounts All ages and face amounts All ages and face amounts JH LIFE eTICKET JH LIFE PAPER TICKET FULL APPLICATION Traditional underwriting only Eligible for ExpressTrack Eligible for ExpressTrack Meredith *Not available for SmartProtect Term with Vitality, Simplified Life with Vitality, or survivorship policies. Producers/firms should continue to use the current submissions methods for these products

Thank You Thank you for the time – feel free to call me if you have questions! Contact Information Meredith Elliott, CLU, CLTC John Hancock Insurance Cell: (980) 395-3456 Email: meredith_elliott@jhancock.com Meredith