1. For professional use only. Not for use with consumers
The Next Generation of Sales A New Declaration from John Hancock: Products designed to be the best JH & Industry Background, Custom Care Overview and Introduction
LTC-CCECII 09-03
Long-Term Care Insurance is underwritten by John Hancock Life Insurance Company, Boston, MA 02117
For professional use only. Not for use with consumers

2. John Hancock LTCI Strategy
Develop LTCI products for the long-term
Leverage brand
Differentiate through innovation
Meet specific needs for our diverse consumer and distribution population
Responsible pricing
Proactive management
Smart investment strategies
Expeditious response to trends and experience
Careful monitoring of experience both internal and external

3. Competition in 2001-2003 Driving the “Flight to Quality”
Rate Increases
Blocks of business for sale
Some exits from the market
Financial troubles exposed
Termination of contracts with some producer groups
New products with higher rates
Some entrants into brokerage, some out

4. Custom Care I Portfolio: Leveraging the Hancock LTCI Experience
JH LTCI “Success Story”
Significant sales increases from all distribution channels
Responsible pricing and strong expense management
Successful investment strategy
Favorable claims experience
Prudent and evolving underwriting

5. John Hancock Success Story: Big is Better
Strong Sales Growth
1998: $ 56 m
2000: $ 102 m
2002: $130 m
Q2 ’03 $ 95 m
Large In-Force Base *
446k Policyholders
$794 m in-force
Dedicated and Experienced LTCI Team
Commitment to Core Growth Product
* John Hancock Q2, 2003 Reports. Includes John Hancock, Fortis and American Republic Insurance Company sales.

6. Hancock Tradition of Evolving Product to Address: Market Conditions, Consumer Trends, Product Experience
Market Conditions
Low interest rate environment
Higher than expected persistency
Industry Concerns with unlimited benefits
Regulatory impact
HIPAA
Frequent changes in state regulation
Higher statutory reserving
For some, worse than expected morbidity and profitability

7. Hancock Tradition of Evolving Product to Address: Market Conditions, Consumer Trends and Product Experience
Consumer trends
Flight to quality and brand
Younger buyers have different needs
Addressing immediate needs with appropriate benefit selections
Affordability remains a key factor

8. Hancock Tradition of Evolving Product to Address: Market Conditions, Consumer Trends and Product Experience
Product Experience
Price emphasis targeting more consumer appropriate and affordable benefits
More likely-to-use benefits and benefit periods

9. Custom Care II Portfolio Continuing the tradition
Custom Care II, Essential Care II and Family Care II
Evolution of popular & pacesetting products
Product innovation
new built-in and optional features
Expanding markets by meeting diverse consumer needs
Sets the product standard for today’s changing LTC environment
Reaffirms John Hancock’s leadership position
Broadens younger market appeal
Continues to expand on the broad, multi-generational appeal
Similar look and feel

10. Custom Care II Highlights* New features and benefits
Special benefits for the growing younger consumer market
Protection for today, Price sensitive, competing demands, adequate/appropriate benefits
Double Accident Benefit prior to age 65 (built in)
100% Reimbursement up to two times the maximum daily or monthly benefit
For the entire duration of the claim
Lifestyle U/W and ability to issue without benefit to preserve case
Not available with ECII
Return of Premium prior to age 65 (built in)
Total premiums paid less policy benefits paid when death occurs prior to age 65
*Options may not be available in all states

11. Custom Care II Highlights* New features and benefits
More Inflation Options**
Address competing financial demands and offer customers greater flexibility
Enhanced Guaranteed Purchase Option**
5%, 10%, or 15% every 3 years without evidence of insurability
One time conversion option to Compound at age 65 without evidence of insurability
5/3% Compound Inflation**
Benefit amount compounds annually at 5% while benefit pool compounds at 3%. This differentiation in rates impacts the total # of years benefit is paid if accessed at 100% of daily/monthly benefit maximum
*Options may not be available in all states
** Applies to ECII

12. Enhanced GPO Inflation Example GPO with 5/5% or 5/3% Conversion at 65 Daily Benefit, Policy Limits and Premiums
Daily
GPO 5/5%
GPO 5/3%
Age
Benefit
Limit 55
$100
$182,500 56 57 58 59 60 61 62 63 64 65
$105
$191,625
$187,975 66
$110
$200,750
$193,614 67
$116
$211,700
$199,423 68
$122
$222,650
$205,405 69
$128
$233,600
$211,568 70
$134
$244,550
$217,915 71
$141
$257,325
$224,452 72
$148
$270,100
$231,186 73
$155
$282,875
$238,121 74
$163
$297,475
$245,265
Policyholder, age 55 with college expenses wishes to limit premiums in early policy years
Premium for compound 5/5% at age 55 = $1,522
Premium for GPO age 55 = $649
Wants GPO for savings and choice with inflation protection
Does not elect any GPO offers prior to age 65
GPO “voluntary” conversion to compound inflation at age 65
Premium for GPO w/ 5/5% conversion = $1,730 at 65
Premium for GPO w/ 5/3% conversion = $1,438 at 65

13. Custom Care II Highlights* New features and benefits
New Premium Discounts
Partner Discount**
15%, 30% if both partners apply & are approved
Combined reduction for Partner and Preferred capped at 40%
Loyalty Credit 5%**
Loyalty Credit applied to purchase of CCII or ECII if replacing an existing Hancock LTCI individual policy of a previous policy series
Sponsored Group and Family Discount are multiplicative, not added**
*Options may not be available in all states
** Applies to ECII

14. Custom Care II Highlights* New features and benefits
Addition of Enhanced Return of Premium Rider
Total premiums paid less policy benefits paid when death occurs at age 65 or above
Not available with ECII and Shared Care
Additional Cash Benefit Cap Removed
Monthly cash payment = to 15% MB or 4.5x DB
If receive at least 1 day of qualified HHC during month
And no facility confinement during that month
Not available with ECII
*Options may not be available in all states

15. Custom Care II Highlights* New features and benefits
Expanded Shared Care Rider to 10/10 years**
International Coverage 100% of the LTCI Benefit for 1 year**
Replaced Upgrade Privilege with Loyalty Credit **
*Options may not be available in all states
** Applies to ECII

16. Custom Care II Highlights* New features and benefits
Eliminated Partner Home Care Rider
Restoration of Benefits Rider
Available with 3, 4, 5, and 6yr BP’s
Hancock selects Doctor to certify recovery
Restoration limited to one time
Not available with ECII
*Options may not be available in all states

17. Features and Benefits Maintained & Unchanged*
CCII
Issue Ages 18 – 84
Benefit Amounts
$1,500 - $15,000/mth
$50 – 500/day
$7,500/mth & $250/ Max ages 80 – 84
Benefit Periods
2,3, 4, 5, 6, 10, LT
Elimination Periods
30, 60, 90, 180, 365
=/>1 – 7 days =7 for HHC
100% HHC and ALF
ECII
Issue Ages 18 – 84
Benefit Amounts
$50 – 500/day
$250/ Max ages 80 – 84
Benefit Periods
2,3, 4, 5, 6, 10, LT
Elimination Periods
30, 60, 90, 180, 365
1 day =1 day toward EP
50%, 80%, 100% for HHC
ALF max is 80% of NHDB
*Options may not be available in all states

18. Features and Benefits Maintained & Unchanged*
CCII
Respite Care = 21 days
Not subject to nor satisfies EP
Reduces policy limit
Bed Hold Benefit
60 days/cal. Yr. for any reason
Subject to EP, Reduces Policy limit
Care Advisory Services
1/3 MDB per calendar year
10x DB per calendar year
Not subject to, nor satisfies EP
Does not reduce policy limit
ECII
Respite Care = 21 days
Subject to EP
Reduces policy limit
Bed Hold Benefit
21 days/cal. Yr. for hospitalization
Reduces Policy limit
Care Advisory Services
Not Available
*Options may not be available in all states

19. Features and Benefits Maintained & Unchanged*
CCII
Stay at Home
Reimbursement for home modifications…
Separate Lifetime pool =
1x MB or 30 x DB
Limited Pay
10yr, PU65
Noncan “following” limited payment period
Waiver of EP for HHC
ECII
Stay at Home
not available
Limited Pay
10yr, PU65
Noncan “following” limited payment period
Waiver of EP for HHC
Not available
Options may not be available in all states

20. Features and Benefits Maintained & Unchanged*
CCII
Risk Classifications
Preferred -15%, Substandard I +25%, Substandard II +50%
Traditional 5% Simple and 5% Compound inflation
Group Discounts
Sponsored Group 5%
Family 5%
ECII
Risk Classifications
Preferred -15%, Substandard I +25%, Substandard II +50%
Traditional 5% Simple and 5% Compound inflation
Group Discounts
Sponsored Group 5%
Family 5%
Options may not be available in all states

21. LTCI Decision Process: Points for Consideration
Am I covered for today, as well as tomorrow?
Many times, producers and prospects think and plan too far forward when building a Long-Term Insurance policy
Consider the impact of needing care today: “Today Benefits”
“How would you and your family cope if you needed care 2 days or years from now; not 20 years from now?”
Accidents happen: 40% of all LTC services are provided to individuals ages *
* “Where Does the Population Live and Who Cares for Them? LTC: Diverse, Growing Population Includes Millions of Americans of all Ages.” U.S. General Accounting Office, January2001

22. Are the effects of inflation covered
Are the effects of inflation covered? How does the inflation option affect premium?
5 Year Benefit Period, 90 Day Elimination Period, Daily Benefits: Fixed Benefits – Variable Premium
Policy
Year
Age
5/5%
Cmpd
LTCI $
Pool $
5/3% 5%
Simple
LTCI$ 1 55
200
365,000 5 59
244
445,300
410,811
240
438,000 10 64
311
567,575
476,242
290
529,250 15 69
397
724,525
552,095
340
620,500 20 73
507
925,275
640,030
390
711,750 25 79
647
1,180,775
741,970
440
803,000 30 84
825
1,505,625
860,146
490
894,250
5/5% Premium = $3, /3% Premium = $2, % Premium = $2,256
Premiums and benefits may vary and not be available in all states

23. Are the effects of inflation covered
Are the effects of inflation covered? Fixed Premium ($3,000) – Variable Daily Benefit Amount LT 5/5% Inflation vs. 10 Year 5/3%, 5% Simple and GPO w/out conversion
Policy
Year
Age
5/5%
Cmpd
LTCI
Pool
5/3%
Pool $ 5%
Simple
GPO
w/out
Conv. LT
10 Yr 1 55
115
Unlimited
195
711,750
205
748,250
370
1,350,500 5 59
140
237
801,081
246
897,900 10 64
179
302
928,672
297
1,084,963 15 69
228
386
1,076,586
349
1,272,025 20 73
291
491
1,248,058
400
1,459,088 25 79
372
627
1,446,841
451
1,646,150
90 Day Elimination Period, Daily Benefits
Premiums and benefits may vary and not be available in all states

24. Are the effects of inflation covered
Are the effects of inflation covered? Fixed Premium ($3,000) Variable Daily Benefit: 10 Year 5/5% Inflation vs. 5/3%, 5% Simple and GPO w/out conversion Variable
Policy
Year
Age
5/5%
Cmpd
LTCI
Pool
5/3%
Pool $ 5%
Simple
GPO
w/out
Conv.
10 Yr 1 55
150
547,500
195
711,750
205
748,250
370
1,350,500 5 59
183
667,950
237
801,081
246
897,900 10 64
234
854,100
302
928,672
297
1,084,963 15 69
299
1,091,350
386
1,076,586
349
1,272,025 20 73
382
1,394,300
491
1,248,058
400
1,459,088 25 79
487
1,777,550
627
1,446,841
451
1,646,150
90 Day Elimination Period, Daily Benefits
Premiums and benefits may vary and not be available in all states

25. Making the right benefit choices “and” keep it under $4,000*
Partners age 55, Select rates
Individual $100/day, L.T. BP, 5% compound $3,672
Shared Care 10yr, 5/3% Compound $160/day $3,648
Shared Care 6yr. 5% Simple, $205/day $3,758
Shared Care 6yr GPO, $360/day $3,684
Note: Under age 65 benefits - Double Accident and Return of Premium **
*CCII rates and options shown may not be available in all states
** Built-in Return of Premium Benefit

26. Making the right benefit choices “and” Keep it affordable*
Partners age 55, Select rates
2 policies $100/day, LT, 5% compound $3,672
2 policies $100/day,10 yr, 5/3% compound – save $1,501
10 year Shared Care, 5/3% compound – save $754
6 year Shared Care, 5/3% compound – save $1,106
6 year Shared Care, 5/3% inflation – annual save $1,668
*CCII rates and options shown may not be available in all states

27. For professional use only. Not for use with consumers
The Next Generation of Sales A New Declaration from John Hancock: Products designed to be the best
LTC-CCECII 09-03
Long-Term Care Insurance is underwritten by John Hancock Life Insurance Company, Boston, MA 02117
For professional use only. Not for use with consumers