1. Mastering your
indexed UL sales: Getting ready to illustrate (Experienced IUL Sellers)
Insurance products are issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA (not licensed in New York) and John Hancock Life Insurance Company of New York, Valhalla, NY
LIFE MLINY /19
For Agent Use Only. This material may not be used with the public.

2. Where does your client fit in?
Accumulation
Protection
Focus
Long-term Cash Accumulation
Death Benefit-focused IUL
Ideal client
Target ages 35-65
Seeking strong cash value accumulation and retirement income potential
Target ages 35+
Seeking low-cost death benefit protection
Client needs
Upside potential with limited equity market exposure
Supplemental retirement income retirement backstop or other funding needs
Affordable death benefit protection with some level of guarantees
Family income protection, estate planning to equalize taxes, legacy planning needs
Case design
Specify premium
Pay premium to retirement
Minimum death benefit
Increasing death benefit during premium- paying years – level thereafter
Solve for max distributions during retirement or for lifetime after premium payment period
Specify death benefit
Pay premiums to retirement or for life of the policy
Solve for premiums to carry death benefit to desired age OR
Solve for premium to guarantee death benefit to desired age
Our Indexed UL portfolio offers all of the competitive product features that you’ve come to expect from John Hancock. Whether your clients are looking for single-life or survivorship coverage, cash value accumulation potential, or low-cost death benefit protection, John Hancock has three competitive Indexed UL products to meet their needs:
Accumulation IUL: Life insurance protection with strong cash value accumulation potential
Protection IUL: Low-cost permanent protection with some cash value accumulation potential
Protection Survivorship IUL: Low-cost permanent survivorship protection with some cash value accumulation potential
IUL products do not invest directly in the index or equity markets. Guaranteed product features are dependent upon minimum premium requirements and the claims-paying ability of the issuer.
For Agent Use Only. This material may not be used with the public.

3. How to illustrate Option 1: Higher Death Benefit
Male, 45, Accumulation IUL’18, Best Class, $25K for 20 years, Min Non-MEC DB, Option 1 DB, 6.12% assumed rate in the Capped Account
Likewise designing the death benefit option is also important to consider. In an accumulation sale, we generally want to grow the policy value as quickly as we can. Typically the best way to do that is to limit the net amount at risk (aka the Death Benefit minus the Policy Value) which will in turn keep your monthly charges lower. We can see on option 1, the DB starts very high, and while the net amount at risk decreases, it’s not limiting your charges and the policy value grows more slowly.
Policy Year
Premium
Policy Value
Death Benefit
The data shown is taken an from illustration. Values are not guaranteed and certain assumptions are subject to change by the insurer. Actual results may be more or less favorable.
For Agent Use Only. This material may not be used with the public.

4. How to illustrate Option 2: Lower Death Benefit
Male, 45, Accumulation IUL’18, Best Class, $25K for 20 years, Min Non-MEC DB, Option 2 DB, 6.12% assumed rate in the Capped Account
On the flip side, if we use option 2, the DB starts lower and in turn grows the value quicker to start, but it never takes off in the later years, because the net amount at risk remains level as the DB continues to grow.
Policy Year
Premium
Policy Value
Death Benefit
The data shown is taken an from illustration. Values are not guaranteed and certain assumptions are subject to change by the insurer. Actual results may be more or less favorable.
For Agent Use Only. This material may not be used with the public.

5. How to illustrate Option 3: Option 2 to 1 switch
Male, 45, Accumulation IUL’18, Best Class, $25K for 20 years, Min Non-MEC DB, Option 2 DB switching to Option 1 in optimal year, 6.12% assumed rate in the Capped Account
If we use a 2 to 1 switch though we can limit the net amount at risk and maximize that policy value growth. We’re able to keep the initial charges lower by starting with a lower DB, and then continue to grow that value by switching to a level DB in the later years. This can help your clients to maximize that growth and help supplement retirement income.
This can help your clients to maximize that growth potential and help supplement retirement income.
Policy Year
Premium
Policy Value
Death Benefit
The data shown is taken an from illustration. Values are not guaranteed and certain assumptions are subject to change by the insurer. Actual results may be more or less favorable.
For Agent Use Only. This material may not be used with the public.

6. Higher Income potential when face amount is reduced
Reduce face to maximize income
How to illustrate
Income Projection without Face Reduction
Income Projection with Face Reduction
Male, 45, Accumulation IUL’18, Best Class, paying $100K for 5 years, Min Non MEC DB, Option 2 DB switching to Option 1 in optimal year, 6.12% assumed rate in the Capped Account, income from based on withdrawal to cap and switch to standard loans.
Similarly a face reduction can in some cases help with those same issues. Particularly on short pay designs, the Minimum Non MEC death benefit is going to be higher and create higher monthly charges, so doing a face reduction can help to limit that and create more supplemental income.
Higher Income potential when face amount is reduced
ILLUSTRATION TIP: This feature is particularly useful when trying to increase cash accumulation over time or maximizing distribution from the policy.
The data shown is taken an from illustration. Values are not guaranteed and certain assumptions are subject to change by the insurer. Actual results may be more or less favorable.
For Agent Use Only. This material may not be used with the public.

7. Choosing the right allocation options
Optimal S&P 500 Indexed Account Selection
Choosing the right allocation options
Expected S&P 500 Return Level
Accumulation IUL
Indexed Account
Protection IUL
2-8%
High Par
8-11%
Enhanced Capped*
N/A
9-11%
Capped
12%+
High Capped
Enhanced High Capped*
After you have setup the Death Benefit Option and Face Amount, the next key step is to figure out how do we help a client allocate to the various options.
Aforementioned, Indexed accounts are tools that allow you to earn interest based on the equity market performance (e.g. S&P500 and Hang Seng). At John Hancock, there are a wide range of indexed accounts you can choose from, each is designed to address a specific economic outlook and risk profile. If you are more risk adverse, you might want to consider our High Par account, which provides more stable return over time. Conversely, if you are more risk prone and have an optimistic view about the US market, you might want to consider our Enhanced High Capped account. Selection of indexed account is really based on your economic outlook and risk profile.
The attached chart shows the various returns of the index where each account would provide the greatest total return with the multiplier included. This can help the client to choose between the accounts depending on their level of comfort in how the market will do that year. Additionally if they want to diversify they can also allocate some of their premium to either the Hang Seng for international exposure, or the Fixed Account for a more stable return.
*Enhanced Capped and Enhanced High Capped can generate higher interest credit potential. But at the same time they are more risky as they have an additional 5% Indexed Performance Charge when used. We encourage you to understand the risk and return profile of these accounts before using.
For Agent Use Only. This material may not be used with the public.

8. Auto Allocate for John Hancock IUL
To simplify this index allocation process, if you have an expectation of US equity market performance but unsure which account to use, checkout John Hancock’s Auto Allocate feature. It can help you select indexed account based on your expectation of US equity market performance. All you have to is elect Auto Allocate and put down your expectation of the average annual return from US equity market performance. We will then pre-populate an allocation that matches your expectation.
Auto Allocate will now set to either Enhanced Capped or Enhanced High Capped
Account chosen will provide the highest income based on a specified rate
For Agent Use Only. This material may not be used with the public.

9. Minimum Face/ Maximum Income
Since there are so many switches you need to (or can) adjust in an accumulation policy to optimize an illustration, John Hancock has created a drop down box that will help you pre-populate all the key fields to get the best illustrations. When you elect “Min Face / Max Income”, we will automatically adjust the following settings: Death Benefit Option 2 with optimal switch, reduce face to maximize income, monthly distribution, solve for $1 at lifetime, 100% allocation in the Enhanced High Capped Indexed Account, Fixed Index Loan, and Loan throughout. By this one click, you can save a lot of time!
DBO 2 with Optimal Switch
Reduce Face to Max Income
Monthly Distribution
Solve $1 at Lifetime
100% allocation in Enhanced High Capped
Fixed Index Loan
Loan throughout
For Agent Use Only. This material may not be used with the public.

10. Beginning of Year (BOY) vs End of Year (EOY) Ages
Pacific Life
John Hancock
One other issue to be aware of when designing cases is whether a carrier uses beginning of year or end of year ages. Here we have an example that shows end of year on the left and beginning of year on the right. While both are targeting age 60 to start distributions, this is not a fair comparison. The illustration on the right has an extra year of premium being paid and distributions start one year later. It’s important to ensure the illustration is designed as intended and using policy years can often be a better way to compare.
The data shown is taken from illustrations. It assumes Male, age 45, paying $25K to age 59, Min Non MEC DB, Option 2 DB switching to Option 1 in optimal year, face reduction to maximize income, taking income from age 60 to 70 based on withdrawal to cap and switch to standard loans. John Hancock assumes Capped Account at 6.12%, Pacific Life assumes 1 Year Indexed Account at 5.76%. Competitor information is current and accurate to the best of our knowledge as of [June 2019]. Values are not guaranteed and certain assumptions are subject to change by the insurer. Actual results may be more or less favorable. 
For Agent Use Only. This material may not be used with the public.

11. Illustrating Index Loans with John Hancock
Index Loans will typically show higher income
Almost always show a crediting rate 1% higher than charge
Be aware of carriers who default to showing these on illustrations
We talked earlier about how index loans can show higher income, but also present more risk to clients. These typically show higher income because many carriers assume the loan is credited 1% more than is charged in perpetuity. For those clients who are seeking higher distributions and are comfortable with that risk, the option for index loans is in the loan type tab, as shown here. It’s important to understand the differences as well, like shown here, our Fixed Index Loan has a fixed charge, while the index loan option has a variable charge. Additionally one last thing to be aware of is that several carriers in the industry actually default to index loans, so be sure to be aware of that, as it’s possible it could be showing additional risk your client may not be comfortable with.
Index loans and Fixed Index Loans are available after the third policy year with John Hancock IUL products.
The cost of an index loan can vary substantially compared to that of a standard loan and the risk of policy lapse is greater than it would be with a standard loan. See the policy illustration and “Understanding Potential Loan Costs” for further details.
Index loan and Fixed Index loan requests in excess of the Indexed Appreciation Account will be secured by balances transferred from the Fixed Account to a Loan Account.
For Agent Use Only. This material may not be used with the public.

12. Input Summary
Located in last page of every illustration across all carriers
Covers everything we discussed
Easiest way to identify ways to improve illustration
Again, there are a lot of switches in IUL and different carriers have different illustration layout. In a competitive situation, rather than reading through the 40 pages of illustrations to identify differences across carriers, the most efficient way to reverse engineer an illustration is by looking at the Input Summary Page, which is available in all illustrations at the last page. You can jump directly to this page and compare inputs across multiple carriers. You will be able to notice difference a lot faster and create an apples to apples comparison a lot easier.
This is a supplemental illustration. Values are not guaranteed and certain assumptions are subject to change by the insurer. Actual results may be more or less favorable.
For Agent Use Only. This material may not be used with the public.

13. Allocation form
So how do we actually allocate to those accounts once you have placed the policy? This is a screenshot of the IUL allocation form where a client would choose which accounts to allocate to. One additional option to consider when filling this out is to think about doing automated transfers as shown in section D. One benefit this can offer clients is that it can help “dollar cost average” and prevent some of the volatility of returns from just having one segment. What this means is if a client sets up just one segment from January to January they could have a great year all the way up to December, then one bad month can wipe that out. By setting up automated transfers, the client could have a segment for every month, and this will help prevent some of that volatility of returns. Important to note, when filling this out, the transfer amount is based off the net premium, so be sure to subtract the premium charge before deciding on a transfer amount. A quick way to estimate monthly transfer amount is (premium minus premium charge) divided by 12.
For Agent Use Only. This material may not be used with the public.

14. The John Hancock advantage
Customize the policy with unique living benefit riders to provide more value and differentiate yourself
State-of-the art Illustration software: 
E-tool and calculators: John Hancock Needs Analysis Calculator
Comprehensive marketing materials:
Advanced Markets support for case design
Go to new “JH IUL Academy” at JHSaleshub.com/IUL to get started today!
Now we’ve gone over how to understand IUL both at a basic and advanced level, how to illustrate across carriers who may have different defaults for running these quotes, and also how to help service the policies post issue. It’s time to get your IUL diploma and turn to John Hancock to increase your sales in this growing life insurance market!
Go to < to access out <IUL Academy> and mastering your IUL sales and start selling JH IUL today!
For Agent Use Only. This material may not be used with the public.

15. Standard loan requests in excess of the Fixed Account balance can be taken from the Indexed Accounts. Amounts borrowed from the Indexed Accounts will be transferred to the Loan Account at Segment maturity. See the policy contract for more information. Index loans and Fixed Index Loans are available after the third policy year. Both Index loan and Fixed Index Loan requests in excess of the Index Appreciation Account will be secured by balances transferred from the Fixed Account to a Loan Account.  The cost of an index loan can vary substantially compared to that of a standard loan and the risk of policy lapse is greater than it would be with a standard loan. See the policy illustration and “Understanding Potential Loan Costs” for further details. Insurance policies and/or associated riders and features may not be available in all states. Some riders may have additional fees and expenses associated with them.
Standard & Poor’s®, S&P®, S&P 500®, Standard & Poor’s 500 and 500 are trademarks of Standard and Poor’s Financial Services LLC, a subsidiary of The McGraw-Hill Companies, Inc. Hang Seng® Index is a trademark of Hang Seng Data Services Limited. John Hancock has been licensed to use the trademarks of S&P and Hang Seng Index (collectively, the “Indices”). Products are not sponsored, endorsed, sold or promoted by the licensors of the indices and they make no representation regarding the advisability of purchasing products. You cannot invest directly in the Indices.
Loans and withdrawals will reduce the death benefit and the cash surrender value, and may cause the policy to lapse. Lapse or surrender of a policy with a loan may cause the recognition of taxable income. Withdrawals in excess of the cost basis (premiums paid) will be subject to tax and certain withdrawals within the first 15 years may be subject to recapture tax. Additionally, policies classified as Modified Endowment Contracts may be subject to tax when a loan or withdrawal is made. A federal tax penalty of 10% may also apply if the loan or withdrawal is taken prior to age 59½. Cash value available for loans and withdrawals may be more or less than originally invested. Withdrawals are available after the first policy year.
Guaranteed product features are dependent upon minimum premium requirements and the claims-paying ability of the issuer.
Insurance products are issued by John Hancock Life Insurance Company (U.S.A.), Boston, MA (not licensed in New York) and John Hancock Life Insurance Company of New York, Valhalla, NY
For Agent Use Only. This material may not be used with the public.