1. indexed UL sales: Indexed UL basics (For New IUL Sellers)
Mastering your
indexed UL sales: Indexed UL basics (For New 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. What is Indexed UL?
Similar features to traditional universal life except IUL offers:
Growth
Opportunity to earn interest linked to the performance of a financial index
Protection
Guaranteed stated floor
Choices
Select Fixed Account or Indexed Account options that match your clients financial goals and objectives
Indexed universal life offers the same features as traditional universal life but with an opportunity to earn interest linked to the performance of an index, while protecting the policy’s cash value from market risk.
Because of this additional upside potential, indexed universal life policies generally have more cash value than other universal life products.
It is also worth pointing out that all IULs in market has a fixed account, meaning if you don’t want to have interests earned linked to equity market, you can move your money to Fixed Account and earned a steady rate of return.
Finally, similar to the traditional ULs, you can add a whole suite of riders to the product to truly tailor made a policy to address your specific needs.
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3. How does it differ from UL/VUL?
Indexed UL is similar to traditional UL, because:
It is a general account product just like traditional UL
IUL typically offers a fixed account rate just like traditional UL
The company’s general account yield is used to support this declared rate
The general account yield also supports an “options budget” which funds index account parameters (cap and floor)
Indexed UL is not like VUL, because:
Client does not invest in separate accounts with direct equity exposure
The client does not have the same upside or downside potential (i.e., the upside is capped and the downside has a floor)
Cap and floor are determined by the aforementioned "options budget," supported by the company's general account yield
Let’s start with what exactly an IUL is, and what it is not. It is a current assumption product where the funds are invested in the company’s general account. IUL will typically offer a fixed interest rate just like a traditional UL product, and the company’s general account yield supports that fixed interest rate. The general account also supports an “options budget” which we’ll go over in more detail shortly, and that supports index accounts, which typically have a cap and floor and we’ll go over these in more detail as well. What IUL does not have though, is separate accounts where the funds have direct equity exposure (like a variable UL product). The cap and the floor that we referenced earlier will limit the potential upside and downside of the product, which the client would also not have in a variable UL. And just to reiterate that cap and floor is derived from the return of the company’s general account, just like a declared rate on a UL policy.
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4. Where does it fit? UL IUL VUL Typically min guaranteed rates
Limited cash value volatility
VUL
IUL
Stated floor guaranteed
Greater upside potential than UL, less upside potential (and fewer options) than VUL
IUL UL
So where does IUL fit in the marketplace? From the risk and reward perspective, it sits in between UL and VUL. To better understand this point, let me give you some more color on both UL and VUL first. In the traditional UL setting, you have assets invested in very safe fixed income instruments such as corporate A bonds and US treasuries. These assets are very stable and hence predictable. As such, the potential range of rate of return is relatively small. Because of this stability, the rate of return is also relative modest.
In the VUL setting, you have assets directly invested in the equity market, meaning you are effectively buy shares of all the companies in the public market. As we all know, equities are very volatile. For example, in a given year, the rate of return could range from -30% to +30%. Since the potential range of outcome is so big, the risk of VUL is naturally higher than UL. Because higher risk must be compensated by higher return, VUL should provide higher earning potential over a long period of time.
IUL is a product that sits in between UL and VUL. It has the characteristics of both a VUL and UL. That is, it has the ability to participate in the market upside gain but limit downside exposure. Specifically, it has a range outcome is smaller than VUL but larger than UL. Because it has a fan of outcome greater than UL but smaller than VUL, the expected return naturally also sits in between a UL and a VUL.
PERFORMANCE
IUL
TIME
VUL
VUL
Potential for negative returns
Greater upside potential than UL or IUL
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5. Key Indexed UL definitions you should know
Segment: A portion of the Policy Value that is allocated to an indexed account. It dictates the portion of policy value that is exposed to the equity market. Typically, each segment has a duration of one year.
Segment Growth Rate: Percentage change of the referenced index (e.g. S&P500, Hang Seng)
Cap Rate: The maximum annual Segment Growth Rate for an Indexed Account
Floor: The minimum annual Segment Growth Rate for an Indexed Account
Participation Rate: The percentage of the change in the index value that will be recognized when calculating the Segment Growth Rate
Threshold Rate: Rate that must be exceeded on uncapped accounts before credit is given*
We’ve referenced some of the key terms in an IUL policy, but let’s give some additional details on what these mean. A segment is a portion of the Policy Value that is allocated to an indexed account. It dictates the portion of policy value that is exposed to the equity market. Typically, each segment has a duration of one year. When a segment is formed, we record the referenced index value (e.g. S&P 500 on Jan 15th, 2018) , and when the segment matures we record that value again (e.g. S&P500 on Jan 14th, 2019). This determines the percentage change in the index and what is credited to the policy, subject to the cap and floor. This percentage change is also called the Segment Growth Rate.
The cap rate is the maximum annual segment growth rate for an index account. So, if at the end of a segment, the index has grown 20%, but the cap is 10%, we would be at that maximum rate of 10%. But if at the end of a segment, the index has grown 5%, which is lower than the cap of 10%, you will still get 5%.
The floor is the minimum annual segment growth rate. Typically, in an IUL , this will be 0%, which means if, at the end of a segment, the index is negative, the return to the policy will be the floor of 0%.
The participation rate is another key component when determining the segment growth rate. The participation rate is how much of the change you “participate” in. If you have a high participation rate (or “par” rate), you could realize more of the positive change in the index. Or, if it’s low, you may realize less of the change. It’s important to note that the participation rate is still subject to the cap, so if you hit the cap, the higher participation rate won’t come into play. Typically, an index account with a higher participation rate comes with the tradeoff of a lower cap, while an account with a higher cap might have a lower participation rate.
Indexed Accounts with no Cap, may have a Threshold Rate, which is the rate the index must outperform before a positive credit is given. The return of these accounts will be the return of the index, less the threshold rate
We also reference the two indices our IUL policies track, which are the S&P 500 and the Hang Seng. The S&P 500 is widely regarded as the best benchmark of the US market, while the Hang Seng is one of the most recognized indicators of market performance in Hong Kong.
*May not be applicable to all IUL products.
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6. What are examples of financial indexes?
Widely regarded as the best single benchmark of the U.S. market, the S&P 500 Index includes 500 large cap common stocks actively traded in the United States.
One of the most recognized indicators of the stock market performance in Hong Kong. It tracks the largest companies listed on the Hong Kong Exchange, covering approximately 65% of its total capitalization.
Different indexed accounts have different referenced indices. Some examples are S&P500, Hang Seng, MSCI EAFE, and FTSE.
In John Hancock, all our indexed accounts referenced either the S&P500 index or Hang Seng Index. S&P500 is widely regarded as the best single benchmark of the U.S. market. It includes 500 large cap common stocks actively traded in the United States. Hang Seng index is another well recognized indicators of the stock market performance in Hong Kong. It tracks the largest companies listed on the Hong Kong Exchange, covering approximately 65% of its total capitalization.
At John Hancock, all our indexed accounts reference either the S&P500 index or Hang Seng Index.
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 of products. You cannot invest directly in the Indices.
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7. How Indexed UL works Client pays premiums into their IUL policy
Tax-free retirement distributions
(via loans & withdrawals)
Help fund education or other expenses
(via loans & withdrawals)
Client pays premiums into their IUL policy
Client allocates those premium across Indexed Accounts and a Fixed Account
Tax-Deferred Cash Value Accumulation
How about what actually happens when an IUL policy is put inforce. When premiums are paid they can typically be allocated to a fixed account and/or an offering of indexed accounts.
If the client allocates to the fixed account, it will function just like a UL where interest is typically credited daily. If they allocate to an indexed account, it functions a bit differently. In this case the value will be placed into a holding account until it moves into the index account on a specific date, such as the 15th of the month.
This holding account is typically credited an interest rate equal to the fixed account rate. On the 15th of the month, the value then creates a one year point to point segment. When the segment is created it’s then locked in for one year, and when that matures in twelve months is when the interest is credited. As an example, if the client pays a premium on the first of the month, it will be put into the holding account until the 15th when it forms a segment. On the 15th of the month, the value then creates a segment, typically with one year point-to-point crediting.
. The value of the index on those two dates would determine the change in the index that would be credited to the policy.*
There are multiple ways for you utilize the cash value built up within the policy. You can withdraw directly from the policy or you can borrow against the policy. When it comes to borrowing against the policy, you can even choose among different loan types such as Standard Loan and Index Loan. Each loan type has different risk profile. We will talk about this more in the following slides.
*This example reflects how a JH IUL product operates. Other carriers may have alternative segment durations, crediting methods and holding periods.
Income tax-free death benefits to your heirs
Life insurance death benefit proceeds are generally excludable from the beneficiary’s gross income for income tax purposes. Comments on taxation are based on John Hancock’s understanding of current tax law, which is subject to change. Prospective purchasers should consult their professional tax advisor for details.
Loans and withdrawals may reduce the death benefit, 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. 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 59 1/2.
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8. What you need to know about the fixed account
Serves as a “Holding Account” for Indexed Account options
(money earns Fixed Account interest before being allocated to the Indexed Accounts)
Provides safety, now or in the future
Reduces volatility
Fewer restrictions than Indexed Accounts
While we’ve talked about the index account offerings, it’s important to mention the value a strong fixed account can provide in an IUL product. Typically this account is going to serve as the holding account before a segment is created so the interest rate being earned in that time is important. Additionally the Fixed Account can provide a safety net that reduces volatility if the client thinks the returns of the index will be negative. This account also typically has fewer restrictions about transferring value or taking withdrawals.
At John Hancock, the current fixed account rate for Accumulation IUL18 is 4.1% and the fixed account rate for Protection IUL18 is 4.5%.* As we continue to experience a low interest rate environment, our fixed account rate is certainly very attractive.
*Stated fixed account rates for JH IULs are current as of June 2019.
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9. What you need to know about IUL Interest Crediting
Cash value growth within an IUL is tied to the performance of an underlying index (e.g. S&P 500® or Hang Seng)
In an environment without a cap or a floor, a financial index (e.g. S&P500) can be volatile. It can go up or down significantly in a given year
However, with the cap and floor mechanics within an IUL, we can restrict the how the underlying index can impact the ultimate interest credit.
Because cap is usually set at some positive number and floor is typically set at zero, IUL accounts share in index’s upside and none of the down ones
Interest crediting strategies vary based upon: Participation Rate, Cap Rate, Indices (e.g. an equity index and a bond index)
Aforementioned, the interest earned in an IUL depends on the performance of the referenced index. At John Hancock, all our indexed accounts reference either the S&P500 index or Hang Seng Index, meaning the cash value growth potential is tied to the performance of an underlying index (e.g. S&P 500® or Hang Seng).
In an environment without cap or floor, a financial index (e.g. S&P500) can be volatile. It can go up or down significantly. In 2008, S&P was down around 40%. In 2013, S&P was up 25%. Sitting this volatile ride requires a strong risk appetite.
However, with the cap and floor mechanics within an IUL, we can restrict the how the underlying index can impact the ultimate interest credit.
Because cap is usually set at some positive number and floor is typically set at zero, IUL accounts share in index’s upside and none of the down ones. Suppose an index account has a 10% cap and a 0% floor. Then in a year where the market is down 40%, you are protected by the floor and do not lose money. The interest you earn is 0% instead of -40%. Conversely, in a year where the market is up 25%, you get only 10%. While you are certainly giving up some upside potential, you are protected on the downside.
Note: The share of the upside will depend on the selected crediting strategy. Ultimate interest crediting strategies for each index account vary based upon parameters such as Participation Rate, Cap Rate, Floor, and Indices (e.g. an equity index and a bond index).
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10. Simple demonstration of Interest Crediting
Here are a few hypothetical examples showcasing how interest credits are determined and how they would change under different market conditions.
Example 1
Index Change (5%) X Participation Rate (110%) = 5.5%
Example 2
Interest Crediting Rate = Cap Rate (13%)
Example 3
Interest Crediting Rate = Floor Rate (1%)
20%
10% 0%
-10%
-20%
-15%
-5% 5%
15%
5.5% 1%
20%
13%
Positive Index Change X
Participation Rate
Indexed Interest Credit
Let’s walk through a detailed example of how the crediting comes together in an IUL. Here we assume a cap of 13%, a participation rate of 110%, and a floor of 1%. In the first example, the index has a moderate return year of 5%, and with the participation rate of 110%, the indexed interest credit is raised to 5.5%. The second example assumes a high return year for the index of 20%. In this case the client hits the cap of 13%. Since they’re already at the cap they don’t realize the benefit of the higher participation rate. If for example the return was 12%. The increased participation rate would only take them to the cap of 13%, not above it. The last example shows if the return of the index is negative. Here the return would just be limited to the floor. In this case we assume a floor of 1%, but this could also be 0%. The story here though is that the upside potential is limited by the cap, and the downside potential is limited by the floor.
Cap Rate (13%)
Indexed account performance
Market performance
The purpose of the figures shown is to illustrate how the performance of the underlying referenced index could affect the annual crediting rate for the segment. The examples assume a hypothetical rate of return, interest crediting rate, cap and floor. This example may not be used to project or predict investment results.
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11. Putting it all together Determining fixed account credits
Portfolio yield
Helps determine crediting rate
So let’s look at how this works. With a UL or the fixed account on an IUL, we use the portfolio yield of the general account to declare an interest rate which is credited to the policy.
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12. Putting it all together Determining caps
Portfolio yield
Helps determine caps
With an index account, instead of crediting a declared rate, the carrier takes that yield to go out and buy/sell call options, which set the cap and floor. Depending on how much and what type options insurance carriers can buy/sell, the cap and floor can vary from account to account, and from carrier to carrier. This mechanism also suggests 2 things: 1) the higher the portfolio yield, the higher the option budget, which translates to more favorable / higher cap 2) the cost of options could play a part in determining caps.
Cost of options
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13. Putting it all together Determining higher caps/ multipliers
Portfolio yield
Helps determine higher caps/multipliers
Some carriers also take an additional policy charge to support the general account yield and be used to buy a higher cap or a multiplier. With these charges, policyholders are offered the opportunity to have more upside potential, but at the same time assume more risk. That is, if the market does not perform (e.g. market returns 0%), policyholder cannot recover the policy charge assessed in that particular year / segment. This interaction of options and how additional charges come into play will be covered in more detail in our “Advanced” class as well as details about how exactly the multipliers I’ve referenced work.
Additional policy charges
Cost of options
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14. John Hancock Indexed Account parameters by product as of June 2019
High Par Capped Indexed Account
Capped Indexed Account
Capped Hang Seng Indexed Account
High Capped Indexed Account
Product
Cap Rate
Guaranteed Multiplier
Accumulation IUL 18
8.25%
55%
10%
11.75%
14%
30%
Protection IUL 18
65%
38%
Protection SIUL 16
8.50%
15%
9.50%
25%
12.50%
N/A
Enhanced Capped Indexed Account
Enhanced High Capped Indexed Account
Plus Capped Indexed Account
Uncapped Indexed Account
Product
Cap Rate
Guaranteed Multiplier
Threshold Rate
Accumulation IUL 18
10%
122%
14%
86%
N/A
Protection IUL 18
Protection SIUL 16
13%
15%
6.50%
Here we have a chart showing what the index parameters are for our products. The Capped Account is a typical account that most carriers have and tends to be pretty similar across competitors. Our High Par Account offers a higher participation rate of 160% which is one of the highest in the industry. Our High Capped Account has one of the highest caps in the industry, and the Hang Seng Account offers the client the opportunity to diversify and be tied to an international index in addition to the S&P 500.
Current Participation Rate for all High Par Capped Indexed Accounts is 160%. Enhanced accounts carry an additional 3% guaranteed Index Performance Charge. Plus Capped Indexed Account has a 1% guaranteed asset charge. N/A indicates account is not available on this product Rates vary for NY products. Information is current as of June 2019.
Guaranteed product features are dependent upon minimum premium requirements and the claims-paying ability of the issuer.
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15. Products that change with your clients
By offering distinct indexed accounts, sample policy design gives clients the freedom to change their allocations as their needs change over time.
2019 Accumulating cash
2039 Nearing retirement
2059 Ensuring a legacy
20%
20%
20%
Age 45
Age 65
Age 85
20%
60%
By offering a full suite of competitive Indexed Account options, John Hancock gives clients the flexibility to adjust their allocations as needed to meet their goals as they change over time.
These charts show how the various accounts can come together for a client whose needs change over time. In their younger years they may use more of the High Capped Account to accumulate more policy value. As they get closer to retirement, they may want to add in some High Par allocation in case returns are more moderate. Finally as they move to the later years of the policy, they may want to shift even more to the High Par and add in the Fixed Account to take a more conservative approach.
80%
80%
Capped Indexed Account
High Capped Indexed Account
High Par Indexed Account
Fixed Indexed Account
The figures used in this case study are hypothetical and for discussion purposes only. A client would need to determine which type of life insurance product and which index accounts are most suitable for their specific needs.
For Agent Use Only. This material may not be used with the public.

16. Historical examples
This example shows how actual S&P 500 or Hang Seng returns would have impacted the interest credited to a policy
In years where the S&P or Hang Seng is positive, the credit is linked to the return for that index
In years where they are negative, the interest credit is 0%
The Segment Growth Rate presented do not include any multipliers that are offered with the indexed accounts
Now we have some historical examples of the interest would have been credited based on actual index returns. In years where the return is positive, we see that the index account is linked to that return subject to the cap. The year of also provides a good example of how the participation rate of the High Par Account could work, as the return of the S&P was less than the cap, but that 160% participation rate would’ve brought the return up to the cap. This shows how the High Par Account could be better suited to clients who think the return of the index might be moderate, while we can see how the High Capped can offer much more upside for a client who thinks the index is going to have a very strong year. In years where the return is negative, we see that the downside is limited to the floor of 0%.
Note: The segment growth rates presented here does not include any multipliers that are offered with the indexed accounts. We will cover the concept of multipliers in the “Deeper dive into IUL policy mechanics” section of the presentation.
Past performance is not indicative of future results. This example demonstrates what would have been credited with Accumulation IUL ‘18’s and Protection IUL 18’s current cap, and participation rates as of June Any new premiums designated to an Indexed Account(s) form new Segments on the 15th of each month and each has a one-year term. New premiums are subject to a Lock In Date of three business days. The current Participation and Cap Rates can be changed by the insurer and are subject to the guaranteed levels stated in the policy. Source: S&P 500 Index data and Hang Seng Index data from 12/14/91 – 12/14/18.
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17. Accessing policy cash value
Standard loan In the first 10 years, borrowed funds are charged an interest rate less a spread. Typically zero-net cost loan years 11+ (same rate charged and credited).
Index loan or participating loan
Funds stay linked to indexed account and are charged an interest rate (could be a fixed or variable charge).
This creates more risk, as net loan charge could vary from year to year depending on return of the index.
One last piece to understand about IULs is the two different loan types offered. Most carriers will offer a standard loan option where there is typically a spread between what is charged and credited in the first ten years and then in years 11 on the charge and credit is the same. These are generally known as zero-net cost loans or wash loans. IULs also may offer an index loan option. These loans are charged a declared interest rate that could be variable or fixed (and some carriers may even offer both of those choices), but the credit is still tied to the return of the index. This creates more volatility, as the loans could see a credit greater than the charge, or they could be assessed the whole loan charge with no credit to offset that.
In terms of selecting loan type, here are some consideration points. Standard Loans are the most popular options. Standard loans provide more modest return over time as it is less risky. That is, the loaned amount is no longer participating in the equity market. This loan type is more appropriate for those who prefer less risk in their portfolio during their retirement years. Index loans is the preferred option for those who have high risk tolerance. When index loans are utilized, policyholders will continue to take full advantage of equity market on both loaned and unloaned the portion of the policy value. As a result, index loans can provide more income potential than standard loans over time. However, because equity market is volatile, index loan carries significantly more risks. Depending on equity market performance, income potential from index loans can have more variability.
Index loans are available after the third policy year on 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 requests in excess of the Indexed Appreciation Account will be secured by balances transferred from the Fixed Account to a Loan Account.
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18. Loan options
Indexed loans carry substantially more risk to having a policy lapse.
Policy value
Here we have an example of how index loans could create more volatility using John Hancock AIUL. We assume the loan is charged a 4.75% rate, and if the index returns 7% in all years the index loans outperform standard loans, as the loan portion would be credited more than it’s charged. If the index returns 2% though we can see how index loans quickly see the policy value fall, as the loan is now being assessed greater charges than credits, while the standard loan has those zero net cost loans, which offer stability for the product.
Age
Standard loan assuming 7% for all years
Index loan assuming 7% for all years
Index loan assuming 2% starting at age 66
Standard loan assuming 2% starting at age 66
This is a supplemental Accumulation IUL illustration assuming Male, 45, Preferred Non Smoker paying $25,000 per year to age 65, Min Non MEC Option 2 to 1 switch in the optimal year, GPT. Taking income by method indicated from age 66 to 85. Crediting rate is 7% or 7% reducing to 2% at age 66 as indicated. Variable Loan Rate for standard loans is 4.75%. Not all benefits and values are guaranteed. The assumptions on which the non-guaranteed elements are based are subject to change by the insurer. Actual results may be more or less favorable.. Taking income from years age 66 to 85, Option 2 to 1 switch in the optimal year, GPT. Not all benefits and values are guaranteed. The assumptions on which the non-guaranteed elements are based are subject to change by the insurer. Actual results may be more or less favorable. Variable Loan Rate is 4.75%. Loan charge rates may vary by carrier.
For Agent Use Only. This material may not be used with the public.

19. IUL practices to watch For
Weaker Fixed Account performance
Holding Account rate lower than Fixed Account
Multi-year segments
Applying interest credits to end-of-year segment value
Here are some IUL practices the client should be aware of as well. We touched on the fixed account performance being important in the previous slide, but it’s also important to check the holding account rate credited. If that’s lower than the fixed account the client might be missing out on interest before the segment is created. Multi year segments are another option available to clients that could provide more upside potential, but also more risk. These accounts typically will offer a higher cap, but the downside is the client doesn’t get to lock in their return for a longer period of time. For example, in a 2 year segment, if the index is up greatly in year 1, but then is down in year two, the client may not realize any return, where with a one year segment, they could have been credited that return after the first year. Finally it’s important to understand how interest credits are applied. Since interest isn’t credited until the end of the typically one year segment, some carriers might not credit until all the monthly charges have come out in which case the client is credited on a lower balance. John Hancock credits on an average balance in the segment, that way the client gets the benefit of those early months when the segment value is higher and in turn could get more interest credited this way.
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20. 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 and Interactive Rate Calculator (coming soon!).
Comprehensive marketing materials
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 level go to < to access out <IUL Academy> and mastering your IUL sales and start selling JH IUL today!
To deepen your insights, access the modules focused on how to illustrate across carriers who may have different defaults for running these quotes, and also how to help service the policies post issue.
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21. 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
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