Custom Care II Enhanced

Helping you meet a broader range of client needs

LTC-3775 6/08 Long-Term Care Insurance is Underwritten by John Hancock Life Insurance Company, Boston, MA 02117.

For financial professional use only. Not for use with the public.

A Standard of Excellence

• • Leadership – John Hancock is a committed leader in the Long-Term Care Insurance Market – – – LTC insurance solutions through innovative, competitive and responsible product offerings John Hancock was the #1 LTC insurance carrier in the US, based on new premium and new lives sold in 2007 1 We have more than 1 Million LTC insurance policyholders in-force as of December 31, 2007² Brand Recognition – John Hancock is one of the leading brands among consumers in the country for financial services, with 96% consumer awareness³ 1. LIMRA, Individual and Group LTCI Sales Surveys for Q4 and YTD 2007.

2. Based on John Hancock internal claims data as of December 31, 2007. Total includes individual and group LTCI and 50% of the Federal Long-Term Care Insurance Program.

3. Chadwick Martin and Bailey, 2007.

A Standard of Excellence

• A History of Paying Claims for our Policyholders – – We have more than $8.1 billion in LTC insurance claims reserves¹ With 20 years of LTC insurance experience, we are a company that has kept its promises, paying more than $1.8 billion² in claims on our LTC insurance policies • Strength & Stability – Ratings as of 12/31/07 John Hancock Life Insurance Co.  S&P AAA  MOODY’S Aa1    A.M. BEST FITCH Rating Comdex Ranking A++ AA+ 99 (out of 100) 1. Based on internal data as of 12/31/07.

2. Based on internal data, including individual, group, Fortis and the Federal Long-Term Care Insurance Program

Custom Care II Enhanced

Features & Benefits

State Approvals – Launch Date 6/23/08

AK HI WA MT OR CA NV ID UT AZ WY CO NM ME ND SD NE KS TX OK MN IA MO AR WI IL MS MI NY VT NH MA CT RI IN TN KY OH PA WV VA MD NJ DE NC SC DC AL GA LA FL

CC II Enhanced - State Approval List

• Alabama • Alaska • District of Columbia • Illinois • Kansas • Kentucky • Maine • Michigan • Mississippi • • • • • • • • North Dakota Nebraska New Mexico Oklahoma Rhode Island South Dakota West Virginia Wyoming

Deadlines for Custom Care II applications

• • • Once Custom Care II Enhanced has been launched in a state, Custom Care II will no longer be available in that state For the initial launch on June 23 rd , all Custom Care II applications must be signed no later than June 22, 2008 and received in the Home Office no later than July 22, 2008 Custom Care II applications signed after June 22, 2008, or received after July 22, 2008, in the states included in the June 23 rd launch of Custom Care II Enhanced will continue to go through the underwriting process – You will be required to obtain a new Custom Care II Enhanced application from the client prior to policy issuance and the new Custom Care II Enhanced rates will apply

Everything You Love About CC II plus…..

• • • • • Unlimited CPI Compound Inflation with the Guaranteed Increase Option (GIO) Caregiver Support Services Lifestyle Benefit Changes Consumer Protection Provisions – – – Alternate Services Benefit Independent Third-Party Review Timely Payment of Claims Contingent Nonforfeiture for Limited Pay Policies

Policy benefits may vary by state

CC II Enhanced - Policy Building Blocks

• Eligibility for Benefits – Need Substantial Assistance to perform at least two of the six Activities of Daily Living  Bathing, continence, dressing, eating, toileting, or transferring –  Substantial Assistance means “Hands-on or Stand-by” assistance (or) Requires Substantial Supervision to protect himself or herself due to presence of “Severe Cognitive Impairment”  Clinical evidence and standardized tests (and) – A licensed health care practitioner certifies the ADL disability is expected to continue for at least 90 days

Policy benefits may vary by state

CC II Enhanced - Policy Building Blocks

• Coverage – Pay actual charges up to the LTC Benefit Amount  At home (Adult Day Care, Professional Care, Hospice Care and Incidental Homemaker Services)   Independent home health care provider definitions Immediate family members can be compensated if working through an approved provider  In a Nursing Home or Assisted Living Facility  Unused benefits extend the benefit period

Policy benefits may vary by state

CC II Enhanced - Policy Building Blocks

• Applicant Age – Ages 18-84 – Ages 80-84 with limited benefits • LTC Benefit Amount – Choose from a Monthly or Daily Benefit  Monthly $1,500 to $15,000 limit  in $100 increments  Daily $50 to $500  in $10 increments

Policy benefits may vary by state

CC II Enhanced - Policy Building Blocks

• Benefit Periods – Multiplier for the LTC Benefit Amount  2 years (730 days)   3 years (1,095 days) 4 years (1,460 days)*   5 years (1,825 days)* 6 years (2,190 days)*  10 years (3,650 days)*  Lifetime (unlimited days)* * Not available ages 80-84

Policy benefits may vary by state

CC II Enhanced - Policy Building Blocks

• Elimination Periods (EP) – Deductible where client pays for services before the policy pays  30 days of service *     60 days of service* 90 days of service 180 days of service 365 days of service – “True cumulative” EP: days of service do not need to be consecutive or within the same claim – For Home Health Care (HHC)  At least one HHC day of service in a calendar week = seven days of service in calculating the EP * Not available ages 80-84.

Policy benefits may vary by state

CC II Enhanced - Inflation Protection

• 5% Compound Inflation Option – LTC Benefit Amount & Pool of Money increased by 5% compound, each year – Increases applied to the remaining Pool of Money, even if on claim – 5/3% Annual Compound Inflation no longer offered • 5% Simple Inflation Option – LTC Benefit Amount increased 5% of original benefit, each year – Increases applied to the remaining Pool of Money, even if on claim

Policy benefits may vary by state

CC II Enhanced - Inflation Protection

•

“New” – Unlimited CPI Compound Inflation

– Annual Compound increases based on the Consumer Price Index (CPI) – – – – – No limit to the CPI increase CPI is the most widely used measure of inflation 1 Steadily increased over the last 50 years 1 Highly weighted towards housing & labor costs 1 If CPI is negative, benefits remain level 1. Source – U.S. Department of Labor, Bureau of Labor Statistics

Policy benefits may vary by state

CC II Enhanced - Inflation Protection

•

Unlimited CPI Compound Inflation (cont.)

– Provides meaningful and appropriate inflation protection – – – May be more than fixed 5% Compound Inflation Premium stability  Investment strategy that matches investments to benefits through the use of inflation hedges  Level premiums, regardless of how high future inflation may be More affordable than fixed 5% Compound Inflation

Policy benefits may vary by state

Guaranteed Increase Option (GIO) included with CPI Compound Inflation

• • • • • • • • Option to increase LTC Benefit Amount by 10% every 3 years The GIO increase is in addition to the annual CPI increase No underwriting Clients have to accept the increase within 31-days or the right to elect that increase will expire (future offers will still be made) The premium for any increase is based on attained age Not available if client has been on claim during the 2 year period prior to the Option Date or if the Option Date occurs on or after 91st birthday.

Not available with 10 Pay or Paid-Up at 65 payment options Not available with FamilyCare II Benefit

Policy benefits may vary by state

Why GIO?

• Offering a policy that can adapt over time enables you to better meet your clients’ needs — particularly with younger buyers • GIO is a safety net for increasing coverage for any reason (i.e. move to a higher cost of care community), without underwriting, if a client’s needs change • Like any safety net, your client may never need it, but having it provides a higher comfort level and greater confidence • GIO would be a great addition to any LTC insurance policy, regardless of the inflation option selected • GIO is not meant to be a cost-effective way to buy additional LTC insurance over time

Policy benefits may vary by state

5% Simple Inflation Performance

$300 $250 $200 $150 $100 $50 $ 1 4 7 10 13 16 Simple 19 Years Policy in Effect 22 25 28 $250

5% Compound Inflation Performance

$500 $400 $300 $200 $100 $ 1 4 7 10 13 Simple 16 19 5% Compound 22 Years Policy in Effect 25 28 $433 $250

CPI Compound - Historical Performance

4.2% (CPI Results 1977-2007) $500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $ 1 6.5% (CPI Results 1977-1987) 5.0% (CPI Results 1977-1997) 4 7 10 CPI Compound 13 16 Simple 19 22 25 5% Compound Years Policy in Effect 28 $433 $341 $250

55 Year Old

Preferred Health – Married Both Applying $100 Daily Benefit, 5-Year Benefit Period, 90 Day Elimination Period Inflation Based on 30 Year Calculation

$500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $-

Premiums:

CPI Compound Simple 5% Compound $ 778 $ 761 $1,083

39%

less than 5% Compound 1 4 7 10 CPI Compound 13 16 Simple 19 22 25 5% Compound Years Policy in Effect 28

Policy benefits may vary by state

$433 $341 $250

55 Year Old

Preferred Health – Married Both Applying $100 DB (5% Compound), $130 DB (CPI Compound), 5-Year BP, 90 Day EP Inflation Based on 30 Year Calculation

$500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $ 1

Premiums:

CPI Compound 5% Compound 4

Policy benefits may vary by state

$1,012 $1,083 7 10 13 CPI Compound 16 19 22 5% Compound 25 Years Policy in Effect 28 $447 $433

50 Year Old

Preferred Health – Married Both Applying $100 Daily Benefit, 5-Year Benefit Period, 90 Day Elimination Period Inflation Based on 30 Year Calculation

$500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $-

Premiums:

CPI Compound Simple 5% Compound $ 694 $ 643 $ 948

36%

less than 5% Compound 1 4 7 10 CPI Compound 13 16 Simple 19 22 25 5% Compound Years Policy in Effect 28

Policy benefits may vary by state

$433 $341 $250

50 Year Old

Preferred Health – Married Both Applying $100 DB (5% Compound), $130 DB (CPI Compound), 5-Year BP, 90 Day EP Inflation Based on 30 Year Calculation

$500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $ 1

Premiums:

CPI Compound 5% Compound 4

Policy benefits may vary by state

$ 902 $ 948 7 10 13 CPI Compound 16 19 22 5% Compound 25 Years Policy in Effect 28 $447 $433

45 Year Old

Preferred Health – Married Both Applying $100 Daily Benefit, 5-Year Benefit Period, 90 Day Elimination Period Inflation Based on 30 Year Calculation

$500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $-

Premiums:

CPI Compound Simple 5% Compound $ 592 $ 558 $ 897

52%

less than 5% Compound 1 4 7 10 CPI Compound 13 16 Simple 19 22 25 5% Compound Years Policy in Effect 28

Policy benefits may vary by state

$433 $341 $250

45 Year Old

Preferred Health – Married Both Applying $100 DB (5% Compound), $150 DB (CPI Compound), 5-Year BP, 90 Day EP Inflation Based on 30 Year Calculation

$600 $500 $400 $300 $200 $100 $ 1

Premiums:

CPI Compound 5% Compound 4

Policy benefits may vary by state

7 $ 888 $ 897 10 13 CPI Compound 16 19 22 5% Compound Years Policy in Effect 25 28 $513 $433

“Buy up” to actual local costs

Use premium equivalency to buy additional Daily or Monthly LTC Benefits with Custom Care II Enhanced

Maximizing Day One Coverage

•

Average daily benefit sold (CCII)

•

Average Annual Coverage $150 $150 X 365 days = $54,750

•

National Avg. Daily Cost of Care

•

Average Annual Shortfall $190 ($70,000/365 days) 1 $15,250 ($70,000 - $54,750)

1. John Hancock 2005 Cost of Care Survey, conducted by Harris, Rothenberg International, LLC, 2005

Policy benefits may vary by state

5% Compound vs. CPI Compound – Age 45 5 Year Benefit Period, 90 Day Elimination Period, Married, Select

Day One Benefits

Product CC II Enhanced 5% Compound CC II Enhanced CPI Compound Premium $1,569 $1,382 Daily Benefit $150 $200 Annual Benefit $54,750 $73,000 Policy Limit $273,750 $365,000

Policy benefits may vary by state

5% Compound vs. CPI Compound – Age 50 5 Year Benefit Period, 90 Day Elimination Period, Married, Select

Day One Benefits

Product CC II Enhanced 5% Compound CC II Enhanced CPI Compound Premium $1,658 $1,619 Daily Benefit $150 $200 Annual Benefit $54,750 $73,000 Policy Limit $273,750 $365,000

Policy benefits may vary by state

5% Compound vs. CPI Compound – Age 55 5 Year Benefit Period, 90 Day Elimination Period, Married, Select

Day One Benefits

Product CC II Enhanced 5% Compound CC II Enhanced CPI Compound CC II Enhanced CPI Compound Premium $1,895 $1,634 $1,725 Daily Benefit $150 $180 $190 Annual Benefit $54,750 $65,700 $69,350 Policy Limit $273,750 $328,500 $346,750

Policy benefits may vary by state

5% Compound vs. CPI Compound – Age 60 5 Year Benefit Period, 90 Day Elimination Period, Married, Select

Day One Benefits

Product CC II Enhanced 5% Compound CC II Enhanced CPI Compound CC II Enhanced CPI Compound Premium $2,250 $1,913 $2,138 Daily Benefit $150 $170 $190 Annual Benefit $54,750 $62,050 $69,350 Policy Limit $273,750 $310,250 $346,750

Policy benefits may vary by state

5% Compound vs. CPI Compound – Age 50 w/SharedCare 2 X 5 Year Benefit Period, 90 Day EP, Married, Select, SharedCare

Day One Benefits

Product CC II Enhanced 5% Compound CC II Enhanced CPI Compound Combined Premium Individual Daily Benefit Individual Annual Benefit $3,648 $3,561 $150 $200 $54,750 $73,000 Combined Policy Limit $547,500 $730,000

Policy benefits may vary by state

CC II Enhanced - Inflation Protection

• Enhanced Guaranteed Purchase Option (GPO) – – – – Insured may purchase additional coverage without underwriting every 3 years (5%, 10% or 15% of original amount) If benefits have been paid in the previous 2 year period or if the insured is older than age 90 no offer will be made One time option to change to CPI Compound or 5% Compound inflation for increased premium at age 65 Not available with FamilyCare II Benefit, Limited Pay Options or Survivorship and Waiver of Premium Rider • No Inflation – Only available with Limited Pay Options or the Survivorship and Waiver of Premium Benefit

Policy benefits may vary by state

Enhanced GPO Inflation Example

GPO with CPI Compound Conversion at age 65 • Applicant age 55 – Have “need” of parental experiences with LTC – – Children college expenses Limited premiums available in current situation • Premium for CPI Compound @ age 55 =

$1,654

– ($150 DB, 5 Year BP, 90 Day EP, Partner not applying, Select) • GPO w/CPI Compound conversion at 65 = – Premium then goes to

$1,834

at 65

$935

• Alternative is “to wait to age 65” – Premium for CPI Compound at age 65 =

$2,697

Policy benefits may vary by state

Custom Care II Enhanced

vs.

“

The Industry

…”

5-Year, 90 day Elimination Period, $4,500 Mo. Max., 5% Compound Inflation, Married Select

160%

Percentage (%) to CCII Enhanced Premiums

140% 120% 100% 80% 60% 40% 20% 0% Allianz Generation Protector II GNW Privileged Choice GNW Classic Select GNW AARP 45 Met Value2 50 55 Met Ideal2 60 Met Premier2 65 Met LifeStage: Custom Advantage MedAm Simplicity2

Competitor information is accurate to the best of our knowledge as of 6/1/08. For complete details, please refer to the company’s outline of coverage or policy

Continues to be Competitive…

Pru LTC-3

CCII Enhanced w/CPI Compound

vs

“

The Industry

…”

5-Year, 90 day Elimination Period, $4,500 Mo. Max., 5% Compound Inflation, Married Select

200% 180% 160% 140% 120%

Percentage (%) to CCII Enhanced w/CPI Compound Premiums

100% 80% 60% 40% 20% 0% Allianz Generation Protector II GNW Privileged Choice GNW Classic Select GNW AARP 45 Met Value2 50 55 Met Ideal2 60 65 Met Premier2 Met LifeStage: Custom Advantage MedAm Simplicity2

Competitor information is accurate to the best of our knowledge as of 6/1/08. For complete details, please refer to the company’s outline of coverage or policy

Extremely Competitive!!

Pru LTC-3

CC II Enhanced - Built-In Benefits

• Double Accident Benefit prior to age 65 – – – – – 100% Reimbursement up to two times the maximum daily or monthly benefit if care is the result of an accident prior to age 65 Benefits paid in excess of the LTC Benefit Amount will not be deducted from the Total Pool of Money For the entire duration of the claim Lifestyle underwriting and ability to issue without benefit to preserve case Not available with Lifetime Benefit Period or with FamilyCare II • Return of Premium prior to age 65 – – Total premiums paid less policy benefits paid when death occurs prior to age 65 Not available with FamilyCare II Benefit

Policy benefits may vary by state

CC II Enhanced - Built-In Benefits

• “New” - Caregiver Support Services (Supporting

Clients and Their Family)

– – – – – Personalized telephone & website support Access to quality reports and ratings on over 90,000 nursing homes, assisted living facilities, hospice, and home health care providers nationwide Access to exclusive provider discounts ( 7%-35% ) Care advisory services Family members include Spouse or Partner and their parents, stepparents, grandparents, siblings, children, step children, grandchildren, and their respective spouses

Policy benefits may vary by state

CC II Enhanced - Built-In Benefits

• Care Advisory Services (CAS) – The benefit eligible policyholder may chose an independent professional to assist in determining the care and treatment plan  1/3 the Monthly or 10X the Daily LTC Benefit Amount, annually   May be paid before the EP is satisfied Does not reduce the Pool of Money!!!

 Does not count towards the EP

Policy benefits may vary by state

CC II Enhanced - Built-In Benefits

• Additional Stay at Home Benefit – Home modifications, durable medical equipment, caregiver training, home safety checks, provider care checks, and medical alert systems  1X the Monthly or 30X the Daily LTC Benefit Amount   May be paid before the EP is satisfied Must be benefit eligible   Does not reduce the Pool of Money!!!

Does not count towards the EP

Policy benefits may vary by state

CC II Enhanced - Built-In Benefits

• Respite Care – Short-term temporary care to provide relief to the primary uncompensated caregiver    21 days per calendar year Is not subject to, nor does it satisfy the Elimination Period Reduces the Pool of Money • Bed Hold Benefit – Actual covered charges will be paid to ensure your room will be available at a facility when a stay is interrupted for any reason   Up to 60 days per calendar year Subject to the elimination period and does reduce the Pool of Money

Policy benefits may vary by state

CC II Enhanced - Built-In Benefits

• Waiver of Premium – Begins once the Elimination Period is satisfied – Ends once benefits are no longer payable • International Coverage – Receive coverage for care anywhere in the world   Reimbursement basis for actual expenses Up to 100% of the LTC Benefit Amount for 1 year  Payment in U.S. currency  All benefits except Double Coverage for Accident Benefit, Stay at Home, Respite Care, and Care Advisory Services

Policy benefits may vary by state

CC II Enhanced - Consumer Protection Features

• • “New” - Alternate Services Benefit – – Benefit helps to ensure that policyholder has access to emerging services that may develop over time, but are not currently identified in their policy Example, in certain circumstances, benefits for services not specifically covered under the policy (like robotics) may be authorized at the time of the claim “New” - Lifestyle Benefit Changes – – – – – Allows annual increases in LTC Benefit Amount Subject to underwriting/additional premium at attained age.

Policyholder can also elect to decrease coverage Effective on policy anniversary Coverage selection change forms need to be submitted

Policy benefits may vary by state

CC II Enhanced - Consumer Protection Features

• • “New” - Independent Third-Party Review – In the unusual event that a claim is denied, the policyholder will have the right to request an independent third-party review – Decision of that third party will be binding and must be upheld by John Hancock “New” - Timely Payment of Claims – – In the unlikely event that a claims payment takes longer than 30 days to process, we will pay the policyholder an interest penalty of 1% of the claim amount per month State variations may apply

Policy benefits may vary by state

CC II Enhanced - Consumer Protection Features

• Contingent Nonforfeiture – In effect if the optional Nonforfeiture rider is not chosen – In the event of a rate increase exceeding a threshold % based on issue age  Two options  Reduce benefits  Convert to paid-up

Policy benefits may vary by state

CC II Enhanced - Consumer Protection Features

• “New” - Contingent Nonforfeiture for Limited Pay – – – – – Access to a Limited Payment Contingent Nonforfeiture Benefit should a rate increase occur that triggers the benefit based on issue age and the policyholder has paid at least 40% of their Limited Pay premiums Benefit is equal to 90% of the percentage of premiums paid, times the LTC Benefit Amount Example: if a policyholder paid 5 years (60 months) of a 10 pay (120 months), they paid 50% of the premiums (120/60) Multiply 50% by 90% (result is 45%) and multiply the Daily or Monthly LTC Benefit Amount by that percentage to get the reduced LTC Benefit Amount and Total Pool of Money The reduced LTC Benefit Amount and Total Pool of Money are not subject to inflation increases going forward

Policy benefits may vary by state

CC II Enhanced - Consumer Protection Features

• • • Added Protection Against Lapse – The policyholder may designate a person to receive notice if a premium is overdue Thirty Day Free Look – If the policyholder is not satisfied, they may return the policy within 30 days for a refund Guaranteed Renewable – John Hancock cannot cancel a policy if the client pays their premiums on time – Company reserves the right to increase the premiums by class, subject to state approval

Policy benefits may vary by state

CC II Enhanced - Consumer Protection Features

• Grace Period – The policy has a 65 day grace period – If renewal is not paid within 30 days of due date:  We will notify designated person(s) and give 35 additional days to pay the premium with the policy in effect

Policy benefits may vary by state

CC II Enhanced - Eight Optional Riders

• SharedCare • Survivorship and Waiver of Premium Benefit • Waiver of Home Care Elimination Period • Additional Cash Benefit • Enhanced Return of Premium • Restoration of Benefits • Nonforfeiture • Family Care II Benefit

Policy benefits may vary by state

CC II Enhanced - Optional Riders

• SharedCare – Allows partners to access the benefits under the other’s policy once their benefits are exhausted – If either partner dies, survivors policy is automatically increased by the remainder of deceased Pool of Money – Both partners must have rider and identical benefit options – 60 Day offer of a 2-year benefit plan for policyholder whose benefits are exhausted by partner   Not subject to underwriting, at attained age Prior to age 91, no claims in prior two years – Rider Cost 26%, 16%, 11%, 10%, 8% & 5% for 2/3/4/5/6 & 10 year Benefit Periods, respectively

Policy benefits may vary by state

CC II Enhanced - Optional Riders

• Survivorship and Waiver of Premium Benefit – If partner goes on claim, the premium for the healthy partner is waived (both premiums are waived) – If partner dies, surviving partner’s policy becomes paid up –  Both policies must have been in force for 10 years with no claims in first 10 years Rider Cost 9%

Policy benefits may vary by state

CC II Enhanced - Optional Riders

• Waiver of Home Care Elimination Period – Waives Elimination Period for Home Health Care – Creates a 0 day HHC EP – Days of HHC count towards the Facility EP – Waiver of Premium begins once the Facility Elimination Period is met – Not available 180/365 day EP, or to ages 80-84 – Rider Price 9%

Policy benefits may vary by state

CC II Enhanced - Optional Riders

• Additional Cash Benefit * – – – – – Separate monthly pool of funds to help the prospect stay at home Cash benefit equal to 15% the Monthly Benefit or 4.5 times the Daily Benefit if insured is receiving HHC and not receiving facility care Separate additional Pool of Money for use at the discretion of the insured LTC Benefit Amounts at time of purchase greater than $4,500 per month or $150 per day may have tax implications** Rider cost 10 % * Option varies by state ** Please consult your professional tax advisor

CC II Enhanced - Optional Riders

• Enhanced Return of Premium upon Death Benefit – Pays beneficiary the benefit upon death – Regardless of age at death – Pays all premiums paid, less any benefits paid prior to the date of death – Accumulated without interest – Rider cost based on age is 35-150%

Policy benefits may vary by state

CC II Enhanced - Optional Riders

• Restoration of Benefits – Pool of Money is restored (one time) if insured is “fully recovered” and does not meet benefit triggers for 180 days – Rider Cost 4% • Nonforfeiture – Insured receives policy with reduced Pool of Money if the policy lapses after it has been in force for at least 3 years (one year with Limited Pay policies) –  Reduced Pool of Money is the sum of all premiums paid, less benefits received Rider Cost 6%

Policy benefits may vary by state

FamilyCare II Benefit

• Revolutionary multi-generational LTC insurance benefit • Select up to three family members to add to a policy • Monthly or daily maximum benefit can be shared by all covered family members out of a single Pool of Money • Affordable way to pool resources and protect multiple family members • Benefit bequethment feature • Cost based upon number of insureds and their ages

Policy benefits may vary by state

FamilyCare II Benefit*

• One Applicant & One Policy - Can add three insureds • Primary applicant chooses all benefits and options • All insureds have access to the benefits • Each additional family member must fill out an application • Benefits can be paid on behalf of any covered person after the Elimination Period is met • – The Elimination Period must only be satisfied once Originating policyholder is responsible for premium payments • In case of death, or policy cancellation, ownership of the policy can be transferred • Any insured can be removed and premiums reduced * Benefits are capped for the one policy - regardless of how many family members are on claim.

Policy benefits may vary by state

FamilyCare II Benefit

• Applicant Age – All applying family members must be ages 18-79 • Benefit Periods – Multiplier for the LTC Benefit Amount     4 years (1,460 days or 48 months) 5 years (1,825 days or 60 months) 6 years (2,190 days or 72 months) 10 years (3,650 days or 120 months) • Inflation Options – – All options except Enhanced GPO and GIO No Inflation is an option

Policy benefits may vary by state

FamilyCare II Benefit – Built-in Features

• Same as Custom Care II Enhanced* – Nursing Home, Assisted Living, and Home Care Benefits – Additional Stay at Home Benefit, Waiver of Premium, International Coverage, Care Advisory Services, Respite Care Benefits, Bed Hold Benefit, Caregiver Support Services, Alternate Services Benefit, Lifestyle Benefit Changes, Independent Third-Party Review, Timely Payment of Claims, Contingent Nonforfeiture, Loyalty Credit – No Double Coverage for Accident Benefit or Return of Premium prior to age 65 * Benefits are capped for the one policy - regardless of how many family members are on claim.

Policy benefits may vary by state

FamilyCare II Benefit - 3 Optional Riders

• • • Waiver of Home Health Care Elimination Period Additional Cash Benefit Nonforfeiture

Policy benefits may vary by state

CC II Enhanced - Ratings and Discounts

• Underwriting Classes – Preferred (Discounted 15% of Standard) – – – Standard (Select) Class I (125% of Standard Premium) Class II (150% of Standard Premium)

Policy benefits may vary by state

CC II Enhanced - Ratings and Discounts

• Partner Discounts – Defined as: – – – –    Spouse of a married couple (or) Same sex or opposite sex partners that have lived together 3 years (or) Family members of the same generation that have lived together 3 years 15% discount for a partner applying 30% if both applying and approved 40% Cap Discount for Preferred, Both Apply & Approved Discounts are based on Select Rates

Policy benefits may vary by state

Additional 5% Discount Programs

• Sponsored Group Discount employees participating or associations with 10 or more members participating – for employers with 5 or more • Family Discount – Available when 3 or more immediate family members purchase individual JH long term care insurance • Valued Client Discount – Existing JH and Manulife annuity and life clients are eligible for this discount • Sponsored Group, Family and Valued Client discounts can’t be used in conjunction with one another – There is a commission reduction with the Family Discount and Sponsored Group Discount Please refer to the LTC Producer Guide LTC-2722 for discount parameters and combination details.

Policy benefits may vary by state

CC II Enhanced - Discounts

• Loyalty 5% Credit – Allows current John Hancock LTC insurance policy holders to replace a prior series product with the Custom Care II Enhanced product  With a 5% annual reduction in premium   Original policy must be in effect for 2 years Rates at attained age and fully underwritten

Policy benefits may vary by state

CC II Enhanced - Payment Options

• Limited Payment Options – – 10 Pay Paid-Up at Age 65 (available through age 55)   Both are guaranteed renewable during the premium paying period Non-cancelable thereafter • Modal Options * – Annual – – – – Semi-annual Quarterly Monthly Bank Draft Credit Cards (Monthly & Quarterly) * Modal options other than annual have a service charge.

Policy benefits may vary by state

CC II Enhanced - Illustrations

• eHansel – Custom Care II Enhanced can be illustrated, in approved states using eHansel, ltc.ehansel.com

• Hansel – Hansel CDs (LTC-HanselCD), version 10.2, have been mailed to our normal distribution list and is also available for download from the producer website, www.jhltc.com

Policy benefits may vary by state

CC II Enhanced - Optional Reports

• • • • • • Policy Option Spreadsheet – illustrates premiums by each of the inflation options for each benefit period Inflation Projection –Required for CPI Compound Inflation with future CPI increases illustrated at 2%, 4% and 6%.

Cost of Waiting with Inflation – shows the impact of waiting to purchase both by age and LTC Benefit Amount impacted by inflation (2%, 4% and 6% used for CPI Compound) Break Even Analysis – Assumes 2%, 4% and 6% growth when CPI Compound Inflation is illustrated Target Premium Comparison –shows the change in LTC Benefit Amount for each inflation option for approximately the same premium Premium Tables – rates for all ages with option to show 3 different policy designs

Policy benefits may vary by state

CPI Compound Inflation

The Inflation Protection report will be a required part of the LTC illustration when CPI Compound Inflation is selected

Policy benefits may vary by state

The future LTC Benefit Amounts and Pool of Money will be projected assuming CPI growth rates of 2%, 4% and 6%

CPI Compound Inflation

An explanation of how the CPI changes impact the Benefit Amount and Pool of Money is provided in this footnote

Policy benefits may vary by state

When to Sell Leading Edge

• Simplified product offering – 2 Inflation Options , 3 Optional Riders – – 1 Elimination Period 1 Application for couples, Credit Card payments for all modes • Automatic Inflation (CPI) lower priced at younger ages • 5 Plus $1 Million Benefit Period vs Lifetime • Home care coverage more flexible – Homemaker services not required to be incidental – Independent HHC covers unlicensed providers and covers Personal Care Services where provider qualification is not required • Corporate Solutions

Policy benefits may vary by state

Custom Care II Enhanced

Helping you meet a broader range of client needs

LTC-3775 6/08 Long-Term Care Insurance is Underwritten by John Hancock Life Insurance Company, Boston, MA 02117.

For financial professional use only. Not for use with the public.