Transcript Presentation Title Goes Here

Long-Term Care Riders
The Long-Term Care (LTC) and Long-Term Care (LTC) Continuation riders are accelerated death benefits and may not be available in some states. Maximum face amount: $5 million with LTC rider; $1 million with LTC Continuation
rider. These riders are not considered long-term care insurance in some states. When the policy death benefit is accelerated for long- term care expenses, the death benefit is reduced dollar for dollar, and the cash value is reduced
proportionately. There may be additional costs associated with these riders. The LTC Continuation rider is not available in some states including New York. Please go to www.jhsalesnet.com for a complete list of up-to-date state
approvals.
For prospective policyholders in New York, this product is a life insurance policy that accelerates the death benefit for qualified long-term care services and is not a health insurance policy providing long-term care insurance subject to
the minimum requirements of New York Law, does not qualify for the New York State Long-Term Care Partnership program and is not a Medicare supplement policy.
Insurance products are issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA 02116 (not licensed in New York) and John Hancock Life Insurance Company of New York, Valhalla, NY 10595 and securities offered
through John Hancock Distributors LLC through other broker/dealers that have a selling agreement with John Hancock Distributors LLC, 197 Clarendon Street, Boston, MA 02116.
Insurance policies and/or associated riders and features may not be available in all states.
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MLINY06041216891
FOR BROKER/DEALER USE ONLY. THIS MATERIAL MAY NOT BE USED WITH THE PUBLIC.
06/12
Long-Term Care (LTC) Coverage
Why do people buy LTC coverage?
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•
To maintain their independence
•
Remain in their home
•
Protect their income and assets
•
Avoid dependence on family members
•
Access high quality care
FOR BROKER/DEALER USE ONLY. THIS MATERIAL MAY NOT BE USED WITH THE PUBLIC.
Individual Long-Term Care Insurance
Advantages
•
•
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Disadvantages
•
Customized to the
client’s needs,
(e.g., shorter elimination
•
period & longer benefit
period)
Potential premium
increases
Benefits may not be used
at all
Typically designed
specifically to cover
long-term care
FOR BROKER/DEALER USE ONLY. THIS MATERIAL MAY NOT BE USED WITH THE PUBLIC.
Life Insurance with John Hancock’s
Long-Term Care Rider
A life insurance policy with the LTC Rider
delivers value1 whether the Insured:
•
Needs long-term care in their lifetime, or
•
Wants a tax-favored death benefit2, or
•
Chooses to surrender for net cash value3
1By
“value” we simply mean a death benefit, 1, 2, or 4% LTC insurance accelerated death benefits.
insurance death benefit proceeds are generally excludable from the beneficiary’s gross income for income tax purposes. There are few
exceptions such as when a life insurance policy has been transferred for valuable consideration. Comments on taxation are based on John
Hancock’s understanding of current tax law, which is subject to change. No legal, tax or accounting advice can be given by John Hancock, its
agents, employees or registered representatives. Prospective purchasers should consult their professional tax advisor for details.
3Cash Surrender Value takes into account any loans or withdrawals taken from the policy as well as any surrender charges.
2Life
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Why John Hancock Life Insurance
with the Long-Term Continuation Rider?
•
Acceleration of death benefit
•
Choice of guaranteed lifetime Face Amount
at a guaranteed premium4
•
Experience with long-term care insurance
•
Responsive and experienced claims staff
•
Third party vendors
•
Financially strong, highly rated company
•
Reimbursement model
4Guaranteed product
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features are dependent upon minimum premium requirements and the claims-paying ability of the issuer.
FOR BROKER/DEALER USE ONLY. THIS MATERIAL MAY NOT BE USED WITH THE PUBLIC.
Acceleration of Death Benefit Approach
Advantages to the Acceleration method:
•
Simple to understand
•
Long-Term Care Rider charges are
guaranteed never to increase
•
Option to access cash value
Any withdrawals, reductions in Face Amount (other than reductions in Face Amount arising solely under the provisions of this rider), or
acceleration of the Death Benefit due to terminal illness, during a Period of Care under this rider, reduces the Maximum Monthly Benefit
Amount, resulting in a new Maximum Monthly Benefit Amount, as determined by us. Loans and withdrawals will 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 591/2. Cash value available for loans and withdrawals may be more or less than
originally invested. Withdrawals are available in the 2nd policy year.
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John Hancock’s LTC Rider
Acceleration of Death Benefit Approach
5The riders
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•
Death Benefit acceleration options of
1%, 2%, or 4% per month
•
$5 million maximum policy death benefit
•
A single, 100-day Elimination Period
•
Qualified long-term care insurance5
•
Payments are made directly to the
provider, or on a reimbursement basis to
the Insured
are not considered long-term care insurance in some states.
FOR BROKER/DEALER USE ONLY. THIS MATERIAL MAY NOT BE USED WITH THE PUBLIC.
How Does a Client Qualify for LTC Benefits?
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•
Certification of disability or illness by a
licensed practitioner
•
The condition must be expected to last
90 days or longer
•
Disability includes the inability to perform
2 of the 6 Activities of Daily Living, or
a severe cognitive impairment
•
These are the same triggers as John
Hancock Individual long-term care
insurance products
FOR BROKER/DEALER USE ONLY. THIS MATERIAL MAY NOT BE USED WITH THE PUBLIC.
Why Include the
Long-Term Care Continuation Rider?
The Long-Term Continuation Rider6:
•
Doubles the LTC Rider benefit for
long-term care assistance
•
Continues payments for long-term care
expenses after the policy’s entire death benefit
has been fully-accelerated
•
Adds a Residual Death Benefit equal to the
lesser of $25,000 or 10% of the initial
Total Face Amount
6The Long-Term Continuation Rider
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is only available when combined with the Long-Term Care Rider.
FOR BROKER/DEALER USE ONLY. THIS MATERIAL MAY NOT BE USED WITH THE PUBLIC.
Protection UL with the LTC Riders
Combination of Life & Long-Term Care
Protection UL, 10-Pay, $750,000 Face Amount
with LTC (2% MAP) & LTC Continuation
Female 55 Preferred Non Smoker
10 Annual Premiums
of $18,806 ($186,060)
$1,500,000
LTC
Benefit
Guaranteed!
The Policy Death Benefit
may be accelerated, if
needed, to pay long-term
care expenses – up to
$15,000/mo. for 100 months
Any portion of the Death
Benefit unused for longterm care is later paid to
the beneficiaries.
The combination of life insurance and the LTC Riders offers a costefficient, convenient way to help your client plan for the future
Guaranteed product features are dependent upon minimum premium requirements and the claims-paying ability of the issuer. This is a
supplemental illustration. 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.
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Protection UL
Male 55, Preferred Non Smoker, $500,000, Full-Pay
Product
Annual Premium
John Hancock’s Protection UL
$5,568
John Hancock’s Protection UL
with the Long-Term Care Rider
$6,096
Composite Average of
Guaranteed UL Products7
$6,415
Benefit
Protection UL offers death benefit
protection for a premium significantly less
than the average guaranteed UL policy.
For a premium that’s still less than the
average guaranteed UL, clients can also
purchase Protection UL with the LongTerm Care Rider, and get both death
benefit protection and up to $10,000 per
month to use for long-term care costs.
The Protection UL premiums shown here are based on a solve to endow at age 121 with
the death benefit guaranteed to age 82.
The composite average guaranteed UL premium is based on a lifetime guarantee.
7Competitor information
is current and accurate to the best of our knowledge as of May 2012. The data shown is taken from various company
illustrations. Current interest rates may be different for each company and may not be guaranteed. This is a comparison of different products
which vary in premiums, rates, fees, expenses, features and benefits. Underwriting criteria will differ from company to company; we attempted to
use comparable risk classes across all companies. Composite average is based on guaranteed UL policies currently marketed by leading
providers of UL, excluding John Hancock, as indicated in the 2011 Q4 LIMRA Universal Life Sales Summary. Guaranteed UL composite based on
Lincoln, MetLife, Hartford, Principal, and Trans America. Policies and contracts on which the composite is based may not be available in all states.
This comparison cannot be used with the public and complete personalized policy illustrations for each representative company must be
presented or discussed with your clients. Please have your clients consult with their professional advisors to find out which type of life insurance is
more suitable. Please also see slide 16 for important disclosure information.
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Supplemental Retirement Income Sale
Accumulation VUL
Accumulation VUL, $1,000,000 Face Amount
with LTC Rider (1% MAP)
20 Year Non-MEC Funding, CVAT8
Male 45, Preferred Non Smoker
$24,422
With the LTC Rider
$24,768
Difference
1.4%
$24,768
Without the LTC Rider
$24,422
Premiums
Without LTC
With LTC
Premiums
$88,870
With the LTC Rider
$88,552
Difference
-0.4%
$88,552
Without the LTC Rider
$88,870
Annual Distributions
Annual Distributions
8Assumes
an 8% gross rate of return (Weighted Average), Distributions from Age 66-80, Targeting $1,000 at Lifetime. The data shown is taken
from an illustration. It assumes a hypothetical rate of return and may not be used to project or predict investment results. Unless indicated
otherwise, these values are not guaranteed. We urge you to show your clients a basic illustration showing the impact of 0% and maximum
sales charges and any impact it will have on policy cash value and death benefit. Please see slide 16 for important disclosure information.
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FOR BROKER/DEALER USE ONLY. THIS MATERIAL MAY NOT BE USED WITH THE PUBLIC.
Without LTC
With LTC
Guarantees with Upside Potential
Protection VUL
Protection VUL, $1,000,000 Face Amount with LTC (1% MAP) &
LTC Continuation Riders, 20-Pay, Age 90 Extended No-Lapse
Guarantee Premium9
Female 55, Preferred Non Smoker
Protection VUL Premium with:
LTC Rider
$15,699
With LTC Only
LTC & LTC
Continuation Riders
$16,894
$16,894
No Riders
$15,699
$14,784
$14,784
No Rider
9Assumes
an 8% gross rate of return (100% Lifestyle Balanced). The data shown is taken from an illustration. It assumes a hypothetical rate of
return and may not be used to project or predict investment results. Unless indicated otherwise, these values are not guaranteed. We urge
you to show your clients a basic illustration showing the impact of 0% and maximum sales charges and any impact it will have on policy cash
value and death benefit. Guarantees are based on the claims-paying ability of the issuer. Please see slide 16 for important disclosure
information.
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FOR BROKER/DEALER USE ONLY. THIS MATERIAL MAY NOT BE USED WITH THE PUBLIC.
With LTC & LTC
Cont Riders
Long-Term Care Rider Opportunities
•
When presenting permanent insurance and
client wishes to “shop around”
•
Presenting Individual LTC and client expresses
concern that they may never receive a benefit
from the policy
•
Addressing a grandparent’s wish to leave a
benefit for their heirs… while also not burdening
their adult children with long-term care
responsibilities or cost
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For proposals and product information, please call:
National Sales Support
1-888-266-7498 (Option 2)
Please contact 1-888-266-7498, option 2 to obtain product and fund prospectuses or if you are interested in obtaining a selling agreement with John Hancock Distributors LLC
(for New York, contact 1-800-743-5542, option 5). The prospectuses contain complete details on investment objectives, risks, fees, charges and expenses as well as other
information about the investment company. Please advise your clients to carefully read the prospectuses which contain this and other information on the product and the
underlying portfolios, and consider these factors carefully before investing.
Variable universal life insurance has annual fees and expenses associated with it in addition to life insurance related charges (which differ with the product chosen), including
surrender charges and investment management fees. Variable universal life insurance products are long-term contracts and are sold by prospectus. They are subject to market
risk due to the underlying sub-accounts, and are unsuitable as a short term savings vehicle. The primary purpose of variable universal life insurance is to provide lifetime
protection against economic loss due to the death of the insured person. Cash values are not guaranteed if the client is invested in the investment accounts. There are risks
associated with each investment option, and the policy may lose value.
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Disclosures for Slides 11, 12 & 13
Limitations. We will not pay Accelerated Benefits for Qualified Long Term Care Services incurred during the Elimination Period, or for any
care, treatment, or charges described in the Non-Duplication of Benefits or Exclusions provisions, below. We will not pay Accelerated Benefits
in excess of the Maximum Monthly Benefit Amount for any Calendar Month during any Period of Care, and may modify coverage under this
rider following reinstatement.
Exclusions. Qualified Long Term Care Services does not include care or treatment:
(a) for intentionally self-inflicted injury;
(b) required as a result of alcoholism or drug abuse (unless drug abuse was a result of the administration of drugs as part of treatment by a
Physician);
(c) due to war (declared or undeclared) or any act of war, or service in any of the armed forces or auxiliary units;
(d) due to participation in a felony, riot or insurrection;
(e) for which no charge is normally made in the absence of insurance;
(f) provided by a member of the Life Insured’s Immediate Family;
(g) provided outside the fifty United States and the District of Columbia.
Non-Duplication of Benefits. Qualified Long Term Care Services does not include charges covered under any of the following:
(a) Medicare (including amounts that would be reimbursable but for the application of a deductible or coinsurance amounts);
(b) any other governmental program (except Medicaid);
(c) any state or federal workers’ compensation, employer’s liability or occupational disease law, or any motor vehicle no-fault law;
(d) expenses for services or items available or paid under another long term care insurance or health insurance policy.
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FOR BROKER/DEALER USE ONLY. THIS MATERIAL MAY NOT BE USED WITH THE PUBLIC.