An easy-issue life insurance solution that rewards healthy living

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1 An easy-issue life insurance solution that rewards healthy living Vitality refers collectively to the benefits provided by John Hancock s Healthy Engagement feature. The Vitality Group is the company that John Hancock has partnered with to administer these benefits. LIFE /15 JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.) JOHN HANCOCK LIFE INSURANCE COMPANY OF NEW YORK 2

2 A Unique Policy for Life Simplified Life with Vitality is an innovative, quick-to-issue variable universal life insurance solution that helps protect your financial future, while supporting your pursuit of a longer, healthier life. And with the optional John Hancock Vitality Program, you can enhance your policy benefits by simply living a healthy life. Simplified Life with Vitality helps you: Protect the ones you love no matter what life brings Accumulate cash value to help supplement your retirement income, cover college expenses, start a new business, and more Take care of your physical and financial well-being You can engage in the John Hancock Vitality Program by electing the Healthy Engagement rider. There is an additional charge associated with this rider. INSURANCE PRODUCTS: Not FDIC Insured Not Bank Guaranteed May Lose Value Not a Deposit Not Insured by Any Federal Government Agency

3 Life Insurance That Rewards Healthy Living Simplified Life now offers the John Hancock Vitality Program, an innovative new feature that rewards the steps you take to stay healthy, like exercising, visiting the doctor, and not smoking. In fact, the healthier you are, the greater your potential benefits, including: The opportunity to add credits to your policy value based on your healthy lifestyle A healthy living program that offers personalized support, health goals, and simple tips Entertainment, shopping, and travel rewards to celebrate your healthy successes A free Fitbit device to track your progress on the road to healthy living 75 minutes of brisk walking per week can add 1.8 YEARS TO YOUR LIFE 1 Whether you enjoy healthy living today or simply aspire to live a healthier life, Simplified Life with Vitality offers a program that s just right for you. Simplified Life with Vitality offers an easy, streamlined application process your policy can be issued in as little as eight days! ABOUT VITALITY To help in your pursuit of a longer, healthier life, John Hancock has partnered with Vitality, the global leader in integrating wellness benefits with life insurance products. Vitality has an established track record of creating interactive, personalized programs. Millions of Vitality members worldwide use their online tools to identify and track health and lifestyle goals. 1. PLOS Medicine, Leisure Time Physical Activity of Moderate to Vigorous Intensity and Mortality: A Large Pooled Cohort Analysis, published November 6,

4 Protection and Financial Security Simplified Life is a variable universal life (VUL) insurance policy that combines reliable death benefit protection with the opportunity to build tax-deferred 2 cash value to help fund future expenses. The policy offers: Income tax-free death benefit protection that allows beneficiaries to receive the proceeds from the policy directly, often without probate 3 Tax-deferred growth and tax-favored distributions The cash value in your policy grows on a tax-deferred basis, and can be accessed on a tax-favored basis via loans and withdrawals A wide array of investment options Including our diversified Lifestyle MVP Portfolios 4 representing nearly every major asset class and investment style Loans and withdrawals so you can easily access your policy s cash value How the Policy Works You pay premiums to buy life insurance Premium charge deducted Deductions for cost of insurance and charges Policy account value Investment choices Investment experience Income tax-free death benefit and/or Tax-advantaged loans or withdrawals Your beneficiaries You 2. Comments on taxation are based on John Hancock s understanding of current tax law, which is subject to change. Please consult your tax advisor for guidelines specific to your situation. 3. Life insurance death benefit proceeds are generally excludable from the beneficiary s gross income for income tax purposes. There are a few exceptions such as when a life insurance policy has been transferred for valuable consideration. 4. The Lifestyle MVP Portfolios in John Hancock Variable Insurance Trust described above are not mutual funds available to the retail public and are only available under John Hancock s variable annuity contracts or variable life insurance policies. The investment advisor of the Lifestyle MVP Portfolios also manages mutual funds available to the retail public with similar names and investment objectives. No representation is made, and no assurance is given, that any Lifestyle MVP Portfolio s investment results will be comparable to the investment results of any other fund, including retail mutual funds with the same investment advisor. Past performance is no guarantee of future results. 2

5 What is Variable Universal Life Insurance? Variable universal life (VUL) is a permanent life insurance product that pays a death benefit as long as there is sufficient value in the policy and the policy has not lapsed. For many people, a VUL insurance policy from John Hancock is a single solution that offers protection for a family s financial well-being as well as a potential source of supplemental retirement income. A VUL policy combines the death benefit protection of life insurance with cash value growth potential. During your working years, the life insurance policy death benefit can protect your family and replace income that would otherwise be lost if something should happen to you. At retirement, you can access any potential policy cash value through tax-favored loans and withdrawals. Death Benefit Protection The primary purpose of your VUL policy is to protect your family and loved ones should something happen to you. It is not intended to be a short-term savings vehicle as there are surrender charges and investment fees associated with it, along with life insurance-related charges. Diversified Options Simplified Life allows you to allocate premiums among a variety of different investment options. The policy s value is not guaranteed and may lose value. That means the cash value of your policy can increase or decrease depending on how your investment options perform. Like many investments, however, there are risks associated with each option and your policy may lose value. Also, past performance is not a guarantee of future results. 3

6 Liquidity Although loans and withdrawals 5 allow you to easily access the cash value of your policy, they will lower your policy value and death benefit, and surrender charges may apply in the early years. Depending upon the performance of your investment choices, the policy value available for loans and withdrawals may be more or less than the original amount invested in your policy. There could also be tax penalties and fees associated with them. Loans and withdrawals could also cause your policy to lapse. A lapse or surrender of the policy while loans are outstanding could be considered a taxable event. Policies that are classified as modified endowment contracts may be subject to tax at the time the 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. Before Purchasing a Policy Before you purchase variable universal life insurance, you may want to consider the following: Your policy s value will vary depending upon the performance of the investment options selected (which are not guaranteed). You may take money from the policy via withdrawals and loans. However, keep in mind that this will decrease the cash value and death benefit if the amount borrowed is not repaid. You may transfer funds among different investment options to allow you to develop a strategy that works for you as your needs change over your lifetime. 5. 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. Withdrawals are available after the first policy year. 4

7 What is the John Hancock Vitality Program? The John Hancock Vitality Program rewards the simple, daily actions you take to lead a healthy life and inspires you to do even more. And it s easy to participate: Vitality Points: Earn Vitality Points by completing simple health-related activities Vitality Status: Each year, the number of points you accumulate will determine your Vitality Status level (Bronze, Silver, Gold, or Platinum) Savings and Rewards: The higher your Vitality Status, the more credits you can earn towards your policy value Policy Credits The John Hancock Vitality Program provides an opportunity for you to earn rider credits based on healthy actions taken by you each year through attained age 80. These credits are not guaranteed. To earn credits, you must complete simple health-related activities. Each year, these activities result in Vitality Points, which are used to determine a Vitality Status, and the amount of credits. The credits are applied to your policy value. These credits would increase any existing policy value and can lead to improved income potential. Credits can continue year after year when you lead a healthy lifestyle. If you do not actively engage in the Vitality Program or if maximum policy charges are applied, the policy may not receive rider credits. The $2 monthly rider fee will continue to be deducted from your policy value, unless the rider is terminated. Healthy Living Rewards While Simplified Life already has income potential, now you have the opportunity to enhance your policy benefits with rider credits and the John Hancock Vitality Program. Simplified Life with Vitality Rewards You for Living Healthy POLICY CREDITS POTENTIAL FOR ENHANCED POLICY BENEFITS BRONZE SILVER GOLD PLATINUM 0 3,500 7,000 10,000 VITALITY POINTS 5

8 VITALITY AGE As a new member you ll be asked to complete your Vitality Health Review and you ll then receive your Vitality Age. This is an indicator of your overall health and may be higher or lower than your actual age. Knowing it can help you set reasonable goals for yourself and keep you on the road to wellness. Americans are on average 5 YEARS OLDER than they actually are Source: The Vitality Institute, Vitality Age Analysis of Adult National Health and Nutrition Examination Survey Respondents across Three Survey Time Periods, 5/17/2013 It s Easy to Get Started You ll earn Vitality Points for the things you do to stay healthy, like exercising, getting annual health screenings, and staying tobacco-free. Simply record your activities with our easy online tools. We ll even send you a free Fitbit device to help track your progress toward a healthier life. The More Points, the Higher Your Status You ll earn a status level based on the number of Vitality Points you accumulate for the year. On your policy anniversary, your cash value will be adjusted to reflect the status level you ve achieved. And those rewards can continue year after year when you lead a healthy lifestyle. Everyday Rewards and Discounts As a member of the John Hancock Vitality Program, you can earn valuable rewards and discounts based on your Vitality Status. So, go ahead and celebrate your healthy lifestyle with: Free Fitbit Device Half-Price Hotel Stays Free Health Check Cruise Rewards Wearable Device Discounts Shopping & Entertainment Healthy Gear Discounts LIVE HEALTHY GET REWARDED EARN POINTS INCREASE YOUR STATUS Rewards and discounts are subject to change and are not guaranteed to remain the same for the life of the policy. Rewards may vary based on the ownership and inforce status of the insurance policy and the state where the insurance policy was issued. For the purposes of this guide it is assumed that you are both the policy owner and the life insured. If you are not both the policy owner and the life insured, the discounts, rewards, and Fitbit device will be provided only to the life insured to encourage participation in the program. Status is attained based on the actions of the life insured only. 6

9 Putting It All Together See how easy it is to be rewarded for living a healthy life. Follow Bob through his first year with Simplified Life with Vitality. Bob, 43, purchases Simplified Life with Vitality because he wants to protect his family and likes the idea of being rewarded for healthy living. Bob s policy is issued, and he receives a welcome kit. Welcome! 3,000 points 46 Bob visits his physician to collect his biometric data and submits results to Vitality. He earns 3,000 points for having good biometric results. Bob completes his online Vitality Health Review with a Vitality Age of 46. Now, he can begin earning valuable rewards. Bob receives a free Fitbit device from John Hancock to help track his progress. Bob completes a variety of other healthy activities, like taking online nutrition classes and participating in athletic events. silver Bob gets motivated and joins a local gym. CONGRATULATIONS! Bob has reached Silver status! gold CONGRATULATIONS! Bob has reached Gold status! Bob gets 50% off a hotel stay and takes his wife away for a surprise long weekend. Bob finishes the year 10 pounds lighter and with a Vitality Age of 43. With his new Gold status, Bob can earn credits and rewards in the year ahead. 43 7

10 8 Strength. Stability. John Hancock. John Hancock s strong ratings, as judged by the major rating agencies, are a comprehensive measure of the company s financial strength and stability. This is important because these financial ratings reflect the life insurance company s ability to pay claims in the future. With over 150 years of experience, John Hancock offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents, and distribution partners.

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12 1 Insurance policies and/or associated riders and features may not be available in all states. Guaranteed product features are dependent upon minimum premium requirements and the claims-paying ability of the issuer. Please contact to obtain product and fund prospectuses. (For New York, contact , option 4.) The prospectuses contain complete details on investment objectives, risks, fees, charges and expenses as well as other information about the investment company. Please read the prospectuses carefully containing this and other information on the product and the underlying portfolios and consider these factors carefully before investing. Product and/or product features may not be available in all states. 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. The life insurance policy describes coverage under the policy, exclusions and limitations, what you must do to keep your policy inforce, and what would cause your policy to be discontinued. Please contact your licensed agent or John Hancock for more information, costs, and complete details on coverage. You must elect the Healthy Engagement Rider to participate in the John Hancock Vitality Program. You may make a Written Request to terminate this Rider at any time. In addition, this Rider will terminate when the Policy is exchanged or terminated. If the Rider is in effect once the Insured turns age 80, the Rider Administrative Charge will cease, all previously earned Rider Credits will continue to apply to the policy, but no new Rider Credits will be earned on the policy. Insurance products and the Healthy Engagement Rider 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 10595, and securities are 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 MLINY Policy Form Series: 14SLVUL, ICC14 14SLVUL Rider Form Series: 15HER-V