Life Insurance in Retirement Plus: LIRP+

Transcription

1 Life Insurance in Retirement Plus: LIRP+ Focusing on Life Insurance Protection and Retirement PRESENTED BY PREPARED FOR Mr. Producer Lily Rowan Insurance products are are issued by: by: John Hancock Life Insurance Company of New York, Valhalla NY Securities Products distributed by John Hancock Life Distributors Insurance LLC Company through (U.S.A.), other broker/dealers Boston, MA and appointed securities by offered John Hancock through John Distributors Hancock LLC, Distributors 197 Clarendon LLC through Street, other Boston, MA September 08, 2010 Insurance broker/dealers products that are have issued a selling by: agreement John Hancock with Life John Insurance Hancock Company Distributors (U.S.A.), of LLC New Boston, York,, 197 Clarendon Valhalla MA NY Street, Boston, MA 02116

2 Life Insurance in Retirement Plus: LIRP+ Prepared for Lily Rowan Prepared by: Mr. Producer The following pages illustrate the use of a permanent life insurance policy, also known as cash value life insurance, to provide supplemental income during retirement. The death benefit protection that the cash value policy offers is the primary purpose of the policy. You must determine the appropriate level of death benefit for your own situation, and apply and qualify for the death benefit protection. A life insurance policy is not to be considered a primary source of retirement income. The cash values are a secondary benefit of the policy that can be tapped at retirement on a tax-favored basis, if and when the death benefit protection needs become secondary. The cash values are not guaranteed and may be more or less than illustrated. Keep in mind that there are risks involved with a cash value life insurance policy and the policy may lose value over time even if annual premiums are paid when due. To assess the financial risks to the policy's death benefit, cash values and taxes that potentially may be due, it is important to run a hypothetical life insurance policy illustration that assumes a 0% net rate of return when using a variable universal life insurance policy that has sub account investments. If a universal life policy is being purchased, it is important to run a hypothetical illustration that shows the minimum crediting rate to assess the financial risks. Please read all disclosures on the actual life insurance hypothetical illustration as well as the enclosed supplemental illustration to better understand the risks of a permanent life insurance policy. Page 2 of 15 September 08, 2010

3 Life Insurance in Retirement Plus: LIRP+ Prepared for Lily Rowan Prepared by: Mr. Producer The Concern Life insurance is an excellent way to help ensure your family has the money to meet its needs should anything happen to you. The death benefit can be used to pay off a mortgage, replace lost earnings and/or pay estate taxes. You may be concerned about your current savings plans being at risk in the event of your premature death or disability. At the same time, you may also be considering how much income you will need at retirement to live comfortably: How much income can you expect to generate from your current assets at retirement? How much of that income will be consumed by taxes and inflation? As you consider ways to manage your family's protection needs and other expenses today while also saving more for your retirement, there is one additional feature of cash value life insurance to bear in mind. How it Works The first and foremost feature of a permanent (or cash value) life insurance policy is the death benefit it provides. The death benefit brings "self-completion" to your financial plans in the form of cash to compensate for loss of continued contributions and earnings, so it is crucial to decide the appropriate levels of death benefit and premiums for your family's needs and your situation. However, a cash value life insurance policy can also build cash value over time. After you have secured a life insurance policy that matches your family's death benefit needs, that policy can be a source of supplemental income should you experience an income shortfall in retirement. A valuable disability rider may be included in the life insurance policy to pay premiums during a period of extended disability. For help with long term care expenses, a rider may be added to the life insurance contract when purchased to accelerate death benefit during lifetime. There are additional costs associated with such riders and benefits are subject to restrictions and limitations. When the policy death benefit is accelerated for long term care expenses it will be reduced dollar for dollar, and the cash value is reduced proportionately. The following pages, including the personalized ledgers, discuss the benefits of the LIRP+ approach, when a cash value life insurance policy offers the added benefit of a supplement to retirement income. You have provided us with information about your life insurance needs. You have also told us your retirement income goals and the growth assumptions on your life insurance needs and savings plans. That information is summarized on the Assumptions Page of this module and is reflected in the ledgers that follow. Page 3 of 15 September 08, 2010

4 Life Insurance in Retirement Plus: LIRP+ Prepared for Lily Rowan Prepared by: Mr. Producer Benefits of Cash Value Life Insurance A life insurance policy's death benefit is generally income tax-free. Exceptions include when a life insurance policy has been transferred for valuable consideration. The death benefit can help protect your family's income needs in the event of premature death. The life insurance death benefit can facilitate "self-completion" for your financial plans, providing survivors with cash to compensate for the loss of planned contributions and earnings. The policy's death benefit and/or cash values are potentially protected from the claims of creditors, depending on your state. The cash values of a life insurance policy grows tax-deferred, and tax-free withdrawals are permitted when structured properly. Considerations Additional expenses The purchase of life insurance has costs and risks associated with it, including the cost of insurance. Refer to the Product Client Guide for information regarding specific product costs and risks. Charges associated with variable life insurance, including withdrawal charges, are usually higher than those associated with Roth and traditional IRAs. Additional risk Purchasing variable life insurance also involves investing in underlying investment accounts that correspond to your investment objectives and level of risk tolerance. There are risks associated with investing in these accounts. For more information, please refer to your prospectus. Depending on the performance of the underlying investment accounts, the cash values available for loans and withdrawals may be worth more or less than your original investment amount. Additional premiums may be required to sustain the policy if the underlying accounts perform poorly. Potential taxation of life insurance cash values Withdrawals from a life insurance policy may be subject to income taxes after withdrawals exceed cost basis. Increases in cash values grow tax-deferred and may not be subject to taxes until withdrawn. However, the cash values of the life insurance are not subject to the same funding and distribution limitations applicable to qualified plans, and Roth and traditional IRAs. And, the beneficiaries of a life insurance policy generally receive the death benefit free of income taxes. Additional taxes may result If the design of the variable life insurance policy does not meet the requirements of life insurance in the Internal Revenue Code, it will be classified as a modified endowment contract (MEC). Withdrawals and loans from a MEC may be subject to tax at the time the withdrawal or loan is made. A federal tax penalty may also apply if the withdrawal or loan is taken from a MEC prior to age 59 ½. Potential lapse of the contract Withdrawals and loans also have the effect of reducing the death benefit and cash surrender value and may cause the policy to lapse. Lapse of a life insurance policy can cause the loss of the death benefit and potential adverse income tax consequences. Page 4 of 15 September 08, 2010

5 Benefit Summary and Flowchart - Life Insurance Policy Details How it Works At Retirement Prepared for Lily Rowan Prepared by: Mr. Producer Product: Accumulation VUL 09 Initial Premium: $31,290 Insured(s): Lily Rowan Initial Death Benefit: $1,152,970 Female Age 40, Preferred NonSmoker Potential Analysis Today Qualified Plan Balance $147,000 Ongoing Annual Contributions $22,000 Assumed Growth Rate 7.00% Non-Qualifed Savings Balance 25,000 Ongoing Annual Contributions 6,500 Assumed Growth Rate 2.00% Other Expected Retirement $24,000 At Retirement Age 65 Qualified Plan Balance: $2,286,715 After Tax Withdrawals available for 35 yrs $83,731 Non-Qualifed Savings Balance: $253,376 After Tax Withdrawals available for 35 yrs $7,860 Other Expected Retirement $34,823 Total Projected Retirement $126,414 Potential Analysis at Retirement Desired Retirement $217,642 Projected From Existing Assets $126,414 Potential Shortfall $91,228 Projected From Existing Assets $126,414 Potential Annual Life Insurance Distributions $91,000 Potential Retirement with Life Insurance $217,414 Potential after tax withdrawals of $91,000 a year for 35 years beginning in year 26. Lily Rowan Summary in 24 Desired Retirement 217,414 0 John Hancock Policy: Initial Face Amount $1,152,970 Annual Premium of $31, , ,414 Current Tax Free Death Benefit To Heirs at Age 65: $2,628,166 91,000 Proposed Proceeds at Death from Qplan From Life Insurance This is a supplemental illustration authorized for distribution only when preceded or accompanied by a basic illustration and appropriate prospectuses. The data shown is taken from an illustration, the purpose of which is to show how the performance of the underlying investment accounts could affect the policy cash value and death benefit. It assumes a hypothetical rate of return and/or current interest crediting rate and may not be used to project or predict investment results. Unless indicated otherwise, these values are not guaranteed. This illustration is not intended to be accounting, legal, or tax advice. Clients should consult their accounting, legal, and tax advisors about their particular circumstances before implementing any recommendations. Insurance policies and/or associated riders and features may not be available in all states. This illustration assumes that withdrawals taken are up cost basis and loans are taken thereafter. See basic illustration for a breakdown of loans and withdrawals in any given year. Page 5 of 15 September 08, 2010

6 Potential Analysis at Retirement Policy Information Product: Accumulation VUL 09 Initial Premium: $31,290 Insured(s): Lily Rowan, Female Age 40, Preferred NonSmoker Initial Death Benefit: $1,152,970 Variable Universal Life 6.14% Net (of Investment Advisory Fees) and Current Charges (1) (2) (3) (3) (4) (4) (5) (5) (6) (7) (1) (1) (2) (3) (2) (4) (3) (4) (5) (6) (5) (7) (6) Total Total After Tax Tax Life Life Total After Tax Life from Projected Projected Desired Desired Insurance Projected from Projected Total Projected Current Desired Insurance Life Insurance EOY From Other from Other After Tax Tax Retirement Loans/ EOY From From Other Projected Other After Projected Tax Retirement Loans/ AgeFrom Qplan Other Savings Shortfall Withdrawals Age Qplan Savings Other Shortfall Withdrawals (1+2+3) (5-4) (1+2+3) (1+2) (5-4) (4-3) 66 83,731 7,860 34, , ,642 91,228 91, ,489 11,405 50, , , , , ,987 7,978 35, , ,906 92,597 92, ,311 11,576 51, , , , , ,261 8,098 35, , ,220 93,985 93, ,161 11,750 52, , , , , ,555 8,219 36, , ,583 95,395 95, ,038 11,926 52, , , , , ,869 8,343 36, , ,997 96,826 96, ,944 12,105 53, , , , , ,202 8,468 37, , ,462 98,279 98, ,878 12,286 54, , , , , ,555 8,595 38, , ,979 99,753 99, ,841 12,471 55, , , , , ,928 8,724 38, , , , , ,833 12,658 56, , , , , ,322 8,855 39, , , , , ,856 12,848 56, , , , , ,737 8,987 39, , , , , ,909 13,040 57, , , , , ,173 9,122 40, , , , , ,630 9,259 41, , , , , ,110 9,398 41, , , , , ,611 9,539 42, , , , , ,136 9,682 42, , , , , ,683 9,827 43, , , , , ,253 9,975 44, , , , , ,847 10,124 44, , , , , ,464 10,276 45, , , , , ,106 10,430 46, , , , , ,773 10,587 46, , , , , ,465 10,746 47, , , , , ,182 10,907 48, , , , , ,924 11,070 49, , , , , ,693 11,236 49, , , , ,083 This is a supplemental illustration authorized for distribution only when preceded or accompanied by a basic illustration and appropriate prospectuses. The data shown is taken from an illustration, the purpose of which is to show how the performance of the underlying investment accounts could affect the policy cash value and death benefit. It assumes a hypothetical rate of return and/or current interest crediting rate and may not be used to project or predict investment results. Unless indicated otherwise, these values are not guaranteed. This illustration is not intended to be accounting, legal, or tax advice. Clients should consult their accounting, legal, and tax advisors about their particular circumstances before implementing any recommendations. Insurance policies and/or associated riders and features may not be available in all states. This illustration assumes that withdrawals taken are up cost basis and loans are taken thereafter. See basic illustration for a breakdown of loans and withdrawals in any given year. Page 6 of 15 September 08, 2010

7 Life Insurance Values Policy Information Product: Accumulation VUL 09 Initial Premium: $31,290 Insured(s): Lily Rowan, Female Age 40, Preferred NonSmoker Initial Death Benefit: $1,152,970 Variable Universal Life 6.14% Net (of Investment Advisory Fees) and Current Charges EOY EOY Age Age Annual Premium Payment Withdrawals & & Loans Net Cash Surrender Value Net Death Benefit EOY Age Annual Premium Payment Withdrawals & & Loans Net Cash Surrender Value Net Death Benefit , ,824 1,152, ,000 1,627,419 2,537, , ,997 1,183, ,365 1,629,758 2,444, , ,965 1,215, ,750 1,631,000 2,351, , ,787 1,249, ,156 1,631,083 2,255, , ,065 1,285, ,583 1,629,942 2,159, , ,013 1,323, ,032 1,627,966 2,061, , ,074 1,364, ,502 1,624,522 1,961, , ,667 1,407, ,995 1,619,545 1,860, , ,431 1,452, ,510 1,612,980 1,757, , ,042 1,500, ,048 1,604,648 1,694, , ,744 1,554, ,609 1,594,290 1,689, , ,664 1,611, ,193 1,581,558 1,682, , ,992 1,671, ,801 1,566,263 1,672, , ,928 1,735, ,433 1,548,198 1,659, , ,687 1,803, ,089 1,527,142 1,644, , ,498 1,875, ,770 1,502,856 1,625, , ,611 1,951, ,477 1,475,083 1,603, , ,288 2,032, ,209 1,443,548 1,578, , ,732 2,117, ,967 1,407,954 1,548, , ,082,291 2,208, ,752 1,367,989 1,515, , ,178,263 2,304, ,563 1,323,312 1,476, , ,280,031 2,405, ,401 1,273,561 1,433, , ,387,954 2,513, ,267 1,218,343 1,384, , ,502,416 2,628, ,161 1,157,243 1,330, , ,624,043 2,628, ,083 1,089,810 1,269,752 Totals 782,250 0 Totals 782,250 2,735,716 This is a supplemental illustration authorized for distribution only when preceded or accompanied by a basic illustration and appropriate prospectuses. The data shown is taken from an illustration, the purpose of which is to show how the performance of the underlying investment accounts could affect the policy cash value and death benefit. It assumes a hypothetical rate of return and/or current interest crediting rate and may not be used to project or predict investment results. Unless indicated otherwise, these values are not guaranteed. This illustration is not intended to be accounting, legal, or tax advice. Clients should consult their accounting, legal, and tax advisors about their particular circumstances before implementing any recommendations. Insurance policies and/or associated riders and features may not be available in all states. This illustration assumes that withdrawals taken are up cost basis and loans are taken thereafter. See basic illustration for a breakdown of loans and withdrawals in any given year. Page 7 of 15 September 08, 2010

8 Life Insurance Values Policy Information Product: Accumulation VUL 09 Initial Premium: $31,290 Insured(s): Lily Rowan, Female Age 40, Preferred NonSmoker Initial Death Benefit: $1,152,970 Variable Universal Life 6.14% Net (of Investment Advisory Fees) and Current Charges EOY EOY Age Age Annual Premium Payment Withdrawals & & Loans Net Cash Surrender Value Net Death Benefit ,034 1,015,568 1,164, , ,177 1,051, , , , , , , , , ,450 EOY Age Annual Premium Payment Withdrawals & & Loans Net Cash Surrender Value Net Death Benefit , , , , , , , , , , , , ,967 29,034 29,034 Totals 782,250 4,148,842 Totals 782,250 4,148,842 This is a supplemental illustration authorized for distribution only when preceded or accompanied by a basic illustration and appropriate prospectuses. The data shown is taken from an illustration, the purpose of which is to show how the performance of the underlying investment accounts could affect the policy cash value and death benefit. It assumes a hypothetical rate of return and/or current interest crediting rate and may not be used to project or predict investment results. Unless indicated otherwise, these values are not guaranteed. This illustration is not intended to be accounting, legal, or tax advice. Clients should consult their accounting, legal, and tax advisors about their particular circumstances before implementing any recommendations. Insurance policies and/or associated riders and features may not be available in all states. This illustration assumes that withdrawals taken are up cost basis and loans are taken thereafter. See basic illustration for a breakdown of loans and withdrawals in any given year. Page 8 of 15 September 08, 2010

9 Qualified Plan Detail Analysis (1) (1) (2) (3) (3) (4) (5) (5) (6) (1) (1) (2) (3) (4) #REF! (5) #REF! (6) EOY EOY Qualified Annual Annual Annual Annual Withdrawals Growth EOY Growth Growth EOY EOY Qualified Annual Annual Withdrawals Growth EOY Age Plan Contributions Withdrawals Withdrawals Withdrawals Col 3 * (7.0%) (7.0%) EOY Balance Age Age Plan Plan Contributions Withdrawals Col 3 * (7.0%) (7.0%) EOY Balance Balance (1-Tax Bracket) (1+2 (1+2 ) *) 7.0% * 7.0% ( ) ) (1-Tax Bracket) (1+2-3) )* * 7.0% ( ) ( ) ,000 22, , , ,286, ,551 83, ,301 2,297, ,830 22, , , ,297, ,644 84, ,907 2,306, ,028 22, , , ,306, ,769 86, ,407 2,314, ,760 22, , , ,314, ,925 87, ,791 2,320, ,203 22, , , ,320, ,114 88, ,048 2,324, ,548 22, , , ,324, ,336 90, ,168 2,325, ,996 22, , , ,325, ,591 91, ,138 2,325, ,766 22, , , ,325, ,880 92, ,947 2,322, ,089 22, , , ,322, ,203 94, ,579 2,316, ,215 22, , , ,316, ,561 95, ,020 2,308, ,410 22, , , ,308, ,955 97, ,254 2,296, ,959 22, , , ,296, ,384 98, ,265 2,281, ,166 22, , , ,281, , , ,034 2,262, ,358 22, , , ,262, , , ,542 2,240, ,883 22, , , ,240, , , ,768 2,212, ,115 22, ,338 1,090, ,212, , , ,688 2,181, ,090,453 22, ,872 1,190, ,181, , , ,280 2,144, ,190,325 22, ,863 1,297, ,144, , , ,518 2,102, ,297,187 22, ,343 1,411, ,102, , , ,373 2,053, ,411,530 22, ,347 1,533, ,053, , , ,817 1,999, ,533,878 22, ,911 1,664, ,999, , , ,817 1,938, ,664,789 22, ,075 1,804, ,938, , , ,340 1,870, ,804,864 22, ,880 1,954, ,870, , , ,350 1,793, ,954,745 22, ,372 2,115, ,793, , , ,806 1,709, ,115,117 22, ,598 2,286, ,709, , , ,669 1,615,219 The data shown is taken from a hypothetical calculation. It assumes a hypothetical rate of return and may not be used to project or predict investment results. Page 9 of 15 September 08, 2010

10 Qualified Plan Detail Analysis (1) (1) (2) (3) (3) (4) (5) (5) (6) (1) (1) (2) (3) (4) #REF! (5) #REF! (6) EOY EOY Qualified Annual Annual Annual Annual Withdrawals Growth EOY Growth Growth EOY EOY Qualified Annual Annual Withdrawals Growth EOY Age Plan Contributions Withdrawals Withdrawals Withdrawals Col 3 * (7.0%) (7.0%) EOY Balance Age Age Plan Plan Contributions Withdrawals Col 3 * (7.0%) (7.0%) EOY Balance Balance (1-Tax Bracket) (1+2 (1+2 ) *) 7.0% * 7.0% ( ) ) (1-Tax Bracket) (1+2-3) )* * 7.0% ( ) ( ) ,615, , ,489 98,892 1,511, ,511, , ,311 91,428 1,397, ,397, , ,161 83,226 1,272, ,272, , ,038 74,230 1,134, ,134, , ,944 64, , , , ,878 53, , , , ,841 41, , , , ,833 29, , , , ,856 15, , , , , The data shown is taken from a hypothetical calculation. It assumes a hypothetical rate of return and may not be used to project or predict investment results. Page 10 of 15 September 08, 2010

11 Other Retirement Savings and Detail Analysis (1) (1) (2) (3) (4) (5) (6) (1) (2) #REF! (3) #REF! (4) #REF! (5) #REF! (6) Other Desired Other Other Desired EOY Other Contributions/ EOY Retirement Retirement EOY Qualified Other Contributions/ Growth Growth@ EOY Retirement Retirement Age Savings (Withdrawals) (2.0%) EOY Balance Age Savings Plan Contributions (Withdrawals) (7.0%) (2.0%) EOY Balance (1+2 ) * 2.0% (1+2+3 ) (1+27.0% ) * 2.0% ( ) (1+2+3 ) ,000 6, ,130 24, , ,376 (7,860) 4, ,426 34, , ,130 6, ,403 24, , ,426 (7,978) 4, ,297 35, , ,403 6, ,821 24, , ,297 (8,098) 4, ,983 35, , ,821 6,500 1,066 54,387 25, , ,983 (8,219) 4, ,479 36, , ,387 6,500 1,218 62,105 25, , ,479 (8,343) 4, ,779 36, , ,105 6,500 1,372 69,977 25, , ,779 (8,468) 4, ,877 37, , ,977 6,500 1,530 78,006 26, , ,877 (8,595) 4, ,768 38, , ,006 6,500 1,690 86,197 26, , ,768 (8,724) 4, ,445 38, , ,197 6,500 1,854 94,551 27, , ,445 (8,855) 4, ,902 39, , ,551 6,500 2, ,072 27, , ,902 (8,987) 4, ,133 39, , ,072 6,500 2, ,763 27, , ,133 (9,122) 4, ,131 40, , ,763 6,500 2, ,628 28, , ,131 (9,259) 4, ,889 41, , ,628 6,500 2, ,671 28, , ,889 (9,398) 3, ,401 41, , ,671 6,500 2, ,894 29, , ,401 (9,539) 3, ,659 42, , ,894 6,500 2, ,302 29, , ,659 (9,682) 3, ,657 42, , ,302 6,500 3, ,898 30, , ,657 (9,827) 3, ,386 43, , ,898 6,500 3, ,686 30, , ,386 (9,975) 3, ,839 44, , ,686 6,500 3, ,670 30, , ,839 (10,124) 3, ,009 44, , ,670 6,500 3, ,853 31, , ,009 (10,276) 3, ,888 45, , ,853 6,500 3, ,240 31, , ,888 (10,430) 3, ,467 46, , ,240 6,500 4, ,835 32, , ,467 (10,587) 2, ,737 46, , ,835 6,500 4, ,642 32, , ,737 (10,746) 2, ,692 47, , ,642 6,500 4, ,665 33, , ,692 (10,907) 2, ,321 48, , ,665 6,500 4, ,908 33, , ,321 (11,070) 2, ,615 49, , ,908 6,500 4, ,376 34, , ,615 (11,236) 2, ,566 49, ,120 The data shown is taken from a hypothetical calculation. It assumes a hypothetical rate of return and may not be used to project or predict investment results. Other Retirement represents retirement income from other sources as entered by the user based on assumptions provided by you, the client. Desired Retirement is based on an assumption provided by you, the client. See the Assumptions page for a detailed breakdown of all assumptions used in this presentation. Page 11 of 15 September 08, 2010

12 Other Retirement Savings and Detail Analysis (1) (1) (2) (3) (4) (5) (6) (1) (2) #REF! (3) #REF! (4) #REF! (5) #REF! (6) Other Desired Other Other Desired EOY Other Contributions/ EOY Retirement Retirement EOY Qualified Other Contributions/ Growth Growth@ EOY Retirement Retirement Age Savings (Withdrawals) (2.0%) EOY Balance Age Savings Plan Contributions (Withdrawals) (7.0%) (2.0%) EOY Balance (1+2 ) * 2.0% (1+2+3 ) (1+27.0% ) * 2.0% ( ) (1+2+3 ) ,566 (11,405) 2, ,165 50, , ,165 (11,576) 1,812 92,400 51, , ,400 (11,750) 1,613 82,264 52, , ,264 (11,926) 1,407 71,745 52, , ,745 (12,105) 1,193 60,833 53, , ,833 (12,286) ,517 54, , ,517 (12,471) ,787 55, , ,787 (12,658) ,632 56, , ,632 (12,848) ,040 56, , ,040 (13,040) , ,067 The data shown is taken from a hypothetical calculation. It assumes a hypothetical rate of return and may not be used to project or predict investment results. Other Retirement represents retirement income from other sources as entered by the user based on assumptions provided by you, the client. Desired Retirement is based on an assumption provided by you, the client. See the Assumptions page for a detailed breakdown of all assumptions used in this presentation. Page 12 of 15 September 08, 2010

13 Assumptions CLIENT INFORMATION Value Explanation LIFE INSURANCE Value Explanation Family Name Rowan Name of family Type of Policy Single Life Survivorship or Single Life Client Name Lily Given name of the first client Policy Name Accumulation VUL 09 Age 40 Age of the first client State California Sex Female Sex of the first client Initial Policy Death Benefit $1,152,970 Total death benefit Smoking Status Preferred NonSmoker Underwriting class of the first client (required) Policy Premium $31, Annual Premium Spouse's Name n/a Given name of the second client s for Premiums 25 Number of years to pay premiums Age n/a Age of the second client Net Policy Rate 6.14% Interest rate net of mortality expense Sex n/a Sex of the second client & investment management fees. Smoking Status n/a Underwriting class of the second client See base ledger for details. Tax Bracket 40.00% RETIREMENT INFORMATION PRESENTER INFORMATION Retirement Age 65 Presenter's Name Mr. Producer Name of presenter DesiredRetirement 150,000 The desired amount of retirement income Agency Name 0 Inflation Rate 1.50% The pre-retirement inflation rate for the income Address 0 s for Retirement 35 City State, ZIP 0 QUALIFIED PLAN INFORMATION Telephone 0 Current Qualified Plan Balance 147,000 Fax 0 Annual Contributions 22,000 Ongoing contributions to plan, including Address 0 employer contributions RESULTS Assumed Growth Rate 7.00% Focus 1 24 Focus year Other Expected Retirement 24,000 Print s 60 Inflate other income? Yes If yes, the other retirement income will be inflated at the same rate as the desired CREDITOR PROTECTION STATUTES CITED retirement income NON-QUALIFIED RETIREMENT SAVINGS Current Balance 25,000 Annual Contributions 6,500 Ongoing contributions Assumed Growth Rate 2.00% 1. The focus year refers to the year that has been chosen by you. The values in the focus year are highlighted, can be changed and are for your convenience only. The year may be life expectancy, a random year, or a year that coincides with your personal planning goals. This is a supplemental illustration authorized for distribution only when preceded or accompanied by a basic illustration and appropriate prospectuses. The data shown is taken from an illustration, the purpose of which is to show how the performance of the underlying investment accounts could affect the policy cash value and death benefit. It assumes a hypothetical rate of return and/or current interest crediting rate and may not be used to project or predict investment results. Unless indicated otherwise, these values are not guaranteed. This illustration is not intended to be accounting, legal, or tax advice. Clients should consult their accounting, legal, and tax advisors about their particular circumstances before implementing any recommendations. Insurance policies and/or associated riders and features may not be available in all states. This illustration assumes that withdrawals taken are up cost basis and loans are taken thereafter. See basic illustration for a breakdown of loans and withdrawals in any given year. Page 13 of 15 September 08, 2010

14 Glossary Withdrawals and Loans this column represents the sum of the after-tax withdrawals and loans from the life insurance policy. For purposes of this illustration, withdrawals are taken up to the cost basis of the contract, and after that point, loans are taken. Please see the basic illustration attached to this supplemental illustration for a year-by-year breakdown of all loans and withdrawals from the policy. Beginning of () the beginning of year value; this value does not include any assumed growth or taxes on growth for that year. Desired Retirement this represents the amount of retirement income you would like to have in retirement. It can be indexed for inflation if desired. Both the initial amount and the index rate are based on information provided by you, the client. Prepared for Lily Rowan Prepared by: Mr. Producer End of (EOY) the end of year value, which reflects the estimated growth for that year less the estimated taxes on growth, based on the assumed composite rate of return and the individual s income tax bracket. Other Retirement this amount represents retirement income from other sources such as defined benefit pension plans. It can be indexed for inflation to match your expected payout rate. Both the initial amount and the index rate are based on information provided by you, the client. Page 14 of 15 September 08, 2010

15 Disclosures Life The Insurance Life Insurance in Retirement in Retirement Plus isplus a planning is a planning tool designed tool designed to assist you to assist in exploring you potential exploring estate/retirement potential estate/retirement planning planning options options through through the usetheofuse lifeofinsurance insurance and investing and investing strategies. strategies. However, However, this this presentationis isnot not intended to to be your estate/retirement plan nor is it a specific recommendation for your estate/retirement plan. This presentation is for illustrative purposes only. This analysis does not constitute a recommendation of a particular option or options over any other planning alternatives. Other alternatives may be more appropriate or suitable for your particular situation and you should discuss these options with your legal, tax and accounting advisors prior to making any investment or purchase decisions. John Hancock does Newnot York guarantee does not theguarantee accuracy of the theaccuracy Life Insurance of the inlife Retirement Insurance Plus in Retirement system or the Plus output. systemjohn or the Hancock output. will Johnot Hancock be liable New for York any damages will not be arising liablefrom for any the damages use or misuse arising of from this software the use ormisuse from any of this errors software or omissions or frominany theerrors same. or John omissions Hancock in the assumes same. nojohn dutyhancock to updatenew thisyork software assumes or tono provide duty tonotice update ofthis anysoftware errors inor thetosoftware provide notice or applicable of any changes errors in in the the software law. or applicable changes in the law. Figures used in this program illustrate various benefit/retirement planning concepts, which are based upon both assumptions and data provided by you, the client. Your furnishing of accurate data will help enhance the value of this analysis. However, all assumed growth rates for assets are based upon information provided and assumed by you and are not a guarantee of the future performance of the life insurance policy. Please review the assumptions page for accuracy of information. This supplemental illustration assumes that the currently illustrated non-guaranteed elements will continue for all years shown. However, it is not likely that the nonguaranteed elements will perform exactly as shown in the illustration. In addition, the actual consequences of a particular planning alternative will depend on many variables, some of which may not be fully accounted for or described in this presentation. Unless otherwise indicated, the income tax implications of particular transactions are not reflected in the analysis. This program does not illustrate the estate, gift, and generationskipping transfer (GST) tax implications of Life Insurance and Targeted Retirement Program. Withdrawals and loans from life insurance policies have the effect of reducing the amount payable to your beneficiaries at your death. Withdrawals and loans will also cause a reduction of the cash surrender value and may cause the policy to lapse. A policy lapse will cause the loss of death benefit and may have adverse income tax consequences. Prepared for Lily Rowan Prepared by: Mr. Producer Before you make any estate or retirement planning decisions (or change title to any assets or change beneficiary designations) your legal and tax advisors should be consulted to determine (1) the suitability of a particular planning alternative for you and (2) the precise legal, tax, investment, and accounting consequences of that alternative. This material does does is authorized not not constitute constitute fortax, distribution tax, legal legal or accounting only or accounting whenadvice preceded advice and neither orand accompanied John neither Hancock John by nor Hancock theany appropriate ofnew its agents, York client employees nor any guide, ofor its product registered agents, employees and representatives fund or prospectuses. registered are in the representatives business The prospectuses of offering are such the contain business advice. complete It ofwas offering details not intended such on investment advice. or written It was objectives, for not use intended and risks, cannot or fees, written be charges used forby use and any and expenses taxpayer cannot be for as the used well purpose by as any other oftaxpayer avoiding information anythe IRS purpose about penalty. of the Itavoiding was investment written any to IRS company. support penalty. the Please Itmarketing was written readof the to transactions support prospectuses the or marketing carefully topics itof addresses. containing the transactions Anyone this and or interested topics otherit information addresses. these transactions Anyone theinterested product or topics in and should these seek transactions underlying advice based portfolios topics on his should and or her consider seek particular advice these based circumstances factors on his carefully orfrom her independent particular before investing. circumstances professional This advisors. from material independent is not intended professional as investment advisors. advice. Variable universal life insurance has annual fees and expenses associated with it 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 guaranteedif if the client is invested in the investment accounts. There are risks associated with each investment option, and the policy may lose value. This material does not constitute tax, legal or accounting advice and neither John Hancock nor any of its agents, employees or registered representatives are in the business of offering such advice. It It was not intended or written for use and cannot be used by any taxpayer for the purpose of avoiding any IRS penalty. It It was written to support the marketing of the transactions or topics it it addresses. Anyone interested in these transactions or topics should seek advice based on his or her particular circumstances from independent professional advisors. Internal Compliance Number: MLI Page 15 of 15 September 08, 2010