Here’s a rundown on the changes of keenest interest to insurance advisors...
BOSTON, March 19, 2014 /PRNewswire/ --John Hancock Insurance today announced enhancements to its flagship current assumption universal life product, Protection UL.
The company said more competitive premiums are now available on all lump sum and single-pay scenarios, resulting in a more attractive product. These enhancements apply to all new business and inforce Protection UL '13 policies.
"In addition to death benefit protection, our innovative Protection UL product offers important flexibility through cash values that can help address consumers' needs throughout their lives," said Mike Doughty, President, John Hancock Insurance. "And it's now even more competitive with these recent changes."
In a low-interest rate environment, Protection UL can deliver more value to the consumer than guaranteed universal life insurance products. It offers consumers the opportunity for cash value growth potential and the security of lengthy guarantees while also featuring a premium that is often more affordable than leading lifetime guaranteed universal life policies. Consumers also have the option of adding John Hancock's recently improved Long-Term Care rider to the policy for more comprehensive coverage. The enhanced rider provides greater design flexibility when insuring against rising costs of long-term care.
About John Hancock Financial and Manulife Financial
John Hancock Financial is a division of Manulife Financial, a leading Canada-based financial services group with principal operations in Asia, Canada, and the United States. Operating as Manulife Financial in Canada and Asia and primarily as John Hancock in the United States, the company offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents, and distribution partners. Funds under management by Manulife Financial and its subsidiaries were C$599 billion (US$563 billion) as of December 31, 2013. Manulife Financial Corporation trades as MFC on the TSX, NYSE and PSE, and under 945 on the SEHK. Manulife Financial can be found on the Internet at manulife.com.
The John Hancock unit, through its insurance companies, is one of the largest life insurers in the United States. John Hancock offers and administers a broad range of financial products, including life insurance, annuities, investments, 401(k) plans, long-term care insurance, college savings, and other forms of business insurance. Additional information about John Hancock may be found at johnhancock.com.
Insurance policies and/or associated riders and features may not be available in all states.
Protection UL policies automatically include a no-lapse guarantee called Death Benefit Protection. This feature guarantees that the policy will not default, even if the cash surrender value falls to zero or below, provided that the Death Benefit Protection Value remains greater than zero and policy debt never exceeds the Policy Value. Policyholders who pay only the minimum premium required to keep the Death Benefit Protection in effect may forego the advantage of building significant cash value in this policy. The no-lapse guarantee under the Death Benefit Protection has a maximum duration to age 121. The duration of the no-lapse guarantee coverage may be less, depending upon the funding level chosen by the policyholder. The NLG duration is stated in the contract and reflected in the illustration's guaranteed net death benefit column. At the end of the NLG duration, premiums greater than those originally illustrated may be required to maintain coverage. Factors such as, but not limited to, the amount and timing of premium payments, loans, withdrawals, or any other change allowed under the contract could potentially terminate the no-lapse guarantee. Once terminated, the Death Benefit Protection feature cannot be reinstated.
The Long-Term Care (LTC) rider is an accelerated death benefit rider and may not be considered long-term care insurance in some states. There are additional costs associated with this rider. The Maximum Monthly Benefit Amount is $50,000. When the death benefit is accelerated for long-term care expenses it is reduced dollar for dollar, and the cash value is reduced proportionately.
John Hancock's Long-Term Care rider is not a Partnership Qualified product. For more information on Partnership Qualified products, please contact your state department of insurance. 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; and is not a Medicare supplement policy.
This rider has exclusions and limitations, reductions of benefits, and terms under which it may be continued in force or discontinued. Please contact the licensed agent or John Hancock for more information, cost, and complete details on coverage.
Insurance products are issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA 02117 (not licensed in New York) and John Hancock Life Insurance Company of New York, Valhalla, NY 10595. MLINY031314101
SOURCE John Hancock Financial