LifeCare

1. LifeCare A Single-Premium Whole Life Insurance Policy with Long-Term Care Benefits The Single Solution

2. Agenda • The Opportunity for LifeCare • Product & Competitive Positioning • New Business and Underwriting Process • Presentation Skills • Case Studies

3. The Opportunity – Single-Premium Life/LTC Sales Based on 10% of premiums paid Lincoln launched new version with increased rates in 2006 *2009 sales are estimated. Sales through Q3 were 53 Mil

4. The Client Market Opportunity Target Market • Ages 50 – 70 • Net Worth of $250,000 and higher. • Liquid and other investable assets • Self Insured against LTC need • Wants to preserve assets for beneficiaries • May have considered Long-Term Care insurance in the past

5. How to Position LifeCare with a Client • Asset Protection • Wealth Transfer Maximization • Single Premium Funded • Guaranteed Benefit • Return of Premium • Asset Reposition and Leverage

6. Agent Opportunity for LifeCare Life Insurance Producer - Single Premium Life - Wealth Transfer and Wealth Preservation Strategies Annuity Producers - Asset Reposition - Single Premium Sales - Working with Guaranteed Products Long Term Care Producers - Alternative to traditional Long Term Care - Long Term Care Planning - Life Style Protection Asset Manager - Asset Protection - Asset Leverage Strategy

7. LifeCare Features Product Chassis: Non Participating Whole Life Target Market: Clients ages 30 – 75 with a focus in clients age 50 to 70. Clients planning on self-insuring for LTC expenses. Most invested assets of $250,000 or more. Minimum liquid assets of $50,000. Return of Premium: 100% return of premium in first 6 months of contract 95% return of premium in month 7 to month 12 98% return of premium in year 2 100% return of premium year 3 for life of contract Acceleration of DB Acceleration rider, accelerates the DB to help pay for qualified LTC expenses and provides ROP option.

8. LifeCare Extension of Benefits: Continuation rider continues to help pay for qualified LTC expenses with the same MMBA. Residual D.B. The continuation rider also provides a residual death benefit of at $5000 if at time of death if the base policy face amount is less that this amount. This rider is not available age 70. International Coverage 1 year of coverage up to the monthly MMBA. Remaining benefits are available for care in U.S. Guaranteed Rate 5% Issue Ages 30-75* Other Riders Terminal Illness Deductable Period 90 days Inflation Coverage None

9. LifeCare Guaranteed Values Female age 60 paying $100,000 with the 6 year Benefit LifeCare offers 100% premium refund months 1-6

10. LifeCare versus the Competition Female 65 Standard Non Smoker $100,000 Single-Premium with 4 Year Benefit Period Competitor information is current and accurate to the best of our knowledge as of January 13, 2010. The data shown are taken from various company illustrations.Current interest rates may be different for each company and may not be guaranteed.

11. Unique features • Chargebacks • Months 1-6: 100%; Months 7-12: 50% • Replacements • 1035 Exchanges OK (but no loans) • No Backdating • Minimum Death Benefit Amount of $50,000 • Maximum Death Benefit Amount of $540,000 7 year benefit period. • Maximum Monthly Benefit Amount $15,000

12. LifeCare Features • Reimbursement Policy • Qualified Care- Home Care, Skilled Care, Assisted Living, Adult Day Care, Hospice Care, 30 Day Bed Hold • Benefit Periods - 2,3,4,5,6,7 years decided at time of application. • 90 Day Elimination Period

13. 100 Thousand Reasons to Choose LifeCare Female Non Smoker, age 60, with $100,000 of Assets Insuring Options LTC = $608,886 DB = $ 202,962 $100,000 - Money Market = $ 182,075 @ Age 80 The data shown are taken from an illustration. Money Market instrument assumes a 3% annual rate of return compounded monthly. 6 Year Benefit Option shown

14. Starting the LifeCare Discussion Ask: Which asset would you use first? • “Of the assets that you have in savings and investments, which asset do you feel comfortable using first to cover the unexpected costs of Long-Term care?” • “We want to make sure we ear mark that asset as long-term care dollars, or your long-term care plan.”

15. LifeCare Discussion Verify your clients answer • It’s great you have something available if you should need long-term care. What you are doing is what we call “self-insuring.” • There are a couple of positive things about this strategy that I like. You maintain control of your money, and your money remains with you, hopefully earning interest. You may also be able to pass this along to you spouse or children if you never need to use it for long-term care.

16. LifeCare Discussion Discuss the downside to self-insuring • Self-insuring is one solution to plan for long-term care but there are downsides. • “If you need long-term care, have you set aside enough to pay for it?” • “Also, this money may not pass to your beneficiaries in the most tax-efficient manner.”

17. LifeCare Discussion Ask some closing questions • You currently like what you are doing. You’re in control of the money, and not using it for anything else, and if you never need long-term care you can eventually pass this money on to someone else. • “But if I could show you a way to protect your assets from potential long-term care costs, still control your money, and potentially leave your family additional assets, would you be interested?”

18. Simple Sale Example Expanded Female Age 60, Non Smoker, $100,000 Single Premium 6 Year Benefit Period $100,000 Single Premium LifeCare Policy If Long-Term Care Benefits ARE Used If NO Long-Term Care Benefits are Used $608,886 Maximum LTC Benefit $8,457 Monthly $101,484 Annually Guaranteed Death Benefit $202,962 (minus) LTC Benefits Used Guaranteed Death Benefit $202,962 The data shown are taken from an illustration.

19. Three keys to the LifeCare story 1) Care- Tax-free LTC benefits that will provide you and your family reimbursements from your LifeCare policy to pay for qualified LTC expenses. 2) Legacy- What if you never need LTC? Any portion of the guaranteed death benefit not used for LTC expenses will pass to your beneficiaries income tax-free. 3) Liquidity- What if your client changes their mind? Lifecare provides an option for a client to receive their premium back if they choose.

20. Simple Process • Quick and Easy Tele-Underwriting Ready. Set. Go. Pre-Qualify your Clients 1. 2. Run an Illustration 3. Submit a Ticket Policy can often be issued in as little as 8 days with no exams, labs or doctors’ statements.

21. LifeCare Application Process 2. Pre-Qualifying Questionnaire • Determine whether your client may qualify for LifeCare by completing the LifeCarePre-Qualifying Questionnaire • Obtain as standalone form or through LifeCare Ticketkit via JH SalesNet or other forms vendors supported by John Hancock • The client must meet several criteria listed in the questionnaire and be able to answer “No” to all of the pre-qualifying health questions to be eligible for LifeCare. If the client meets these eligibility requirements, proceed to Step 3 • Do not submit the completed questionnaire

22. LifeCare Application Process 4. LifeCare Ticket • Complete and submit a LifeCare Ticket • Complete the ticket with the client, as it requires personal information. • Submit completed ticket and illustration to your insurance back office or directly to your Insurance General Agency for processing to John Hancock. * Contact PaperClip at support@paperclip.com. Contact ExamOne Imaging at 1-866-452-2663.

23. LifeCare Application Process 5. Interview Preparation Worksheet and Other Forms • Give your client a copy of the LifeCare Personal History Worksheet for Proposed Life Insured: • Review the initial section of the worksheet with your clients, so that they are prepared for the type of information they will be asked to provide in addition to medical history, e.g.,: • Habits such as drinking, smoking, etc. • How they handle usual daily activities, such as meal preparation • Hobbies, e.g., sports activities, travel, etc. • We strongly encourage you to work with your clients to ensure the worksheet is completed in advance of the interview. You will want to avoid situations where clients are delaying the interview because the worksheet is missing information. We find that the success of the interview increases when the worksheet has been completed • Please ask your client to review the last page of the worksheet (Appendix A), which provides wording that will be read to the client during the interview asking for voice authorization for release of health-related information

24. LifeCare Application Process 7. Underwriting Decision • Within three business days after the telephone interview is completed, John Hancock’s New Business area will communicate our underwriting decision to you • If your client is approved for LifeCare, please proceed to step 8 • If the applicant is not approved for LifeCare, John Hancock will inform you. Your client may qualify for another fully underwritten John Hancock product – please discuss this option with your underwriter

25. LifeCare Application Process 8. Policy Issue • If John Hancock approves the LifeCare application, we will issue a LifeCare policy and send it to your office along with the completed application and some additional forms requiring your client’s signature

26. LifeCare Application Process 9. Deliver Policy; Collect Premium & Signatures • You will receive a bound policy with supplemental forms, along with copies of several of the same forms to be returned to John Hancock for our records. Set up a meeting with your client to deliver the policy, obtain signatures and collect the premium. *Please note that signatures are required for forms bound in the policy as well as those copies to be returned to John Hancock

27. LifeCare Application Process 10. Policy is In Force • Please send the client’s premium check and all required signed forms as soon as possible, but no later than 30 days after receiving the policy • Your client’s policy will be placed in force and compensation will be released once John Hancock has received all signed delivery requirements

28. Declined for LifeCare? • If the client is declined for LifeCare, there may be instances where the individual is eligible for a fully underwritten John Hancock life insurance product • The underwriter will advise agents of this • Examples of impairments where clients would be declined for LifeCare but may be eligible for a fully underwritten product include: • Hepatitis B or C • Parkinson’s disease • Stroke

29. LifeCare Microsite: www.jhlifecare.com JHsales net: www.jhsalesnet.com 1-877-542-6626

30. Eligibility Reminders • Become familiar with the eligibility criteria outlined in the LifeCare Pre-Qualifying Questionnaire, including the following: • Clients must not currently have a John Hancock life policy with a long term care (LTC) rider OR an existing LifeCare policy • Clients must be fluent in the English language • Clients must be a permanent resident of the United States

31. Licensing and State Approvals • As of February 1, 2010 Health and Life Licenses are required in all approved states except • New York • Massachusetts • Same Partnership Training requirements as Long-Term Care riders • States approved - AL, AK, AZ, AR, CO, CT, DC, GA, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OR, OK, RI, SC, SD, TN, VA, WV, WI and WY.

32. Disclosures • LIMITATIONS AND EXCLUSIONS ON PAYMENT OF BENEFITS • 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. • Exclusions. Qualified Long Term Care Services do not include care or treatment: • (a) for intentionally self-inflicted injury; • (b) required as a result of alcoholism or drug addiction (unless drug addiction 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, unless: • • the family member is one of the following professionals – a duly licensed registered nurse, licensed vocational nurse, licensed practical nurse, physical therapist, occupational therapist, speech therapist, respiratory therapist, licensed social worker, or registered dietician; and • • the family member is a regular employee of a Nursing Home, Assisted Living Facility, Adult Day Care Center or organization which is providing the services; and • • the organization receives the payment for the services; and • • the family member receives no compensation other than the normal compensation for employees in his or her job category; • (g) provided outside the fifty United States and the District of Columbia except as described in the International Coverage Benefit provision of this rider. • Non-Duplication of Benefits. Qualified Long Term Care Services do 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. • The Acceleration rider has exclusions and limitations, reductions of benefits, and terms under which it may be continued in force or discontinued. Consult the state specific Outline of Coverage for additional details.

33. Disclosures • LifeCare cannot be exchanged for any other John Hancock insurance product and replacement of LifeCare for a different John Hancock insurance product will require full underwriting. • LifeCare, the Acceleration rider, and the Continuation rider may not all be available in some states. The Acceleration rider is automatically included with every LifeCare policy, and the Continuation rider is optional. There are additional costs associated with these riders that are included in the single premium. LifeCare with the Acceleration and/or Continuation rider is not considered long-term care insurance in some states. When the death benefit is accelerated for long-term care expenses, the death benefit is reduced dollar for dollar, and the policy cash value is reduced proportionally. Please go to www.jhsalesnet.com or your producer web site for the most current 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. • Benefit amounts will vary based on age, sex, risk class and benefit period chosen. Certain benefit periods may not be available in all states. • Guaranteed product features are dependent upon minimum premium requirements and the claims-paying ability of the issuer. • Insurance policies and/or associated riders may not be available in all states. • Insurance products issued by: John Hancock Life Insurance Company (USA), Boston, MA 02116 (not licensed in New York) and John Hancock Life Insurance Company of New York, Valhalla, NY 10595. MLINY01191012099