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Long Term Care is Underwritten by John Hancock Life Insurance Company, Boston, MA 02117.

Long Term Care is Underwritten by John Hancock Life Insurance Company, Boston, MA 02117. For professional use only. Not for use with consumers. LTC-5516 7/2006. Welcome. A Standard of Excellence. Leadership John Hancock is a committed leader in the Long Term Care Insurance (LTCI) Market

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Long Term Care is Underwritten by John Hancock Life Insurance Company, Boston, MA 02117.

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  1. Long Term Care is Underwritten by John Hancock Life Insurance Company, Boston, MA 02117. For professional use only. Not for use with consumers. LTC-5516 7/2006

  2. Welcome

  3. A Standard of Excellence • Leadership • John Hancock is a committed leader in the Long Term Care Insurance (LTCI) Market • LTCI Solutions through innovative, competitive and responsible product offerings • John Hancock is one of the two largest LTCI carriers in the country¹ • We have more than 936,000 LTCI insurance policyholders in-force as of June 30, 2006² • Brand Recognition • John Hancock is one of the leading brands among consumers in the country, with 95% consumer awareness³ 1. Based on inforce premium LIMRA year-end 12/31/05 2. Based on John Hancock internal claims data as of June 30, 2006. Total includes individual and group LTCI and 50% of the Federal Long Term Care Insurance Program 3. Roper Research and Plan-it Marketing, 2001 Policy benefits may vary by state.

  4. A Standard of Excellence • A History of Paying Claims for our Policyholders • We have more than $6 billion in LTCI claims reserves¹ • With 20 years of LTCI experience, we are a company that has kept its promises, paying more than $1 billion² in claims on our LTCI policies • Strength & Stability • Ratings as of 6/15/06 John Hancock Life Insurance Co. • S&P AA+ • MOODY’S Aa2 • A.M. BEST A++ • FITCH AA+ • Comdex Rating 98 • Based on internal data as of 12/31/05. • Based on internal data, including individual, group, Fortis and the Federal Long Term Care Insurance Program • Policy benefits may vary by state.

  5. Product Features & Benefits Product features, options, availability and rates vary by state.

  6. Leading Edge vs the Competition5-Year, 90/100 day Elimination Period, $4,500 Monthly Maximum, Compound Inflation, Married Select Percentage to Leading Edge Premiums Premium Sweet Spots: ALL Ages Privileged Choice Generation Protector II Ideal 2 MM- 400 LTC-3 Simplicity Custom Care II Competitive information is accurate to the best of our knowledge as of 6/2006 Policy benefits may vary by state.

  7. Qualifying for Benefits • Eligibility for Benefits • Need Substantial Assistance to perform at least two of the six Activities of Daily Living • Bathing, continence, dressing, eating, toileting, or transferring • Substantial Assistance means “Hands-on or Stand-by” assistance (or) • Requires Substantial Supervision to protect himself or herself due to presence of “Severe Cognitive Impairment” • Clinical evidence and standardized tests (and) • A licensed health care practitioner certifies the ADL disability is expected to continue for at least 90 days Policy benefits may vary by state.

  8. Covered Expenses • Coverage • Pay actual charges up to the LTCI Benefit Amount • At home • Adult Day Care, Professional/ Non-Professional Care, Hospice Care and Full/ Total Homemaker Services • Independent home health care • In a Nursing Home or Assisted Living Facility • Unused benefits extend the benefit period Policy benefits may vary by state.

  9. Built in Policy FeaturesStaying at Home for as Long as Possible • Total homemaker services¹ • household duties, such as laundry, meal preparation, and paying bills • monitor medications • reduces Total Benefit • subject to the Elimination Period • no “incidental” requirement 1. Total homemaker services does not include shopping Policy benefits may vary by state.

  10. Built in Policy FeaturesStaying at Home for as Long as Possible • Independent home health care • Covers unlicensed providers • Personal Care Services where provider qualification is not required • Immediate family members can be compensated if working through an approved provider Policy benefits may vary by state.

  11. Plan of CareStaying at home for as long as possible • Policy language allows for flexibility in coverage and ability to develop Plan of Care that meets client needs now and in the future Plan of Caremeans a written plan for long term care services designed especially for You. This Plan of Care must specify the type, cost, frequency, expected duration and providers of all the services You require. Services must be in accordance with accepted relevant standards of practice and appropriate to meet the needs identified in the assessment of Your functional and cognitive needs. A Licensed Health Care Practitioner must approve Your Plan of Care. Your Plan of Care must be updated as Your condition and needs change. We must be provided with a revised Plan of Care each time it is updated. We reserve the right to request periodic updates regarding Your Plan of Care, but not more frequently than once every 30 days. No more than one Plan of Care may be in effect at a time. Policy benefits may vary by state.

  12. Who Can Apply? • Applicant Age: 18-79 Policy benefits may vary by state.

  13. Policy Design Options – Decision #1 • LTCI Benefit Amount • Daily: $50-$500 per day • $10 increments • Monthly: $1,500-$15,000 per month • $100 increments • Monthly benefit premium is 4% higher than daily 1. Not payable under the International Coverage Benefit Policy benefits may vary by state.

  14. Elimination Period • Elimination Period • 100 dates of service • One time elimination period • 1 = 1 • Optional Zero-Day Elimination Period for Home Health Care1 • Waives the Elimination Period for home health care, adult day care • Rider cost is 13% Policy benefits may vary by state.

  15. Policy Design Options – Decision #2 • Benefit Period • 3 Years (1,095 days) (36 months) • 5 Years (1,825 days) (60 months) • 5 Years Plus $1 Million 1. No new Elimination Period. No “Additional Stay at Home” services Policy benefits may vary by state.

  16. Policy Design Options – Decision #2 • Total Benefit • 5 Years Plus $1Million Monthly Example $273,750 ($4,500month benefit x 5years (60 months)) + $1,000,000 $1,273,750 (Total Benefit) Policy benefits may vary by state.

  17. Policy Design Options – Decision #2 • 5 Year Benefit Period • Plus $1 Million pool • Once 5 year pool is exhausted • $1 Million addition pool is added • Then $1 Million pool and current LTCI Benefit Amount will grow according to inflation coverage 1. No new Elimination Period. No “Additional Stay at Home” services Policy benefits may vary by state.

  18. 5 Year Plus $1 Million vs. Unlimited90/100 day Elimination Period, $4,500 Monthly Maximum, Compound Inflation, Married Select Percentage to Leading Edge Premiums vs. 5-Yr Plus $1MM Premium Sweet Spots: ALL Ages Generation Protector II Privileged Choice Ideal 2 MM- 400 LTC-3 Simplicity Custom Care II Competitive information is accurate to the best of our knowledge as of 6/2006 Policy benefits may vary by state.

  19. Consumer Price Index (CPI) • Leading Edge Automatic Inflation Coverage • Annual Compound increases based on the Consumer Price Index • The Consumer Price Index (CPI) is a measure of the average change in the price paid by urban consumers for a fixed market basket of consumer goods & services. CPI is the most widely used measure of inflation. • Steadily increased over the last 50 years • Tied Urban Index • Includes housing & labor costs • No limit to the CPI increase • If CPI decreases, benefits remain level • Level premium Policy benefits may vary by state.

  20. Historical CPI Performance Policy benefits may vary by state.

  21. 5% Simple Inflation Performance $255 5Yrs 10Yrs 15Yrs 20Yrs 25Yrs 30Yrs CCII w/Simple Policy benefits may vary by state.

  22. 5Yrs 10Yrs 15Yrs 20Yrs 25Yrs 30Yrs 5% Compound Inflation Performance $432 $255 CCII w/Simple CC II w/5% Compound Policy benefits may vary by state.

  23. 5Yrs 10Yrs 15Yrs 20Yrs 25Yrs 30Yrs Leading Edge CCII w/Simple CC II w/5% Compound Automatic Compound CPI Performance 4.4% $432 6.55% $366 7.05% $250 Policy benefits may vary by state.

  24. 5Yrs 10Yrs 15Yrs 20Yrs 25Yrs 30Yrs Leading Edge CCII w/Simple CC II w/5% Compound 55 Year OldPreferred Health – Married Both Applying$3,000 Monthly 5-Year Benefit Period, 100 Day Elimination PeriodInflation Based on 30 Year Calculation Premiums: Leading Edge $805 CC II w/Simple $720 CC II w/5% Compound $991 23% more than Leading Edge $432 $366 $250 Policy benefits may vary by state.

  25. 5Yrs 10Yrs 15Yrs 20Yrs 25Yrs 30Yrs Leading Edge CCII w/Simple CC II w/5% Compound 50 Year OldPreferred Health – Married Both Applying$3,000 Monthly 5-Year Benefit Period, 100 Day Elimination PeriodInflation Based on 30 Year Calculation Premiums: Leading Edge $724 CC II w/Simple $594 CC II w/5% Compound $913 26% more than Leading Edge $432 $366 $250 Policy benefits may vary by state.

  26. 5Yrs 10Yrs 15Yrs 20Yrs 25Yrs 30Yrs Leading Edge CCII w/Simple CC II w/5% Compound 45 Year OldPreferred Health – Married Both Applying$3,000 Monthly 5-Year Benefit Period, 100 Day Elimination PeriodInflation Based on 30 Year Calculation Premiums: Leading Edge $612 CC II w/Simple $522 CC II w/5% Compound $862 41% more than Leading Edge $432 $366 $250 Policy benefits may vary by state.

  27. Policy Design Options – Decision #3 • 5% Compound Guaranteed Purchase Inflation (GPO)¹ • Every three years • Option to increase benefits and Total Pool of Money by 5% compounded (15.8% total increase) • No offers after two declines • Premium increases with benefit increases • No additional underwriting 1. GPO not available in AK, CO, D.C., GA, NC, NY, SC, WI, and WY. After two declines, no future or lesser offers will be made. Cost in benefit increase will be determined at attained age. Benefits will continue to increase, even if client is on claim. Policy benefits may vary by state.

  28. Built in Policy FeaturesStaying at Home for as Long as Possible • Additional Stay at Home Services • home modifications • durable medical equipment • caregiver training • home safety checks • medical alert systems • Equal to 1 X Monthly Benefit or 30 X Daily Benefit • Not subject to the Elimination Period • Benefit reduces the pool of money Policy benefits may vary by state.

  29. Policyholder ServicesSupporting Clients and Their Family • Caregiver Support Services • Personalized telephone & website support • Access to quality reports and ratings on over 90,0000 nursing home, assisted living facilities, hospice, and home health care providers nationwide • Access to exclusive provider discounts ( 7%-35% ) • Care advisory services • Family members include Spouse or Partner and their parents, stepparents, grandparents, siblings, children, step children, grandchildren, and their respective spouses. Policy benefits may vary by state.

  30. Built in Policy FeaturesSupporting Clients and Their Family • Respite care Benefit • 21 days per calendar year • Not subject to elimination period • Reduces policy limit • Hospice Care • As hospice care is defined as care being provided to someone who is terminally ill John Hancock wants to be sure policyholders do not have to wait for care • Not subject to the Elimination Period • Any setting Policy benefits may vary by state.

  31. Built in Policy FeaturesProviding Clients Flexibility & Choice • Lifestyle Benefit Changes • Written request to increase LTCI Benefit amounts once per policy year • Subject to underwriting • Attained age premium • Age based on date the request is made at the rates then in effect • Received within 30 days prior to anniversary • Effective on the next policy anniversary • Written request to decrease LTCI Benefit amounts at any time • Not subject to evidence of insurability • Premium reduction based on original issue age • Policyholders may increase their original coverage once a year • WITHOUT having to purchase an additional policy Policy benefits may vary by state.

  32. Built in Policy FeaturesProviding Clients Flexibility & Choice • International Coverage 1 • 1 year @ 100% • Anywhere in the world • Balance of benefit received in US • Bed Hold Benefit • 60 days per calendar year for any reason • subject to the elimination period • Reduces policy limit 1. No Hospice, Additional Stay at Home or Respite Policy benefits may vary by state.

  33. Optional BenefitsProviding Clients Flexibility & Choice • SharedCare • Allows partners to access the benefits under the other’s policy once their own is exhausted • collectively purchase less & share benefits • partners must both have the rider and identical benefits • If the partner dies • their benefits will increase the surviving partner’s remaining benefit dollars • total premiums will be reduced by the cost of the deceased spouse’s premium and the cost of both SharedCare riders Policy benefits may vary by state.

  34. Optional BenefitsProviding Clients Flexibility & Choice • SharedCare • SharedCare Rider Cost • 3 Year – 16% • 5 Year – 10% • 5 Year Plus $1Million – 2% • 60-Day offer if the insured’s benefits exhausted by partner¹ • option to purchase a policy with a 3-year benefit • no underwriting if no claims in prior three years • prior to age 91 1. In NY 1-year worth of benefits must be retained for the PH's exclusive used. In AZ 2-years worth of benefits must be retained. Policy benefits may vary by state.

  35. Optional BenefitsProviding Clients Flexibility & Choice • Nonforfeiture • Policyholder stops paying premiums after the third year • New policy limit equal to premiums paid less any claims paid • Limited pay options after the first year • Rider cost is 6% Policy benefits may vary by state.

  36. Premium Funding Flexibility • Life pay • Limited Pay – Payment Options • 10-Pay • Paid Up at Age 65 • Guaranteed renewable during the premium paying period • Non-cancelable thereafter Not available with 5% Compound Guaranteed Purchase Option. Policy benefits may vary by state.

  37. Premium Payment • Modes • Bank Draft Monthly (void check required) • Quarterly • Semi-annually • Annually • One month deposit required • Credit Cards for all modes • Saving age at issue Policy benefits may vary by state.

  38. Built in Policy Features • 30-Day Free Look • Waiver of Premium • Guaranteed Renewable • Grace Period • Added Protection Against Lapse • Contingent Nonforfeiture Policy benefits may vary by state.

  39. Ratings and Discounts • Partner’s (Couple’s/spouses) • Married • Lived with family member of same generation for three years • Lived with partner of same sex or opposite sex for 3 years Policy benefits may vary by state.

  40. Ratings & Discounts • Partner Discount • 15% one applying • 30% if both apply and are approved • One Application • Underwriting Classes • Preferred (Discounted 15% of Select) • Select (Standard) • Counter Offer for Sub-Standard to CCII The maximum combination of preferred and couples/spousal discounts is 40% (i.e. Preferred 15% + Couples/Spousal approved 30% = 45% – Maximum available is 40%) Policy benefits may vary by state.

  41. Additional Discounts • 5% Discount Programs with no commission reductions • Sponsored Group Discount – for employers with 5 employees participating or associations with 10 members participating • Family Discount – Available when 3 or more immediate family members purchase individual JH long term care insurance • Valued Client Discount – Existing JH and Manulife annuity and life clients are eligible for this discount • Loyalty Credit – Current JH long term care insurance policyholders with policies inforce for at least 2 years can replace their coverage for Leading Edge with the discount • Sponsored Group, Family and Valued Client discounts can’t be used in conjunction with one another Policy benefits may vary by state.

  42. John Hancock Leading Edge • The right product • Automatic compound inflation linked to the Consumer Price Index (CPI) • Simplifies product offering • Caregiver support services • Expanded Home Health Care Services • A simplified claims process • Credit card payments for all premium payment modes Policy benefits may vary by state.

  43. John Hancock Leading Edge • The right price • A practical new approach to inflation protection along with the innovative investment strategy to back it up • A creative alternative to expensive lifetime coverage Policy benefits may vary by state.

  44. John Hancock Leading Edge • The right time • Greater access to new markets with a new price point • Right time for boomers • Easy to understand and easy to sell benefits • Stable pricing backed by John Hancock’s strength, stability and experience Policy benefits may vary by state.

  45. Launch Kit Review • Rollout Memo • Leading Edge Prospecting letter • “Sample” Application Booklet • Producer Guide • Collateral Guide Policy benefits may vary by state.

  46. Launch Kit Review • Consumer Product Brochure • Caregiver Services Brochure Policy benefits may vary by state.

  47. Leading Edge Illustrations • Leading Edge can be illustrated, in approved states, using eHansel • Hansel LTC (version 8.0) will be available for download from the web • New Hansel LTC CDs are scheduled to begin shipping to our normal distribution list • Future state approvals will be updated in eHansel on the launch dates and will be included in Hansel service packs (patches) that can be downloaded from the web Policy benefits may vary by state.

  48. Leading Edge - Optional Reports • Policy Option Spreadsheet – illustrates premiums by inflation option for each benefit period • Inflation Projection – optional report for 5% Compound Guaranteed Inflation Coverage . Required for Automatic Inflation (CPI) with future CPI increases illustrated at 3%, 5% and 7%. • Cost of Waiting with Inflation – shows the impact of waiting to purchase both by age and benefit amount (impacted by inflation – 3% 5% and 7% used for CPI) • Break Even Analysis – Assumes 3%, 5% and 7% growth when Automatic Inflation (CPI) is illustrated • Premium Tables – rates for all ages with option to show 3 different policy designs Policy benefits may vary by state.

  49. Automatic Inflation (CPI) The Inflation Protection report will be a required part of the illustration whenever Automatic Inflation (CPI) is selected or in a state where it is the only inflation coverage available The future LTC Benefits and Policy Limits will be calculated assuming CPI growth of 3%, 5% and 7% Policy benefits may vary by state.

  50. Automatic Inflation (CPI) When the 5 Years Plus $1 Million Benefit Period is selected, the $1,000,000 will be added to the Policy Limit but the $1,000,000 will not be adjusted for inflation in the illustration An explanation of how the CPI changes impact the Benefit Amount and Policy Limit is provided in this footnote Policy benefits may vary by state.

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