• No results found

Life Insurance in Retirement Plus: LIRP+

N/A
N/A
Protected

Academic year: 2021

Share "Life Insurance in Retirement Plus: LIRP+"

Copied!
15
0
0

Loading.... (view fulltext now)

Full text

(1)

__ __

__ September 08, 2010

Lily Rowan

Life Insurance in Retirement Plus: LIRP+

Mr. Producer

PREPARED FOR

PRESENTED BY

Focusing on Life Insurance Protection

and Retirement

Insurance products are issued by: John Hancock Life Insurance Company (U.S.A.), Boston, MA 02116 Insurance products are issued by: John Hancock Life Insurance Company of New York, Valhalla NY 10595.

Insurance products are issued by: John Hancock Life Insurance Company of New York, Valhalla NY 10595. Securities Products distributed by

John Hancock Distributors LLC through other broker/dealers appointed by John Hancock Distributors LLC, 197 Clarendon Street, Boston, MA

02116

Insurance products are issued by:

John Hancock Life Insurance Company (U.S.A.), Boston, MA and securities 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 02116

(2)

LIFE INSURANCE IN RETIREMENT PLUS: LIRP+ Prepared for Lily Rowan Prepared by: Mr. Producer

Page 2 of 15 September 08, 2010

Life Insurance in Retirement Plus: LIRP+

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.

(3)

LIFE INSURANCE IN RETIREMENT PLUS: LIRP+ Prepared for Lily Rowan Prepared by: Mr. Producer

Page 3 of 15 September 08, 2010

Life Insurance in Retirement Plus: LIRP+

The Concern

How much income can you expect to generate from your current assets

at retirement?

h

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.

h

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.

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:

(4)

LIFE INSURANCE IN RETIREMENT PLUS: LIRP+ Prepared for Lily Rowan Prepared by: Mr. Producer

Page 4 of 15 September 08, 2010

Life Insurance in Retirement Plus: LIRP+

Benefits of Cash Value Life Insurance

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.

h

h 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.

h 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.

h 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.

h 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.

h 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.

h The death benefit can help protect your family's income needs in the event of

premature death.

h 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.

h The policy's death benefit and/or cash values are potentially protected from

the claims of creditors, depending on your state.

h The cash values of a life insurance policy grows tax-deferred, and tax-free

withdrawals are permitted when structured properly.

(5)

LIFE INSURANCE IN RETIREMENT PLUS: LIRP+ 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 Income 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 Income $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 Income $34,823

Total Projected Retirement Income $126,414

Potential Income Analysis at Retirement

Desired Retirement Income $217,642

Projected Income From Existing Assets $126,414

Potential Shortfall $91,228

Projected Income From Existing Assets $126,414

Potential Annual Life Insurance Distributions $91,000 Potential Retirement Income with Life Insurance $217,414

Page 5 of 15 September 08, 2010

Benefit Summary and Flowchart - Life Insurance

Policy Details

Income Tax Free Death Benefit To Heirs at Age 65:

$2,628,166 Lily Rowan

John Hancock Policy: Initial Face Amount $1,152,970

Annual Premium of $31,290

Proceeds at Death Potential after tax

withdrawals of $91,000 a year for 35 years beginning

in year 26.

How it Works At Retirement

Summary in Year 24

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.

126,414 126,414

0 217,414

Current Proposed

Income from Qplan Income From Life Insurance Desired

Retirement Income

(6)

LIFE INSURANCE IN RETIREMENT PLUS: LIRP+ Prepared for Lily Rowan Presented by Mr. Producer

Product: Accumulation VUL 09 Initial Premium: $31,290

Insured(s): Lily Rowan, Female Age 40, Preferred NonSmoker Initial Death Benefit: $1,152,970

(1) (2) (3) (4) (5) (6) (7) (1) (2) (3) (4) (5) (6) EOY Age After-Tax Income From Qplan After-Tax Income from Other Savings Projected Other Income Total Projected After Tax Income Desired Retirement Income Shortfall

After Tax Life Insurance Loans/ Withdrawals EOY Age Projected Income From Qplan Projected Other Income Total Current Projected Income Desired Retirement Income Shortfall Life Insurance Loans/ Withdrawals (1+2+3) (5-4) (1+2) (4-3) 66 83,731 7,860 34,823 126,414 217,642 91,228 91,000 91 121,489 11,405 50,526 183,419 315,786 132,367 132,034 67 84,987 7,978 35,345 128,310 220,906 92,597 92,365 92 123,311 11,576 51,284 186,171 320,523 134,353 134,015 68 86,261 8,098 35,875 130,235 224,220 93,985 93,750 93 125,161 11,750 52,053 188,963 325,331 136,368 136,025 69 87,555 8,219 36,413 132,188 227,583 95,395 95,156 94 127,038 11,926 52,834 191,798 330,211 138,413 138,065 70 88,869 8,343 36,960 134,171 230,997 96,826 96,583 95 128,944 12,105 53,626 194,675 335,164 140,490 140,136 71 90,202 8,468 37,514 136,183 234,462 98,279 98,032 96 130,878 12,286 54,431 197,595 340,192 142,597 142,238 72 91,555 8,595 38,077 138,226 237,979 99,753 99,502 97 132,841 12,471 55,247 200,559 345,294 144,736 144,372 73 92,928 8,724 38,648 140,300 241,549 101,249 100,995 98 134,833 12,658 56,076 203,567 350,474 146,907 146,538 74 94,322 8,855 39,228 142,404 245,172 102,768 102,510 99 136,856 12,848 56,917 206,621 355,731 149,110 148,736 75 95,737 8,987 39,816 144,540 248,849 104,309 104,048 100 138,909 13,040 57,771 209,720 361,067 151,347 150,967 76 97,173 9,122 40,413 146,708 252,582 105,874 105,609 77 98,630 9,259 41,019 148,909 256,371 107,462 107,193 78 100,110 9,398 41,635 151,142 260,216 109,074 108,801 79 101,611 9,539 42,259 153,410 264,120 110,710 110,433 80 103,136 9,682 42,893 155,711 268,082 112,371 112,089 81 104,683 9,827 43,536 158,046 272,103 114,056 113,770 82 106,253 9,975 44,189 160,417 276,184 115,767 115,477 83 107,847 10,124 44,852 162,823 280,327 117,504 117,209 84 109,464 10,276 45,525 165,266 284,532 119,266 118,967 85 111,106 10,430 46,208 167,745 288,800 121,055 120,752 86 112,773 10,587 46,901 170,261 293,132 122,871 122,563 87 114,465 10,746 47,605 172,815 297,529 124,714 124,401 88 116,182 10,907 48,319 175,407 301,992 126,585 126,267 89 117,924 11,070 49,043 178,038 306,522 128,484 128,161 90 119,693 11,236 49,779 180,709 311,120 130,411 130,083 Page 6 of 15 September 08, 2010

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.

Potential Income Analysis at Retirement

Policy Information

Total Projected After Tax Income Projected Other Income After-Tax Income From Qplan EOY Age Desired Retirement Income

Variable Universal Life Insurance @ 6.14% Net (of Investment Advisory Fees) and Current Charges

Shortfall

After Tax Life Insurance Loans/ Withdrawals (1) (3) (4) (5) (6) (7) (1+2+3) (5-4) Total Projected After Tax Income Projected Other Income After-Tax Income From Qplan EOY Age Desired Retirement Income Shortfall

After Tax Life Insurance Loans/ Withdrawals (1) (3) (4) (5) (6) (7) (1+2+3) (5-4) After-Tax Income from Other Savings (2) (5-4) After-Tax Income from Other Savings (2)

(7)

LIFE INSURANCE IN RETIREMENT PLUS: LIRP+ Prepared for Lily Rowan Presented by Mr. Producer

Product: Accumulation VUL 09 Initial Premium: $31,290

Insured(s): Lily Rowan, Female Age 40, Preferred NonSmoker Initial Death Benefit: $1,152,970

Year EOY Age Annual Premium Payment After-Tax Withdrawals & Loans Net Cash Surrender Value Net Death Benefit Year EOY Age Annual Premium Payment Withdrawals & Loans Net Cash Surrender Value Net Death Benefit 1 41 31,290 0 13,824 1,152,970 26 66 0 91,000 1,627,419 2,537,166 2 42 31,290 0 43,997 1,183,144 27 67 0 92,365 1,629,758 2,444,801 3 43 31,290 0 75,965 1,215,112 28 68 0 93,750 1,631,000 2,351,051 4 44 31,290 0 110,787 1,249,320 29 69 0 95,156 1,631,083 2,255,895 5 45 31,290 0 147,065 1,285,542 30 70 0 96,583 1,629,942 2,159,312 6 46 31,290 0 186,013 1,323,876 31 71 0 98,032 1,627,966 2,061,280 7 47 31,290 0 229,074 1,364,425 32 72 0 99,502 1,624,522 1,961,778 8 48 31,290 0 274,667 1,407,339 33 73 0 100,995 1,619,545 1,860,783 9 49 31,290 0 326,431 1,452,740 34 74 0 102,510 1,612,980 1,757,044 10 50 31,290 0 375,042 1,500,792 35 75 0 104,048 1,604,648 1,694,744 11 51 31,290 0 428,744 1,554,494 36 76 0 105,609 1,594,290 1,689,529 12 52 31,290 0 485,664 1,611,414 37 77 0 107,193 1,581,558 1,682,074 13 53 31,290 0 545,992 1,671,742 38 78 0 108,801 1,566,263 1,672,185 14 54 31,290 0 609,928 1,735,678 39 79 0 110,433 1,548,198 1,659,655 15 55 31,290 0 677,687 1,803,437 40 80 0 112,089 1,527,142 1,644,263 16 56 31,290 0 749,498 1,875,248 41 81 0 113,770 1,502,856 1,625,766 17 57 31,290 0 825,611 1,951,361 42 82 0 115,477 1,475,083 1,603,905 18 58 31,290 0 906,288 2,032,038 43 83 0 117,209 1,443,548 1,578,400 19 59 31,290 0 991,732 2,117,482 44 84 0 118,967 1,407,954 1,548,952 20 60 31,290 0 1,082,291 2,208,041 45 85 0 120,752 1,367,989 1,515,241 21 61 31,290 0 1,178,263 2,304,013 46 86 0 122,563 1,323,312 1,476,924 22 62 31,290 0 1,280,031 2,405,781 47 87 0 124,401 1,273,561 1,433,629 23 63 31,290 0 1,387,954 2,513,704 48 88 0 126,267 1,218,343 1,384,958 24 64 31,290 0 1,502,416 2,628,166 49 89 0 128,161 1,157,243 1,330,485 25 65 31,290 0 1,624,043 2,628,166 50 90 0 130,083 1,089,810 1,269,752 Totals 782,250 0 Totals 782,250 2,735,716 Page 7 of 15 September 08, 2010

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.

Life Insurance Values

Policy Information

Year Net Cash Surrender Value After-Tax Withdrawals & Loans Annual Premium Payment EOY Age Net Death Benefit

Variable Universal Life Insurance @ 6.14% Net (of Investment Advisory Fees) and Current Charges

Year Net Cash Surrender Value After-Tax Withdrawals & Loans Annual Premium Payment EOY Age Net Death Benefit After-Tax Withdrawals & Loans Net Death Benefit

(8)

LIFE INSURANCE IN RETIREMENT PLUS: LIRP+ Prepared for Lily Rowan Presented by Mr. Producer

Product: Accumulation VUL 09 Initial Premium: $31,290

Insured(s): Lily Rowan, Female Age 40, Preferred NonSmoker Initial Death Benefit: $1,152,970

Year EOY Age Annual Premium Payment After-Tax Withdrawals & Loans Net Cash Surrender Value Net Death Benefit Year EOY Age Annual Premium Payment Withdrawals & Loans Net Cash Surrender Value Net Death Benefit 51 91 0 132,034 1,015,568 1,164,929 52 92 0 134,015 935,177 1,051,318 53 93 0 136,025 848,458 928,677 54 94 0 138,065 755,259 796,788 55 95 0 140,136 655,450 655,450 56 96 0 142,238 548,959 548,959 57 97 0 144,372 433,668 433,668 58 98 0 146,538 309,000 309,000 59 99 0 148,736 174,339 174,339 60 100 0 150,967 29,034 29,034 Totals 782,250 4,148,842 Totals 782,250 4,148,842 Page 8 of 15 September 08, 2010

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.

Life Insurance Values

Policy Information

Year Net Cash Surrender Value After-Tax Withdrawals & Loans Annual Premium Payment EOY Age Net Death Benefit

Variable Universal Life Insurance @ 6.14% Net (of Investment Advisory Fees) and Current Charges

Year Net Cash Surrender Value After-Tax Withdrawals & Loans Annual Premium Payment EOY Age Net Death Benefit After-Tax Withdrawals & Loans Net Death Benefit

(9)

LIFE INSURANCE IN RETIREMENT PLUS: LIRP+ Prepared for Lily Rowan Presented by Mr. Producer (1) (2) (3) (4) (5) (6) (1) (2) #REF! #REF! Year EOY Age BOY Qualified Plan Annual Contributions Annual Withdrawals After-Tax Withdrawals Growth

(7.0%) EOY Balance Year EOY Age BOY Qualified Plan Contributions Growth (7.0%) EOY Balance (1-Tax Bracket) (1+2 ) * 7.0% (1+2-3+5 ) (1+2-3) * 7.0% (1+2-3+4) 1 41 147,000 22,000 0 0 11,830 180,830 26 66 2,286,715 0 139,551 83,731 150,301 2,297,465 2 42 180,830 22,000 0 0 14,198 217,028 27 67 2,297,465 0 141,644 84,987 150,907 2,306,729 3 43 217,028 22,000 0 0 16,732 255,760 28 68 2,306,729 0 143,769 86,261 151,407 2,314,367 4 44 255,760 22,000 0 0 19,443 297,203 29 69 2,314,367 0 145,925 87,555 151,791 2,320,232 5 45 297,203 22,000 0 0 22,344 341,548 30 70 2,320,232 0 148,114 88,869 152,048 2,324,166 6 46 341,548 22,000 0 0 25,448 388,996 31 71 2,324,166 0 150,336 90,202 152,168 2,325,998 7 47 388,996 22,000 0 0 28,770 439,766 32 72 2,325,998 0 152,591 91,555 152,138 2,325,545 8 48 439,766 22,000 0 0 32,324 494,089 33 73 2,325,545 0 154,880 92,928 151,947 2,322,612 9 49 494,089 22,000 0 0 36,126 552,215 34 74 2,322,612 0 157,203 94,322 151,579 2,316,987 10 50 552,215 22,000 0 0 40,195 614,410 35 75 2,316,987 0 159,561 95,737 151,020 2,308,446 11 51 614,410 22,000 0 0 44,549 680,959 36 76 2,308,446 0 161,955 97,173 150,254 2,296,746 12 52 680,959 22,000 0 0 49,207 752,166 37 77 2,296,746 0 164,384 98,630 149,265 2,281,627 13 53 752,166 22,000 0 0 54,192 828,358 38 78 2,281,627 0 166,850 100,110 148,034 2,262,812 14 54 828,358 22,000 0 0 59,525 909,883 39 79 2,262,812 0 169,352 101,611 146,542 2,240,001 15 55 909,883 22,000 0 0 65,232 997,115 40 80 2,240,001 0 171,893 103,136 144,768 2,212,876 16 56 997,115 22,000 0 0 71,338 1,090,453 41 81 2,212,876 0 174,471 104,683 142,688 2,181,093 17 57 1,090,453 22,000 0 0 77,872 1,190,325 42 82 2,181,093 0 177,088 106,253 140,280 2,144,285 18 58 1,190,325 22,000 0 0 84,863 1,297,187 43 83 2,144,285 0 179,745 107,847 137,518 2,102,059 19 59 1,297,187 22,000 0 0 92,343 1,411,530 44 84 2,102,059 0 182,441 109,464 134,373 2,053,991 20 60 1,411,530 22,000 0 0 100,347 1,533,878 45 85 2,053,991 0 185,177 111,106 130,817 1,999,631 21 61 1,533,878 22,000 0 0 108,911 1,664,789 46 86 1,999,631 0 187,955 112,773 126,817 1,938,493 22 62 1,664,789 22,000 0 0 118,075 1,804,864 47 87 1,938,493 0 190,774 114,465 122,340 1,870,059 23 63 1,804,864 22,000 0 0 127,880 1,954,745 48 88 1,870,059 0 193,636 116,182 117,350 1,793,773 24 64 1,954,745 22,000 0 0 138,372 2,115,117 49 89 1,793,773 0 196,540 117,924 111,806 1,709,039 25 65 2,115,117 22,000 0 0 149,598 2,286,715 50 90 1,709,039 0 199,489 119,693 105,669 1,615,219 Page 9 of 15 September 08, 2010 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.

Qualified Plan Detail Analysis

Year Annual Contributions (1) EOY Age Growth (7.0%) EOY Balance (2) (5) (6) BOY Qualified Plan (1+2 ) * 7.0% Annual Withdrawals (3) After-Tax Withdrawals (4) Col 3 *

(1-Tax Bracket) (1+2-3+5 ) Year

Annual Contributions (1) EOY Age Growth (7.0%) EOY Balance (2) (5) (6) BOY Qualified Plan (1+2 ) * 7.0% Annual Withdrawals (3) After-Tax Withdrawals (4) Col 3 * (1-Tax Bracket) (1+2-3+5 )

(10)

LIFE INSURANCE IN RETIREMENT PLUS: LIRP+ Prepared for Lily Rowan Presented by Mr. Producer (1) (2) (3) (4) (5) (6) (1) (2) #REF! #REF! Year EOY Age BOY Qualified Plan Annual Contributions Annual Withdrawals After-Tax Withdrawals Growth

(7.0%) EOY Balance Year EOY Age BOY Qualified Plan Contributions Growth (7.0%) EOY Balance (1-Tax Bracket) (1+2 ) * 7.0% (1+2-3+5 ) (1+2-3) * 7.0% (1+2-3+4) 51 91 1,615,219 0 202,481 121,489 98,892 1,511,629 52 92 1,511,629 0 205,518 123,311 91,428 1,397,539 53 93 1,397,539 0 208,601 125,161 83,226 1,272,164 54 94 1,272,164 0 211,730 127,038 74,230 1,134,664 55 95 1,134,664 0 214,906 128,944 64,383 984,141 56 96 984,141 0 218,129 130,878 53,621 819,633 57 97 819,633 0 221,401 132,841 41,876 640,108 58 98 640,108 0 224,722 134,833 29,077 444,462 59 99 444,462 0 228,093 136,856 15,146 231,515 60 100 231,515 0 231,515 138,909 0 0 Page 10 of 15 September 08, 2010 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.

Qualified Plan Detail Analysis

Year Annual Contributions (1) EOY Age Growth (7.0%) EOY Balance (2) (5) (6) BOY Qualified Plan (1+2 ) * 7.0% Annual Withdrawals (3) After-Tax Withdrawals (4) Col 3 *

(1-Tax Bracket) (1+2-3+5 ) Year

Annual Contributions (1) EOY Age Growth (7.0%) EOY Balance (2) (5) (6) BOY Qualified Plan (1+2 ) * 7.0% Annual Withdrawals (3) After-Tax Withdrawals (4) Col 3 * (1-Tax Bracket) (1+2-3+5 )

(11)

LIFE INSURANCE IN RETIREMENT PLUS: LIRP+ Prepared for Lily Rowan Presented by Mr. Producer

(1) (2) (3) (4) (5) (6) (1) (2) #REF! #REF! #REF! #REF!

Year EOY Age BOY Other Savings After-Tax Contributions/ (Withdrawals) Growth @ (2.0%) EOY Balance Other Retirement Income Desired Retirement Income Year EOY Age BOY Qualified Plan Contributions Growth (7.0%) EOY Balance Other Retirement Income Desired Retirement Income (1+2 ) * 2.0% (1+2+3 ) @1.50% @1.50% 7.0% (1+2-3+4) @1.50% @1.50% 1 41 25,000 6,500 630 32,130 24,000 150,000 26 66 253,376 (7,860) 4,910 250,426 34,823 217,642 2 42 32,130 6,500 773 39,403 24,360 152,250 27 67 250,426 (7,978) 4,849 247,297 35,345 220,906 3 43 39,403 6,500 918 46,821 24,725 154,534 28 68 247,297 (8,098) 4,784 243,983 35,875 224,220 4 44 46,821 6,500 1,066 54,387 25,096 156,852 29 69 243,983 (8,219) 4,715 240,479 36,413 227,583 5 45 54,387 6,500 1,218 62,105 25,473 159,205 30 70 240,479 (8,343) 4,643 236,779 36,960 230,997 6 46 62,105 6,500 1,372 69,977 25,855 161,593 31 71 236,779 (8,468) 4,566 232,877 37,514 234,462 7 47 69,977 6,500 1,530 78,006 26,243 164,016 32 72 232,877 (8,595) 4,486 228,768 38,077 237,979 8 48 78,006 6,500 1,690 86,197 26,636 166,477 33 73 228,768 (8,724) 4,401 224,445 38,648 241,549 9 49 86,197 6,500 1,854 94,551 27,036 168,974 34 74 224,445 (8,855) 4,312 219,902 39,228 245,172 10 50 94,551 6,500 2,021 103,072 27,441 171,508 35 75 219,902 (8,987) 4,218 215,133 39,816 248,849 11 51 103,072 6,500 2,191 111,763 27,853 174,081 36 76 215,133 (9,122) 4,120 210,131 40,413 252,582 12 52 111,763 6,500 2,365 120,628 28,271 176,692 37 77 210,131 (9,259) 4,017 204,889 41,019 256,371 13 53 120,628 6,500 2,543 129,671 28,695 179,343 38 78 204,889 (9,398) 3,910 199,401 41,635 260,216 14 54 129,671 6,500 2,723 138,894 29,125 182,033 39 79 199,401 (9,539) 3,797 193,659 42,259 264,120 15 55 138,894 6,500 2,908 148,302 29,562 184,763 40 80 193,659 (9,682) 3,680 187,657 42,893 268,082 16 56 148,302 6,500 3,096 157,898 30,006 187,535 41 81 187,657 (9,827) 3,557 181,386 43,536 272,103 17 57 157,898 6,500 3,288 167,686 30,456 190,348 42 82 181,386 (9,975) 3,428 174,839 44,189 276,184 18 58 167,686 6,500 3,484 177,670 30,912 193,203 43 83 174,839 (10,124) 3,294 168,009 44,852 280,327 19 59 177,670 6,500 3,683 187,853 31,376 196,101 44 84 168,009 (10,276) 3,155 160,888 45,525 284,532 20 60 187,853 6,500 3,887 198,240 31,847 199,043 45 85 160,888 (10,430) 3,009 153,467 46,208 288,800 21 61 198,240 6,500 4,095 208,835 32,325 202,028 46 86 153,467 (10,587) 2,858 145,737 46,901 293,132 22 62 208,835 6,500 4,307 219,642 32,809 205,059 47 87 145,737 (10,746) 2,700 137,692 47,605 297,529 23 63 219,642 6,500 4,523 230,665 33,302 208,135 48 88 137,692 (10,907) 2,536 129,321 48,319 301,992 24 64 230,665 6,500 4,743 241,908 33,801 211,257 49 89 129,321 (11,070) 2,365 120,615 49,043 306,522 25 65 241,908 6,500 4,968 253,376 34,308 214,425 50 90 120,615 (11,236) 2,188 111,566 49,779 311,120 Page 11 of 15 September 08, 2010

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 Income represents retirement income from other sources as entered by the user based on assumptions provided by you, the client. Desired Retirement Income 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.

Other Retirement Savings and Income Detail Analysis

Year After-Tax Contributions/ (Withdrawals) (1) EOY Age Growth @ (2.0%) EOY Balance Other Retirement Income (2) (3) (4) (5) BOY Other Savings Desired Retirement Income @1.50% @1.50% (6) (1+2 ) * 2.0% (1+2+3 ) Year After-Tax Contributions/ (Withdrawals) (1) EOY Age Growth @ (2.0%) EOY Balance Other Retirement Income (2) (3) (4) (5) BOY Other Savings Desired Retirement Income @1.50% @1.50% (6) (1+2 ) * 2.0% (1+2+3 )

(12)

LIFE INSURANCE IN RETIREMENT PLUS: LIRP+ Prepared for Lily Rowan Presented by Mr. Producer

(1) (2) (3) (4) (5) (6) (1) (2) #REF! #REF! #REF! #REF!

Year EOY Age BOY Other Savings After-Tax Contributions/ (Withdrawals) Growth @ (2.0%) EOY Balance Other Retirement Income Desired Retirement Income Year EOY Age BOY Qualified Plan Contributions Growth (7.0%) EOY Balance Other Retirement Income Desired Retirement Income (1+2 ) * 2.0% (1+2+3 ) @1.50% @1.50% 7.0% (1+2-3+4) @1.50% @1.50% 51 91 111,566 (11,405) 2,003 102,165 50,526 315,786 52 92 102,165 (11,576) 1,812 92,400 51,284 320,523 53 93 92,400 (11,750) 1,613 82,264 52,053 325,331 54 94 82,264 (11,926) 1,407 71,745 52,834 330,211 55 95 71,745 (12,105) 1,193 60,833 53,626 335,164 56 96 60,833 (12,286) 971 49,517 54,431 340,192 57 97 49,517 (12,471) 741 37,787 55,247 345,294 58 98 37,787 (12,658) 503 25,632 56,076 350,474 59 99 25,632 (12,848) 256 13,040 56,917 355,731 60 100 13,040 (13,040) 0 0 57,771 361,067 Page 12 of 15 September 08, 2010

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 Income represents retirement income from other sources as entered by the user based on assumptions provided by you, the client. Desired Retirement Income 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.

Other Retirement Savings and Income Detail Analysis

Year After-Tax Contributions/ (Withdrawals) (1) EOY Age Growth @ (2.0%) EOY Balance Other Retirement Income (2) (3) (4) (5) BOY Other Savings Desired Retirement Income @1.50% @1.50% (6) (1+2 ) * 2.0% (1+2+3 ) Year After-Tax Contributions/ (Withdrawals) (1) EOY Age Growth @ (2.0%) EOY Balance Other Retirement Income (2) (3) (4) (5) BOY Other Savings Desired Retirement Income @1.50% @1.50% (6) (1+2 ) * 2.0% (1+2+3 )

(13)

LIFE INSURANCE IN RETIREMENT PLUS: LIRP+ Prepared for Lily Rowan Presented by Mr. Producer

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 $31,290.00 Annual Premium

Spouse's Name n/a Given name of the second client Years 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 Income 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

Years for Retirement Income 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 E-Mail Address 0

employer contributions RESULTS

Assumed Growth Rate 7.00% Focus Year1 24 Focus year

Other Expected Retirement Income 24,000 Print Years 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 After-Tax Growth Rate 2.00%

Page 13 of 15 September 08, 2010

Assumptions

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.

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.

(14)

LIFE INSURANCE IN RETIREMENT PLUS: LIRP+ Prepared for Lily Rowan Prepared by: Mr. Producer

Page 14 of 15 September 08, 2010

End of Year (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 Income – 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.

Glossary

After-Tax 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 Year (BOY) – the beginning of year value; this value does

not include any assumed growth or taxes on growth for that year.

Desired Retirement Income – 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.

(15)

LIFE INSURANCE IN RETIREMENT PLUS: LIRP+ Prepared for Lily Rowan Prepared by: Mr. Producer

Page 15 of 15 September 08, 2010 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 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 was not intended or written for use and cannot be used by any taxpayer for the purpose of avoiding any IRS penalty. It was written to support the marketing of the transactions or topics it addresses. Anyone interested in these transactions or topics should seek advice based on his or her particular circumstances from independent professional advisors.

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 is authorized for distribution only when preceded or accompanied by the appropriate client guide, product and fund prospectuses. 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. This material is not intended as investment advice.

Variable universal life insurance has annual fees and expenses associated with 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 guaranteed 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 was not intended or written for use and cannot be used by any taxpayer for the purpose of avoiding any IRS penalty. It was written to support the marketing of the transactions or topics it addresses. Anyone interested in these transactions or topics should seek advice based on his or her particular circumstances from independent professional advisors.

Life Insurance in Retirement Plus is a planning tool designed to assist you in exploring potential estate/retirement planning options through the use of life insurance and investing strategies. However, this presentation is not intended 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 New York does not guarantee the accuracy of the Life Insurance in Retirement Plus system or the output. John Hancock New York will not be liable for any damages arising from the use or misuse of this software or from any errors or omissions in the same. John Hancock New York assumes no duty to update this software or to provide notice of any errors in the software 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 non-guaranteed 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 generation-skipping transfer (GST) tax implications of Life Insurance and Targeted Retirement Income 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.

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 not constitute tax, legal or accounting advice and neither John Hancock New York nor any of its agents, employees or registered representatives are in the business of offering such advice. It was not intended or written for use and cannot be used by any taxpayer for the purpose of avoiding any IRS penalty. It was written to support the marketing of the transactions or topics it addresses. Anyone interested in these transactions or topics should seek advice based on his or her particular circumstances from independent professional advisors.

Disclosures

Internal Compliance Number: MLI06241013249

The Life Insurance in Retirement Plus is a planning tool designed to assist you in exploring potential estate/retirement planning options through the use of life insurance and investing strategies. However, this presentation is not intended 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 not guarantee the accuracy of the Life Insurance in Retirement Plus system or the output. John Hancock will not be liable for any damages arising from the use or misuse of this software or from any errors or omissions in the same. John Hancock assumes no duty to update this software or to provide notice of any errors in the software 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 non-guaranteed 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 generation-skipping transfer (GST) tax implications of Life Insurance and Targeted Retirement Income 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.

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 is authorized for distribution only when preceded or accompanied by the appropriate client guide, product and fund prospectuses. 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. This material is not intended as investment advice.

Variable universal life insurance has annual fees and expenses associated with 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 guaranteed 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 was not intended or written for use and cannot be used by any taxpayer for the purpose of avoiding any IRS penalty. It was written to support the marketing of the transactions or topics it addresses. Anyone interested in these transactions or topics should seek advice based on his or her particular circumstances from independent professional advisors.

References

Related documents

accumulated net cash surrender value as a net single premium to purchase term life insurance..  Reduced Paid-Up Life Insurance Option – the policyowner can

Subject to this $500,000 limit, the Guaranty Association will pay up to $500,000 in life insurance death benefits, $130,000 in net cash surrender and net

Minimum cash surrender values for flexible premium universal life insurance policies shall be determined separately for the basic policy and any benefits and riders for which

For a whole life policy (50) with annual premiums and death benefit of 1000 payable at the end of the year of death, you are given:.. The net premium

n   Universal Life – Guaranteed premium and death benefit. n   Variable Life – Few guarantees, cash value tied to the

Universal life insurance protection with a 20-year secondary death benefit guarantee plus significant policy value growth. Universal life insurance with

Subject to this $500,000 limit, the guaranty association will pay up to $500,000 in life insurance death benefits, $130,000 in net cash surrender and net cash withdrawal values

It creates an interactive Government to Consumer to Government (G2C2G) channel in various functions such as election of  government officials (e-ballots); filing of tax