1. Policy Benefits and Features Custom Care III featuring Benefit Builder:
Good morning/afternoon. My name is __________, from John Hancock long-term care insurance.
Today’s presentation will review Custom Care III with our unique Benefit Builder feature.
Long-term care insurance is underwritten by John Hancock Life Insurance Company (U.S.A.), Boston, MA (not licensed in New York) and in New York by John Hancock Life & Health Insurance, Boston, MA
LTC /12
For financial professional use only. Not for use with the public.

2. Agenda Industry overview Consumer trends
Introduction to Custom Care III featuring Benefit Builder
Why John Hancock
Conclusion
During today’s presentation we will cover the following.
Review agenda. Read bullet points.

3. Industry overview Low interest rates impact insurance pricing
All time historic lows for a prolonged period of time
In our current environment, 1% interest rate decrease equates to a 10%-15% premium increase¹
1. Quote from Jessie Slome, Executive Director , American Association of Long Term Care Insurance, 2009.
The prolonged low interest rate environment continues to present pricing challenges for LTC insurance. carriers must continue to re-price premiums to reflect these new assumptions and according to Jessie Slome of the American Association of Long-Term Care Insurance, a 1% interest rate decrease equates to a % premium increase.

4. Industry overview
Higher premiums on long-term care (LTC) insurance reflect the new environment paradigm
Fixed inflation options, such as 3% and 5% Compound, are offered at significantly higher premiums that have been rising rapidly with the continued low interest rate environment
Carriers are forced to adapt by
Updating pricing
Exiting the market
Developing innovative new inflation choices
Higher new business rates among many of the top carriers reflect this new environment paradigm. Fixed inflation options, particularly 3% and 5% compound inflation, are the most impacted and we have seen significant premium increases to these inflation options over the last months. Carriers are forced to either quickly adapt with new pricing, exit the market, or develop new inflation alternatives that can meet consumer’s needs for a lower priced product while also providing meaningful coverage.

5. LTC buyer trends Consumer needs
Younger Baby Boomer purchasers – average age 58
7.6 million Americans age 55 and older had private LTC insurance coverage, accounting for 10.7% of adults in this age group2
AHIP 2010 LTC Buyer/Non-Buyer Study Conclusions:
Most non-buyers indicated that cost was the most significant barrier to purchase (Consistent 20-year trend)
Cost continues to be the primary objection from consumers. With the average age of our buyer trending down and the claim age estimated to be around age 80, the cost of traditional fixed 5% compound inflation options are becoming out of reach for most consumers. In an effort to make LTC insurance more affordable, we have seen the average age of the consumer decrease as well as buying shorter benefit periods. Yet, this is clearly not working for most consumers. Only 10.7% of adults in America age 55 and older have private LTC insurance. And according to AHIP, premium/cost continues to be the #1 reason most consumers don’t purchase.
2. “Who Purchases Long-Term Care Insurance,” March 2011, estimates are from 2008 Health and Retirement Study (HRS), page 2.

6. Product Features

7. Policy Building Blocks Eligibility for benefits
Chronically Ill:
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 dependency is expected to continue for at least 90 days
Subject to the Elimination Period
Receiving covered services under an acceptable Plan of Care
With Custom Care III featuring Benefit Builder, your client would become eligible for benefits once they get to a point where they are considered a Chronically Ill individual:
They need either substantial assistance performing at least 2 of the 6 Activities of Daily Living, ADL’s (which are defined as bathing, continence, dressing, eating, toileting, or transferring)
(or)
They require Substantial Supervision to protect themselves due to the presence of “a Severe Cognitive Impairment” (which would be determined by clinical evidence and/or standardized tests)
(and)
Their licensed health care practitioner certifies the ADL dependency is expected to continue for at least 90 days.
POLICY BENEFITS MAY VARY BY STATE

8. Policy Building Blocks Coverage
Pay actual charges up to the Benefit Amount
At home (Adult Day Care, Professional Care, Hospice Care, and Incidental Homemaker Services)3
Independent home health care provider (ICP) definitions
If an approved home health agency is not available within a 40 mile radius of the insured’s home, we will pay actual charges for an authorized ICP up to 75% of the benefit amount
Immediate family members can be compensated if working through an approved provider
In a Nursing Home or Assisted Living Facility
Unused benefits extend the benefit period
Custom Care III featuring Benefit Builder is a reimbursement policy and will pay actual charges up to the Benefit Amount.
Care can be delivered:
At home
(Adult Day Care, Professional Care, Hospice Care and Incidental Homemaker Services)
Independent home health care – at 75% of the benefit amount if an approved home health agency is NOT available within a 40 mile radius of the insured’s home.
In a Nursing Home or Assisted Living Facility
Any unused benefits extend the benefit period.
3. In OR includes Adult Foster Care, residential care facilities and residential facilities with Alzheimer’s Endorsement.
POLICY BENEFITS MAY VARY BY STATE

9. Policy Building Blocks Applicant Age and Benefit Amounts
Ages 18-79
Benefit Amount
Choose from a Monthly or Daily Benefit4
Monthly $1,500 to $15,000 limit
in $100 increments
Daily $50 to $500
in $10 increments
The issue age of the applicant can be from ages
Custom Care III featuring Benefit Builder offers Monthly Benefit Options ranging from $1,500-$15,000 per month benefit in $100 increments or Daily Benefit Options ranging from $50–500 per day, in $10 increments
Please note that there are some states that require higher minimum benefits.
This policy will pay the actual covered charge, not to exceed the maximum benefit, subject to the elimination period, policy conditions and exclusions. Any unused amount of the maximum benefit will remain in the policy for later use, which may extend the chosen benefit period.
4. In VT, the minimum benefit is $75 daily and $2250 monthly. In WI, the minimum Daily Benefit is $60 and the minimum Monthly Benefit is $1800.
POLICY BENEFITS MAY VARY BY STATE

10. Policy Building Blocks Benefit Periods
Multiplier for the Benefit Amount
2 years (730 days)
3 years (1,095 days)
4 years (1,460 days)
5 years (1,825 days)
6 years (2,190 days)
10 years (3,650 days)
The Benefit Periods (which are the multiplier for the LTC Benefit Amount) that are available for Custom Care III featuring Benefit Builder are:
2 years (730 days)
3 years (1,095 days)
4 years (1,460 days)
5 years (1,825 days)
6 years (2,190 days)
10 years (3,650 days)
Many/most other carriers have suspended sales on lifetime/unlimited benefit periods.
POLICY BENEFITS MAY VARY BY STATE

11. Policy Building Blocks Total Pool of Money
Daily Example
$200/Day Benefit
5 Years (1,825 Days)
$365,000 Total Benefit
Monthly Example
$6,000/Month Benefit
5 Years (60 Months)
$365,000 Total Benefit
To calculate the total benefits or total pool of money you multiply the Benefit period by the benefit amount.
For example:
$200/day benefit X 5 years (1825 days)=$365,000 (Total Benefit) or
$6,000/month benefit X 5 years (60 months)=$360,000 (Total Benefit)
POLICY BENEFITS MAY VARY BY STATE

12. Policy Building Blocks Elimination Periods (EP)
Deductible where client pays for services before the policy pays
30 days of service
60 days of service
90 days of service
180 days of service5
365 days of service5
“True cumulative” EP: days of service do not need to be consecutive or within the same claim
For home care, at least 2 hours of covered care is required to count as one day toward the EP.
1 = 1
Think of the elimination period as a deductible, where the insured must pay for covered serviced before the policy begins paying. The choices of elimination periods are:
30 days of service
60 days of service
90 days of service
180 days of service
365 days of service
With Custom III featuring Benefit Builder we use a “True cumulative” EP: meaning days of service do not need to be consecutive or within the same claim.
For home care, at least 2 hours of covered care is required to count as one day toward the EP.
For insured’s receiving Home Health Care (HHC), one HHC day of service in a calendar week equals one day of service for satisfying the elimination period.
5. Not available in VT.
POLICY BENEFITS MAY VARY BY STATE

13. Inflation Options Benefit Builder CPI Compound Inflation
CPI Compound Inflation to Age 75
5% Compound Inflation
Custom Care III featuring Benefit Builder offers a variety of inflation choices.
In addition to the Benefit Builder option, the policy still offers CPI, CPI to Age 75 and 5% Compound.
The new Benefit Builder option is an affordable alternative to traditional inflation options that enables coverage to increase gradually over time. It is particularly advantageous to younger buyers ages 40 to 60 who have the potential for a longer growth period prior to claim. Benefit Builder has both a Voluntary feature and an Automatic feature.
POLICY BENEFITS MAY VARY BY STATE

14. Why we developed Benefit Builder
The next step to our product portfolio approach in the market
In response to the prolonged low interest rate environment
Interest rates have required carriers to re-price product multiple times over the past few years
To help grow the industry
6. LIMRA Individual Long-Term Care Insurance Sales 2002 and 2011.
Industry sales decreased by 45% − average premium increase 36%
2002 industry sales of approximately $1 Billion, average premium $1,7606
2011 industry sales of approximately $545 Million, average premium $2,4006
Benefit Builder is the next step in our product portfolio approach to the market. Our hope is that this approach will help the industry grow. In 2002 industry sales were approximately $1 Billion and the average annual premium was $1,760. In 2011 industry sales had decreased by 55% to $545 Million and the average annual premium had increased by 36% to $2,400, making LTC insurance unaffordable for many consumers.
POLICY BENEFITS MAY VARY BY STATE

15. What is Benefit Builder?
A truly innovative approach to providing LTC insurance for price sensitive consumers
Allows a policyholder to potentially grow their benefits at a price about half of what traditional policies cost today
It is positioned as a default feature on our new Custom Care III policy
Comprehensive Coverage
Low Price Point
Potential for Automatic Benefit Growth
Access to New Markets
Given the current environment, and the changing needs of consumers, John Hancock created Benefit Builder, a truly innovative approach to providing LTC insurance for price sensitive consumers. This new feature allows a policyholder to potentially grow their benefits at a price about half of what traditional policies cost today, and is the new default inflation option on our CCIII policy. Benefit Builder combines comprehensive coverage, a low price point, and the potential for automatic benefit growth, providing you with access to new markets for LTC insurance.
POLICY BENEFITS MAY VARY BY STATE

16. Benefit Builder Voluntary feature
Voluntary – Additional Premium
Buy-ups similar to GPO are offered every three years to age 75
Option to increase benefits by 10%
Increases are at attained age rates without evidence of insurability
Issue age 64 and under may decline one offer and receive future offers. Issue age 65+ must accept all offers or the offers cease
Offers can be resumed with evidence of insurability six months before the policyholder's originally scheduled next "buy-up" offer date.
Offers will no longer be available if:
benefits have ever been paid;
policyholder was Chronically Ill during the two year period prior to the option date; or
policy has Survivorship and Waiver of Premium Benefit
The Voluntary feature offers Buy ups similar to GPO. The policyholder has the option to buy-up an additional 10% of benefits every three years to age 75.
Increases are at attained age rates without evidence of insurability.
For issue age 64 and under may decline one offer and receive future offers. For issue age 65+ must accept all offers or the offers cease. Offers can be resumed with evidence of insurability six months before the policyholder's originally scheduled next "buy-up" offer date.
Offers will no longer be available if benefits have ever been paid; if policyholder was Chronically Ill during the two year period prior to the option date; or if policy is Limited Pay or has Survivorship and Waiver of Premium Benefit.
POLICY BENEFITS MAY VARY BY STATE

17. Benefit Builder Automatic feature
Automatically – Premium does not change
Concept is similar to participating whole life insurance policies
Allows the policy benefits to grow gradually over time with no corresponding increase in premium
When the cumulative Portfolio Rate of Return on the Benefit Builder Portfolio exceeds 3%, the unique crediting feature automatically increases the daily/monthly benefit.
Automatic crediting will continue if on claim
The Automatic feature of Benefit Builder is the most innovative. It is built-in and does not increase premiums. For those of you who are familiar with life insurance, the concept is similar to a participating whole life insurance policy that allows the policy benefits to grow gradually over time with no corresponding increase in premium. When the cumulative Portfolio Rate of Return on the Benefit Builder Portfolio exceeds 3%, the unique crediting feature automatically increases the daily/monthly benefit. This automatic crediting will continue even if the policyholder goes on claim.
POLICY BENEFITS MAY VARY BY STATE

18. Benefit Builder Unique crediting feature
Portfolio Rate of Return 3% ( )
Allocated Reserve Value
Any adjustments for negative excess earnings credits occurring in prior years
Excess Earnings Credits
Single Premium Rate (Per $1 of coverage)
ANNUAL BENEFIT INCREASE AMOUNT
How does this unique crediting feature work?
On each policy anniversary an Excess Earning Credit is calculated using the following formula:
[(Portfolio Rate of Return minus 3%) multiplied by the Allocated Reserve Value] less any adjustments for negative excess earnings credits occurring in prior years. The Excess Earning Credit is then divided by a Single Premium Rate per $1 of coverage to determine the annual benefit increase amount for that year.
POLICY BENEFITS MAY VARY BY STATE

19. Benefit Builder Automatic benefit increase example
Issue Age 50, Married, Preferred, $200 Daily Benefit, 90-Day Elimination Period,
3-Year Benefit Period, $219,000 Starting Policy Limit
Assumes consistent hypothetical 6% Portfolio Rate of Return
Age
Premium
Daily Benefit
Policy Limit 80
$845
$292.77
$320,583 81
$299.65
$328,117
Allocated Reserve Value X (
Portfolio Return ) + =
Excess Earnings Credit /
Single Premium (per $1)
Automatic Benefit Increase
Buy-Up
Prior Daily Benefit -
3.0%
Age
$36,800
6.0%
$1,104
$167
$6.62 $0
$286.15 80
$39,123
$1,174
$171
$6.88
$292.77 81
Prior Negative Credits
New
Daily Benefit
$299.65
Here is an example to help clarify. Here we have a client who purchased $200 a day, 90 day Elimination Period and 3-year Benefit Period at age 50 is married, and qualified for preferred rates. The starting Policy Limit is $219,000.
Assuming a constant 6% Portfolio Rate of Return we will look at a snapshot of 30 years into the policy. The client is now age 80 and is still paying the original annual premium of $845. Assuming no buy-up options were taken, their current daily benefit has grown to $ a day based on the Automatic feature of Benefit Builder and their current policy limit is $320,583.
The second chart shows you what is happening behind the scenes. Using the formula, we take the Allocated Reserve Value (In this example $36,800) and multiply that by the Portfolio Return minus 3% (In this example 6%-3%) to get the Annual Portfolio Rate of Return of 3%. Assuming there were no Negative Credits from prior years the Excess Earning Credit is $1,104. The single premium for $1 of benefits at age 80 is $167. So for this year, the Automatic Benefit Increase is $6.62 bringing the new daily benefit to $
If we assume another year of 6% Portfolio Rate of Return, you can see the increase from age 80 to age Again, the policyholder paid not additional premium for this increase, it happened automatically.
POLICY BENEFITS MAY VARY BY STATE

20. Benefit Builder Sample illustration
Issue Age 50, Married, Preferred, $200 Daily Benefit, 90-Day Elimination Period, 3-Year Benefit Period
AGE
PREMIUM
LTC BENEFIT
POLICY LIMIT 50
$845.00
$200.00
$219,000
3.0%
5.0%
6.0%
7.0% 51 52 53
$200.05
$219,055
$200.07
$219,077
$200.09
$219,099 54
$200.26
$219,285
$200.38
$219,416
$200.50
$219,548 55
$200.63
$219,690
$200.94
$220,029
$201.25
$220,369 56
$201.16
$220,270
$201.74
$220,905
$202.33
$221,551 57
$201.85
$221,026
$202.79
$222,055
$203.75
$223,106 58
$202.69
$221,946
$204.08
$223,468
$205.50
$225,023 59
$203.68
$223,030
$205.60
$225,132
$207.58
$227,300 60
$204.82
$224,278
$207.36
$227,059
$209.99
$229,939 61
$206.11
$225,690
$209.36
$229,249
$212.74
$232,950 62
$207.55
$227,267
$211.60
$231,702
$215.84
$236,345 63
$209.13
$228,997
$214.07
$234,407
$219.28
$240,112 64
$210.84
$230,870
$216.77
$237,363
$223.05
$244,240 65
$212.68
$232,885
$219.68
$240,550
$227.15
$248,729 66
$214.66
$235,053
$222.83
$243,999
$231.61
$253,613 67
$216.78
$237,374
$226.23
$247,722
$236.44
$258,902 68
$219.04
$239,849
$229.87
$251,708
$241.64
$264,596 69
$221.44
$242,477
$233.75
$255,956
$247.22
$270,706 70
$223.98
$245,258
$237.88
$260,479
$253.19
$277,243
Since the formula can be confusing to follow, the illustration system will look similar to our CPI inflation illustration. With Benefit Builder we illustrate the minimum 3% reflecting no growth and then hypothetical 5%, 6% and 7% annual returns on the Portfolio.
POLICY BENEFITS MAY VARY BY STATE

21. Benefit Builder Historical perspectives
The 5%, 6% & 7% Portfolio Rates of Return are hypothetical for illustration purposes only
The investment mix of the Portfolio may change over the life of the policy
We currently expect to invest approximately 80 percent of the Portfolio in fixed income investments, with a smaller portion in equities
PERIOD
Fixed Income*
S&P 500 EQUITIES***
1 year
4.5%
2.1%
3 years
5.2%
13.6%
5 years
5.7%
0.1%
10 years
5.7%
3.0%
20 years
6.5%
7.7%
30 years
7.9%
10.6%
The 5%, 6%, and 7% Portfolio Rates of Return are hypothetical for illustration purposes only and the investment mix of the Portfolio may change over the life of the policy. However, we are currently expecting to invest approximately 80 percent of the Portfolio in fixed income investments with a smaller portion in equities. If we look at historical annualized returns of investments for similar asset classes as shown in this chart, we can be comfortable with the annual hypothetical returns we are illustrating.
The projection of future Benefits and Policy Limits for the Benefit Builder feature are hypothetical for illustration purposes only. Actual changes to the Benefits and Policy Limit are based upon the actual performance of the Portfolio, the actual Allocated Reserve Value and the actual single premium rates.
We have sole discretion over the investment of assets in our general account and policyholders do not have any preferential claim on those assets. While this investment approach is intended to produce results that would maximize benefit increases over the long term, this approach could cause variability of results from year to year.
NOTES Historical annualized returns on investments for similar asset classes may be shown by reference to the above benchmark indices for various periods ending on December 30, 2011.
*Based on weighted average yields on Barclays Intermediate Corporate, A Corporate, US Corporate 7-10 years and Long US Corporate indices. Weights reflect current fixed income investment strategy and data availability.
**Based on S&P 500 index and S&P 500 dividend yields.
POLICY BENEFITS MAY VARY BY STATE

22. Other Inflation Protection CPI Compound Inflation
Provides meaningful and appropriate inflation protection
Annual Compound increases based on the Consumer Price Index (CPI)7
CPI is the most widely used measure of inflation
Highly weighted towards housing & labor costs
No limit to the CPI increase8
If CPI is negative, benefits remain level9
CPI Compound Inflation is another inflation option which provides annual compound increases based on the results of the Consumer Price Index (CPI) with no limit on the CPI increase that can be applied to the policy in any one year.
This inflation option ensures that clients get the compound inflation protection they need in a cost-effective manner.
Every year, on a client’s policy anniversary, his or her Daily/Monthly Benefit and Total Pool of Money automatically will be adjusted on a compounded basis, according to increases in the CPI. The potential amount of your client’s annual CPI increase is unlimited, even during periods of the highest inflation. In the event that the CPI decreases, the benefit amount will not be reduced. The increase is automatic and will be made even if the insured is Chronically Ill.
7. CPI refers to the Consumer Price Index–All Urban Consumers, published by the Bureau of Labor Statistics for the United States Department of Labor.
8. The rate used to determine the increase in benefits will be calculated based on the percentage change in the CPI three months prior to the policy anniversary date compared to the monthly CPI for the same time period one year prior.
9. Future CPI increases to the benefit amount will be offset by prior decreases in the CPI.
POLICY BENEFITS MAY VARY BY STATE

23. Other Inflation Protection CPI Compound Inflation to age 75
Same as CPI Compound Inflation
CPI Compound increases each policy anniversary up to your client’s 75th birthday
Not available to applicants older than age 70
Annual increases in benefits are based on changes in the CPI, and will occur on each policy anniversary through your client’s 75th birthday. GIO is also included in this inflation option. This option is available to applicants age 70 and younger.
POLICY BENEFITS MAY VARY BY STATE

24. Guaranteed Increase Option (GIO) Included with CPI Compound Inflation
Option to increase Benefit Amount by 5% every 3 years
The GIO increase is in addition to the annual CPI increase
No underwriting
Premiums based on attained age and rates in effect on option date
Not available if client has been Chronically Ill during the 2 year period prior to the Option Date, after 2 declined offers, or if the Option Date occurs on or after age 75
In addition to any annual CPI increases received, your client will also have a Guaranteed Increase Option (GIO), which gives them the opportunity every three years to increase their existing benefits by 5% — for any reason, and with no health questions or exams. Benefit increases made through the GIO will require additional premium.
GIO is not available if client has been Chronically Ill during the 2 year period prior to the Option Date, after 2 declined offers, or if the Option Date occurs on or after age 75.
POLICY BENEFITS MAY VARY BY STATE

25. Other Inflation Protection 5%Compound Inflation Option
LTC Benefit Amount & Total Pool of Money increased by 5% compound, each year
Increases applied to the remaining Pool of Money, even if Chronically Ill
With 5% Compound, on each policy anniversary, the Benefit Amount and remaining Total Pool of Money will increase by 5%, compounded annually, for the life of the policy. The increase is automatic and will be made even if the insured is Chronically Ill.
POLICY BENEFITS MAY VARY BY STATE

26. Built-in Benefits Double Coverage for Accident Benefit10
100% Reimbursement up to two times the maximum daily or monthly benefit if care is the result of an accident prior to age 65
Benefits paid in excess of the Benefit Amount will not be deducted from the Total Pool of Money
For the entire duration of the claim
Lifestyle underwriting and ability to issue without benefit to preserve case
Return of Premium10
Total premiums paid less policy benefits paid when death occurs prior to age 65
Geared toward the younger market, this built-in feature will reimburse expenses to the policyholder for up to two times the Daily or Monthly Benefit Amount if qualified services are needed due to an accident prior to age 65. The doubling of the Benefit Amount will be for the entire duration of the claim (as long as the claim was incurred prior to age 65). Benefits paid in excess of the Daily or Monthly Benefit Amount will not be deducted from the Total Pool of Money. This benefit is specifically underwritten (a policy can be issued without the benefit endorsement). It is added in the form of an endorsement due to the fact that the inclusion of such benefit is contingent upon the applicant completing the age, occupation, and lifestyle questions in a satisfactory manner.
This is another benefit designed for the younger market. If death occurs prior to age 65 while the policy is in-force, a benefit will be paid to the beneficiary equal to total premiums paid less the policy benefits paid. This benefit is contained within the core of the policy and applies to individuals age 64 or younger.
10. Not available to applicants and policyholders over the age of 65.
POLICY BENEFITS MAY VARY BY STATE

27. Built-in Benefits
Caregiver Support Services (Support for clients and their families)
Personalized telephone & website support
Access to quality reports and ratings on a range of home care providers, Nursing Homes and Assisted Living Facilities nationwide
Access to exclusive provider discounts (up to 35%)
Care advocacy services
Family members include spouse or partner, grandparents, parents, siblings, children, and all in-law and step equivalents of the policyholder
Chances are your clients will be called upon to provide care for someone else before they need care of their own. At a minimum, they may want to help their loved ones get the best care they can when that time comes. John Hancock’s Caregiver Support Services does just that, by providing personalized telephone and website support on caregiving questions, concerns, or situations people may be experiencing as caregivers.
Policyholders can access quality reports and ratings on a range of home care providers, nursing homes, and assisted living facilities nationwide. In addition, policyholders will get access to exclusive provider discounts and care advisory services for family members, which may enable them to save anywhere from up to 35% on the cost of care provider services.
POLICY BENEFITS MAY VARY BY STATE

28. Built-in Benefits Care Advisory Services (CAS)
The benefit eligible policyholder may choose an independent professional to assist in determining the care and treatment plan
1/3 the Monthly or 10X the Daily Benefit Amount, annually
May be paid before the EP is satisfied
Does not reduce the Total Pool of Money
Does not count towards the EP
The policyholder can choose an independent professional to assist in determining their care and treatment plan. The benefit is covered up to the Care Advisory Services amount. This amount is equal to 1/3 of the Monthly Benefit (or 10 times the Daily Benefit) per calendar year. This benefit can be paid before the Elimination Period is satisfied. Care Advisory Services benefits paid do not count toward the Elimination Period. This benefit does not reduce the Total Pool of Money.
POLICY BENEFITS MAY VARY BY STATE

29. Built-in Benefits Additional Stay at Home Benefit
Home modifications, durable medical equipment, caregiver training, home safety checks, provider care checks, and medical alert systems
1X the Monthly or 30X the Daily Benefit Amount
May be paid before the EP is satisfied
Must be benefit eligible
Does not reduce the Total Pool of Money
Does not count towards the EP
The Additional Stay at Home Benefit amount is equal to the Monthly Benefit (or 30 times the Daily Benefit) on a lifetime basis. This benefit is not subject to the Elimination Period, and benefits paid do not count toward the Elimination Period. This benefit does not reduce the Total Pool of Money, as it is a separate Pool of Money. The following are covered up to the Additional Stay at Home Benefit amount:
• Home modifications
• Home safety checks
• Durable medical equipment
• Provider care checks
• Caregiver training
• Medical alert systems
POLICY BENEFITS MAY VARY BY STATE

30. Built-in Benefits Waiver of Premium Bed Hold Benefit
Begins once the Elimination Period is satisfied
Ends once benefits are no longer payable
Bed Hold Benefit
Actual covered charges will be paid to ensure your room will be available at a facility when a stay is interrupted for any reason
Up to 60 days per calendar year
Subject to the elimination period and does reduce the Total Pool of Money
Waiver of Premium is applicable when the policyholder is Chronically Ill. It begins once the Elimination Period is satisfied. It ends when benefits are no longer payable for that claim.
POLICY BENEFITS MAY VARY BY STATE

31. Built-in Benefits International Coverage Hospice Benefit
Receive coverage for care anywhere in the world11
Reimbursement basis for actual expenses
Up to 100% of the Benefit Amount for 1 year
Payment in U.S. currency
All benefits except Double Coverage for Accident Benefit, Additional Stay at Home Benefit, Independent Home Health Care Providers, Waiver of Home Health Care Elimination Period, Additional Cash Benefit, and Care Advisory Services
Hospice Benefit
Accessible during the Elimination Period
Covers end-of-life care
Support for family included
Not reimbursable under Medicare
This benefit provides coverage anywhere outside of the United States, for up to one year. The Benefit Amount will be based on 100% of the Daily or Monthly Benefit (paid in U.S. dollars). All services are covered except for the Additional Stay at Home Benefit, Independent Home Health Care Providers, Care Advisory Services, Double Coverage for Accident Benefit, Waiver of Home Health Care Elimination Period, and Additional Cash Benefit. (We will not pay for care or treatment in any sanctioned countries or territories.)
Hospice Care Benefit is a new option that we are offering.
This benefit will cover end-of-life care for your client (in their home or in a facility), and includes support for your client’s family. Hospice Care that is not reimbursable under Medicare is accessible during the Elimination Period.
11. We will not pay for care or treatment in any sanctioned countries or territories.
POLICY BENEFITS MAY VARY BY STATE
POLICY BENEFITS MAY VARY BY STATE

32. Consumer Protection Features
Alternate Services Benefit
Benefit helps to ensure that policyholder has access to emerging services that may develop over time, but are not currently identified in their policy
Example, in certain circumstances, benefits for services not specifically covered under the policy (like robotics) may be authorized at the time of the claim
Benefit paid must be a lower cost alternative to covered services
This benefit helps to ensure that policyholders will have access to emerging services that may develop over time, but are not currently identified in their policy. For example, in certain circumstances, benefits for services not specifically covered under the policy, like robotics, may be authorized at the time of the claim. The benefit paid must be a lower-cost alternative to covered services.
POLICY BENEFITS MAY VARY BY STATE

33. Consumer Protection Features
Contingent Nonforfeiture
In effect if the optional Nonforfeiture rider is not chosen
In the event of a rate increase exceeding a threshold % based on issue age
Two options
Reduce benefits
Reduced Total Pool of Money equal to the sum of the premiums paid but no less than 30X daily benefit
Convert to paid-up
If the optional Nonforfeiture rider is not chosen, this feature will be included in the policy at no cost. If the policy lapses following a rate increase that exceeds a certain cumulative percentage (varies by issue age), the policyholder will have the right to reduce their policy benefits so the premium payments do not increase, or convert coverage to a paid-up status, under which no further payments are due. The policy will remain in-force with a reduced Total Pool of Money equal to the sum of the premiums they have paid. This means that a reduced benefit will be payable instead of the Total Pool of Money. The benefit will be no less than 30 times the Daily Benefit Amount.
POLICY BENEFITS MAY VARY BY STATE

34. Consumer Protection Features
Third Party Billing Notification
The policyholder may designate a person to receive notice if a premium is overdue
Thirty Day Free Look
If the policyholder is not satisfied, they may return the policy within 30 days for a refund
Guaranteed Renewable
John Hancock cannot cancel a policy if the client pays their premiums on time
Company reserves the right to increase the premiums by class, subject to state approval
The policyholder may designate someone to receive notice of the overdue premium before the policy lapses.
If the policyholder, for any reason, is not completely satisfied with the policy, he/she may return the policy within 30 days after it was delivered for a refund of all premiums paid.
The policy is guaranteed renewable for life or until the policy limit is reached. Premiums are not guaranteed to remain unchanged. As long as your client pays the required premium, they have the right to continue the policy for as long as they live or until the policy limit is reached.
However, we do reserve the right to increase premium as of any premium due date in the future.
POLICY BENEFITS MAY VARY BY STATE

35. Consumer Protection Features
Grace Period
The policy has a 65-day grace period
If renewal is not paid within 30 days of due date:
We will notify designated person(s) and give 35 additional days to pay the premium with the policy in effect
This policy has a 65-day grace period. This means that if a renewal premium is not paid within 30 days from the date it is due, we will notify the policyholder and the person(s) designated to receive notification. There is an additional 35-day period after the notice is sent to pay the premium. During the grace period, the policy will stay in effect.
POLICY BENEFITS MAY VARY BY STATE

36. Five Optional Riders SharedCare
Survivorship and Waiver of Premium Benefit
Waiver of Home Health Care Elimination Period12
Additional Cash Benefit13
Nonforfeiture
Custom Care III featuring Benefit Builder offers our most popular optional riders including:
SharedCare
Survivorship and Waiver of Premium Benefit
Waiver of Home Health Care Elimination Period
Additional Cash Benefit and
Nonforfeiture
12. Waiver of Non-Facility Elimination Period in OR.
13. Not available in OR.
POLICY BENEFITS MAY VARY BY STATE

37. Optional Riders SharedCare
Allows partners to access the benefits under the other’s policy once their benefits are exhausted
If either partner dies, survivor’s policy is automatically increased by the remainder of deceased’s Total Pool of Money
Both partners must have rider and identical benefit options except elimination period14
60 Day offer of a 2-year benefit plan for policyholder whose benefits are exhausted by partner
Not subject to underwriting, at attained age
Prior to age 91, no claims in prior two years, not Chronically Ill in the prior 2 years
Rider Cost 26%, 16%, 11%, 10%, 8% & 5% for 2/3/4/5/6 & 10 yr BP
This benefit allows partners to access the available benefits under the other’s policy once their own policy is exhausted. If either partner dies, the survivor’s policy is automatically increased by the remainder of deceased’s Total Pool of Money. Premiums for both riders and the deceased’s policy are dropped. There is a 60-day purchase offer of a 2-year benefit plan for the policyholder whose benefits are exhausted by their partner. Rates are based on attained age; the policyholder will not be subject to underwriting and cannot be determined Chronically Ill in the prior two years in order to qualify. This offer is good through age 90.
14. Partners must select the same benefit options, except Elimination Period. For policies issued Substandard class, SharedCare is only available with a 2 or 3-year Benefit Period.
POLICY BENEFITS MAY VARY BY STATE

38. Optional Riders Survivorship and Waiver of Premium Benefit
If partner is Chronically Ill, the premium for the healthy partner is waived (both premiums are waived)
If partner dies, surviving partner’s policy becomes paid up
Both policies must have been in-force for 10 years with no claims in first 10 years
Not available with Benefit Builder Voluntary Buy-Ups or GIO
Rider Cost 9%
Both partners are not required to purchase this rider, although both must have a John Hancock individual LTC insurance policy. The partner who purchases this rider will have a paid-up policy if their partner dies, or will have their premiums waived while their partner’s premiums are waived if the following conditions apply:
No benefits (except for Care Advisory Services) have been paid under either policy during the first 10 years in-force
On the date of the partner’s death or premium waiver, both partners have policies in-force for a period of 10 consecutive full years
On the date of the partner’s death or premium waiver, this rider has been in-force for 10 years
Survivorship and Waiver of Premium is not available with:
Benefit Builder Voluntary Buy-Ups or GIO
POLICY BENEFITS MAY VARY BY STATE

39. Optional Riders Waiver of Home Health Care Elimination Period
Waives Elimination Period for Home Health Care
Creates a zero-day HHC EP
Days of HHC count towards the Facility EP
Waiver of Premium begins once the Facility Elimination Period is met
Not available 180/365 day EP
Rider Price 15%
This option waives the Elimination Period for home health care, creating a Zero-Day Elimination Period. The days of home health care count toward satisfying the facility Elimination Period. The waiver of premium begins once the facility Elimination Period is met. This rider is not available with a 180-day or 365-day Elimination Period.
POLICY BENEFITS MAY VARY BY STATE

40. Optional Riders Additional Cash Benefit
Separate monthly pool of funds to help the prospect stay at home
Cash benefit equal to 15% of the Monthly Benefit or 4.5 times the Daily Benefit if insured is receiving HHC and not receiving facility care
Separate additional Pool of Money for use at the discretion of the insured
Subject to the EP
At certain levels this benefit may create a taxable event15
Rider cost 10%
This indemnity benefit is a separate Pool of Money that assists the policyholder in staying at home. The monthly cash benefit is equal to 15% of the Monthly Benefit Amount or 4.5 times the Daily Benefit Amount. It is payable if the insured is receiving home health care (and not receiving facility care during the month) and can be used to pay for a variety of expenses. This benefit is subject to the Elimination Period, but does not reduce the Total Pool of Money. The monthly benefit will continue to be paid until the insured is no longer eligible or the policy ends. At certain benefit levels, benefits received may create a taxable event.
15. Please consult your professional tax advisor.
POLICY BENEFITS MAY VARY BY STATE

41. Optional Riders Nonforfeiture
Insured receives policy with reduced Total Pool of Money if the policy lapses after it has been in force for at least 3 years (one year with Limited Pay policies)
Reduced Total Pool of Money is the sum of all premiums paid
Rider Cost 6%
If the policyholder selects this option, he or she will receive a policy with a reduced Total Pool of Money if the policy lapses after it has been in-force for at least three years. The reduced Total Pool of Money will be the sum of the total premiums paid, but not less than 30 times the Daily or one times the Monthly Benefit Amount. The Benefit Amount will remain the same with a resulting shortened Benefit Period. This optional rider may be dropped after issue.
POLICY BENEFITS MAY VARY BY STATE

42. Ratings and Discounts Underwriting Classes
Preferred (Discounted 10% of Select)
Standard (Select)
Class I (125% of Select Premium)
Class II (150% of Select Premium)
Custom Care III featuring Benefit Builder offers four underwriting classes:
Preferred (discounted 10% off Select premium)
Select (Select)
Class I (125% of Select premium)
Class II (150% of Select premium)
POLICY BENEFITS MAY VARY BY STATE

43. Ratings and Discounts Couples/Partner Discounts Defined as:
Spouse of a married couple (or)16
Same sex or opposite sex partners that have lived together 3 years (or)
Family members of the same generation that have lived together 3 years
30% if both applying, approved and both accept coverage
35% Cap Discount for Preferred, Both Apply & Approved
Discounts are based on Select Rates
Partner discounts are available with CCIII.
Partners are defined as:
Married couples
People who have lived with a family member of the same generation for at least three years
People who have lived with a partner of the same sex or opposite sex for at least three years
The Couples/Partner discount is 30% if both insureds apply, are approved, and accept the coverage.
The maximum combination of Preferred and Couples/Partner Discounts is 35%
All discounts are based on Select (Standard) rates
16. In OR, no 3 year living together requirement for same sex or opposite sex couples.
POLICY BENEFITS MAY VARY BY STATE

44. Additional 5% Discount Programs17
Sponsored Group Discount
For employers with 5 or more employees participating or associations with 10 or more 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
Additional Discounts include:
Sponsored group which enables you to provide employers and associations with a way to make individual LTC insurance policies available to their employees or members at a 5% discount. This discount can also extend to their eligible family members and retirees. Eligible family members include spouses, partners, children, parents, grandparents, siblings, and all in-law and step equivalents.
The Family Discount where three or more members of an immediate family purchase individual John Hancock LTC insurance policies, a 5% discount will apply. Eligible family members include spouses, partners, children, parents, grandparents, siblings, and all in-law and step equivalents.
With the Valued Client Discount your existing Manulife and John Hancock life and annuity clients may be eligible for a 5% discount on the purchase of a new LTC insurance policy.
Family members, including spouses, partners, children, parents, grandparents, siblings, and all in-law and step equivalents, are also eligible for the Valued Client Discount.
These discounts are not available in conjunction with each other. The discounts are multiplicative and there is a commission reduction when these discounts are applied.
17. Sponsored Group, Family and Valued Client discounts can’t be used in conjunction with one another. There is a commission reduction with the Sponsored Group, Family and Valued Client Discounts. Please refer to the LTC producer guide LTC-8522 for discount parameters and combination details.
POLICY BENEFITS MAY VARY BY STATE

45. Payment Options Modal options Paid Up At Age 95 Annual Semi-annual
Quarterly
Monthly Bank Draft
Bank Draft available for all modes
Paid Up At Age 95
After 95, no additional premium required to keep policy in-force
Your client has the option to pay premiums in a number of ways:
Monthly (Bank Draft)
Quarterly
Semi-annually
Annually
A new additional built-in feature in our Custom Care III featuring Benefit Builder is the Paid Up At Age 95.
The policy will be paid up at age 95. After your client reaches this age, no additional premium is required to keep the policy in-force.
POLICY BENEFITS MAY VARY BY STATE

46. Illustrations eHansel Hansel
Custom Care III featuring Benefit Builder can be illustrated, in approved states using eHansel, ltc.ehansel.com
Hansel
Hansel is also available for download from the producer website,
Illustrations can be run using eHansel, our online illustration system available at ltc.ehansel.com or Hansel which can be downloaded from the producer website at
POLICY BENEFITS MAY VARY BY STATE

47. Why John Hancock Manulife Financial at 125, founded in 1887
Led by Canada’s first Prime Minister
John Hancock at 150, founded in 1862
Named for one of our Founding Fathers
John Hancock Long-Term Care at 25, entered market in 1987
Industry pioneer and leader now serving 1.3 Million policyholders
Review bullet points.

48. Why John Hancock
John Hancock leading brand with 94% overall consumer awareness18
And 98% among the affluent
LTC insurance experience19
25 years of LTC industry experience
Over 1.3 million LTC insurance policyholders
Over $2 billion of in-force LTC insurance premium
Over $27.6 billion of total funds under management
Over $4 billion in LTC claims paid
Over $2 million paid out every day
Over 700 employees dedicated to LTC
John Hancock Overview and LTC Experience.
See bullet points.
18. Chadwick Martin Bailey 2007.
19. John Hancock Internal Claims Data 12/31/11

49. John Hancock Life Insurance Company (U.S.A.)
Strength & stability Financial ratings among the highest in the insurance industry20
John Hancock Life Insurance Company (U.S.A.)
A.M. Best
A+ (2nd of 15 ratings)
Superior ability to meet ongoing obligations.
Fitch Ratings
AA- (4th of 21 ratings)
Very strong capacity to meet policyholder and contract obligations.
Standard & Poor’s
Very strong financial security characteristics.
Moody’s
A1 (5th of 21 ratings)
Good financial security.
93 Comdex Rating
Why John Hancock?
In today’s economic environment, financial strength of a carrier is more important than ever.
John Hancock has brand name recognition and a name that consumers know and trust
Financial ratings amongst the highest in the insurance industry
A commitment to the LTC insurance line
150 years of experience providing insurance products
Outstanding corporate citizenship
20. Financial strength ratings, which are current as of April 30, 2012, and are subject to change, measure the Company’s ability to honor its financial commitments. The ratings are not an assessment or recommendation of specific policy provisions, premium rates, or practices of the insurance company. The Comdex, which is current as of August 31, 2011, is a composite of financial strength ratings as judged by Standard and Poor’s, Moody’s, A.M. Best and Fitch Ratings. It gives the average percentile ranking in relation to all other companies that have been rated by the rating services. For more information go to (VitalSigns).
POLICY BENEFITS MAY VARY BY STATE

50. Conclusion John Hancock remains a committed LTC insurance leader
In a price sensitive market, John Hancock offers two solutions that respond to the economic environment
Benefit Builder and CPI Inflation
Custom Care III featuring Benefit Builder is a benefit rich policy
Competitively priced
Incorporating the most recent claimant data
Reflects the most current interest rates and economic assumptions
There has never been a better time to leverage current market conditions and purchase LTC insurance

51. Policy Benefits and Features Custom Care III featuring Benefit Builder
Thank You!
Long-term care insurance is underwritten by John Hancock Life Insurance Company (U.S.A.), Boston, MA (not licensed in New York) and in New York by John Hancock Life & Health Insurance, Boston, MA
LTC /12
For financial professional use only. Not for use with the public.. 51