long term care is underwritten by john hancock life insurance company, boston, ma 02117

Long Term Care is Underwritten by John Hancock Life Insurance Company, Boston, MA 02117.For professional use only. Not for use with consumers.

LTC-5516 7/2006

Welcome

A Standard of Excellence

► Leadership► John Hancock is a committed leader in the Long Term Care

Insurance (LTCI) Market► LTCI Solutions through innovative, competitive and responsible

product offerings► John Hancock is one of the two largest LTCI carriers in the country¹► We have more than 936,000 LTCI insurance policyholders in-force

as of June 30, 2006²► Brand Recognition

► John Hancock is one of the leading brands among consumers in the country, with 95% consumer awareness³

1. Based on inforce premium LIMRA year-end 12/31/052. Based on John Hancock internal claims data as of June 30, 2006. Total includes individual and group LTCI and 50% of the Federal Long Term Care Insurance Program3. Roper Research and Plan-it Marketing, 2001Policy benefits may vary by state.

1. Based on internal data as of 12/31/05.2. Based on internal data, including individual, group, Fortis and the Federal Long Term Care Insurance ProgramPolicy benefits may vary by state.

A Standard of Excellence

► A History of Paying Claims for our Policyholders– We have more than $6 billion in LTCI claims reserves¹– With 20 years of LTCI experience, we are a company that has kept its

promises, paying more than $1 billion² in claims on our LTCI policies► Strength & Stability

– Ratings as of 6/15/06 John Hancock Life Insurance Co. ■ S&P AA+■ MOODY’S Aa2■ A.M. BEST A++■ FITCH AA+■ Comdex Rating 98

Product Features & Benefits

Product features, options, availability and rates vary by state.

100%

110%

120%

130%

140%

150%

160%

170%

Allianz Genw orth Met Mass Pru MedAm CC II

45 50 55 60 65

Leading Edge vs the Competition5-Year, 90/100 day Elimination Period, $4,500 Monthly Maximum, Compound Inflation, Married Select

Premium Sweet Spots: ALL Ages

Privileged Choice

SimplicityIdeal 2 MM- 400 LTC-3Generation Protector II

Custom Care II

Percentage to Leading Edge Premiums

Competitive information is accurate to the best of our knowledge as of 6/2006Policy benefits may vary by state.

Qualifying for Benefits

► Eligibility for Benefits ► Need Substantial Assistance to perform at least two of the six

Activities of Daily Living – Bathing, continence, dressing, eating, toileting, or transferring– Substantial Assistance means “Hands-on or Stand-by” assistance

(or)► Requires Substantial Supervision to protect himself or herself due to

presence of “Severe Cognitive Impairment”– Clinical evidence and standardized tests (and)

► A licensed health care practitioner certifies the ADL disability is expected to continue for at least 90 days

Policy benefits may vary by state.

Covered Expenses

► Coverage– Pay actual charges up to the LTCI Benefit Amount

■ At home > Adult Day Care, Professional/ Non-Professional Care,

Hospice Care and Full/ Total Homemaker Services> Independent home health care

■ In a Nursing Home or Assisted Living Facility– Unused benefits extend the benefit period


Built in Policy FeaturesStaying at Home for as Long as Possible

► Total homemaker services¹ – household duties, such as laundry, meal preparation,

and paying bills – monitor medications – reduces Total Benefit– subject to the Elimination Period– no “incidental” requirement

1. Total homemaker services does not include shoppingPolicy benefits may vary by state.


► Independent home health care– Covers unlicensed providers

■ Personal Care Services where provider qualification is not required> Immediate family members can be compensated if working

through an approved provider


Plan of CareStaying at home for as long as possible

► Policy language allows for flexibility in coverage and ability to develop Plan of Care that meets client needs now and in the future

Plan of Care means a written plan for long term care services designed especially for You. This Plan of Care must specify the type, cost, frequency, expected duration and providers of all the services You require. Services must be in accordance with accepted relevant standards of practice and appropriate to meet the needs identified in the assessment of Your functional and cognitive needs. A Licensed Health Care Practitioner must approve Your Plan of Care.

Your Plan of Care must be updated as Your condition and needs change. We must be provided with a revised Plan of Care each time it is updated. We reserve the right to request periodic updates regarding Your Plan of Care, but not more frequently than once every 30 days. No more than one Plan of Care may be in effect at a time.



Who Can Apply?

► Applicant Age: 18-79

Policy Design Options – Decision #1

► LTCI Benefit Amount– Daily: $50-$500 per day

■ $10 increments– Monthly: $1,500-$15,000 per month

■ $100 increments■ Monthly benefit premium is 4% higher than daily

1. Not payable under the International Coverage BenefitPolicy benefits may vary by state.


Elimination Period

► Elimination Period– 100 dates of service– One time elimination period– 1 = 1

► Optional Zero-Day Elimination Period for Home Health Care1– Waives the Elimination Period for home health care,

adult day care– Rider cost is 13%

1. No new Elimination Period. No “Additional Stay at Home” servicesPolicy benefits may vary by state.


► Benefit Period– 3 Years (1,095 days) (36 months)– 5 Years (1,825 days) (60 months)– 5 Years Plus $1 Million


► Total Benefit– 5 Years Plus $1Million Monthly Example

$273,750 ($4,500month benefit x 5years (60 months))

+ $1,000,000 $1,273,750 (Total Benefit)



► 5 Year Benefit Period– Plus $1 Million pool

– Once 5 year pool is exhausted– $1 Million addition pool is added– Then $1 Million pool and current LTCI Benefit Amount will

grow according to inflation coverage

1. No new Elimination Period. No “Additional Stay at Home” servicesPolicy benefits may vary by state.

100%

110%

120%

130%

140%

150%

160%

170%

Allianz Genworth Met Mass Pru MedAm CC II

45 50 55 60 65

Privileged Choice

SimplicityIdeal 2 MM- 400 LTC-3Generation Protector II

Custom Care II

5 Year Plus $1 Million vs. Unlimited90/100 day Elimination Period, $4,500 Monthly Maximum, Compound Inflation, Married Select

Premium Sweet Spots: ALL Ages

Percentage to Leading Edge Premiumsvs. 5-Yr Plus $1MM

Competitive information is accurate to the best of our knowledge as of 6/2006Policy benefits may vary by state.

Consumer Price Index (CPI)

► Leading Edge Automatic Inflation Coverage– Annual Compound increases based on the Consumer Price Index

■ The Consumer Price Index (CPI) is a measure of the average change in the price paid by urban consumers for a fixed market basket of consumer goods & services. CPI is the most widely used measure of inflation.

■ Steadily increased over the last 50 years■ Tied Urban Index

> Includes housing & labor costs– No limit to the CPI increase – If CPI decreases, benefits remain level– Level premium


$0

$100

$200

$300

$400

Year

CP

IHistorical CPI Performance


$0

$100

$200

$300

$400

$500

5% Simple Inflation Performance

5Yrs 10Yrs 15Yrs 20Yrs 25Yrs 30Yrs

$255

CCII w/Simple


$0

$100

$200

$300

$400

$500

5% Compound Inflation Performance

$255

$432


CCII w/Simple CC II w/5% Compound


Automatic Compound CPI Performance

$0

$100

$200

$300

$400

$500

$366

$250

$432

7.05%

4.4%

6.55%

Leading Edge CCII w/Simple CC II w/5% Compound



55 Year OldPreferred Health – Married Both Applying$3,000 Monthly 5-Year Benefit Period, 100 Day Elimination PeriodInflation Based on 30 Year Calculation

$0

$100

$200

$300

$400

$500 Premiums:Leading Edge $805CC II w/Simple $720CC II w/5% Compound $991

23% more than Leading Edge



$366

$432

$250


50 Year Old Preferred Health – Married Both Applying$3,000 Monthly 5-Year Benefit Period, 100 Day Elimination PeriodInflation Based on 30 Year Calculation

$0

$100

$200

$300

$400

$500 Premiums:Leading Edge $724CC II w/Simple $594CC II w/5% Compound $913




$366

$432

$250


45 Year Old Preferred Health – Married Both Applying$3,000 Monthly 5-Year Benefit Period, 100 Day Elimination PeriodInflation Based on 30 Year Calculation

$0

$100

$200

$300

$400

$500 Premiums:Leading Edge$612CC II w/Simple $522CC II w/5% Compound $862




$366

$432

$250



► 5% Compound Guaranteed Purchase Inflation (GPO)¹– Every three years – Option to increase benefits and Total Pool of Money by 5%

compounded (15.8% total increase)– No offers after two declines– Premium increases with benefit increases– No additional underwriting

1. GPO not available in AK, CO, D.C., GA, NC, NY, SC, WI, and WY. After two declines, no future or lesser offers will be made. Cost in benefit increase will be determined at attained age. Benefits will continue to increase, even if client is on claim.



► Additional Stay at Home Services – home modifications– durable medical equipment– caregiver training– home safety checks– medical alert systems – Equal to 1 X Monthly Benefit or 30 X Daily Benefit– Not subject to the Elimination Period– Benefit reduces the pool of money


Policyholder Services

Supporting Clients and Their Family

► Caregiver Support Services – Personalized telephone & website support – Access to quality reports and ratings on over 90,0000 nursing

home, assisted living facilities, hospice, and home health care providers nationwide

– Access to exclusive provider discounts ( 7%-35% )– Care advisory services – Family members include Spouse or Partner and their parents,

stepparents, grandparents, siblings, children, step children, grandchildren, and their respective spouses.


Built in Policy FeaturesSupporting Clients and Their Family

► Respite care Benefit– 21 days per calendar year– Not subject to elimination period– Reduces policy limit

► Hospice Care– As hospice care is defined as care being provided to someone

who is terminally ill John Hancock wants to be sure policyholders do not have to wait for care– Not subject to the Elimination Period– Any setting


Built in Policy FeaturesProviding Clients Flexibility & Choice

► Lifestyle Benefit Changes– Written request to increase LTCI Benefit amounts once per policy year

■ Subject to underwriting ■ Attained age premium

> Age based on date the request is made at the rates then in effect■ Received within 30 days prior to anniversary■ Effective on the next policy anniversary

– Written request to decrease LTCI Benefit amounts at any time■ Not subject to evidence of insurability■ Premium reduction based on original issue age

– Policyholders may increase their original coverage once a year – WITHOUT having to purchase an additional policy


1. No Hospice, Additional Stay at Home or RespitePolicy benefits may vary by state.

Built in Policy FeaturesProviding Clients Flexibility & Choice

► International Coverage 1

– 1 year @ 100% – Anywhere in the world– Balance of benefit received in US

► Bed Hold Benefit– 60 days per calendar year for any reason– subject to the elimination period– Reduces policy limit

Optional BenefitsProviding Clients Flexibility & Choice

► SharedCare– Allows partners to access the benefits under the other’s policy

once their own is exhausted– collectively purchase less & share benefits– partners must both have the rider and identical benefits

– If the partner dies – their benefits will increase the surviving partner’s remaining

benefit dollars– total premiums will be reduced by the cost of the deceased

spouse’s premium and the cost of both SharedCare riders


1. In NY 1-year worth of benefits must be retained for the PH's exclusive used. In AZ 2-years worth of benefits must be retained.Policy benefits may vary by state.


► SharedCare– SharedCare Rider Cost

– 3 Year – 16%– 5 Year – 10%– 5 Year Plus $1Million – 2%

– 60-Day offer if the insured’s benefits exhausted by partner¹– option to purchase a policy with a 3-year benefit – no underwriting if no claims in prior three years– prior to age 91


► Nonforfeiture– Policyholder stops paying premiums after the third year– New policy limit equal to premiums paid less any claims paid – Limited pay options after the first year – Rider cost is 6%


Not available with 5% Compound Guaranteed Purchase Option.Policy benefits may vary by state.

Premium Funding Flexibility

► Life pay► Limited Pay – Payment Options

– 10-Pay – Paid Up at Age 65 – Guaranteed renewable during the premium paying period– Non-cancelable thereafter

Premium Payment

► Modes– Bank Draft Monthly (void check required)– Quarterly– Semi-annually– Annually

► One month deposit required► Credit Cards for all modes► Saving age at issue


Built in Policy Features

► 30-Day Free Look► Waiver of Premium► Guaranteed Renewable► Grace Period► Added Protection Against Lapse► Contingent Nonforfeiture


Ratings and Discounts

► Partner’s (Couple’s/spouses)– Married– Lived with family member of same generation for three years– Lived with partner of same sex or opposite sex for 3 years


The maximum combination of preferred and couples/spousal discounts is 40% (i.e. Preferred 15% + Couples/Spousal approved 30% = 45% – Maximum available is 40%)


Ratings & Discounts

► Partner Discount– 15% one applying– 30% if both apply and are approved

► One Application► Underwriting Classes

– Preferred (Discounted 15% of Select)– Select (Standard)– Counter Offer for Sub-Standard to CCII

Additional Discounts

► 5% Discount Programs with no commission reductions – Sponsored Group Discount – for employers with 5 employees

participating or associations with 10 members participating– Family Discount – Available when 3 or more immediate family

members purchase individual JH long term care insurance– Valued Client Discount – Existing JH and Manulife annuity and life

clients are eligible for this discount– Loyalty Credit – Current JH long term care insurance

policyholders with policies inforce for at least 2 years can replace their coverage for Leading Edge with the discount

► Sponsored Group, Family and Valued Client discounts can’t be used in conjunction with one another


John Hancock Leading Edge

► The right product– Automatic compound inflation linked to the Consumer Price Index

(CPI)– Simplifies product offering– Caregiver support services – Expanded Home Health Care Services– A simplified claims process – Credit card payments for all premium payment modes



► The right price– A practical new approach to inflation protection along with the

innovative investment strategy to back it up– A creative alternative to expensive lifetime coverage



► The right time– Greater access to new markets with a new price point– Right time for boomers– Easy to understand and easy to sell benefits– Stable pricing backed by John Hancock’s strength, stability and

experience


Launch Kit Review

► Rollout Memo► Leading Edge Prospecting letter► “Sample” Application Booklet► Producer Guide► Collateral Guide


Launch Kit Review

► Consumer Product Brochure► Caregiver Services Brochure


Leading Edge Illustrations

► Leading Edge can be illustrated, in approved states, using eHansel► Hansel LTC (version 8.0) will be available for download from the web► New Hansel LTC CDs are scheduled to begin shipping to our normal

distribution list► Future state approvals will be updated in eHansel on the launch

dates and will be included in Hansel service packs (patches) that can be downloaded from the web


Leading Edge - Optional Reports

► Policy Option Spreadsheet – illustrates premiums by inflation option for each benefit period

► Inflation Projection – optional report for 5% Compound Guaranteed Inflation Coverage . Required for Automatic Inflation (CPI) with future CPI increases illustrated at 3%, 5% and 7%.

► Cost of Waiting with Inflation – shows the impact of waiting to purchase both by age and benefit amount (impacted by inflation – 3% 5% and 7% used for CPI)

► Break Even Analysis – Assumes 3%, 5% and 7% growth when Automatic Inflation (CPI) is illustrated

► Premium Tables – rates for all ages with option to show 3 different policy designs


Automatic Inflation (CPI)

The Inflation

Protection report

will be a required

part of the

illustration

whenever

Automatic Inflation

(CPI) is selected or

in a state where it is

the only inflation

coverage available

The future LTC

Benefits and Policy

Limits will be

calculated

assuming CPI

growth of 3%, 5%

and 7%Policy benefits may vary by state.

Automatic Inflation (CPI)

When the 5 Years

Plus $1 Million Benefit

Period is selected, the

$1,000,000 will be

added to the Policy

Limit but the

$1,000,000 will not be

adjusted for inflation in

the illustration

An explanation of

how the CPI

changes impact

the Benefit

Amount and Policy

Limit is provided in

this footnote


When to Sell CCII

► Over age 79► Health Issues – substandard ratings► Must have

– 5% Compound– Lifetime– Double Coverage Accident Benefit or Return of Premium– Multiple Elimination Periods (30, 60, 180, 365)

► FamilyCare vs SharedCare► Corporate Solutions► Affluent, non-premium sensitive clients


Questions

► For more information on John Hancock’s Leading Edge please call your Sales Support Hotline

MGA’s and affiliated producers 800-377-7311

JHFN Producers & Brokers 888-604-7295

National Accounts and Broker/Dealers 800-270-1700


Long Term Care is Underwritten by John Hancock Life Insurance Company, Boston, MA 02117.For professional use only. Not for use with consumers.

LTC-5516 7/2006

long term care is underwritten by john hancock life insurance company, boston, ma 02117

Documents

ltci insurance policyholders

group ltci

ltci claims reserveswith

brand recognitionjohn

years of ltci experience

largest ltci carriers

internal data

leading edge vs