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Long Term Care is Underwritten by John Hancock Life Insurance

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					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

Policy benefits may vary by state
     A Standard of Excellence

►      Leadership
        ► John Hancock is a committed leader in the Long Term Care
           Insurance (LTCI) Market
        ► LTCI Solutions through innovative, competitive and responsible
           product offerings
        ► John Hancock is one of the two largest LTCI carriers in the country¹

        ► We have more than 936,000 LTCI insurance policyholders in-force
           as of June 30, 2006²
►      Brand Recognition
        ► John Hancock is one of the leading brands among consumers in the
           country, with 95% consumer awareness³
    1. Based on inforce premium LIMRA year-end 12/31/05
    2. Based on John Hancock internal claims data as of June 30, 2006. Total includes individual and group LTCI and 50% of the
          Federal Long Term Care Insurance Program
    3. Roper Research and Plan-it Marketing, 2001



    Policy benefits may vary by state
     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
    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 Program




    Policy benefits may vary by state
                   JH Leading Edge

                                                             Product Features
                                                                & Benefits


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


Policy benefits may vary by state
 Leading Edge vs the Competition
 5-Year, 90/100 day Elimination Period, $4,500 Monthly Maximum, Compound
 Inflation, Married Select


170%         Percentage to Leading Edge
                     Premiums
160%

150%

140%

130%

120%

110%

100%
              Allianz           Genworth               Met               Mass             Pru     MedAm           CC II
              Generation            Privileged         Ideal 2           MM- 400          LTC-3   Simplicity   Custom Care II
              Protector II           Choice
                                                         45      50     55      60   65
Competitive information is accurate to the best of our knowledge as of 6/2006

                                          Premium Sweet Spots: ALL Ages
Policy benefits may vary by state
      State Approval Map

               AK

               HI
                            WA
                                              MT                                                                       ME
                                                         ND
                       OR                                           MN                                           VT
                                    ID                                                                             NH
                                                         SD                    WI                           NY          MA
                                                   WY                                 MI
                                                                                                                 CT    RI
                                                                                                      PA
                                                         NE          IA                                           NJ
                             NV                                                 IL   IN     OH
                                         UT                                                                 MD DE
                                                    CO
                     CA                                                                          WV
                                                              KS                                       VA
                                                                          MO               KY
                                                                                                       NC
                                     AZ                                              TN
                                                   NM          OK         AR                      SC

                                                                                MS   AL     GA
                                                                          LA
                                                              TX

                                                                                                  FL




Policy benefits may vary by state
Launch Date 10/2/06 – 35 States

  ► Alabama                         ► Minnesota       ► Oregon
  ► Arizona                         ► Mississippi     ► Rhode Island

  ► Colorado                        ► Missouri        ► South Carolina

  ► Delaware                        ► Montana         ► South Dakota

  ► District of Columbia            ► Nebraska        ► Tennessee

  ► Idaho                           ► Nevada          ► Utah

  ► Iowa                            ► New Hampshire   ► Virginia

  ► Kansas                          ► New Mexico      ► Washington

  ► Kentucky                        ► New York        ► West Virginia

  ► Louisiana                       ► North Dakota    ► Wisconsin

  ► Maine                           ► Ohio            ► Wyoming

  ► Michigan                        ► Oklahoma


Policy benefits may vary by state
   Covered Expenses

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

             – In a Nursing Home or Assisted Living Facility
             – At Home

                 – Adult Day Care, Professional/ Non-
                    Professional Care, Hospice Care and
                    Full/ Total Homemaker Services
                 – Independent home health care

                 – Additional Stay at Home
          – Unused benefits extend the benefit period




Policy benefits may vary by state
Plan of Care
Staying 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.




Policy benefits may vary by state
Built in Policy Features
Staying at Home for as Long as Possible



►     Additional Stay at Home Services
       – home modifications
       – durable medical equipment

       – caregiver training

       – home safety checks
       – medical alert systems

       – Equal to 1 X Monthly Benefit or 30 X Daily Benefit

       – Not subject to the Elimination Period

       – Benefit reduces the pool of money




Policy benefits may vary by state
Built in Policy Features
Staying at Home for as Long as Possible



►     Total homemaker services¹
       – household duties, such as laundry, meal preparation, and paying
         bills
       – monitor medications
       – reduces Total Benefit

       – subject to the Elimination Period

       – no “incidental” requirement




  1. Total homemaker services does not include shopping



Policy benefits may vary by state
Built in Policy Features
Staying at Home for as Long as Possible



►     Independent home health care
       – Covers unlicensed providers
           ■ Personal Care Services where provider qualification
             is not required
                         >   Immediate family members can be compensated if working through an
                             approved provider




Policy benefits may vary by state
Who Can Apply?

►     Applicant Age
       – 18-79




Policy benefits may vary by state
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




Policy 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
       Not payable under the International Coverage Benefit




Policy benefits may vary by state
Policy Design Options – Decision #2

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

       – 5 Years Plus $1 Million




Policy benefits may vary by state
Policy Design Options – Decision #2

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



                   $273,750 ($4,500month benefit x 5years (60 months))
                 + $1,000,000
                     $1,273,750 (Total Benefit)




Policy benefits may vary by state
Policy Design Options – Decision #2

►     5 Year Benefit Period
       – Plus $1 Million pool
          – Once 5 year pool is exhausted

          – $1 Million addition pool is added

          – Then $1 Million pool and current LTCI Benefit Amount will
             grow according to inflation coverage




Policy benefits may vary by state
 5 Year Plus $1 Million vs Unlimited
 90/100 day Elimination Period, $4,500 Monthly Maximum, Compound Inflation,
 Married Select


170%          % to Leading Edge Premiums
                   vs. 5-Yr Plus $1MM
160%

150%

140%

130%

120%

110%

100%
              Allianz           Genworth               Met              Mass              Pru     MedAm          CC II
              Generation            Privileged         Ideal 2           MM- 400          LTC-3   Simplicity   Custom Care II
              Protector II           Choice
                                                         45      50     55      60   65
Competitive information is accurate to the best of our knowledge as of 6/2006

                                          Premium Sweet Spots: ALL Ages
Policy 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


Policy benefits may vary by state
                                                              CPI




                                                  $0
                                                       $100
                                                              $200
                                                                     $300
                                                                            $400
                                           1975
                                           1976
                                           1977
                                           1978




Policy benefits may vary by state
                                           1979
                                           1980
                                           1981
                                           1982
                                           1983
                                           1984
                                           1985
                                           1986
                                           1987
                                           1988
                                           1989
                                           1990




                                    Year
                                           1991
                                           1992
                                           1993
                                           1994
                                                                                   Historical CPI Performance




                                           1995
                                           1996
                                           1997
                                           1998
                                           1999
                                           2000
                                           2001
                                           2002
                                           2003
                                           2004
                                           2005
5% Simple Inflation Performance


  $500

  $400


  $300
                                                                                                $255
  $200


  $100


      $0

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

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



Policy benefits may vary by state
5% Compound Inflation Performance


  $500
                                                                                                 $432
  $400


  $300
                                                                                                 $255
  $200


  $100

      $0

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

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



Policy benefits may vary by state
Automatic Compound CPI Performance

                                                                                         4.4%
  $500

                                                              6.55%                            $432
  $400
                                                                                               $366
                                    7.05%
  $300
                                                                                               $250
  $200


  $100

      $0
                    5Yrs            10Yrs          15Yrs        20Yrs        25Yrs            30Yrs

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



Policy benefits may vary by state
55 Year Old
Preferred Health – Married Both Applying
$3,000 Monthly 5-Year Benefit Period, 100 Day Elimination Period
Inflation Based on 30 Year Calculation




  $500
                                                                                                         $432
                  Premiums:                                        23% more
                                                                 than Leading
  $400            Leading Edge                   $805                Edge
                  CC II w/Simple                 $720                                                    $366
                  CC II w/5% Compound            $991
  $300
                                                                                                         $250
  $200


  $100

      $0

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

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



Policy benefits may vary by state
50 Year Old
Preferred Health – Married Both Applying
$3,000 Monthly 5-Year Benefit Period, 100 Day Elimination Period
Inflation Based on 30 Year Calculation




  $500
                                                                   26% more                              $432
                 Premiums:                                       than Leading
  $400           Leading Edge                    $724                Edge
                 CC II w/Simple                  $594                                                    $366
                 CC II w/5% Compound             $913
  $300
                                                                                                         $250
  $200


  $100


      $0

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

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




Policy benefits may vary by state
45 Year Old
Preferred Health – Married Both Applying
$3,000 Monthly 5-Year Benefit Period, 100 Day Elimination Period
Inflation Based on 30 Year Calculation




  $500
                  Premiums:                                        41% more                            $432
  $400            Leading Edge                   $612            than Leading
                  CC II w/Simple                 $522                Edge                             $366
                  CC II w/5% Compound            $862
  $300
                                                                                                       $250
  $200


  $100

      $0

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

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




Policy benefits may vary by state
Policy Design Options – Decision #3

►     5% Compound Guaranteed Purchase Inflation (GPO)¹
       – Every three years
       – Option to increase benefits and Total Pool of Money by 5%
         compounded (15.8% total increase)
       – No offers after two declines
       – Premium increases with benefit increases
       – No additional underwriting




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



Policy benefits may vary by state
Built in Policy Features
Providing Clients Flexibility & Choice


►     Lifestyle Benefit Changes
       – Written request to increase LTCI Benefit amounts once per policy year
             – Subject to underwriting
             – Attained age premium
                  – Age based on date the request is made at the rates then in effect
             – Received within 30 days prior to anniversary
             – Effective on the next policy anniversary
       – Written request to decrease LTCI Benefit amounts at any time
             – Not subject to evidence of insurability
             – Premium reduction based on original issue age


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


Policy benefits may vary by state
Optional Benefits
Providing Clients Flexibility & Choice



►     SharedCare
       – Allows partners to access the benefits under the other’s policy
         once their own is exhausted
           – collectively purchase less & share benefits
           – partners must both have the rider and identical benefits

       – If the partner dies

           – their benefits will increase the surviving partner’s remaining
              benefit dollars
           – total premiums will be reduced by the cost of the deceased
              spouse’s premium and the cost of both SharedCare riders


Policy benefits may vary by state
Optional Benefits
Providing Clients Flexibility & Choice



►     SharedCare
       – SharedCare Rider Cost
          – 3 Year – 16%

          – 5 Year – 10%

          – 5 Year Plus $1Million – 2%
       – 60-Day offer if the insured’s benefits exhausted by partner¹

          – option to purchase a policy with a 3-year benefit

          – no underwriting if no claims in prior three years

          – prior to age 91

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



Policy benefits may vary by state
Built in Policy Features
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.


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




        Not available with 5% Compound Guaranteed Purchase Option




Policy benefits may vary by state
Premium Payment

►     Modes
       – Bank Draft Monthly (void check required)
       – Quarterly

       – Semi-annually

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




Policy benefits may vary by state
Built in Policy Features


►     30-Day Free Look
►     Waiver of Premium
►     Respite care Benefit
►     Hospice Care
                 –   Not subject to the Elimination Period
                 –   Any setting

►     International Coverage*
►     Bed Hold Benefit
►     Guaranteed Renewable
►     Grace Period
►     Added Protection Against Lapse
►     Contingent Nonforfeiture                               *No Hospice, Additional Stay at Home or Respite




Policy benefits may vary by state
  Ratings & Discounts

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

  ►    One Application
  ►    Underwriting Classes
        – Preferred (Discounted 15% of Select)

        – Select (Standard)

        – Counter Offer for Sub-Standard to CCII



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



 Policy benefits may vary by state
Additional Discounts

►     5% Discount Programs with No Commission Reductions
        –     Sponsored Group Discount* – for employers with 5 employees
              participating or associations with 10 members participating
        –     Family Discount* – Available when 3 or more immediate family
              members purchase individual JH long term care insurance
        –     Valued Client Discount* – Existing JH and Manulife annuity and
              life clients are eligible for this discount
        –     Loyalty Credit – Current JH long term care insurance
              policyholders with policies inforce for at least 2 years can replace
              their coverage for Leading Edge with the discount
                                    *Sponsored Group, Family and Valued Client discounts can’t be used in conjunction with one another



Policy benefits may vary by state
John Hancock Leading Edge


►     The right product
        ► Automatic compound inflation linked to the Consumer
          Price Index (CPI)
        ► Simplifies product offering

        ► Caregiver support services

        ► Expanded Home Health Care Services

        ► A simplified claims process

        ► Credit card payments for all premium payment modes




Policy benefits may vary by state
John Hancock Leading Edge


►     The right price
        –     A practical new approach to inflation protection along
              with the innovative investment strategy to back it up
        –     A creative alternative to expensive lifetime coverage




Policy benefits may vary by state
John Hancock Leading Edge


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




Policy benefits may vary by state
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



Policy benefits may vary by state
  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



Policy benefits may vary by state

				
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