John Hancock Life Insurance Company (U.S.A.)acme.highpoint.edu/~jwehrley/BUA234/A Module Approach/5 minute lecture/Sorrell/Sample 3...surrender value falls to zero or below, coverage

John Hancock Life Insurance Company (U.S.A.)

A Life Insurance Policy Illustration ofAccumulation UL

A Flexible Premium Adjustable Life Insurance Policy

Prepared For

Sample

Presented By

Scott D. Sorrell, CLU, ChFC, CASL, CLTCCapitol Financial Solutions8816 Six Forks Rd.Suite 301Raleigh, NC 27615Phone: (919) 719-3817Fax: (919) 325-4517E-Mail: [email protected]

Presented On

Monday, April 07, 2014

This is an illustration only. An illustration is not intended to predict or project actual performance. Rates of Return, or values that are set forth in the illustration are not guaranteed, except for those items clearly labeled as guaranteed.

Copyright © 2013 John Hancock Life Insurance Company (U.S.A.). All Rights Reserved.

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Universal Life Insurance

The Universal Life Insurance policy which you are considering provides flexible death benefit protection and premium payment flexibility. The values in the insurance contract grow based on the amount of each premium payment, plus interest credited to the policy less insurance and other charges.

Certain aspects of the policy cannot be predicted with absolute certainty. For example, the interest rate credited may exceed the guaranteed rate and monthly charges may be less than the maximum guaranteed charges. These nonguaranteed elements are described on the following pages. This is an illustration only and is not intended to predict actual performance.

No-Lapse Guarantee

The No-Lapse Guarantee illustrated ensures the Base Face Amount will stay in force for 5 years provided the No-Lapse Guarantee Cumulative Premium Test is met. During the No-Lapse Guarantee period, if the net cash surrender value falls to zero or below, coverage will continue if the cumulative premiums paid since the policy was issued, net of withdrawals, net of policy debt, are greater than or equal to $706.75 multiplied by the number of years coverage has been in effect. There is no additional charge for the No-Lapse Guarantee included in your policy.

Rider termination or change and or face amount increases or decreases may cause this premium to be recalculated. If a policy loan is outstanding and the Net Policy Value falls to zero, the illustration will stop. However, if the No-Lapse Guarantee requirements are satisfied, the contract will remain in effect.

In the first two policy years, the Supplemental Face Amount plus the Return of Premium Death Benefit Rider, if elected, will remain in force provided the No-Lapse Guarantee cumulative premium test is satisfied. In policy year three and after, if the net cash surrender value falls to zero or below, you must pay additional premiums. If you do not pay additional premiums, the Supplemental Face Amount plus the Return of Premium Death Benefit Rider, if elected, may lapse even if your Base Face Amount does not lapse. Once this benefit is terminated, it cannot be reinstated.

Once this benefit is terminated, it cannot be reinstated.

Net Death Benefit

The life insurance provided in this illustration reflects a Total Initial Death Benefit of $200,000. The Death Benefit is comprised of $200,000 in Base Face Amount (Option 1). The Net Death Benefit reflects any Policy Debt (total loans plus any loan interest due).

Planned Premium Outlay

One of the advantages of Universal Life Insurance is premium payment flexibility, allowing you to vary the amount of your payments. This illustration assumes an Initial Planned Premium Outlay of $2,830.00 and that premium payments are made at the beginning of each modal period. Reduced or discontinued premiums in future years are only possible if the premiums paid and interest credited are sufficient to cover the cost of insurance and administrative expenses. These factors, as well as any outstanding policy loans, or partial surrenders could require additional premiums to maintain your insurance coverage. Paying less than the planned premium can have a negative impact on the policy and its guarantees. Payments in excess of the planned premium are subject to underwriting approval.

Interest Rate

Interest is credited to the Policy Value at a guaranteed effective annual rate of 2.00% or the current interest rate, whichever is higher. An assumed rate may also be shown for illustrative purposes. The assumed rate will always be lower than the current rate. Current and assumed rates are not guarantees or estimates but merely illustrate resultant values for that assumption. Current interest is illustrated at an effective annual rate of 4.55%.

There is a non-guaranteed persistency bonus that may be applied to the then current credited interest rate for contracts still inforce at the beginning of policy year 11. The bonus is currently 0.3% beginning in policy year 11. The persistency bonus is only applied to unborrowed policy value. Midpoint values assume interest and insurance charges which are halfway between the guaranteed and assumed.


A LIFE INSURANCE POLICY ILLUSTRATIONA Flexible Premium Adjustable Life Insurance Policy

Valuable Information About Your Life Insurance Illustration

Illustration Assumptions

SampleMale - Super Preferred NonSmokerAge: 35

Initial Death Benefit $200,000Base Face Amount $200,000

Initial Planned Premium: $2,830.00 / Billing Mode: AnnualDeath Benefit Option 1; Cash Value Accumulation Test

State: North CarolinaBased on Current Charges and an Initial Current Rate of 4.55%

Accumulation UL Form: 09ACCUL

Presented By: Scott D. Sorrell, CLU, ChFC, CASL, CLTC

This is your Basic Illustration and is valid only if all illustration pages are included.

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guaranteed and assumed.

Accessing Policy Value

After your policy has been in force for one year, you can make partial cash withdrawals. You can surrender your policy for cash at any time. We will pay you the policy value less a Surrender Charge and any policy debts you may have. You can also borrow the available cash value at any time.

Interest Credited

This is the interest earned on the Policy Value including the amount of interest credited on the Loan Account.

Policy Loans

Policy loans may be taken against the Policy Value at anytime and if illustrated, are assumed to be taken at the beginning of each month during the year. The maximum loan amount available is the Surrender Value less any indebtedness, one year of policy charges, and one year's loan spread. The portion of Policy Value securing any loan is credited interest at the net loan rate. The net loan rate equals the loan rate less 1.25% in policy years 1-10 and, currently, 0.00% (guaranteed not to exceed 0.25%) thereafter. Loan interest is payable in arrears. This illustration assumes policy loan interest rates are as shown in the Policy Summary. The loan interest rate is variable and subject to change annually on the policy anniversary.

Annual Loan Interest

This is the interest charged on the outstanding Policy Debt. In the event that you do not pay the loan interest charged in any Policy Year, it will be borrowed against the policy and added to the Policy Debt in arrears at the Policy Anniversary.

Withdrawals

Withdrawals reduce the Policy Value and the Death Benefit. Withdrawals, if illustrated, are assumed taken at the beginning of each month during the year. No fee is charged for withdrawals.

Policy Continuation at Age 100

Provided your coverage is in effect on the policy anniversary nearest the date on which the life insured reaches attained age 100, coverage will continue after age 100 and interest will be credited. No additional charges, other than those for any outstanding policy loans, will be deducted. At and after age 121, any Supplemental Face Amount coverage will cease.

The tax implications with respect to policies that continue beyond age 100 are not clear at the present time. We urge you to consult your tax advisor regarding this issue if there are questions about what happens after age 100.

Overloan Protection Rider

The Overloan Protection Rider will prevent your policy from lapsing when, on any policy month, the outstanding indebtedness on the policy equals or exceeds the Policy Value multiplied by a certain percentage, not to exceed 95%. Exercise of this rider will result in a "paid up" status. In order to be eligible for this rider, the insured must be at least 75 years old and the policy must have been inforce for at least 15 years. In order for the rider to be invoked, the Policy Indebtedness must exceed the Total Face Amount of your policy but be less than Policy Value minus a one-time charge for exercising the rider. Upon the execution of this rider, a Level Death Benefit will apply to your policy. No additional policy transactions or policy changes will be allowed and no further monthly deductions will be taken. Your total Net Death Benefit will now be equal to the Total Face Amount plus any Required Additional Death Benefit less any indebtedness. This rider may not be available in all states.

Taxation of Life Insurance

The information contained in this illustration is based on certain tax and legal assumptions. We suggest that you seek professional counsel regarding the interpretation of current tax laws and accounting practices as they relate to your actual situation. The Technical and Miscellaneous Revenue Act (TAMRA) of 1988 classifies some policies as Modified Endowment Contracts (MECs). Distributions from these policies (excluding death benefits but including policy loans and withdrawals) are taxed differently and may be subject to an IRS 10% penalty tax. TAMRA testing has been performed on the current scale only.



Valuable Information About Your Life Insurance Illustration (cont'd)










withdrawals) are taxed differently and may be subject to an IRS 10% penalty tax. TAMRA testing has been performed on the current scale only.

The initial annual 7-pay premium for this policy is $6,776.00.

Based on our interpretation of TAMRA, this policy as illustrated would not be considered a Modified Endowment Contract (MEC).

Employer-owned Life Insurance.Where the owner of the policy is the employer of the life insured, Section 101(j) of the Internal Revenue Code specifies a number of requirements that must be satisfied in order for life insurance death benefits to be excluded from income taxation. The life insureds must be the employer’s directors and "highly compensated" employees (as is defined by law). If the life insured is not a director or highly compensated employee then the policy's death benefit must be paid out to the life insured (or to the life insured's designated beneficiary) or used to redeem an equity interest in the employer. Before the issuance of the policy, the insured must (1) be notified in writing that the employer/policy owner intends to insure the employee's life and the maximum face amount for which the employee could be insured; (2) give his/her written consent to being insured under the policy and agree that such coverage may continue after the life insured terminates employment; and (3) be informed in writing that the employer/policy owner will be a beneficiary of any proceeds payable upon the death of the life insured. Finally, the employer/policy owner is required to keep records and make an annual report concerning its employer-owned life insurance policies. Taxpayers should seek the counsel of qualified tax advisors to determine the applicability of IRC Section 101(j) or other provisions of federal tax law and/or compliance with the requirements of any such law or regulation.

Other Considerations

This is an illustration only. An illustration is not intended to predict actual performance. Interest rates and values set forth in the illustration are not guaranteed.

This illustration assumes that the currently illustrated nonguaranteed elements will continue unchanged for all years shown. This is not likely to occur, and the actual results may be more or less favorable. Future credits for interest and deductions for mortality and expenses can vary at the company's discretion depending upon factors such as death claims, investment earnings and expenses.

Accumulation UL is issued by John Hancock Life Insurance Company (U.S.A.) of Boston, MA 02117. John Hancock Life Insurance Company (U.S.A.) consistently receives high financial strength ratings from independent rating agencies. For more information, please visit our website at www.JohnHancock.com.

For more than a century, John Hancock has offered security and high quality products to its customers. The company's experience and resources allow it to provide first class financial solutions to customers in every market in which it operates.



Valuable Information About Your Life Insurance Illustration (cont'd)










Coverage Summary

Initial Initial

Coverage Description Amount Premium

Base Face Amount - Level for all years $200,000 $2,830.00

Additional Coverage On Insured

Overloan Protection Rider †

Policy Summary

State North Carolina

Death Benefit Option 1 From 1 Thru 86

Definition of Life Insurance CVAT

Payment Mode Annual

Charges Current

Assumed Interest Rate 4.55%4.85%4.55%

From 1 Thru 10From 11 Thru 65From 66 Thru 86

Loan Interest Rate 4.75% From 1 Thru 86

Owner Tax Bracket 35.00% From 1 Thru 86

Initial 7-Pay PremiumTarget Premium

$6,776.00$1,489.80

Minimum Initial Premium $58.93

5 Year No-Lapse Guarantee Premium $706.75

Interest Adjusted Indexes on Insured at 5%

-------Payment-------10 Year 20 Year

----------Cost----------10 Year 20 Year

GuaranteedCurrentNon-guaranteed Element

14.1514.15

0.00

14.1514.15

0.00

5.853.961.89

7.193.623.57

InterestAdjustedIndexes

These indexes provide a means for evaluating the comparative cost of the policy under stated assumptions. They can be useful in comparing similar plans of insurance, a lower index being better than a higher one. These indexes reflect the time value of money. Indexes are approximate because they involve assumptions, including the rate of interest used.

† If elected on the Coverage Details form.



Basic Illustration Summary









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Page 4 of 17

GUARANTEED ASSUMPTIONS

These policy benefits and values are GUARANTEED NON-GUARANTEED ASSUMPTIONS

based on the guaranteed interest of SUMMARY YEARS ASSUMPTIONS Midpoint Scale Assumed Scale

2.00% and guaranteed charges. Based

on your Planned Premium Outlay, the Years Premium Paid in Cash 30 30 30

policy would remain in force until

policy year 46, month 4*.

NON-GUARANTEED ASSUMPTIONS Summary Year 5

These policy benefits and values are Net Surrender Value 8,942 9,610 10,304

based on non-guaranteed elements that Net Death Benefit 200,000 200,000 200,000

are subject to change by the insurer.

Actual results may be more or less Summary Year 10

favorable. Net Surrender Value 21,927 24,321 26,907

ASSUMED SCALE: Net Death Benefit 200,000 200,000 200,000

Policy benefits and values are based on

the initial current interest rate of 4.55% Summary Year 20

and current charges. Based on your Net Surrender Value 48,322 59,702 73,139

Planned Premium Outlay, the policy Net Death Benefit 200,000 200,000 200,000

would remain in force until age 121*.

Summary Age 70

MIDPOINT SCALE: Net Surrender Value 65,413 118,770 181,963

Assumes the midpoint interest rate Net Death Benefit 200,000 200,000 294,980

and charges which are halfway between

current and guaranteed. Based on

your Planned Premium Outlay, the

policy would remain in force until

age 121*.

Premiums are assumed to be paid at the beginning of each modal period. Policy values, including surrender values and death benefits, are illustrated as of the end of the year, unless otherwise noted.

* See Policy Continuation at Age 100on "Valuable Information" page.

Representative's Address:Scott D. Sorrell, CLU, ChFC, CASL, CLTC8816 Six Forks Rd.Suite 301Raleigh, NC 27615(919) 719-3817

I have received a copy of this illustration and understand that any non-guaranteed elements illustrated are subject to change and could be either higher or lower. The representative has told me they are not guaranteed.

Applicant: ________________________________________________ Date: ___________________ (Signature) (mm/dd/yyyy)I certify that this illustration has been presented to the applicant and that I have explained that any non-guaranteed elements illustrated are subject to change. I have made no statements that are inconsistent with the illustration.

Representative: ___________________________________________ Date: ___________________ (Signature) (mm/dd/yyyy)

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Numeric Summary




State: North Carolina





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Page 5 of 17

1 36 2,830 1,857 0 200,000 1,990 0 200,000

2 37 2,830 3,983 1,424 200,000 4,317 1,758 200,000

3 38 2,830 6,142 3,903 200,000 6,753 4,514 200,000

4 39 2,830 8,328 6,408 200,000 9,286 7,367 200,000

5 40 2,830 10,541 8,942 200,000 11,903 10,304 200,000

6 41 2,830 12,782 11,502 200,000 14,640 13,361 200,000

7 42 2,830 15,045 14,085 200,000 17,503 16,544 200,000

8 43 2,830 17,326 16,686 200,000 20,498 19,858 200,000

9 44 2,830 19,622 19,303 200,000 23,630 23,311 200,000

10 45 2,830 21,927 21,927 200,000 26,907 26,907 200,000

Totals: 28,300

11 46 2,830 24,488 24,488 200,000 30,617 30,617 200,000

12 47 2,830 27,064 27,064 200,000 34,482 34,482 200,000

13 48 2,830 29,652 29,652 200,000 38,539 38,539 200,000

14 49 2,830 32,274 32,274 200,000 42,798 42,798 200,000

15 50 2,830 34,925 34,925 200,000 47,266 47,266 200,000

16 51 2,830 37,599 37,599 200,000 51,956 51,956 200,000

17 52 2,830 40,288 40,288 200,000 56,880 56,880 200,000

18 53 2,830 42,977 42,977 200,000 62,051 62,051 200,000

19 54 2,830 45,660 45,660 200,000 67,466 67,466 200,000

20 55 2,830 48,322 48,322 200,000 73,139 73,139 200,000

Totals: 56,600

21 56 2,830 50,951 50,951 200,000 79,084 79,084 200,000

22 57 2,830 53,544 53,544 200,000 85,313 85,313 200,000

23 58 2,830 56,095 56,095 200,000 91,826 91,826 204,617

24 59 2,830 58,627 58,627 200,000 98,629 98,629 213,433

25 60 2,830 61,129 61,129 200,000 105,734 105,734 222,275

26 61 2,830 63,582 63,582 200,000 113,156 113,156 231,166

27 62 2,830 65,962 65,962 200,000 120,907 120,907 240,169

28 63 2,830 68,240 68,240 200,000 129,000 129,000 249,318

29 64 2,830 70,398 70,398 200,000 137,450 137,450 258,653

30 65 2,830 72,429 72,429 200,000 146,270 146,270 268,171

Totals: 84,900

PolicyYear

EOYAge

PlannedPremium

PolicyValue

NetSurrender

Value

NetDeath

BenefitPolicyValue

NetSurrender

Value

NetDeath

Benefit

End of Year Guaranteed Assumptions2.00% Guaranteed Rate, Guaranteed Charges

End of Year Non-Guaranteed Assumptions4.55% Initial Current Rate, Current Charges



Guaranteed and Nonguaranteed Values









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## Indicates that the policy has lapsed under the illustrated assumption. Additional premium would be required to maintain policy benefits.

Page 6 of 17

31 66 0 71,565 71,565 200,000 152,736 152,736 272,984

32 67 0 70,453 70,453 200,000 159,522 159,522 278,094

33 68 0 69,078 69,078 200,000 166,643 166,643 283,461

34 69 0 67,406 67,406 200,000 174,118 174,118 289,088

35 70 0 65,413 65,413 200,000 181,963 181,963 294,980

36 71 0 63,029 63,029 200,000 190,172 190,172 301,137

37 72 0 60,187 60,187 200,000 198,674 198,674 307,409

38 73 0 56,731 56,731 200,000 207,471 207,471 313,925

39 74 0 52,585 52,585 200,000 216,565 216,565 320,646

40 75 0 47,653 47,653 200,000 225,963 225,963 327,556

Totals: 84,900

41 76 0 41,786 41,786 200,000 235,641 235,641 334,611

42 77 0 34,814 34,814 200,000 245,612 245,612 341,843

43 78 0 26,470 26,470 200,000 255,876 255,876 349,270

44 79 0 16,402 16,402 200,000 266,431 266,431 356,938

45 80 0 4,156 4,156 200,000 277,278 277,278 364,898

46 81 0 ## ## ## 288,416 288,416 373,123

47 82 0 299,843 299,843 381,670

48 83 0 311,558 311,558 390,538

49 84 0 323,561 323,561 399,631

50 85 0 335,854 335,854 409,037

Totals: 84,900

51 86 0 348,725 348,725 419,132

52 87 0 362,083 362,083 429,829

53 88 0 375,948 375,948 441,138

54 89 0 390,344 390,344 453,073

55 90 0 405,294 405,294 465,683

56 91 0 420,763 420,763 478,912

57 92 0 436,768 436,768 492,500

58 93 0 453,349 453,349 506,436

59 94 0 470,560 470,560 520,675

60 95 0 488,473 488,473 534,927

Totals: 84,900

PolicyYear

EOYAge

PlannedPremium

PolicyValue

NetSurrender

Value

NetDeath

BenefitPolicyValue

NetSurrender

Value

NetDeath

Benefit





Guaranteed and Nonguaranteed Values (cont'd)









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Page 7 of 17

61 96 0 507,527 507,527 549,347

62 97 0 527,953 527,953 563,325

63 98 0 549,993 549,993 575,898

64 99 0 574,021 574,021 585,387

65 100 0 600,629 600,629 600,629

66 101 0 627,958 627,958 627,958

67 102 0 656,530 656,530 656,530

68 103 0 686,402 686,402 686,402

69 104 0 717,633 717,633 717,633

70 105 0 750,286 750,286 750,286

Totals: 84,900

71 106 0 784,424 784,424 784,424

72 107 0 820,115 820,115 820,115

73 108 0 857,430 857,430 857,430

74 109 0 896,443 896,443 896,443

75 110 0 937,231 937,231 937,231

76 111 0 979,875 979,875 979,875

77 112 0 1,024,460 1,024,460 1,024,460

78 113 0 1,071,073 1,071,073 1,071,073

79 114 0 1,119,806 1,119,806 1,119,806

80 115 0 1,170,758 1,170,758 1,170,758

Totals: 84,900

81 116 0 1,224,027 1,224,027 1,224,027

82 117 0 1,279,720 1,279,720 1,279,720

83 118 0 1,337,948 1,337,948 1,337,948

84 119 0 1,398,824 1,398,824 1,398,824

85 120 0 1,462,471 1,462,471 1,462,471

86 121 0 1,529,013 1,529,013 1,529,013

87 122 0 1,598,583 1,598,583 1,598,583

88 123 0 1,671,319 1,671,319 1,671,319

89 124 0 1,747,364 1,747,364 1,747,364

90 125 0 1,826,869 1,826,869 1,826,869

Totals: 84,900

PolicyYear

EOYAge

PlannedPremium

PolicyValue

NetSurrender

Value

NetDeath

BenefitPolicyValue

NetSurrender

Value

NetDeath

Benefit





Guaranteed and Nonguaranteed Values (cont'd)









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Page 8 of 17

1 36 2,830 170 608 164 102 1,990 2,879 0

2 37 2,830 170 368 163 199 4,317 2,559 1,758

3 38 2,830 170 368 161 305 6,753 2,239 4,514

4 39 2,830 170 368 174 415 9,286 1,919 7,367

5 40 2,830 170 368 204 530 11,903 1,599 10,304

6 41 2,830 170 368 203 649 14,640 1,279 13,361

7 42 2,830 170 368 202 773 17,503 960 16,544

8 43 2,830 170 368 201 904 20,498 640 19,858

9 44 2,830 170 368 199 1,040 23,630 320 23,311

10 45 2,830 170 368 197 1,182 26,907 0 26,907

Totals: 28,300 1,698 3,924 1,868 6,097

11 46 2,830 170 120 255 1,424 30,617 0 30,617

12 47 2,830 170 120 279 1,604 34,482 0 34,482

13 48 2,830 170 120 274 1,791 38,539 0 38,539

14 49 2,830 170 120 269 1,988 42,798 0 42,798

15 50 2,830 170 120 267 2,195 47,266 0 47,266

16 51 2,830 170 120 262 2,411 51,956 0 51,956

17 52 2,830 170 120 256 2,639 56,880 0 56,880

18 53 2,830 170 120 247 2,878 62,051 0 62,051

19 54 2,830 170 120 254 3,129 67,466 0 67,466

20 55 2,830 170 120 258 3,391 73,139 0 73,139

Totals: 56,600 3,396 5,124 4,489 29,547

21 56 2,830 170 120 261 3,666 79,084 0 79,084

22 57 2,830 170 120 266 3,954 85,313 0 85,313

23 58 2,830 170 120 283 4,256 91,826 0 91,826

24 59 2,830 170 120 309 4,571 98,629 0 98,629

25 60 2,830 170 120 335 4,901 105,734 0 105,734

26 61 2,830 170 120 363 5,245 113,156 0 113,156

27 62 2,830 170 120 393 5,604 120,907 0 120,907

28 63 2,830 170 120 426 5,979 129,000 0 129,000

29 64 2,830 170 120 461 6,370 137,450 0 137,450

30 65 2,830 170 120 499 6,779 146,270 0 146,270

Totals: 84,900 5,094 6,324 8,085 80,873

PolicyYear

EOYAge

PlannedPremium

PremiumCharge

Issue/Admin

ChargeInsurance

ChargesInterest

CreditedPolicyValue

SurrenderCharge

NetSurrender

Value



Annual Account Summary









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Page 9 of 17

31 66 0 0 120 493 7,078 152,736 0 152,736

32 67 0 0 120 486 7,392 159,522 0 159,522

33 68 0 0 120 479 7,721 166,643 0 166,643

34 69 0 0 120 472 8,067 174,118 0 174,118

35 70 0 0 120 465 8,430 181,963 0 181,963

36 71 0 0 120 480 8,810 190,172 0 190,172

37 72 0 0 120 583 9,205 198,674 0 198,674

38 73 0 0 120 697 9,615 207,471 0 207,471

39 74 0 0 120 824 10,038 216,565 0 216,565

40 75 0 0 120 957 10,475 225,963 0 225,963

Totals: 84,900 5,094 7,524 14,023 167,704

41 76 0 0 120 1,129 10,927 235,641 0 235,641

42 77 0 0 120 1,301 11,392 245,612 0 245,612

43 78 0 0 120 1,487 11,871 255,876 0 255,876

44 79 0 0 120 1,687 12,363 266,431 0 266,431

45 80 0 0 120 1,903 12,869 277,278 0 277,278

46 81 0 0 120 2,132 13,390 288,416 0 288,416

47 82 0 0 120 2,377 13,923 299,843 0 299,843

48 83 0 0 120 2,635 14,471 311,558 0 311,558

49 84 0 0 120 2,909 15,032 323,561 0 323,561

50 85 0 0 120 3,194 15,607 335,854 0 335,854

Totals: 84,900 5,094 8,724 34,776 299,548

51 86 0 0 120 3,212 16,203 348,725 0 348,725

52 87 0 0 120 3,345 16,823 362,083 0 362,083

53 88 0 0 120 3,482 17,468 375,948 0 375,948

54 89 0 0 120 3,621 18,136 390,344 0 390,344

55 90 0 0 120 3,761 18,831 405,294 0 405,294

56 91 0 0 120 3,962 19,551 420,763 0 420,763

57 92 0 0 120 4,171 20,296 436,768 0 436,768

58 93 0 0 120 4,366 21,067 453,349 0 453,349

59 94 0 0 120 4,536 21,867 470,560 0 470,560

60 95 0 0 120 4,665 22,698 488,473 0 488,473

Totals: 84,900 5,094 9,924 73,896 492,488

PolicyYear

EOYAge

PlannedPremium

PremiumCharge

Issue/Admin

ChargeInsurance

ChargesInterest

CreditedPolicyValue

SurrenderCharge

NetSurrender

Value



Annual Account Summary (cont'd)









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Page 10 of 17

61 96 0 0 120 4,400 23,574 507,527 0 507,527

62 97 0 0 120 3,964 24,509 527,953 0 527,953

63 98 0 0 120 3,355 25,516 549,993 0 549,993

64 99 0 0 120 2,460 26,608 574,021 0 574,021

65 100 0 0 120 1,081 27,809 600,629 0 600,629

66 101 0 0 0 0 27,329 627,958 0 627,958

67 102 0 0 0 0 28,572 656,530 0 656,530

68 103 0 0 0 0 29,872 686,402 0 686,402

69 104 0 0 0 0 31,231 717,633 0 717,633

70 105 0 0 0 0 32,652 750,286 0 750,286

Totals: 84,900 5,094 10,524 89,156 770,159

71 106 0 0 0 0 34,138 784,424 0 784,424

72 107 0 0 0 0 35,691 820,115 0 820,115

73 108 0 0 0 0 37,315 857,430 0 857,430

74 109 0 0 0 0 39,013 896,443 0 896,443

75 110 0 0 0 0 40,788 937,231 0 937,231

76 111 0 0 0 0 42,644 979,875 0 979,875

77 112 0 0 0 0 44,584 1,024,460 0 1,024,460

78 113 0 0 0 0 46,613 1,071,073 0 1,071,073

79 114 0 0 0 0 48,734 1,119,806 0 1,119,806

80 115 0 0 0 0 50,951 1,170,758 0 1,170,758

Totals: 84,900 5,094 10,524 89,156 1,190,631

81 116 0 0 0 0 53,269 1,224,027 0 1,224,027

82 117 0 0 0 0 55,693 1,279,720 0 1,279,720

83 118 0 0 0 0 58,227 1,337,948 0 1,337,948

84 119 0 0 0 0 60,877 1,398,824 0 1,398,824

85 120 0 0 0 0 63,647 1,462,471 0 1,462,471

86 121 0 0 0 0 66,542 1,529,013 0 1,529,013

87 122 0 0 0 0 69,570 1,598,583 0 1,598,583

88 123 0 0 0 0 72,736 1,671,319 0 1,671,319

89 124 0 0 0 0 76,045 1,747,364 0 1,747,364

90 125 0 0 0 0 79,505 1,826,869 0 1,826,869

Totals: 84,900 5,094 10,524 89,156 1,846,742

PolicyYear

EOYAge

PlannedPremium

PremiumCharge

Issue/Admin

ChargeInsurance

ChargesInterest

CreditedPolicyValue

SurrenderCharge

NetSurrender

Value



Annual Account Summary (cont'd)









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Page 11 of 17

1 36 2,830 0 -100.00% 200,000 6967.14%

2 37 2,830 1,758 -56.64% 200,000 692.15%

3 38 2,830 4,514 -28.41% 200,000 275.25%

4 39 2,830 7,367 -16.46% 200,000 157.95%

5 40 2,830 10,304 -10.39% 200,000 106.36%

6 41 2,830 13,361 -6.81% 200,000 78.19%

7 42 2,830 16,544 -4.51% 200,000 60.72%

8 43 2,830 19,858 -2.92% 200,000 48.95%

9 44 2,830 23,311 -1.78% 200,000 40.54%

10 45 2,830 26,907 -0.92% 200,000 34.26%

Totals: 28,300

11 46 2,830 30,617 -0.28% 200,000 29.42%

12 47 2,830 34,482 0.23% 200,000 25.59%

13 48 2,830 38,539 0.66% 200,000 22.49%

14 49 2,830 42,798 1.02% 200,000 19.94%

15 50 2,830 47,266 1.33% 200,000 17.81%

16 51 2,830 51,956 1.60% 200,000 16.00%

17 52 2,830 56,880 1.83% 200,000 14.45%

18 53 2,830 62,051 2.04% 200,000 13.12%

19 54 2,830 67,466 2.22% 200,000 11.95%

20 55 2,830 73,139 2.38% 200,000 10.93%

Totals: 56,600

PolicyYear

EOYAge

NetOutlay

NetSurrender

Value

InternalRate OfReturn

NetDeath

Benefit


----- Surrender Value ----- ----- Death Benefit -----



Internal Rate of Return Illustration









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The IRR on cash value is equivalent to an interest rate at which an amount equal to the illustrated premiums could have been invested outside the policy to arrive at the net surrender value of the policy.The IRR on death benefit is equivalent to an interest rate at which an amount equal to the illustrated premiums could have been invested outside the policy to arrive at the net death benefit of the policy.

Page 12 of 17

21 56 2,830 79,084 2.53% 200,000 10.03%

22 57 2,830 85,313 2.65% 200,000 9.23%

23 58 2,830 91,826 2.77% 204,617 8.67%

24 59 2,830 98,629 2.87% 213,433 8.30%

25 60 2,830 105,734 2.96% 222,275 7.97%

26 61 2,830 113,156 3.05% 231,166 7.66%

27 62 2,830 120,907 3.12% 240,169 7.37%

28 63 2,830 129,000 3.19% 249,318 7.11%

29 64 2,830 137,450 3.25% 258,653 6.88%

30 65 2,830 146,270 3.31% 268,171 6.66%

Totals: 84,900

31 66 0 152,736 3.37% 272,984 6.42%

32 67 0 159,522 3.42% 278,094 6.21%

33 68 0 166,643 3.47% 283,461 6.02%

34 69 0 174,118 3.52% 289,088 5.84%

35 70 0 181,963 3.56% 294,980 5.68%

36 71 0 190,172 3.60% 301,137 5.54%

37 72 0 198,674 3.63% 307,409 5.41%

38 73 0 207,471 3.66% 313,925 5.28%

39 74 0 216,565 3.69% 320,646 5.17%

40 75 0 225,963 3.71% 327,556 5.07%

Totals: 84,900

PolicyYear

EOYAge

NetOutlay

NetSurrender

Value


NetDeath

Benefit





Internal Rate of Return Illustration (cont'd)









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Page 13 of 17

41 76 0 235,641 3.73% 334,611 4.97%

42 77 0 245,612 3.75% 341,843 4.88%

43 78 0 255,876 3.76% 349,270 4.79%

44 79 0 266,431 3.77% 356,938 4.71%

45 80 0 277,278 3.78% 364,898 4.64%

46 81 0 288,416 3.79% 373,123 4.57%

47 82 0 299,843 3.79% 381,670 4.50%

48 83 0 311,558 3.80% 390,538 4.44%

49 84 0 323,561 3.80% 399,631 4.39%

50 85 0 335,854 3.80% 409,037 4.33%

Totals: 84,900

51 86 0 348,725 3.80% 419,132 4.29%

52 87 0 362,083 3.80% 429,829 4.24%

53 88 0 375,948 3.80% 441,138 4.20%

54 89 0 390,344 3.80% 453,073 4.17%

55 90 0 405,294 3.80% 465,683 4.14%

56 91 0 420,763 3.80% 478,912 4.11%

57 92 0 436,768 3.80% 492,500 4.08%

58 93 0 453,349 3.80% 506,436 4.05%

59 94 0 470,560 3.80% 520,675 4.02%

60 95 0 488,473 3.80% 534,927 4.00%

Totals: 84,900

PolicyYear

EOYAge

NetOutlay

NetSurrender

Value


NetDeath

Benefit














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Page 14 of 17

61 96 0 507,527 3.80% 549,347 3.97%

62 97 0 527,953 3.81% 563,325 3.94%

63 98 0 549,993 3.82% 575,898 3.91%

64 99 0 574,021 3.83% 585,387 3.87%

65 100 0 600,629 3.84% 600,629 3.84%

66 101 0 627,958 3.85% 627,958 3.85%

67 102 0 656,530 3.87% 656,530 3.87%

68 103 0 686,402 3.88% 686,402 3.88%

69 104 0 717,633 3.89% 717,633 3.89%

70 105 0 750,286 3.90% 750,286 3.90%

Totals: 84,900

71 106 0 784,424 3.91% 784,424 3.91%

72 107 0 820,115 3.92% 820,115 3.92%

73 108 0 857,430 3.93% 857,430 3.93%

74 109 0 896,443 3.94% 896,443 3.94%

75 110 0 937,231 3.95% 937,231 3.95%

76 111 0 979,875 3.96% 979,875 3.96%

77 112 0 1,024,460 3.97% 1,024,460 3.97%

78 113 0 1,071,073 3.98% 1,071,073 3.98%

79 114 0 1,119,806 3.99% 1,119,806 3.99%

80 115 0 1,170,758 4.00% 1,170,758 4.00%

Totals: 84,900

PolicyYear

EOYAge

NetOutlay

NetSurrender

Value


NetDeath

Benefit














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Page 15 of 17

81 116 0 1,224,027 4.00% 1,224,027 4.00%

82 117 0 1,279,720 4.01% 1,279,720 4.01%

83 118 0 1,337,948 4.02% 1,337,948 4.02%

84 119 0 1,398,824 4.03% 1,398,824 4.03%

85 120 0 1,462,471 4.03% 1,462,471 4.03%

86 121 0 1,529,013 4.04% 1,529,013 4.04%

87 122 0 1,598,583 4.05% 1,598,583 4.05%

88 123 0 1,671,319 4.05% 1,671,319 4.05%

89 124 0 1,747,364 4.06% 1,747,364 4.06%

90 125 0 1,826,869 4.07% 1,826,869 4.07%

Totals: 84,900

PolicyYear

EOYAge

NetOutlay

NetSurrender

Value


NetDeath

Benefit














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Page 16 of 17

Base Face Amount

The Base Face Amount is the coverage provided by the base policy. Any decreases to the Base Face Amount after the first policy year must fall within policy minimums.

Cost Of Insurance

Current insurance charges are based on Company experience. The current rates may change, but are guaranteed never to exceed the maximum rates. Maximum rates reflect the 2001 CSO Smoker and Nonsmoker Mortality Table.

Death Benefit Option

Death Benefit Option 1 provides a level amount of coverage. It will increase only when necessary to maintain the definition of life insurance. Death Benefit Option 2 provides coverage equal to the Face Amount plus the Policy Value plus any amount necessary to maintain the definition of life insurance.

Net Death Benefit

The Death Benefit illustrated is the Base Face Amount plus any Required Additional Death Benefit. This is the value that is payable upon the death of the insured as stated on the front page of the policy. The actual amount payable may be decreased by loans or increased by additional insurance benefits. Death Benefits are illustrated as of the end of the year. Net Death Benefit reflects the total loan plus any loan interest due.

Net Income

Net Income reflects any illustrated withdrawal, policy loan and/or loan interest due.

Net Surrender Value

The Net Surrender Value is the Policy Value less Surrender Charge(s), and is illustrated as of end of the year. This amount is shown net of withdrawals and total loans plus interest due. During the Surrender Charge period, there is a Surrender Charge assessed if all or part of the Base Face Amount is reduced. If the policy terminates for any reason, the amount of any outstanding loan (that was not previously considered income) could result in a considerable tax. Under certain situations involving large amounts of outstanding loans, you might find yourself having to choose between high premium requirements to keep your policy from lapsing and a significant tax burden if you allow the lapse to occur. Please consult your tax advisor for further information.

outstanding loan (that was not previously considered income) could result in a considerable tax. Under certain situations involving large amounts of outstanding loans, you might find yourself having to choose between high premium requirements to keep your policy from lapsing and a significant tax burden if you allow the lapse to occur. Please consult your tax advisor for further information.

Planned Premium Outlay

The Planned Premium Outlay is the amount which the policyholder plans to pay. This illustration assumes that planned premiums are paid at the beginning of each modal period indicated. Additional premiums may be paid while the policy is in force, subject to our minimum and maximum limits.

Policy Value

When premiums are paid, the balance, after premium charges are deducted, goes into the Policy Value. The Policy Value is credited daily with a guaranteed interest rate of 2.00% or the current rate, whichever is greater. Also, once each month, administrative and insurance charges are deducted.

Required Additional Death Benefit

The death benefit will automatically be increased if necessary to maintain the minimum amount of insurance needed to comply with current federal tax law (Section 7702 of the Internal Revenue Code). This will ensure that your policy maintains the favorable tax treatment associated with being a life insurance policy.

Risk Class

Classifications represent groups of people with similar risk characteristics and help to determine the cost of insurance. Final risk classification for a proposed insured is determined upon completion of the underwriting process, and may vary from what is shown on this illustration. If so, you will receive a Revised Basic Illustration prior to or upon delivery of your insurance contract.



Glossary of Terms










1 36 2,830 200,000 0 1,990 200,000 200,000

2 37 2,830 200,000 0 4,317 200,000 200,000

3 38 2,830 200,000 0 6,753 200,000 200,000

4 39 2,830 200,000 0 9,286 200,000 200,000

5 40 2,830 200,000 0 11,903 200,000 200,000

6 41 2,830 200,000 0 14,640 200,000 200,000

7 42 2,830 200,000 0 17,503 200,000 200,000

8 43 2,830 200,000 0 20,498 200,000 200,000

9 44 2,830 200,000 0 23,630 200,000 200,000

10 45 2,830 200,000 0 26,907 200,000 200,000

Totals: 28,300

11 46 2,830 200,000 0 30,617 200,000 200,000

12 47 2,830 200,000 0 34,482 200,000 200,000

13 48 2,830 200,000 0 38,539 200,000 200,000

14 49 2,830 200,000 0 42,798 200,000 200,000

15 50 2,830 200,000 0 47,266 200,000 200,000

16 51 2,830 200,000 0 51,956 200,000 200,000

17 52 2,830 200,000 0 56,880 200,000 200,000

18 53 2,830 200,000 0 62,051 200,000 200,000

19 54 2,830 200,000 0 67,466 200,000 200,000

20 55 2,830 200,000 0 73,139 200,000 200,000

Totals: 56,600

21 56 2,830 200,000 0 79,084 200,000 200,000

22 57 2,830 200,000 0 85,313 200,000 200,000

23 58 2,830 200,000 4,617 91,826 204,617 204,617

24 59 2,830 200,000 13,433 98,629 213,433 213,433

25 60 2,830 200,000 22,275 105,734 222,275 222,275

26 61 2,830 200,000 31,166 113,156 231,166 231,166

27 62 2,830 200,000 40,169 120,907 240,169 240,169

28 63 2,830 200,000 49,318 129,000 249,318 249,318

29 64 2,830 200,000 58,653 137,450 258,653 258,653

30 65 2,830 200,000 68,171 146,270 268,171 268,171

Totals: 84,900

PolicyYear

EOYAge

PlannedPremium

BaseFace

Amount

RequiredAdditional

DeathBenefit

PolicyValue

TotalDeath

Benefit

NetDeath

Benefit



Death Benefit Illustration








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31 66 0 200,000 72,984 152,736 272,984 272,984

32 67 0 200,000 78,094 159,522 278,094 278,094

33 68 0 200,000 83,461 166,643 283,461 283,461

34 69 0 200,000 89,088 174,118 289,088 289,088

35 70 0 200,000 94,980 181,963 294,980 294,980

36 71 0 200,000 101,137 190,172 301,137 301,137

37 72 0 200,000 107,409 198,674 307,409 307,409

38 73 0 200,000 113,925 207,471 313,925 313,925

39 74 0 200,000 120,646 216,565 320,646 320,646

40 75 0 200,000 127,556 225,963 327,556 327,556

Totals: 84,900

41 76 0 200,000 134,611 235,641 334,611 334,611

42 77 0 200,000 141,843 245,612 341,843 341,843

43 78 0 200,000 149,270 255,876 349,270 349,270

44 79 0 200,000 156,938 266,431 356,938 356,938

45 80 0 200,000 164,898 277,278 364,898 364,898

46 81 0 200,000 173,123 288,416 373,123 373,123

47 82 0 200,000 181,670 299,843 381,670 381,670

48 83 0 200,000 190,538 311,558 390,538 390,538

49 84 0 200,000 199,631 323,561 399,631 399,631

50 85 0 200,000 209,037 335,854 409,037 409,037

Totals: 84,900

51 86 0 200,000 219,132 348,725 419,132 419,132

52 87 0 200,000 229,829 362,083 429,829 429,829

53 88 0 200,000 241,138 375,948 441,138 441,138

54 89 0 200,000 253,073 390,344 453,073 453,073

55 90 0 200,000 265,683 405,294 465,683 465,683

56 91 0 200,000 278,912 420,763 478,912 478,912

57 92 0 200,000 292,500 436,768 492,500 492,500

58 93 0 200,000 306,436 453,349 506,436 506,436

59 94 0 200,000 320,675 470,560 520,675 520,675

60 95 0 200,000 334,927 488,473 534,927 534,927

Totals: 84,900

PolicyYear

EOYAge

PlannedPremium

BaseFace

Amount

RequiredAdditional

DeathBenefit

PolicyValue

TotalDeath

Benefit

NetDeath

Benefit



Death Benefit Illustration (cont'd)








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61 96 0 200,000 349,347 507,527 549,347 549,347

62 97 0 200,000 363,325 527,953 563,325 563,325

63 98 0 200,000 375,898 549,993 575,898 575,898

64 99 0 200,000 385,387 574,021 585,387 585,387

65 100 0 200,000 400,629 600,629 600,629 600,629

66 101 0 200,000 427,958 627,958 627,958 627,958

67 102 0 200,000 456,530 656,530 656,530 656,530

68 103 0 200,000 486,402 686,402 686,402 686,402

69 104 0 200,000 517,633 717,633 717,633 717,633

70 105 0 200,000 550,286 750,286 750,286 750,286

Totals: 84,900

71 106 0 200,000 584,424 784,424 784,424 784,424

72 107 0 200,000 620,115 820,115 820,115 820,115

73 108 0 200,000 657,430 857,430 857,430 857,430

74 109 0 200,000 696,443 896,443 896,443 896,443

75 110 0 200,000 737,231 937,231 937,231 937,231

76 111 0 200,000 779,875 979,875 979,875 979,875

77 112 0 200,000 824,460 1,024,460 1,024,460 1,024,460

78 113 0 200,000 871,073 1,071,073 1,071,073 1,071,073

79 114 0 200,000 919,806 1,119,806 1,119,806 1,119,806

80 115 0 200,000 970,758 1,170,758 1,170,758 1,170,758

Totals: 84,900

81 116 0 200,000 1,024,027 1,224,027 1,224,027 1,224,027

82 117 0 200,000 1,079,720 1,279,720 1,279,720 1,279,720

83 118 0 200,000 1,137,948 1,337,948 1,337,948 1,337,948

84 119 0 200,000 1,198,824 1,398,824 1,398,824 1,398,824

85 120 0 200,000 1,262,471 1,462,471 1,462,471 1,462,471

86 121 0 200,000 1,329,013 1,529,013 1,529,013 1,529,013

87 122 0 0 0 1,598,583 0 1,598,583

88 123 0 0 0 1,671,319 0 1,671,319

89 124 0 0 0 1,747,364 0 1,747,364

90 125 0 0 0 1,826,869 0 1,826,869

Totals: 84,900

PolicyYear

EOYAge

PlannedPremium

BaseFace

Amount

RequiredAdditional

DeathBenefit

PolicyValue

TotalDeath

Benefit

NetDeath

Benefit



Death Benefit Illustration (cont'd)








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Documents

John Hancock Life Insurance Company (U.S.A.)acme.highpoint.edu/~jwehrley/BUA234/A Module Approach/5 minute lecture/Sorrell/Sample 3...surrender value falls to zero or below, coverage