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

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

LTCI Partners

Joe Howard, Sales Vice PresidentDave Plumb, VP Product DevelopmentRob Warchol, LTC Competitive Director


Policy benefits may vary by state.

State Approval MapState Approval Map

AK

PA

WA

OR

NV

CA

ID

MT

WY

UT

AZNM

CO

ND

SD

NE

KS

OK

TX

MN

IA

MO

AR

LA

WI

IL IN

MI

OH

KY

TN

MS ALGA

FL

SC

NC

VAWV

NY

ME

VTNH

NJ

RI

MDDE

HI

MA

CT


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

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.


Myth: “Leading Edge’s lower premiums are merely an attempt to steal market share from other carriers”Myth: “Leading Edge’s lower premiums are merely an attempt to steal market share from other carriers”

► We are able to provide Leading Edge at a more affordable premium due to a unique investment strategy

► The industry is in need of innovation — with overall sales declining nationally due to:

growing product complexity increasing premiums carrier instability

► We took the initiative with Leading Edge to help expand the market by attracting new consumers who may have be avoiding LTC Insurance because of product complexity and price issues.

► We are able to provide Leading Edge at a more affordable premium due to a unique investment strategy

► The industry is in need of innovation — with overall sales declining nationally due to:

growing product complexity increasing premiums carrier instability

► We took the initiative with Leading Edge to help expand the market by attracting new consumers who may have be avoiding LTC Insurance because of product complexity and price issues.


Built in Policy FeaturesStaying at Home for as Long as PossibleBuilt 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

► 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

► 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

► 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

1. Total homemaker services does not include shopping


Elimination PeriodElimination Period

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

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

care– Not payable under the International Coverage Benefit

– Rider cost is 13%

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

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

care– Not payable under the International Coverage Benefit

– Rider cost is 13%


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

Policy Design Options – Benefit PeriodsPolicy Design Options – Benefit Periods

►Benefit Period– 3 Years (1,095 days) (36 months)– 5 Years (1,825 days) (60 months)– 5 Years + an additional $1 Million Pool

►Benefit Period– 3 Years (1,095 days) (36 months)– 5 Years (1,825 days) (60 months)– 5 Years + an additional $1 Million Pool


Policy Design Options Policy Design Options

► 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)

► 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 Design Options Policy Design Options

► 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

► 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” services


Myth: “Leading Edge’s 5-Year Plus $1 Million policy is comparable to a 10-Year plan, and $1 million has limited value that could onlylast a few years”

Myth: “Leading Edge’s 5-Year Plus $1 Million policy is comparable to a 10-Year plan, and $1 million has limited value that could onlylast a few years”

► Compared to our top two competitors’ unlimited plans, premium difference is approximately 30%. Buy more coverage and still save money!

► With SharedCare plans, only 2% for adding SharedCare to our 5-Year Plus $1 Million plan.

► Today, fewer buyers are selecting unlimited coverage due to the high cost. John Hancock’s unlimited LTC Insurance sales totaled only 9% of 2005 sales. Our 5-Year Plus $1 Million plan is a more affordable alternative.

► Compared to our top two competitors’ unlimited plans, premium difference is approximately 30%. Buy more coverage and still save money!

► With SharedCare plans, only 2% for adding SharedCare to our 5-Year Plus $1 Million plan.

► Today, fewer buyers are selecting unlimited coverage due to the high cost. John Hancock’s unlimited LTC Insurance sales totaled only 9% of 2005 sales. Our 5-Year Plus $1 Million plan is a more affordable alternative.


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

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

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

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.


Automatic Compound Inflation Protection Consumer Price Index (CPI)Automatic Compound Inflation Protection Consumer Price Index (CPI)

► Annual Compound increases based on the CPI

– CPI is the most widely used measure of inflation

– CPI measures the average change in prices paid by consumers for fixed market basket of consumer goods &

services

– Tied Urban CPI Index

– Includes housing & labor costs

► Annual Compound increases based on the CPI

– CPI is the most widely used measure of inflation

– CPI measures the average change in prices paid by consumers for fixed market basket of consumer goods &

services

– Tied Urban CPI Index

– Includes housing & labor costs


Automatic Compound Inflation Protection Consumer Price Index (CPI)Automatic Compound Inflation Protection Consumer Price Index (CPI)

► Level premium - compound inflation protection

– Equal to the Urban CPI % increase

– For both LTC Benefit Amount and Benefit Pool

► No upper limit to the CPI increase

► If CPI is negative, benefits remain level

– Steadily increased over the last 50 years

► Level premium - compound inflation protection

– Equal to the Urban CPI % increase

– For both LTC Benefit Amount and Benefit Pool

► No upper limit to the CPI increase

► If CPI is negative, benefits remain level

– Steadily increased over the last 50 years


Myth: The Consumer Price Index for all Urban Consumers (CPI) used by John Hancock is tracking less than the CPI for Medical Services and will not provide adequate coverage over time"

Myth: The Consumer Price Index for all Urban Consumers (CPI) used by John Hancock is tracking less than the CPI for Medical Services and will not provide adequate coverage over time"

► Leading Edge’s CPI-linked inflation option provides affordable and unlimited compound inflation protection relevant to the future costs of long term care.

► LE will allow policyholder benefits to track future inflation — whatever the level — with economical premiums designed to remain level.

► In all settings, labor and housing drives the costs of care. Providing inflation that ties to these costs is much more appropriate than a fixed increase.

► The CPI (Medical Services) is a different index, not reflective of the cost of long term care, which is more than 95% custodial. Medical Services CPI measures technology costs, lifesaving medical equipment, complex procedures performed by specialists, prescription drugs, and malpractice insurance premiums.

► Leading Edge’s CPI-linked inflation option provides affordable and unlimited compound inflation protection relevant to the future costs of long term care.

► LE will allow policyholder benefits to track future inflation — whatever the level — with economical premiums designed to remain level.

► In all settings, labor and housing drives the costs of care. Providing inflation that ties to these costs is much more appropriate than a fixed increase.

► The CPI (Medical Services) is a different index, not reflective of the cost of long term care, which is more than 95% custodial. Medical Services CPI measures technology costs, lifesaving medical equipment, complex procedures performed by specialists, prescription drugs, and malpractice insurance premiums.


Automatic Compound CPI PerformanceAutomatic Compound CPI Performance

$0

$100

$200

$300

$400

$500

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

$0

$100

$200

$300

$400

$500


$354

$250

$432

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

6.8%

4.3%

5.2%


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

55 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


$0

$100

$200

$300

$400

$500


$366

$250

$432

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

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

23% more than Leading

Edge


Simple and Complete Policy FeaturesSimple and Complete Policy Features

► Additional Stay at Home Services – 1X or 30 times the daily benefit

► Care Giver Support Services– Access to reports, ratings and provider discounts

► Lifestyle Benefit Changes– Increase once a year / decrease anytime

► International Benefit / one year► Bed Hold / 60 days► Respite and Hospice Care► Limited Optional Riders

– Shared Care, Zero Day HHC Rider, Nonforfeiture

► Additional Stay at Home Services – 1X or 30 times the daily benefit

► Care Giver Support Services– Access to reports, ratings and provider discounts

► Lifestyle Benefit Changes– Increase once a year / decrease anytime

► International Benefit / one year► Bed Hold / 60 days► Respite and Hospice Care► Limited Optional Riders

– Shared Care, Zero Day HHC Rider, Nonforfeiture


Myth: “CPI doesn’t track the current rate of LTC costs”Myth: “CPI doesn’t track the current rate of LTC costs”

► Traditional LTC insurance policy inflation rate is 5% fixed, an arbitrary figure that does not necessarily track the cost of LTC. The CPI is variable in nature and intended to more accurately track the cost of LTC.

► Bureau of Labor Statistics (LIMRA 2005 Sales report)– Nursing facility care increased by 2.9% in 2006: home health care increased by 1% in 2006► MetLife Mature Market Institute, Nursing Home & Home Health Care Survey, 9/2006– 2006 average daily rate for private room in a NH increased 1.5% over 2005 rate– 2006 average daily rate for semi-private room in a NH has increased 3.9% over 2005 rate– 2006 average hourly rate for HHC increased 0% over the 2005 rate– 2006 average daily rate for Assisted Living Facilities increased 2.2% over the 2005 rate, 10/ 06► Genworth Financial 2006 Cost of Care Survey, March 2006– 2006 average daily rate for private room in a NH increased 2.2% over 2005 rate– 2006 average daily rate for semi-private room in a NH has increased 2.3% over 2005 rate► The average CPI in 2006 was 3.2% (3.4% in 2005). Over the 30-year period ending in 2006,

the average annual increase in the CPI was 4.3% — with the highest single-year change of 13.5% during that period.

► Traditional LTC insurance policy inflation rate is 5% fixed, an arbitrary figure that does not necessarily track the cost of LTC. The CPI is variable in nature and intended to more accurately track the cost of LTC.

► Bureau of Labor Statistics (LIMRA 2005 Sales report)– Nursing facility care increased by 2.9% in 2006: home health care increased by 1% in 2006► MetLife Mature Market Institute, Nursing Home & Home Health Care Survey, 9/2006– 2006 average daily rate for private room in a NH increased 1.5% over 2005 rate– 2006 average daily rate for semi-private room in a NH has increased 3.9% over 2005 rate– 2006 average hourly rate for HHC increased 0% over the 2005 rate– 2006 average daily rate for Assisted Living Facilities increased 2.2% over the 2005 rate, 10/ 06► Genworth Financial 2006 Cost of Care Survey, March 2006– 2006 average daily rate for private room in a NH increased 2.2% over 2005 rate– 2006 average daily rate for semi-private room in a NH has increased 2.3% over 2005 rate► The average CPI in 2006 was 3.2% (3.4% in 2005). Over the 30-year period ending in 2006,

the average annual increase in the CPI was 4.3% — with the highest single-year change of 13.5% during that period.


► Leading Edge’s CPI-linked inflation is compound inflation protection with a variable, unlimited rate of interest and NO CAP. Premiums remain level and benefits will never go down.

► 5% Simple is a fixed rate capped at 5%, and by definition is not compound inflation protection. Because of the long-term impact of compounding, even a modest growth rate (i.e. 3-4%) outperforms 5% Simple over time.

► Most people prefer compound inflation protection. Of the individual LTC insurance buyers in 2005 who have selected some form of inflation protection, only 19% purchased Simple inflation (LIMRA 2005 Sales Supplemental Report).

► If future inflation is 4.3% (the average CPI over the past 30 years), 5% Simple will be inadequate in only 7 years.

► If future inflation is 5% or more, 5% Simple will be inadequate after just 1 year! A 5% Simple plan is roughly equivalent to 3% compound. Based on history, CPI-linked inflation

protection has strong potential to outperform both. Which plan would you rather have (or sell) — a fixed 3% Compound inflation plan or an unlimited increase linked to actual future inflation?

► Leading Edge’s CPI-linked inflation is compound inflation protection with a variable, unlimited rate of interest and NO CAP. Premiums remain level and benefits will never go down.

► 5% Simple is a fixed rate capped at 5%, and by definition is not compound inflation protection. Because of the long-term impact of compounding, even a modest growth rate (i.e. 3-4%) outperforms 5% Simple over time.

► Most people prefer compound inflation protection. Of the individual LTC insurance buyers in 2005 who have selected some form of inflation protection, only 19% purchased Simple inflation (LIMRA 2005 Sales Supplemental Report).

► If future inflation is 4.3% (the average CPI over the past 30 years), 5% Simple will be inadequate in only 7 years.

► If future inflation is 5% or more, 5% Simple will be inadequate after just 1 year! A 5% Simple plan is roughly equivalent to 3% compound. Based on history, CPI-linked inflation

protection has strong potential to outperform both. Which plan would you rather have (or sell) — a fixed 3% Compound inflation plan or an unlimited increase linked to actual future inflation?

Myth: Leading Edge’s CPI-linked inflation is comparable to Simple inflation”Myth: Leading Edge’s CPI-linked inflation is comparable to Simple inflation”


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

LTCI Partners

Joe Howard, Sales Vice PresidentDave Plumb, VP Product DevelopmentRob Warchol, LTC Competitive Director

Documents

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