Our monthly Case In Point section in Central Intelligence brings you summaries of actual Advanced Markets cases that have recently sold. For your convenience, we have compiled a collection of Case In Point summaries. Each summary is an example of the ways that our teams focus on client and advisor concerns, case design expertise, consultation process and software capability translate into real-life solutions. Initial Discussion Our Advanced Markets Consultant (AMC) designed several scenarios. The clients, with the help of their insurance advisor and the clients advisory team, preferred the scenario which illustrated a lump -sum Privately Financed note made to an Irrevocable Life Insurance Trust (ILIT), from which insurance payments would be made. The lump sum was calculated to take into account the amount needed to repay the note in year 13, after 10 years of premium payments. Using Advanced Markets proprietary JH Solutions software, our AMC calculated that it would take a $3,000,000 lump sum of cash made to the trust to fund the 10 annual premiums of $150,000 for 9 years on a John Hancock Survivorship UL policy, following a first-year premium gift of $1,000,000, the clients joint remaining lifetime exemption. This $3,000,000 figure was based on an assumed 7.8% trust side fund that would accumulate to repay the loan principal, including accrued interest payments, in year 13. The Privately Financed note was established as a long-term note subject to the then applicable federal rate of 4.4% of interest. Solution Clients expressed concern that the side-fund rate assumption of 7.8% might be too high. Our AMC then provided two what if scenarios to illustrate the shortfall in loan repayment if the side fund earned only 5%, as well as refinancing the note in year 13 at the lower assumed side- fund rate. Although there would be sufficient funds to pay the premiums over the 10-year period at the 5% assumed side-fund scenario, there would not be sufficient assets to repay the loan in year 13 under the 5% return assumption. Our AMC was able to alleviate these concerns by then illustrating the feasibility of refinancing the note, if necessary, under a 30-year note arrange ment that utilized the trust side fund to pay loan interest annually, with a loan principal repayment from death proceeds. Private Financing with Lifetime Gifts Initial Call to Advanced Markets: October 2007 Case Closed: April 2008 2 CLIENT PROFILE STATUS Married Couple: Male, Age 54, Preferred Non Smoker and Female, Age 53, Super Preferred Non Smoker, two children NET WORTH $35,000,000 of which securities represented 75% CURRENT LIFETIME Annual exclusions gifts were already being used in other planning and $1M of GIVING PLAN the couples $2M lifetime gift tax exemption was available for future planning NEED Additional $15M survivorship life insurance for estate liquidity CLIENT CONCERNS Keep current planning in place and do additional planning without incurring any gift taxes. Most importantly, the couple did not want to commit to a long-term funding arrangement. This is a supplemental illustration. Not all benefits and values are guaranteed. The assumptions on which the non-guaranteed elements are based are subject to change by the insurer. Actual results may be more or less favorable. Initial Discussion During a regular review of their insurance, these clients realized that the value of their business had grown so much that they needed additional life insurance to supplement their existing coverage. Our Advanced Markets Consultant (AMC), designed several scenarios for the clients, including a Sale to a Grantor Trust and Private Split Dollar. The clients, with the help of their insurance advisor and their legal and tax advisors, preferred the scenario using a Private Split Dollar arrangement with an Irrevocable Life Insurance Trust (ILIT) and a $20,000,000 John Hancock SUL-G insurance policy. Solution Using the JH Solutions software, our AMC was also able to illustrate a lifetime exit strategy from the Private Split Dollar arrangement through the use of a Grantor Retained Annuity Trust (GRAT). A zeroed-out 10-year GRAT was used as a vehicle to transfer shares in the family business to the clients heirs without having to make taxable gifts. A GRAT in a low-interest- rate environment enabled the clients to take advantage of the low Section 7520 rates, in addition to transferring the stock at a discounted value. When the GRAT terminates, the balance of the GRAT will transfer to the ILIT. The ILIT will then use the income from the stock in the GRAT to repay the amount due on the Private Split Dollar arrangement in year 10, and also to pay ongoing insurance premiums. Private Split Dollar Initial Call to Advanced Markets: September 2008 Case Closed: February 2009 CLIENT PROFILE STATUS Married Couple: Male Age 60, Preferred Non Smoker and Female Age 59, Super Preferred Non Smoker, three children NET WORTH $50,000,000, including a privately owned family business CURRENT LIFETIME The husband and wife each had three annual exclusion gifts, but the couples GIVING PLAN combined $2,000,000 lifetime gift tax exemption was not available. NEED $20 million of survivorship life insurance for estate liquidity purposes CLIENT CONCERNS Fund life insurance to take care of future generations without incurring any gift taxes. Much of the couples cash was already tied up in the family business. 3 CLIENT PROFILE STATUS Married Couple: Male, Age 80, Uninsurable and Female, Age 77, Preferred Non Smoker NET WORTH $40,000,000 CURRENT LIFETIME The husband and wife each had limited annual exclusion gifts, but the couples GIVING PLAN combined $2,000,000 lifetime gift tax exemption was not available. NEED $20 million of life insurance for estate liquidity purposes CLIENT CONCERNS Fund life insurance to take care of future generations without incurring any gift taxes. Initial Discussion We received information from a producer that indicated that a competitors quote outperformed our UL-G product in a Commercial Finance arrange ment on a non-guaranteed basis. In reviewing the competitors proposal, our AMC noticed certain omissions relating to the gift of loan interest, notably that the potential gift tax cost was not factored into the overall cost of the plan. Also, a varying premium schedule showed that high premiums were required in the early years, with lower premiums shown in later years. In an effort to fully analyze the situation and find the most effective way to overcome a perceived weakness in the product, our AMC contacted the producer and obtained a complete estate balance sheet on the proposed insureds. The clients assets were substantial ($40,000,000) and quite liquid. They had minimal annual exclusion gifts available and no lifetime gift exemptions remaining. Solution We were able to show that John Hancocks UL-G product was flexible and could produce a varying premium schedule that was better than the competitors latest quote. In addition, our AMC was able to use a Premium Financing proposal from JH Solutions to show the clients the impact of the gift of loan interest and the potential gift taxes that could have resulted from a Commercial Finance arrangement, as well as the varying premium approach. Given the additional loan interest rate risk as well as the collateral risks associated with commercial premium financing, we redesigned the funding technique to show a Private Financing arrange ment. The January 2009 Applicable Federal Rate (mid-term rate) was used to lock in the loan interest rate at 2.06%. We also showed that a predictable level premium approach was more suitable to minimize the cost of funding the premiums. A $20,000,000 single-life UL-G policy on the wife with an annual premium of $651,804 proved to be more cost-effective than a survivorship policy. Private Financing Initial Call to Advanced Markets: December 2008 Case Closed: January 2009 The insurance data shown is taken from an illustration. 4 CLIENT PROFILE STATUS Married Couple: Male, Age 61, Preferred Non Smoker and Female, Age 59, Preferred Non Smoker NET WORTH $25,000,000 CURRENT LIFETIME The husband and wife each had two annual exclusion gifts, but did not want to GIVING PLAN use their annual exclusions or gift exemptions to fund a life insurance policy. NEED $10 million of survivorship life insurance for estate liquidity purposes CLIENT CONCERNS Fund life insurance to take care of future generations without making any gifts. Initial Discussion Our Advanced Markets Consultant (AMC) designed several scenarios, including Invest in Your Life (Quick Concepts) and Private Financing. The producer was able to use the Invest in Your Life presentation to show the clients that a guaranteed life insurance product (SUL-G) could be an asset allocation tool in their overall portfolio. During this discussion, a universal life product with guarantees was compared to owning a bond with a guaranteed coupon rate. In the Invest in Your Life presentation, the clients saw that the Internal Rate of Return (IRR) on the life insurance policy in year 30 is 8.03% after tax. Solution The clients had available cash and decided to use a Private Financing arrangement with an Irrevocable Life Insurance Trust (ILIT) to fund a $10,433,807 John Hancock SUL-G insurance policy. Our AMC used the JH Solutions software to illustrate a lifetime exit strategy from the Private Financing arrangement in year 30. The arrangement was set up with the clients making a $2,000,000 loan to their ILIT in year 1, with the loan proceeds then invested in a side fund inside of the trust with a projected growth rate of 5%. The case closed quickly once the clients saw the benefits of purchasing a guaranteed universal life product and using a Private Financing arrangement to fund a trust without making any gifts. Creating an Asset Class with SUL-G Initial Call to Advanced Markets: April 2009 Case Closed: April 2009
5 Initial Discussion The Advanced Markets Consultant (AMC) designed several scenarios, including Invest in Your Life (Quick Concepts) and Private Financing (JH Solutions). The Invest in Your Life presentation showed the clients and their advisors the Internal Rate of Return (IRR) they might achieve on a SUL-G policy, with a projected IRR on the policy at life expectancy of 9.01% (year 16). The clients advisors then determined that they wanted to allocate $100,000 annually to the guaranteed universal life insurance policy. The advisors felt that a 6% return was a sound assumption for investment yield of a side fund. Solution Incorporating the factors of 1) annual premium of $100,000, 2) investment return of 6% and 3) payment of premiums through age 104 (26 years), a Private Financing arrangement was used to fund an ILIT with a $2,514,451 John Hancock SUL-G insurance policy. The arrangement was set up with the clients making a $1,378,336 lump-sum loan to their ILIT in year 1. The loan proceeds would then be invested in a side fund inside of the trust with a projected growth rate of 6%, and would be used to pay the annual premium of $100,000. Our AMC quickly showed the benefits of making a lump-sum loan to the trust and then investing the loan amount in a side fund inside the ILIT. The life insurance death benefit (with the 50% Return of Premium rider) is projected to repay the loan to the clients estate. Private Financing Initial Call to Advanced Markets: March 2009 Case Closed: May 2009 CLIENT PROFILE STATUS Married Couple: Male, Age 81, Standard Non Smoker and Female, Age 78, Preferred Non Smoker NET WORTH $30,000,000 CURRENT LIFETIME The husband and wife each had only two annual exclusions, and the couples GIVING PLAN combined $2,000,000 lifetime gift tax exemption was not available for funding a life insurance policy inside of an Irrevocable Life Insurance Trust (ILIT). NEED $2.5 million of survivorship life insurance for estate liquidity purposes CLIENT CONCERNS Fund life insurance to take care of future generations without incurring any gift taxes. The insurance data shown is taken from an illustration. Life expectancy based on 2001 Valuation Basic Table, Select & Ultimate. 6 Initial Discussion Our Advanced Markets Consultants (AMCs) used JH Solutions software to design several scenarios, including Premium Financing and Private Financing, to show the client. The clients insurance advisor initially requested a Premium Financing proposal but after some further discussion and information gathering, our AMCs determined that Private Financing would also be a good option for him to consider. After reviewing both the Premium Financing and Private Financing proposals from JH Solutions, the client and his advisors determined that Private Financing would be a more cost-effective approach, and would also enable the client to avoid making any taxable gifts. Solution We designed a Private Financing arrangement for funding an ILIT with a $10,442,053 John Hancock UL-G insurance policy with a $780,322 annual premium for 41 years. The arrangement was set up with the client making an annual $780,322 loan to his ILIT to cover the life insurance premium. The loan interest was set at 4.36% (July 2009 long-term Applicable Federal Rate) and would be deferred as long as the loan is in existence. The life insurance death benefit (with the Return of Premium rider) is projected to repay the loan to the clients estate, although the loan may be paid off during the clients lifetime using the proceeds of a sale of rental real estate. CLIENT PROFILE STATUS Male, Age 75, Standard Non Smoker NET WORTH $50,000,000 CURRENT LIFETIME The client has five annual exclusions, and his $1,000,000 lifetime gift tax exemption GIVING PLAN was not available for funding a life insurance policy inside of an Irrevocable Life Insurance Trust (ILIT). NEED $10 million of life insurance for estate liquidity purposes CLIENT CONCERNS Fund life insurance to take care of future generations without incurring any gift taxes. Private Financing Initial Call to Advanced Markets: May 2009 Case Closed: July 2009 The insurance data shown is taken from an illustration. 7 Initial Discussion In this case, almost half of the clients total net worth was commercial real estate interests held in a limited liability company (LLC). The remaining assets were mainly held in cash or cash equivalents and personal holdings. Given the size and scope of the estate, our Advanced Markets Consultant and Advanced Markets Attorney conferred with the producer to discuss the clients current planning issues and obtain additional critical asset information. During this discussion, they were able to uncover important information regarding how the LLC was established, whether the clients had already used their lifetime gift tax exemption and the future of the LLC (whether it will stay in the family or be sold). They discovered that the clients had already gifted away their entire lifetime gift tax exemption amount and that prior estate planning had utilized Grantor Retained Annuity Trusts (GRATs) to transfer some LLC member interests out of their taxable estates. The annual income and appreciation rates for the LLCs were also established. Solution With this critical information now in hand, our team discussed using a lump-sum Private Financing long-term loan (approximately $9.8M) in order to purchase a $50M John Hancock Survivorship UL-G policy. This approach would allow the clients to leverage the low long-term Applicable Federal Rate (AFR), which was 4.36% in July 2009, creating a 15-year note. Given that portions of the LLC were already in a GRAT and additional GRATs were to be created, we realized that combining the GRATs with a life insurance funding plan would provide an exit strategy for the Private Financing loan. We showed the producer how transferring LLC member interests into a GRAT could work as a very effective exit strategy for the Private Financing loan while also transferring substantial assets out of the taxable estate. The GRAT remainder would drop into the Irrevocable Life Insurance Trust (ILIT), giving the ILIT a large influx of liquidity without triggering gift taxes, presuming that the clients created a zeroed-out GRAT. We created a customized JH Solutions Private Financing presentation for the client, demonstrating how the GRAT remainder transfers to the ILIT and the Trustee uses the assets from the GRAT to repay the Private Financing loan to CLIENT PROFILE STATUS Married Couple, mid 70s NET WORTH Over $100 Million INSURANCE NEED $50 Million of Survivorship life insurance for estate liquidity purposes Private Financing with GRATs Initial Call to Advanced Markets: June 2009 8 the Grantor. The Trustee of the ILIT could also retain the excess assets for future premium payments. The producer was able to meet with the clients and their advisors, review the presentation and successfully complete an application of $50M of life insurance with a target premium of $958,000. Summary In this case, our team was able to construct a plan that transferred appreciating assets out of the clients taxable estate, leveraged the income from those assets to fund a life insurance plan, increased the net to heirs and avoided triggering gift taxes to the clients. They also provided the producer with a finished presentation that allowed him to explain sophisticated estate planning concepts to the clients and, ultimately, close the sale of a $50M survivorship life insurance policy. 9 Initial Discussion A producer from a major wire house was reviewing the trust accounts under the firms management, and came across a Bypass Trust that had no distribution activity. The client is a 77-year-old widow who has been a client of this producer for many years. She is in good health. Her husband died several years ago and his will established a Bypass Trust (also known as a Credit Shelter Trust or a B Trust) holding about $735,000, mainly in certificates of deposit (CDs) and municipal bonds. Bond income was rolled into CDs. The widow/beneficiary had never accessed this trust for any income. She has about $3,000,000 in estate assets consisting of her personal residence, a large IRA that she draws from for income, and other personal property. She has 2 children and 6 grandchildren. She has not used her lifetime gift exemption but is making annual exclusion gifts to her children and grandchildren. Her estate shows minimal or no growth and the advisors do not feel she will be exposed to any federal estate taxes; they believe that by shrinking and consuming her assets, she will fall below the federal estate tax exemption limit, which was $3,500,000 in 2009. Her main concern was that she wanted to maximize the amount that she passed on to her heirs, but with minimal risk. Strategy Our Advanced Markets Consultant (AMC) uncovered an opportunity to enhance the value of the assets in the Bypass Trust by using the $30,000 income generated by the trust assets. The client has expressed a desire to pass these assets to her heirs and is risk averse with the trust assets. Our AMC ran the Invest in Your Life presentation in JH Illustrator/Quick Concepts using an annual premium of $30,000 at Standard Plus rates. This premium stream provided for a death benefit of almost $700,000, using the UL-G product. Assuming a life expectancy of 11 years, he focused on Life Expectancy plus 4 years or year 15. The Internal Rate of Return (IRR) on the CLIENT PROFILE STATUS Female, Age 77, Standard Plus Non Smoker NET WORTH $3,000,000 CURRENT LIFETIME The client has eight annual exclusions, which she is already using. GIVING PLAN CLIENT CONCERNS Increase value of assets passing to her heirs at minimal risk. Diversifying Trust Assets to Enhance Returns Initial Call to Advanced Markets: August 2009 The insurance data shown is taken from an illustration. 10 life insurance death benefit in year 15 is 5.28% tax free (or 8.13% pre-tax assuming a 35% income tax rate). The producer felt that this IRR was well in line with the clients investment profile. Given her health, the producer wanted to look past Life Expectancy and was very comfortable with year 15 for analysis purposes. Our AMC passed this information over to a JH Solutions presentation focusing on the Credit Shelter Trust (CST) concept. This module compares retaining CST Assets to leveraging those assets with life insurance inside of the CST. JH Solutions creates a side-by-side presentation that is easy for the client to understand. The JH Solutions analysis of year 11 shows that if the assets are only retained by the CST, at 3% after-tax growth, the value of the trust would be about $1,000,000. If the income is leveraged with life insurance, the trust asset value would be $621,651. But when you add the life insurance death benefit of $696,265, the total trust assets would be $1,317,916. The purchase of life insurance inside the CST resulted in a 29% improvement, as compared to retaining the trust assets. The producer presented this to the client and her advisors, who immediately completed the application for life insurance. The case was placed in October 2009 for a target premium of $30,000. More importantly, the producer uncovered several more accounts of a similar nature. He now has the experience of having done it before and can prospect new candidates in confidence, knowing that he can get excellent sales support from John Hancocks Advanced Markets Group. 11 Initial Discussion A John Hancock Regional Director called Advanced Markets to introduce a Vice President at one of his firms. The VP had an agent who was looking for help with a large estate planning case. The case was two fold providing the best planning solution while also educating the VP on the concepts so the case could be presented to the agent and subsequently the clients. The Advanced Markets Consultant (AMC) began with a Gifting Analysis to show the gift tax impact of the large premiums required to fund the insurance need of $25,000,000. After a good deal of discussion, additional strategies were considered that would minimize taxes, including a Private Split Dollar Plan utilizing a GRAT exit program, the implementation of a stand-alone GRAT to fund premiums and a lump-sum Privately Financed note. The AMC used the JH Solutions software to show how the concepts work and to provide an analysis to compare each plan. Armed with the right tools, the VP presented the concepts to the agent. Solution The clients decided to fund a series of GRATs to pay premiums. As this required extensive trust work, the clients legal counsel contacted an Advanced Markets Attorney for consultation. The clients attorney then drafted an Irrevocable Life Insurance Trust (ILIT) that was flexible and met the clients needs. The end result was a $25,000,000 John Hancock UL policy owned by this ILIT. Summary The Advanced Markets Group was able to help from the initial stages of the case to keep the case on track and to ultimately arrive at a strong and effective solution to minimizing taxes. The ability to show and communicate sophisticated planning ideas allowed the firm and producer to close the sale of a $25,000,000 survivorship policy. CLIENT PROFILE STATUS Married Couple: Male, Age 55, Preferred Non Smoker and Female, Age 60, Preferred Non Smoker NET WORTH $80,000,000 CURRENT LIFETIME None, just beginning the estate planning process GIFTING PLAN INSURANCE NEED $25,000,000 of survivorship insurance CLIENT CONCERNS Fund large life insurance need while limiting gift taxes. Funding Large Premiums with GRATs Initial Call to Advanced Markets: December 2009 Case Closed: September 2010 12 Initial Discussion The Advanced Markets Consultant (AMC) ran various proposals for the producer using the JH Solutions software to illustrate the benefits of different types of Buy-Sell arrangements funded with life insurance. The producer reviewed various options with the clients and they looked at doing both an Entity Redemption and a Cross-Purchase Buy-Sell arrangement to replace the existing arrangement. The AMC also ran The Power of Permanent Insurance module in JH Solutions to help show the clients the benefits of purchasing a high-cash-value permanent life insurance policy versus a term policy. Finally, the AMC ran a customized Cross Endorsement Buy-Sell presentation for the clients to see how they could fund a Cross-Purchase Buy-Sell arrangement where each person owned a policy on his own life and they rented the death benefit to each other through a Cross Endorsement approach. Solution Although the traditional Cross-Purchase arrangement would provide a step-up in basis for the surviving owner, the clients decided to set up a Cross Endorsement Buy-Sell arrangement (CEBS) so that the bonuses that they each received for the premium payments would mirror their respective interests in the company. Each insured applied for a permanent life insurance policy to match the value of the interest that they owned in the company, and they endorsed the death benefit to each other. The premiums were to be funded by double bonuses from the company, which covered both the premium payments as well as the annual rental fee or economic benefit amount on each policy (the annual premium for one owner was approximately $21,000 and the annual premium for the other owner was approximately $42,000). CLIENT PROFILE STATUS Male, Age 37, Preferred Non Smoker, and Male, Age 45, Preferred Non Smoker CLIENT CONCERNS Two business owners had an Entity Redemption Buy-Sell agreement funded with term insurance but the term insurance was expiring and the producer wanted to look at a few different approaches for replacing the insurance and the Buy-Sell arrangement. One owner had a 1 3 interest in the company and the other owner had a 2 3 interest in the company, so they needed the new Buy-Sell arrangement to factor in the disparity in their ownership. Using Cross Endorsement with Permanent Insurance to Fund a Buy-Sell Arrangement Initial Call to Advanced Markets: May 2010 13 Summary The AMC was able to help the producer show his clients the optimal way to both set up and to fund a new Buy-Sell arrangement. The use of client presentations from various Buy-Sell modules in JH Solutions helped the clients decide the best course of action. 14 Initial Discussion In 2008, Advanced Markets helped to place a $7,700,000 joint life policy on clients then-aged 60 and 58, both Preferred Non Smokers, using a Private Finance loan. At that time, the long- term Applicable Federal Rate (AFR) was 4.6%. The clients loaned their Irrevocable Life Insurance Trust (ILIT) $7,000,000 with an assumed rate of 5%. They received interest payments each year in the amount of $322,000. Our Advanced Markets Consultant (AMC) uncovered an opportunity to enhance the value of the assets in the Bypass Trust by using the $30,000 income generated by the trust assets. The clients have expressed a desire to pass these assets to their heirs and are risk averse with the trust assets. By the time the producer called Advanced Markets in July 2010, the clients had been able to achieve their investment goals to date with the benefit of prudent management and were very satisfied with the plan. However, they felt underinsured given the size of their estate and were looking for ways to acquire additional insurance without upsetting their existing plan. Solution Our Advanced Markets Team showed the producer that if the clients were to refinance the original note to the current long-term AFR of 3.66%, the ILIT could free up an additional $65,600 that could be used as premium on an additional joint life policy. Using a John Hancock survivorship universal product, clients could pick up approximately $6,900,000 in additional death benefit by allocating the saved loan interest to the new policy while continuing the pay premium on the existing policy. The clients were agreeable to receiving reduced loan interest payments and submitted their application in August 2010. Summary By suggesting refinancing at current low interest rates, Advanced Markets and the producer were able to help the clients achieve their additional insurance goals while keeping their current arrangements in place. CLIENT PROFILE STATUS Male, Age 62, Standard Non Smoker and Female, Age 60, Preferred Non Smoker CLIENT CONCERNS High-net-worth clients needed additional insurance within the framework of existing arrangements. Refinancing with Low Interest Rates Initial Call to Advanced Markets: July 2010 15 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. The Return of Premium (ROP) rider allows clients to select a percentage of the premiums paid to be returned to the beneficiaries in addition to the death benefit. There are costs associated with the ROP rider, as well as limitations on the cumulative amount that can be returned. Not available in conjunction with certain other riders. Guaranteed product features are dependent upon minimum premium requirements and the claims-paying ability of the issuer. Insurance policies and/or associated riders and features may not be available in all states. Trusts should be drafted by an attorney familiar with such matters in order to take into account income and estate tax laws (including the generation-skipping transfer tax). Failure to do so could result in adverse tax treatment of trust proceeds. This material does not constitute tax, legal or accounting advice and neither John Hancock nor any of its agents, employees or registered representatives are in the business of offering such advice. It was not intended or written for use and cannot be used by any taxpayer for the purpose of avoiding any IRS penalty. It was written to support the marketing of the transactions or topics it addresses. Comments on taxation are based on John Hancocks understanding of current tax law, which is subject to change. Anyone interested in these transactions or topics should seek advice based on his or her particular circumstances from independent professional advisors. For Agent Use Only. This material may not be used with the public. Insurance products are issued by John Hancock Life Insurance Company (U.S.A.), Boston, MA 02116 (not licensed in New York) and John Hancock Life Insurance Company of New York, Valhalla, NY 10595. 2011 John Hancock. All rights reserved. IM6038 03/11 MLINY03011114393 INSURANCE PRODUCTS: Not FDIC Insured Not Bank Guaranteed May Lose Value Not a Deposit Not Insured by Any Government Agency