New versions of John Hancock’s Protection IUL and Accumulation IUL were released earlier this week. This update includes pricing adjustments, cap rate and threshold rate changes, persistency bonus changes and the addition of the Vitality Platform to both products. Read on for additional details and transition rules!


Indexed UL is now available with the John Hancock Vitality Program

Protection IUL ’15 Changes:
  • Much higher targets (average 16% increase)… Rolling Targets still available
  • Lower Premiums: Average 2% reduction for level pays, 7% reduction for single pays before any Vitality discounts!
  • NLG durations re-aligned to match Protection UL (typically within 1 year of PUL NLG durations)
  • Changes to Indexed Account parameters
    • Capped Account reduced from 11.5% to 10.5%; bonus (years 6+) increased from 10% to 15%
    • High Par Account reduced from 10% to 9%; bonus (years 6+) increased from 10% to 15%
    • Uncapped Account threshold increased from 6% to 6.5%, bonus (years 6+) increased from 10% to 15%
  • Repositioned cash values (lower in early years, higher in later years)
  • Protection IUL is now on the LifeTrack policy management system.
Accumulation IUL ’15 Changes:
  • Vitality premium solve discount similar to Protection products
  • Minor changes to base product premium solves (average 2% increase)
  • Improved Death Benefit Option 1 targets (average 10% increase)… Rolling Targets still available
  • Increases & decreases to Death Benefit Opton 2 targets
  • Death Benefit Option 1 Target Premiums are now equal to Death Benefit Option 2 Target Premiums
  • No changes to Indexed Account parameters. They remain as follows:
    • Capped Account remains at 11.5% with 5% bonus (years 6+)
    • High Par Account remains at 10% with 5% bonus (years 6+)
    • Uncapped Account threshold rate remains at 6% with 5% bonus (years 6+)
  • Accumulation IUL is now on the LifeTrack policy management system.
Transition & Replacement Rules

Transition Rules

  • August 14th: Last day to submit applications for old products (PIUL ’13 and AIUL ’11)
  • October 9th: Last day to provide requirements to issue old products (PIUL ’13 and AIUL ’11)

Replacement Rules

  • Policies without Vitality may be exchanged for PIUL ’15 or AIUL ’15 with Vitality subject to internal replacement rules
  • PIUL ’15 and AIUL ’15 policies issued without Vitality may add the rider post-issue while states continue approval process

State Approvals (as of July 13, 2015)

  • Protection IUL ’15 (base product): All states except CA, DE, ND
  • Accumulation IUL ’15 (base product): All states except CA, CT, DE, MT, NY
  • IUL with Vitality (available in 25 states):
    • AK, AL, AZ, AR, CO, DC, FL, GA, HI, IA, KS, KY, ME, MI, MS, NE, NV, OH, RI, SC, SD, UT, VT, WI, WY
Additional Vitality Resources:

Please see the formal announcement from John Hancock for additional details.