John Hancock Annuities Launches Inflation-Adjusted Annuity
September 7, 2011 by N/A
BOSTON, Sept. 7, 2011 /PRNewswire via COMTEX/ — John Hancock Annuities has
launched ‘Inflation Guard,’ an innovative annuity that combines a principal
guarantee with the ability to help protect the purchasing power of retirement
assets from the impact of inflation.
“We are pleased to bring Inflation Guard to the marketplace. This product
offers client value by combining the benefits of principal protection within a
traditional fixed annuity, with a potential growth opportunity from rising
inflation rates. In addition, this new annuity helps to further diversify our
fixed product offerings,” said Marc Costantini, President, John Hancock
The principal guarantee, backed by the claims-paying ability of the contract
issuer, applies when the contract is held to term. Inflation Guard also provides
the ability to help protect clients’ purchasing power from the impact of
inflation. Clients will receive a fixed guaranteed interest rate during the
first year of the contract. For each subsequent contract year, the interest rate
a client receives is a floating rate, based on the inflation rate determined by
the year-over-year change in the Consumer Price Index-Urban (CPI-U), plus a
guaranteed margin that is determined at issue. The interest rate will never be
less than zero (the floor), and will be subject to a cap which is also set when
the contract is issued. Interest rates will be determined by John Hancock on a
“We believe inflation-protected investing is a separate and distinct asset
class, and have observed the need for this type of product in the marketplace.
We welcome Inflation Guard to our suite of annuity solutions, as it further
solidifies our position as an industry leader for retirement solutions that
focus on flexibility and client value,” said Mike Treske, President, John
Hancock Annuities Distribution.
With Inflation Guard, clients can always withdraw the prior year’s interest
or RMD, whichever is greater, without charge or penalty. There is no up-front
sales charge or fee. A surrender charge and a market value adjustment (MVA) may
apply to withdrawals made prior to the end of a term. Additionally, some states
impose a premium tax. Withdrawals are subject to a 10 percent federal tax
penalty if made prior to age 59 1/2. To invest safely in a market value adjusted
annuity, a customer should fully evaluate the financial strength of the issuing
insurance company and carefully read the annuity product disclosure. Products
and features may not be permitted in all states.
To find out more about Inflation Guard, visit www.jhannuities.com .
About John Hancock Financial and Manulife Financial Corporation
John Hancock Financial is a unit of Manulife Financial Corporation, a leading
Canadian-based financial services group serving millions of customers in 21
countries and territories worldwide. Operating as Manulife Financial in Canada
and in most of Asia, and primarily as John Hancock in the United States,
Manulife Financial Corporation offers clients a diverse range of financial
protection products and wealth management services through its extensive network
of employees, agents and distribution partners. Funds under management by
Manulife Financial and its subsidiaries were $481 billion (US$498 billion) as at
June 30, 2011. Manulife Financial Corporation trades as ‘MFC’ on the TSX, NYSE
and PSE, and under ‘945’ on the SEHK. Manulife Financial can be found on the
Internet at www.manulife.com .
The John Hancock unit, through its insurance companies, comprises one of the
largest life insurers in the United States. John Hancock offers a broad range of
financial products and services, including life insurance, fixed and variable
annuities, fixed products, mutual funds, 401(k) plans, long-term care insurance,
college savings, and other forms of business insurance. Additional information
about John Hancock may be found at www.johnhancock.com .
Contact your financial advisor or visit www.jhannuities.com for more
information, including product and fund prospectuses that contain complete
details on investment objectives, risks, fees, charges, and expenses, as well as
other information about the investment company, which should be carefully
considered. Please read the prospectuses carefully prior to purchasing. The
prospectuses contain this and other information on the product and the
This material was prepared to support the promotion and marketing of fixed
annuities. John Hancock, its distributors, and their respective representatives
do not provide tax, accounting, investment, or legal advice. Any tax statements
contained herein were not intended or written to be used, and cannot be used for
the purpose of avoiding U.S. federal, state or local tax penalties. Please
consult your own independent advisor as to any tax, accounting, investment, or
legal statements made herein.
An annuity is a long-term contract designed for retirement purposes, such as
asset accumulation and distribution, and is not suitable for meeting short-term
Inflation Guard Annuity is distributed by John Hancock Distributors LLC,
Policy and Rider Form Series: 10MVA-CPI-1, 10MVA-CPI-2, 10MVA-CPI-3,
10MVA-CPI-4, 10MVAGRP-CPI, 10MVAGRP-CPI-1, 01NHCIG, 00NHCI, 00NHCI ed. 3/03.