John Hancock Long Term Care Insurance Program for (Employer Name) Presented by: (Agent Name, Designation) (Agent License # required for CA, FL and MT)

John HancockLong Term Care Insurance

Program for(Employer Name)

Presented by:Presented by:(Agent Name, Designation)(Agent Name, Designation)

(Agent License # required for CA, FL and MT)(Agent License # required for CA, FL and MT)(Date)(Date)

Long term care insurance is individually underwritten by John Hancock Life Insurance Company, Boston, MA 02117.

For use with employers only. Not for use with consumers.

LTC-2613 ER 12/04

Policy Series: LTC-03

In Idaho: Policy Form LTC-03ID

In Pennsylvania: LTC-03FRPA

In New York: SG-03NY

In North Carolina: LTC-03NCIn Oklahoma: LTC-03OK 10/03

John Hancock’s Corporate Solutions

Specifically designed for the business Specifically designed for the business marketmarket

An easy way to provide long term care An easy way to provide long term care insurance to valued employeesinsurance to valued employees

Employer pay or voluntary options Employer pay or voluntary options availableavailable

Flexibility to meet your business objectives Flexibility to meet your business objectives

Why John Hancock Long Term Care Insurance Program?

John Hancock Life Insurance Company-Financial John Hancock Life Insurance Company-Financial Strength and StabilityStrength and Stability Rate “A++” (Superior) by A.M. Best (as of Rate “A++” (Superior) by A.M. Best (as of

April, 2004)April, 2004) Experience you can rely onExperience you can rely on

More than 140 years of serviceMore than 140 years of service More than 700,000* long term care insurance More than 700,000* long term care insurance

policyholderspolicyholders

* Based on year-end 2003 LIMRA sales data, including individual, group and the Federal Long Term Care Insurance Program

What is long term care?

Long Term Care Long Term Care

……is care needed when someone is losing their is care needed when someone is losing their independence due to a physical or cognitive independence due to a physical or cognitive impairment.impairment.

……it could be needed as a result of a serious it could be needed as a result of a serious health condition, an accident, or later, as the health condition, an accident, or later, as the aging process takes its toll.aging process takes its toll.

What Does LTC Insurance Cover

Nursing Home Nursing Home Alzheimer’s FacilityAlzheimer’s Facility Assisted Living FacilityAssisted Living Facility Home Health CareHome Health Care Adult Day CareAdult Day Care Respite CareRespite Care Other community-based Supportive ServicesOther community-based Supportive Services

John Hancock’s LTC Insurance Program fills a “gap” in coverages.

Health insurance covers skilled, medically Health insurance covers skilled, medically necessary care. necessary care. LTCI picks up where health insurance LTCI picks up where health insurance

ends. ends. Disability insurance replaces a portion of an Disability insurance replaces a portion of an

employees salary. employees salary.

Why consider installing an LTCI Program? Of those needing LTC Services:Of those needing LTC Services:

60% are 65 or older60% are 65 or older 40% of people who need LTC are working age adults between 18-40% of people who need LTC are working age adults between 18-

64*64*

Average Cost of Care:Average Cost of Care: Private room nursing home care cost on average $66,000 annually Private room nursing home care cost on average $66,000 annually

in 2003** in 2003** 24 hour home care can cost as much or more as nursing home 24 hour home care can cost as much or more as nursing home

care**care**

** U.S. General Accounting Office, “Where Does the Population Live and Who Cares for Them?” January 2001.U.S. General Accounting Office, “Where Does the Population Live and Who Cares for Them?” January 2001.

** Congressional Budget Office Financing long term care for the elderly , April 2004** Congressional Budget Office Financing long term care for the elderly , April 2004

Cost of Long Term Care Issues

U.S. businesses lose as much as $29 billion annually in U.S. businesses lose as much as $29 billion annually in lost productivity due to employees having care-giving lost productivity due to employees having care-giving responsibilities*responsibilities*

The Cost of replacing a managerial employee can reach The Cost of replacing a managerial employee can reach 250% of annual salary.**250% of annual salary.**

Cost of replacing a non-managerial employee can reach Cost of replacing a non-managerial employee can reach 150% of annual salary**150% of annual salary**

*National Caregiving Alliance before the U.S. Senate Finance Committee, 3/27/01.*National Caregiving Alliance before the U.S. Senate Finance Committee, 3/27/01. ** Work and Family, 12/00, citing management consultant William Bliss.** Work and Family, 12/00, citing management consultant William Bliss.

What does John Hancock’s LTC Insurance Program mean to your employees? Provides a plan that helps employees Provides a plan that helps employees

protect for unexpected long term care protect for unexpected long term care services.services.

Extends coverage to eligible family Extends coverage to eligible family membersmembers

Allows employees to pick the amount of Allows employees to pick the amount of coverage that meets their needs for coverage that meets their needs for protection and affordabilityprotection and affordability

Value to your employees

Allows approximately 52% of LTC recipients to stay Allows approximately 52% of LTC recipients to stay at home*at home*

68% of informal care givers reported a decrease in 68% of informal care givers reported a decrease in stress when the care recipient had long term care stress when the care recipient had long term care insurance**insurance**

98% of enrollees said they felt more secure about 98% of enrollees said they felt more secure about

their future***their future*** **Health Ins. Assoc. of America, Benefits of LTC Insurance: enhanced care for disabled elders, improved quality of life for care givers and savings to Health Ins. Assoc. of America, Benefits of LTC Insurance: enhanced care for disabled elders, improved quality of life for care givers and savings to Medicare and Medicaid, p7, 9/02Medicare and Medicaid, p7, 9/02**Dept. of Health and Human Services. “Informal Caregivers of Elders with Long Term Care Insurance.” Final Report to the Assistant Secretary for **Dept. of Health and Human Services. “Informal Caregivers of Elders with Long Term Care Insurance.” Final Report to the Assistant Secretary for Planning and Evaluation, Aging and Disability Policy, Department of Health and Human Services (Washington, D.C. Department of Health and Human Planning and Evaluation, Aging and Disability Policy, Department of Health and Human Services (Washington, D.C. Department of Health and Human Services, October 2000).Services, October 2000).***Health Insurance Association of America, ‘Who Buys Long Term Care Insurance in the Workplace? A Study of Employer Long Term Care Insurance ***Health Insurance Association of America, ‘Who Buys Long Term Care Insurance in the Workplace? A Study of Employer Long Term Care Insurance Plans, 2000-2001” (Washington, D.C., Health Insurance Association of America, 2001).Plans, 2000-2001” (Washington, D.C., Health Insurance Association of America, 2001).

Program Benefits: Value to your employees Offers a program that provides:Offers a program that provides:

Discounted premiumsDiscounted premiums Streamlined enrollmentStreamlined enrollment Coverage portabilityCoverage portability John Hancock Long Term Care Insurance John Hancock Long Term Care Insurance

protection protection

Who can participate?

Actively at work employeesActively at work employees Retirees**Retirees** Their spouse or partner**Their spouse or partner** Their adult children**Their adult children** Their parents and grandparents**Their parents and grandparents** Their spouse or partner’s parents and Their spouse or partner’s parents and

grandparents**grandparents***Under our sponsored group discount program or also called Marketing Distribution Discount Program in NY and TX.

Actively at Work Employees*

Employees between the ages of 18-64Employees between the ages of 18-64 Actively at work 30 hours per weekActively at work 30 hours per week Employees must have not been absent from work Employees must have not been absent from work

due to sickness or injury for 10 days or more in due to sickness or injury for 10 days or more in the last 6 months.the last 6 months.

Employees must be U.S. residents or citizensEmployees must be U.S. residents or citizens Employees must have been employed (full-time) Employees must have been employed (full-time)

for at least six monthsfor at least six months

Two Simplified Approaches

MGTI or Modified Guaranteed To IssueMGTI or Modified Guaranteed To Issue Best for voluntary (employee pay)Best for voluntary (employee pay) Access to preferred ratesAccess to preferred rates Simplified application, with slightly expanded Simplified application, with slightly expanded

underwritingunderwriting Offers minimum guaranteed coverage for Offers minimum guaranteed coverage for

declines if group meets minimum participation declines if group meets minimum participation requirements (15 employees or 3%, which ever requirements (15 employees or 3%, which ever is greater)is greater)

Two Simplified Approaches

MGSI or Modified Guarantee Standard IssueMGSI or Modified Guarantee Standard Issue Best for employer pay enrollmentBest for employer pay enrollment Limited health questions; no further Limited health questions; no further

underwritingunderwriting No preferred or substandard rates (just No preferred or substandard rates (just

one rate class for all)one rate class for all) Minimum participation requirements (15 Minimum participation requirements (15

employees or 3%, which ever is greater)employees or 3%, which ever is greater)

Premium Payment Methods

For Employees and their Spouse or PartnerFor Employees and their Spouse or Partner List Bill List Bill Direct Bill (Annual, Semi-Annual or Direct Bill (Annual, Semi-Annual or

Quarterly)Quarterly) Monthly Bank DraftMonthly Bank Draft

For all other eligible personsFor all other eligible persons Direct Bill (Annual, Semi-Annual or Quarterly)Direct Bill (Annual, Semi-Annual or Quarterly) Monthly Bank DraftMonthly Bank Draft

CCII not available in all states

Custom Care II Product Innovations* Appeals to employeesAppeals to employees

Double Coverage for Accident BenefitDouble Coverage for Accident Benefit Return of Premium at DeathReturn of Premium at Death Convertible Guaranteed Purchase Option Convertible Guaranteed Purchase Option

at age 65at age 65 Additional Stay at Home BenefitAdditional Stay at Home Benefit

*Not all riders or benefits are available in every state or to all ages.

Tax Advantages of LTCI

Tax deductible employer contributionsTax deductible employer contributions Flexibility for employer to determine Flexibility for employer to determine

eligible classeligible class Policyholder benefits non-taxablePolicyholder benefits non-taxable Voluntary employee contributions receive Voluntary employee contributions receive

preferential tax treatmentpreferential tax treatment

Clients should consult with their financial advisor or tax consultant regarding tax issues.

Keys to Successful Program

Employer EndorsementEmployer Endorsement Simplicity in Plan DesignSimplicity in Plan Design

Employer may choose plans to be offered Employer may choose plans to be offered to employeesto employees

Education-based Enrollment ProcessEducation-based Enrollment Process Continuing support for new hires and Continuing support for new hires and

terminating employeesterminating employees

John Hancock’s Long-Term Care Corporate Solutions Flexible Plan DesignFlexible Plan Design Modified Underwriting &Simplified Modified Underwriting &Simplified

Application ProcessApplication Process Favorable Tax AdvantagesFavorable Tax Advantages Discounted RatesDiscounted Rates Minimal Participation Requirements (3% or Minimal Participation Requirements (3% or

15 eligible employee applications, which 15 eligible employee applications, which ever is greater)ever is greater)

Long Term Care Insurance Program for (Employer Name)

Underwritten by John HancockUnderwritten by John Hancock Financial Strength, Stability Financial Strength, Stability Commitment to Long Term Care Commitment to Long Term Care

insuranceinsurance Quality LTC productsQuality LTC products

John HancockLong Term Care Insurance

Program for(Employer Name)

Presented by:Presented by:(Agent Name, Designation)(Agent Name, Designation)

(Agent License # required for CA, FL and MT)(Agent License # required for CA, FL and MT)

(Date)(Date)

Long term care insurance is individually underwritten by John Hancock Life Insurance Company, Boston, MA 02117.For use with employers only. Not for use with consumers.LTC-2613 ER 12/04

Policy Series: LTC-03In Idaho: Policy Form LTC-03IDIn Pennsylvania: LTC-03FRPAIn New York: SG-03NYIn North Carolina: LTC-03NCIn Oklahoma: LTC-03OK 10/03

This is a general description of coverage and is not an insurance contract. Refer to an Outline of Coverage for an explanation of features and options. Only the individual long term care insurancePolicy contains governing contractual provisions.