John Hancock Annuities Launches Inflation-Adjusted Annuity

BOSTON, Sept. 7, 2011 /PRNewswire/ -- 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 Annuities.

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 weekly basis.

"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 underlying portfolios.

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 objectives.

Inflation Guard Annuity is distributed by John Hancock Distributors LLC, member FINRA.

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.  

0911:161508

SOURCE John Hancock Annuities