John Hancock Introduces JH Solutions Module On Paying Life Insurance Premiums with Arbitrage

BOSTON, May 26, 2011 /PRNewswire/ -- The John Hancock Life Insurance Advanced Markets Group has introduced a JH Solutions module to help clients take advantage of historically low insurance rates and use arbitrage to pay premiums on an Irrevocable Life Insurance Trust (ILIT).

For clients who have an asset that is producing a return that exceeds today's low interest rates, using arbitrage to pay premiums may offer them a way to fund an Irrevocable Life Insurance Trust while minimizing taxes, said Randy Zipse, Vice President, John Hancock Advanced Markets Group.

The new Paying Premiums with Arbitrage module in JH Solutions is innovative and powerfully illustrates in a simple format the benefits of transferring an income producing asset, such as a family business interest, to a grantor trust in exchange for a fair market installment note while minimizing transfer tax. Arbitrage is the practice of taking advantage of a price difference between two or more markets.

"While interest rates are unlikely to stay at historic lows for any great length of time, especially as the U.S. and global economy slowly recovers, the general consensus is that rates won't be pushed up until some time next year and then only gradually," Mr. Zipse said. "This new module offers clients in specific circumstances the opportunity to take advantage of this unique situation."

"JH Solutions" is the Advanced Markets Group's proprietary concept illustration software that uses summaries, flowcharts, and graphs to help producers familiarize clients with planning options on a conceptual level. For clients looking to move forward with a particular solution, the software then enables producers to present the sophisticated data and calculations in an easy-to-understand format illustrating client's specific situation.

"John Hancock is committed to providing state of the art tools, products and services to help producers support their clients and build their businesses. This innovative JH solutions module is another indication of our commitment," Mr. Zipse said.

For more information on the concept, or to find out more about getting an illustration, contact your local John Hancock representative or call John Hancock Life Insurance at 888-266-7498, Option 3.

The John Hancock Advanced Markets Group is comprised of a highly experienced and knowledgeable team of attorneys, accountants and consultants. They support producers nationwide on the most complex business insurance and estate planning cases with customized case design support and consultation and advanced planning tools.

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 22 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 $478 billion (US$492 billion) as at March 31, 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.

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.

SOURCE John Hancock Life Insurance