John Hancock’s New Protection UL-G and Protection SUL-G offers competitive Premiums in level-pay and high early funding scenarios for clients in the top three risk classes.  With high retention limits, progressive underwriting and competitive target premiums – all backed by a company with some of the highest financial strength ratings in the industry – these two products continue to be the serious contenders in the older age markets.

Protection UL-G offers:

• Competitive level-pay and lump-sum premiums
• Enhanced Target Premiums in high early funding scenarios
• A Cash Value Advantage rider which can generate substantial intermediate cash values
• Long-term care riders which provide income tax-favored LTC benefits
• Ability to illustrate off-anniversary premiums

Protection SUL-G offers:

• Reduced surrender charge period – recovering up to 100% of premiums in year 20
• Competitive level-pay and lump-sum premiums
• Enhanced Target Premiums in high early funding scenarios
• Three flexible Policy Protection riders for the ultimate in design flexibility
• Competitive underwriting and high retention limits
• Ability to illustrate off-anniversary premiums

New Business and Underwriting Information

Protection UL-G 09R and Protection SUL 09 are no longer offered.   However, in order to provide a transition period and secure issue of these current products, the following criteria must be met.

Deadline: March 15, 2010

• John Hancock home office must have received a signed illustration and made a tentative underwriting decision.
• John Hancock has received an application for Protection UL-G 09R and Protection SUL-G 09 signed by the Insured and Owner (note: that in cases where trusts are involved, the minimum require3ment by March 15th is the insured’s signature).  An illustration on the case must also have been received by John Hancock as of March 15th, 201

Every state shares one important requirement: If replacement forms are required, they must  be signed and dated prior to, or at the same time, as the applications.  This ensures that the client is fully aware of the definition of a replacement transaction and prompts them to consider all possible repercussions.  Make sure you take these forms as part of your applications kit, whether or not you believe a replacement will be involved.  Failure to comply may hold up the case until a newly singed application is provided. 

Know Your State Requirements

NAIC – If you conduct business in a State that has adopted the most recent National Association of Insurance Commissioners Model Replacement Regulations, pay close attention to question 7 on the application and question 6 on the Agent Report.

The text of these questions, does not ask if a replacement is occurring,Rather, it is asks if there is any “existing coverage owned by the Owner.”  If the owner of the proposed policy currently owns other coverage, these questions should be answered “Yes,” and a Replacement Form is required whether or not a Replacement is Occurring.

States which have not adopted the most recent NAIC Model Replacement Regulations require a different question to be asked and the “Important Notice” is only required if the client is planning on using funds from the existing policy to pay premiums due on the new policy.

Complete Replacement Forms In Full - Cases may be delayed due to missing information on replacement paperwork. To avoid delays in processing replacement cases, ensure all fields are completed. These are some of the most common areas for potential delay:

• The “Owner” line – In some situations, the owner and the insured are the same person – this does not mean the line should be left blank. Either enter the name on both lines, or write “same” on the owner line to indicate this
• Check Boxes – Please check the boxes indicating the type of existing coverage (personal, group or business; annuity, life, term or endowment), or whether or not the original policy is lost or destroyed (on the 1035 exchange form)

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I have been in the life insurance business now for 45 years, and one of the things that continues to give me serious concern on an ongoing basis is the lack of attention to beneficiary designations.

I’m not just talking about beneficiary designations on Individual Life Insurance policies one of us may have sold (although they often control the largest number of dollars), but also to all of the following:

· Beneficiary designations on Employer-Provided Group-Term Life Insurance

· Beneficiary designations on Association or Union-Sponsored Group-Term Life Insurance

· Beneficiary designations on Military and other Government Life Insurance policies and benefits

· Beneficiary designations on Life Insurance acquired through AARP or similar channels

· Beneficiary designations on Business-related Life Insurance policies (Buy-Sell, Key-Person, etc.)

· Beneficiary designations on Immediate or Deferred Annuities

· Beneficiary designations for Death Benefits under Qualified or Non-Qualified Retirement Plans

· Beneficiary designations on IRA Accounts

· Beneficiary designations on Bank Accounts and Securities Accounts

Do you get the idea? I’m talking about ANY type of asset that allows the owner to designate the beneficiaries for any amounts payable at death. After all, these assets often comprise the major portion of an individual’s total net worth!

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As Seen in National Underwriter:

A Guide to Special Needs Trusts by Nerre Shuriah

Special Needs planning is more critical now than ever before. Life expectancies of the disabled have increased, and the definition of "special needs" now includes individuals who lack functionality due to drug addiction and those with late- or adult-onset conditions, such as mental illness and trauma or injury from accidents.

Learn how life insurance may be the most critical component in funding third-party or pooled SNTs for disabled dependents. In an exclusive web article for National Underwriter, Nerre Shuriah explores the planning considerations and insurance needs of loved ones with special needs.

To read the full article, CLICK HERE

Provada will work with other planning professionals to bring about the best results for you. For more information, please contact us.