Glossary of terms

Beneficiary - This is the person to whom the death benefit will be paid.

Cash Value - Amount that pays out upon the policyholder's death, and also accumulates value during the policyholder's lifetime.

Death Benefit (Face Amount) - This is the dollar amount that will be paid out to a beneficiary when the insured under the policy dies. This amount does not include various adjustments such as late premiums, outstanding policy loans, different death benefit options, collateral assignment(s), paid-up additions or dividends.

Estate Planning - An insurance program designed not only to provide funds for client's dependents upon the death of the insured, but also to conserve, as much as possible, the personal assets that the client wants to bequeath to heirs. Estate planning usually involves accountants, lawyers, and the trust officers of banks, as well as insurance agents.

Insured - the person whose life is insured by life insurance, after whose death the benefits go to others.

Lapse - Is the termination of an insurance policy because a renewal premium is not paid before the end of the grace period.

Level Premiums - Is a premium that remains unchanged while the policy is in force.

Mode of Premium Payment - The frequency with which premiums are paid. Examples are annually, semi-annually, quarterly, and monthly.

Owner - The person or people who own an individual insurance policy. The policyowner is not necessarily the person whose life is insured.

Policy Anniversary - This is the anniversary date on which the policy was issued.

Policy Loan - A loan that is taken against a life insurance policy. The policy is secured by the net cash value of the policy. A policy loan can never be higher the net cash value. If the insured dies while there is an outstanding loan, then the loan will be subtracted from the death benefit payable.

Policy Provisions - The statements of an insurance policy, which describe the operation of an insurance policy.

Premium - A payment by a customer to a insurance company for coverage.

Prospectus - This is a legal document that must be given to every investor that purchases a variable contract. The information in the prospectus outlines investment objectives and policies for the sub-accounts as well as the charges.

Rider - An amendment to an insurance policy that becomes part of the contract and expands or limits the benefits payable. A rider is also known as an endorsement.

Underwriting - The process where an underwriter evaluates factors related to the proposed insured's current health, medical history, lifestyle habits, hobbies, occupation and financial profile to determine eligibility for coverage as well as what the appropriate risk class should be.

Waiver of Premium - A provision under which payment of premiums or insurance charges are waived (that is, not required) if the policyowner becomes totally and permanently disabled.

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Insurance policies and/or associated riders and features may not be available in all states. Insurance products are issued by John Hancock Life Insurance Company (U.S.A),197 Clarendon Street, Boston, MA 02116 (not licensed in New York) and John Hancock Life Insurance Company of New York, 100 Summit Lake Drive, 2nd floor, Valhalla, NY 10595.