Indexed universal life insurance

Indexed universal life is a type of permanent life insurance that offers the same features as traditional universal life but with an opportunity to earn interest linked to the performance of an indexed account (such as the S&P 500® †), while protecting the policy's cash value from market risk. Generally, indexed universal life policies have more cash value accumulation potential than other universal life products.

Before you purchase indexed universal life insurance, you may want to consider the following:

  • The policy does not directly participate in any stock or equity investments. Account values will vary depending upon the performance of the indexed account options selected.
  • You can take money from the policy via withdrawals and loans (this will decrease the cash value and death benefit if amount borrowed is not repaid).
  • You have the flexibility to switch between the different premium allocation options as your needs change over the lifetime of owning the policy.

† Excluding dividends. Standard & Poor's®, S&P®, S&P 500®, Standard & Poor's 500 and 500 are trademarks of Standard & Poor's Financial Services LLC , a subsidiary of The McGraw-Hill Companies, Inc. and have been licensed for use by John Hancock. The Product is not sponsored, sold, endorsed or promoted by Standard & Poor's, and Standard & Poor's makes no representation regarding the advisability of purchasing the Product. The S&P 500® Index is an index of 500 stocks that are generally representative of the performance of leading companies in leading industries within the U.S. You cannot invest directly in the S&P 500® Index.

Loans and withdrawals will reduce the death benefit and the cash surrender value, and may cause the policy to lapse. Lapse or surrender of a policy with a loan may cause the recognition of taxable income. Withdrawals in excess of the cost basis (premiums paid) will be subject to tax and certain withdrawals within the first 15 years may be subject to recapture tax. Additionally, policies classified as modified endowment contracts may be subject to tax when a loan or withdrawal is made. A federal tax penalty of 10% may also apply if the loan or withdrawal is taken prior to age 59 1/2.

Term vs. permanent life insurance

Click this quick reference chart
to help you understand the
value of both.


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.