<PAGE>
JOHN HANCOCK VARIABLE ANNUITY ACCOUNT V
SUPPLEMENTAL DATED DECEMBER 4, 1996
TO PROSPECTUS DATED MAY 1, 1996
PUERTO RICO ONLY
---------------------------------------------
Substitute the following provisions, in a Prospectus delivered in Puerto
Rico to a resident of the Commonwealth, for all of the text relating to Federal
income taxes appearing under the heading "FEDERAL INCOME TAXES" in the
Prospectus:
THE ACCOUNTS AND JOHN HANCOCK
The variable annuity Contracts permit John Hancock to charge against each
Account any taxes attributable to the operation of the Account. Under present
law, no Federal income taxes are payable on the investment income or capital
gains of an Account attributable to the variable annuity Contracts offered by
this Prospectus. Accordingly, no charge is currently made in an Account for
taxes or potential taxes but John Hancock reserves the right to make a charge in
the future.
THE ANNUITANT OR OTHER PAYEE
The Contracts offered by this Prospectus are considered annuity contracts
under Section 3022 of the Puerto Rico Income Tax Act of 1954 (the "Act").
Currently no income tax is payable on increases in value of Accumulation Shares
of Annuity Units credited to a variable annuity Contract until payments are made
to the Annuitant or other payee under such Contract.
When payments under a Contract are made in the form of an annuity, the
amount of each payment is included in gross income to the extent of the lesser
of the amounts received during the taxable year or 3% of the aggregate premiums
or other consideration paid for the annuity. The amount, if any, in excess of
the included amount is excluded from gross income. After an amount equal to the
aggregate amount excluded from gross income has been received, all of the
annuity payments are taxable.
When a payment under a Contract is made in a single sum, the amount of the
payment is included in the gross income of the Annuitant or other payee to the
extent it exceeds the Annuitant's aggregate premiums or other considerations
paid, subject to the possible application of the income averaging provisions of
the Act.
CONTRACTS PURCHASED TO FUND A TAX QUALIFIED PLAN
The provisions of the tax laws of Puerto Rico with respect to the various
"tax qualified" plans described in the Prospectus under the sub-heading
"Contracts Purchased to Fund a Tax Qualified Plan" vary significantly from those
under the Internal Revenue Code of 1986. Although John Hancock currently offers
variable annuity Contracts in Puerto Rico in connection with "tax qualified"
plans, the text of the Prospectus under the sub-heading "Contracts Purchased to
Fund a Tax Qualified Plan" is inapplicable to Puerto Rico and should be
disregarded. For information regarding "tax qualified" plans in Puerto Rico, a
prospective purchaser should consult a qualified tax adviser.
SEE YOUR OWN TAX ADVISER
The above description of the income tax consequences of owning an individual
variable annuity Contract is only a brief summary and is not intended as tax
advice. For further information a prospective purchaser should consult a
qualified tax adviser.
SD0196.DOC
