<PAGE>
As filed with the Securities and Exchange Commission on November 1, 2000
Registration No. 33-75610
--------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-----------------------
FORM S-6
Post-Effective Amendment No. 8 to
Registration Statement Under
THE SECURITIES ACT OF 1933
----------------------
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
(Exact name of trust)
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
(Name of depositor)
JOHN HANCOCK PLACE
BOSTON, MASSACHUSETTS 02117
(Complete address of depositor's principal executive offices)
--------------------
RONALD J. BOCAGE, ESQ.
JOHN HANCOCK LIFE INSURANCE COMPANY
JOHN HANCOCK PLACE, BOSTON, 02117
(Name and complete address of agent for service)
--------------------
Copy to:
THOMAS C. LAUERMAN, ESQ.
Freedman, Levy, Kroll & Simonds
1050 Connecticut Avenue, N.W.
Washington, D.C. 20036
--------------------
It is proposed that this filing become effective (check appropriate box)
/ /immediately upon filing pursuant to paragraph (b) of Rule 485
--
/X/on November 1, 2000 pursuant to paragraph (b) of Rule 485
--
/ /60 days after filing pursuant to paragraph (a)(1) of Rule 485
--
/ /on (date) pursuant to paragraph (a)(1) of Rule 485
--
If appropriate check the following box
/ /this post-effective amendment designates a new effective date for a
--
previously filed amendment
Pursuant to the provisions of Rule 24f-2, Registrant has registered an
indefinite amount of the securities under the Securities Act of 1933.
<PAGE>
CROSS-REFERENCE TABLE
Form N-8B-2 Item Caption in Prospectus
---------------- ---------------------
1, 2 Cover, The Account and The Series
Fund or Funds, JHVLICO and John
Hancock
3 Inapplicable
4 Cover, Distribution of Policies
5,6 The Account and The Series Fund or
Funds, State Regulation
7, 8, 9 Inapplicable
10(a),(b),(c),(d),(e) Policy Provisions and Benefits
10(f) Voting Privileges
10(g),(h) Changes that JHVLICO Can Make
10(i) Appendix--Other Policy Provisions,
The Account and The Series Fund
or Funds
11, 12 Summary, The Account and The Series
Fund or Funds, Distribution of
Policies
13 Charges and expenses, Appendix--
Illustration of Death Benefits,
Account Values, Surrender Values and
Accumulated Premiums
14, 15 Summary, Distribution of
Policies, Premiums
16 The Account and The Series Fund or
Funds
17 Summary, Policy Provisions and
Benefits
18 The Account and The Series Fund or
Funds, Tax Considerations
19 Reports
20 Changes that JHVLICO Can Make
21 Policy Provisions and Benefits
22 Policy Provisions and Benefits
<PAGE>
PART II
UNDERTAKING TO FILE REPORTS
Subject to the terms and conditions of Section 15(d) of the Securities
Exchange Act of 1934, the undersigned registrant hereby undertakes to file with
the Securities and Exchange Commission such supplementary and periodic
information, documents, and reports as may be prescribed by any rule or
regulation of the Commission heretofore or hereafter duly adopted pursuant to
authority conferred in that Section.
REPRESENTATION OF REASONABLENESS
John Hancock Variable Life Insurance Company represents that the fees and
charges deducted under the Policies, in the aggregate, are reasonable in
relation to the services rendered, the expenses expected to be incurred, and the
risks assumed by the insurance company.
UNDERTAKING REGARDING INDEMNIFICATION
Pursuant to Section X of JHVLICO's Bylaws and Section 67 of the
Massachusetts Business Corporation Law, JHVLICO indemnifies each director,
former director, officer, and former officer, and his heirs and legal
representatives from liability incurred or imposed in connection with any legal
action in which he may be involved by reason of any alleged act or omission as
an officer or a director of JHVLICO.
Insofar as indemnification for liability arising under the Securities Act
of 1933 may be permitted to directors, officers and controlling persons of the
registrant pursuant to the foregoing provisions, or otherwise, the registrant
has been advised that in the opinion of the Securities and Exchange Commission
such indemnification is against public policy as expressed in the Act and is,
therefore, unenforceable. In the event that a claim for indemnification against
such liabilities (other than the payment by the registrant of expenses incurred
or paid by a director, officer or controlling person of the registrant in the
successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.
CONTENTS OF REGISTRATION STATEMENT
This Registration Statement comprises the following Papers and Documents:
The facing sheet.
Cross-Reference Table.
The prospectus containing the information specified in the instructions in
Form S-6 under the Securities Act of 1933.
The undertaking to file reports.
The undertaking regarding indemnification.
<PAGE>
The signatures.
The following exhibits:
I.A. (1) JHVLICO Board Resolution establishing the separate account included in
Post-Effective Amendment No. 2 to this Form S-6 Registration
Statement, filed March 5, 1996.
(2) Not Applicable
(3) (a) Form of Distribution Agreement by and among John Hancock
Distributors, Inc., John Hancock Mutual Life Insurance Company,
and John Hancock Variable Life Insurance Company, incorporated by
reference from Pre-Effective Amendments No. 2 to Form S-6
Registration Statement of John Hancock Variable Life Account S
(File No. 333-15075) filed April 18, 1997.
(b) Specimen Variable Contracts Selling Agreement between John Hancock
Distributors, Inc., and selling broker-dealers, incorporated by
reference from Pre-Effective Amendment No. 2 to Form S-6
Registration Statement of John Hancock Variable Life Account S
(File No. 333-15075) filed April 18, 1997.
(c) Schedule of sales commissions included in Exhibit I. A. (3) (a)
above.
(4) Not Applicable
(5) Form of scheduled premium variable life insurance policy, included in
the initial filing of this registration statement, filed February 22,
1994.
(6) (a) JHVLICO Certificate of Incorporation included in Post-Effective
Amendment No. 2 to this Form S-6 Registration Statement, filed March
5, 1996.
(b) JHVLICO By-laws included in Post-Effective Amendment No. 2 to this
Form S-6 Registration Statement, filed March 5, 1996.
(7) Not Applicable.
(8) Not Applicable.
(9) Not Applicable.
(10) Form of application for Policy, included in the initial
filing of this registration statement, filed February 22, 1994.
(11) Not Applicable. The Registrant invests only in shares of open-end
Funds.
<PAGE>
2. Included as exhibit 1.A(5) above
3. Opinion and consent of counsel as to securities being registered, included
in Pre-Effective Amendment No. 1 to this Registration Statement, filed July
14, 1994.
4. Not Applicable
5. Not Applicable
6. Opinion and consent of actuary.
7. Consent of independent auditors.
8. Memorandum describing JHVLICO's issuance, transfer and redemption procedures
for the policy pursuant to Rule 6e-2(b)(l2)(ii), previously filed
electronically on April 23, 1996.
9. Powers of Attorney for Bruce M. Jones and Paul Strong, incorporated by
reference from Post-Effective Amendment No. 2 to file No. 333-81127, filed
on May 4, 2000. Power of attorney of Ronald J. Bocage, incorporated by
reference from Form 10-K annual reported for John Hancock Variable Life
Insurance Company (File No. 33- ) filed March 28, 1997. Powers of attorney
for Tomlinson, D'Alessandro, Luddy, Lee, Reitano, Van Leer, and Paster
included in Post-Effective Amendment No. 2 to this Form S-6 Registration
Statement, filed March 5, 1996.
10. Opinion of Counsel as to eligibility of this Post-Effective Amendment
for filing pursuant to Rule 485(b).
11. Exemptive Relief Relied Upon included in Post-Effective Amendment No. 2 to
this Form S-6 Registration Statement, filed March 5, 1996.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the John
Hancock Variable Life Insurance Company has duly caused this amendment to the
Registration Statement to be signed on its behalf by the undersigned, thereunder
duly authorized, and its seal to be hereunto fixed and attested, all in the City
of Boston and Commonwealth of Massachusetts on the 1st day of November, 2000.
JOHN HANCOCK VARIABLE LIFE
INSURANCE COMPANY
(SEAL)
By /s/ MICHELE G. VAN LEER
-----------------------
Michele G. Van Leer
Vice Chairman and President
Attest: /s/ PETER SCAVONGELLI
---------------------
Peter Scavongelli
Secretary
<PAGE>
Pursuant to the requirements of the Securities Act of 1933, this Post-
Effective Amendment to the Registration Statement has been signed below by the
following persons in the capacities with John Hancock Variable Life Insurance
Company and on the dates indicated.
Signatures Title Date
---------- ----- ----
/s/ PATRICK J. GILL
-------------------
Patrick J. Gill Controller (Principal Accounting November 1, 2000
Officer and Acting Principal
Financial Officer)
/s/ MICHELE G. VAN LEER
-----------------------
Michele G. Van Leer Vice Chairman of the Board
for herself and as and President(Acting Principal
Attorney-in-Fact Executive Officer) November 1, 2000
For: David F. D'Alessandro Chairman of the Board
Robert S. Paster Director
Thomas J. Lee Director
Bruce M. Jones Director
Paul Strong Director
Barbara L. Luddy Director
Ronald J. Bocage Director
Robert R. Reitano Director
<PAGE>
Pursuant to the requirements of the Securities Act of 1933, the
Registrant, certifies that it meets all of the requirements for effectiveness of
this Registration Statement pursuant to Rule 485(b) under the Securities Act of
1933 and has duly caused this Post-Effective Amendment to the Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, and its seal to be hereunto fixed and attested, all in the City of
Boston and Commonwealth of Massachusetts on the 1st day of November 2000.
On behalf of the Registrant
By John Hancock Variable Life Insurance Company
(Depositor)
(SEAL)
By /s/ MICHELE G. VAN LEER
-----------------------
Michele G. Van Leer
Vice Chairman and President
Attest /s/ PETER SCAVONGELLI
---------------------
Peter Scavongelli
Assistant Secretary
<PAGE>
PROSPECTUS DATED NOVEMBER 1, 2000
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FLEX-V2
--------------------------------------------------------------------------------
a scheduled premium variable life insurance policy
issued by
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY ("JHVLICO")
JHVLICO LIFE SERVICING OFFICE
-----------------------------
EXPRESS DELIVERY U.S. MAIL
---------------- ---------
529 Main Street (X-4) P.O. Box 111
Charlestown, MA 02129 Boston, MA 02117
PHONE: 1-800-732-5543 / FAX: 1-617-886-3048
The policy provides an investment option with fixed rates of return declared
by JHVLICO and the following variable investment options:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
VARIABLE INVESTMENT OPTION MANAGED BY
-------------------------- ----------
<S> <C>
Managed.............................. Independence Investment Associates,
Inc. and Capital Guardian Trust
Company
Growth & Income...................... Independence Investment Associates,
Inc. and Putnam Investment
Management, Inc.
Equity Index......................... State Street Global Advisors
Large Cap Value...................... T. Rowe Price Associates, Inc
Large Cap Growth..................... Independence Investment Associates, Inc.
Mid Cap Value........................ Neuberger Berman, LLC
Mid Cap Growth....................... Janus Capital Corporation
Real Estate Equity................... Independence Investment Associates, Inc.
and Morgan Stanley Dean Witter Investment
Management Inc.
Small/Mid Cap CORE /SM/.............. Goldman Sachs Asset Management
Small/Mid Cap Growth................. Wellington Management Company, LLP
Small Cap Equity..................... Capital Guardian Trust Company
Small Cap Growth..................... John Hancock Advisers Inc.
Global Balanced...................... Capital Guardian Trust Company
International Equity Index........... Independence International Associates,
Inc.
International Opportunities.......... T. Rowe Price International, Inc.
Emerging Markets Equity.............. Morgan Stanley Dean Witter Investment
Management Inc.
Short-Term Bond...................... Independence Investment Associates, Inc
Bond Index........................... Mellon Bond Associates, LLP
Active Bond.......................... John Hancock Advisers, Inc.
Global Bond.......................... Capital Guardian Trust Company
High Yield Bond...................... Wellington Management Company, LLP
Money Market......................... John Hancock Life Insurance Company
--------------------------------------------------------------------------------
</TABLE>
We may add, modify or delete variable investment options in the future.
<PAGE>
When you select one or more of these variable investment options, we invest
your money in the corresponding investment option(s) of the John Hancock
Variable Series Trust I (the "Trust"). The Trust is a mutual fund that offers a
number of different investment options (which are called "funds"). The
investment results of each variable investment option you select will depend on
those of the corresponding fund of the Trust. Attached to this prospectus is a
prospectus for the Trust that contains detailed information about each fund
offered under the policy. Be sure to read the prospectus for the Trust before
selecting any of the variable investment options shown on page 1.
GUIDE TO THIS PROSPECTUS
This prospectus contains information that you should know before you buy a
policy or exercise any of your rights under the policy. However, please keep in
mind that this is a prospectus - - it is not the policy. The prospectus
---
simplifies many policy provisions to better communicate the policy's essential
features. Your rights and obligations under the policy will be determined by the
language of the policy itself. When you receive your policy, read it carefully.
This prospectus is arranged in the following way:
. The section which follows is called "Basic Information". It is in a
question and answer format. We suggest you read the Basic Information
section before reading any other section of the prospectus.
. Behind the Basic Information section are illustrations of
hypothetical policy benefits that help clarify how the policy works.
These start on page 21.
. Behind the illustrations is a section called "Additional Information"
that gives more details about the policy. It generally does not
---
repeat information that is in the Basic Information section. A table
of contents for the Additional Information section appears on page 28
. Behind the Additional Information section are the financial
statements for JHVLICO and Separate Account V. These start on page
42.
. Finally, there is an Alphabetical Index of Key Words and Phrases at
the back of the prospectus on page 115.
After the Alphabetical Index of Key Words and Phrases, this prospectus ends and
the Trust prospectus begins.
**********
Please note that the Securities and Exchange Commission ("SEC") has not
approved or disapproved these securities, or determined if this prospectus is
truthful or complete. Any representation to the contrary is a criminal offense.
2
<PAGE>
BASIC INFORMATION
This part of the prospectus provides answers to commonly asked questions about
the policy. Here are the page numbers where the questions and answers appear:
<TABLE>
<CAPTION>
<S> <C>
Question Beginning on page
--------
.What is the policy?..................................... 4
.Who owns the policy?.................................... 4
.How can I invest money in the policy?................... 4
.Is there a minimum amount I must invest?................ 5
.How will the value of my investment in the policy change 9
over time?
.What charges will JHVLICO deduct from my investment in.. 10
the policy?
.What charges will the Trust deduct from my investment in 12
the policy?
.What other charges could JHVLICO impose in the future?.. 13
.How can I change my policy's investment allocations?.... 14
.How can I access my investment in the policy?........... 15
.How much will JHVLICO pay when the insured person dies?. 16
.How can I change my policy's insurance coverage?........ 17
.Can I cancel my policy after it's issued?............... 17
.Can I choose the form in which JHVLICO pays out policy.. 18
proceeds?
.To what extent can JHVLICO vary the terms and conditions
of its policies in particular cases?.................... 19
.How will my policy be treated for income tax purposes?.. 19
.How do I communicate with JHVLICO?. . . . . . . 19
</TABLE>
3
<PAGE>
WHAT IS THE POLICY?
The policy's primary purpose is to provide lifetime protection against
economic loss due to the death of the insured person. The value of the amount
you have invested under the policy may increase or decrease daily based upon the
investment results of the variable investment options that you choose. The
amount we pay to the policy's beneficiary if the insured person dies (we call
this the "death benefit") may be similarly affected.
While the insured person is alive, you will have a number of options under the
policy. Here are some major ones:
. Determine when and how much you invest in the various investment
options
. Borrow amounts you have in the investment options
. Withdraw any amount we consider to be "Excess Value" in your policy
. Change the beneficiary who will receive the death benefit
. Turn in (i.e., "surrender") the policy for the full amount of its
surrender value
. Reduce the amount of insurance by surrendering part of the policy
. Choose the form in which we will pay out the death benefit or other
proceeds
Most of these options are subject to limits that are explained later in this
prospectus.
WHO OWNS THE POLICY?
That's up to the person who applies for the policy. The owner of the policy is
the person who can exercise most of the rights under the policy, such as the
right to choose the investment options or the right to surrender the policy. In
many cases, the person buying the policy is also the person who will be the
owner. However, the application for a policy can name another person or entity
(such as a trust) as owner. Whenever we've used the term "you" in this
prospectus, we've assumed that the reader is the person who has whatever right
or privilege is being discussed. There may be tax consequences if the owner and
the insured person are different, so you should discuss this issue with your tax
adviser.
HOW CAN I INVEST MONEY IN THE POLICY?
Premium Payments
We call the investments you make in the policy "premiums" or "premium
payments". We require that your first premium at least equal your first
-----
"Required Premium" (discussed below). Except as noted below, you can make any
other premium payments you wish at any time. You can request that we bill you
for amounts of premiums that exceed your Required Premium payments and you can
subsequently request that we change the amount that we bill.
4
<PAGE>
Maximum premium payments
If you have chosen the Option 1 or Option 2 death benefit (see "How much will
JHVLICO pay when the insured person dies?"), Federal tax law limits the amount
of premium payments you can make relative to the amount of your policy's
insurance coverage. We will not knowingly accept any amount by which a premium
payment exceeds the maximum. If you exceed certain other limits, the law may
impose a penalty on amounts you take out of your policy. We'll monitor your
premium payments and let you know if you're about to exceed this limit. More
discussion of these tax law requirements begins on page 35.
Also, we may refuse to accept any amount of an additional premium if:
. that amount of premium would increase our insurance risk exposure,
and the insured person doesn't provide us with adequate evidence that
he or she continues to meet our requirements for issuing insurance,
or
. that amount of premium would cause the cumulative premiums you have
paid to date to exceed the cumulative scheduled premiums due to date
under the policy.
In no event, however, will we refuse to accept any premium necessary to prevent
the policy from terminating.
Ways to pay premiums
If you pay premiums by check or money order, they must be drawn on a U.S. bank
in U.S. dollars and made payable to "John Hancock Variable Life Insurance
Company." Premiums after the first must be sent to the JHVLICO Life Servicing
Office at the appropriate address shown on page 1 of this prospectus.
We will also accept premiums:
. by wire or by exchange from another insurance company,
. via an electronic funds transfer program (any owner interested in
making monthly premium payments must use this method), or
-------
. if we agree to it, through a salary deduction plan with your
employer.
You can obtain information on these other methods of premium payment by
contacting your JHVLICO representative or by contacting the JHVLICO Life
Servicing Office.
IS THERE A MINIMUM AMOUNT I MUST INVEST?
Required Premiums
The Policy Specifications page of your policy will show the "Required Premium"
for the policy. In the policy application, you will choose one of the following
"modes" of premium
5
<PAGE>
payment -- annual, semi-annual, quarterly or monthly. We make no additional
charge for any of these choices of payment mode. You can request that we change
your payment mode at any time.
The scheduled date on which such a payment is "due" is referred to in the
policy as a "modal processing date." Premiums are scheduled to be paid for the
whole of the insured person's lifetime. If, on any modal processing date, the
cumulative amount of all premium payments you have made does not equal or exceed
the cumulative amount of all Required Premiums due through that date, your
policy will enter a grace period, unless your policy has Excess Value as of that
date. For purposes of determining whether enough premiums have been paid as of
any modal processing date, we reduce the amount of premiums you have paid by the
amount of any withdrawals you have taken from what we consider to be the
"premium component" of any Excess Value in your policy (see below).
Excess Value and its components
As of the last business day in each policy month, we compare the account value
of the policy against the "Basic Account Value" (described below) to determine
if any "Excess Value" exists under the policy. Excess Value is any amount of
account value greater than the Basic Account Value.
The policy statements that we send you (see "Reports that you will receive" on
page 37) will specify the amount of any Excess Value at the end of the reporting
period. If you wish this information at any other time, you may contact your
JHVLICO representative or telephone us at 1-800-732-5543.
The Basic Account Value generally increases over the life of the policy, as
the attained age of the insured person increases. Basic Account Value can be
thought of as what the guaranteed cash value would be under an otherwise
comparable non-variable whole life policy. It is the amount we deem necessary to
support your policy's benefits at any time based on accepted actuarial methods
and assumptions. See "How we calculate Basic Account Value" below for further
details.
Excess Value may arise from two sources. The "premium component" is that
portion of Excess Value up to the amount by which the cumulative premiums paid
(excluding amounts from this component previously withdrawn) exceed the
cumulative amount of Required Premiums due to date. The "experience component"
is that portion of Excess Value above the premium component and arises out of
favorable investment experience or lower than maximum insurance and expense
charges.
Lapse
If your policy enters a grace period, we will notify you of how much you will
need to pay to keep the policy in force. You will have a "grace period" of at
least 31 days after we mail the notice to make that payment. If you don't pay at
least the required amount by the end of the grace period, your policy will
terminate (i.e., lapse). If the insured person dies during the grace period, we
will deduct any unpaid monthly charges from the death benefit. During the grace
period, you cannot make transfers among investment options or make a partial
withdrawal or policy loan.
6
<PAGE>
Options on Lapse
If a policy lapses, we apply the surrender value on the date of lapse to one
of three options for continued insurance that does not require further payment
of premium: Variable Paid-Up Insurance, Fixed Paid-Up Insurance or Fixed
Extended Term Insurance on the life of the insured person, commencing on the
date of lapse.
Both the Variable and Fixed Paid-Up Insurance options provide an amount of
paid-up whole life insurance, determined in accordance with the policy, which
the surrender value will purchase. The amount of Variable Paid-Up Insurance may
then increase or decrease, subject to any guarantee, in response to the
investment experience of the variable investment options. The Fixed Paid-Up
Insurance option provides a fixed and level amount of insurance. The Fixed
Extended Term Insurance option provides a fixed amount of insurance determined
in accordance with the policy, with the insurance coverage continuing for as
long a period as the available policy surrender value will purchase.
The Variable Paid-Up Insurance option is not available unless its initial
amount is at least $5,000. If you have elected no option before the end of the
grace period, the Fixed Extended Term Insurance option automatically applies
unless the amount of Fixed Paid-Up Insurance would equal or exceed the amount of
Fixed Extended Term Insurance or unless the insured person is a substandard
risk. In either of the latter cases, Fixed Paid-Up Insurance is provided.
You may surrender a policy that is being continued under any of these options
for the option's surrender value while the insured person is living. Loans may
be available under the Variable and Fixed Paid-Up Insurance options.
Reinstatement
You can still reactivate (i.e., "reinstate") a lapsed policy within 3 years
from the beginning of the grace period, unless the surrender value has been paid
out or otherwise exhausted or the period of any Fixed Extended Term Insurance
has expired. You will have to provide evidence that the insured person still
meets our requirements for issuing coverage. You will also have to pay a minimum
amount of premium and be subject to the other terms and conditions applicable to
reinstatements, as specified in the policy.
Amount of Required Premiums
We initially determine the amount of your scheduled premium at the time your
policy is issued, in accordance with our established rules and rates. It
consists of a "base policy premium" plus certain additional amounts if the
insured person presents an extra mortality risk to us or if you have purchased
certain additional insurance benefits. These amounts will be set forth in the
"Policy Specifications" section of your policy as the components of your
Required Premium.
The "base policy premium" is the amount of the Required Premium for an insured
person in the "standard" underwriting risk class who has not purchased any
additional insurance benefits by rider. The base policy premium will not change
until the Required Premium recalculation discussed below, or until such time as
you partially surrender the policy.
7
<PAGE>
Premium recalculation
You may make a one-time request that we recalculate your base policy premium
at any time not later than the policy anniversary nearest the insured person's
69th birthday (or, if later, the ninth policy anniversary). The base policy
premium that results from the recalculation will apply to all periods subsequent
to the recalculation. That resulting base policy premium may be higher or lower
than, or the same as, the previous base policy premium. This, in turn, will
determine whether the Required Premium will be higher, lower or stay the same
for those subsequent periods. If your right to request a premium recalculation
expires without your having exercised it, we will automatically perform the
premium recalculation at the next policy anniversary.
The premium recalculation feature makes it possible for us to set a lower base
policy premium (and thus a lower Required Premium) at the time the policy is
issued than would be possible without this feature. If you wish to "lock in" a
base policy premium (and Required Premium) at any time prior to the feature's
expiration, you can do so by requesting a premium recalculation.
The amount of the new base policy premium after a premium recalculation
depends on the insured person's sex, smoking status, attained age, the
guaranteed death benefit under the policy and the account value at the close of
the business day that precedes the recalculation. The new base policy premium
will never exceed the policy's "guaranteed maximum recalculation premium" based
on the insured person's attained age at the time of the recalculation. The
guaranteed maximum recalculation premium for each attained age will appear in
the "Policy Specifications" section of your policy.
The guaranteed maximum recalculation premium increases as the insured person's
attained age increases. Accordingly, by delaying the premium recalculation, you
assume the risk that the base policy premium following the recalculation will be
higher than it would have been had the recalculation been performed at an
earlier date. The longer the delay and the lower the policy's account value, the
greater the risk. On the other hand, by postponing the premium recalculation,
you may benefit from (1) a lower base policy premium prior to the recalculation
and (2) a longer period to accumulate enough account value to reduce the
possibility (or amount) of an increase in the base policy premium at the time of
the recalculation.
If your policy has any Excess Value at the time of the premium recalculation,
the base policy premium will be less following the recalculation than it would
have been had the recalculation been performed at the earliest possible date
(i.e., at the time of policy issuance). Otherwise it will be more.
As an example, consider the policy illustrated on page 22 of this prospectus
(Death Benefit Option 1 in the amount of $100,000, assuming current charge
rates, for a male standard risk non-smoker age 35 at issue). If no premium
recalculation is made at policy issuance, the base policy premium for the policy
would be $900 until such time as the premium recalculation is made. Assuming
that amount of premium is paid annually until the premium recalculation, and
assuming constant gross annual investment returns at the rates set forth below,
the following table illustrates what the base policy premium would be following
a recalculation on the dates shown.
8
<PAGE>
<TABLE>
<CAPTION>
Base Policy Premium Following
Recalculation Assuming Hypothetical Gross
Annual Rate of Return of:
Policy Anniversary of ------------------------------------------
Premium Recalculation 0% 6% 12%
--------------------- ------------- ------------- ---------------
<S> <C> <C> <C>
0 (Issue Date) . . . . . . . . $1,414.00 $1,414.00 $1,414.00
5 . . . . . . . . . . . . . . $1,607.99 $1,581.92 $1,551.41
10 . . . . . . . . . . . . . . $1,900.30 $1,791.31 $1,635.15
15 . . . . . . . . . . . . . . $2,334.72 $2,058.15 $1,566.76
20 . . . . . . . . . . . . . . $3,008.11 $2,433.77 $1,151.92
25 . . . . . . . . . . . . . . $4,077.27 $2,998.48 $ 0.00
30 . . . . . . . . . . . . . . $5,845.15 $3,914.46 $ 0.00
35* . . . . . . . . . . . . . . $8,404.00 $5,561.76 $ 0.00
</TABLE>
---------
* Mandatory premium recalculation if you do not choose earlier date.
We will make a one-time charge if the new base policy premium is less than the
guaranteed maximum recalculation premium that would have applied had the
recalculation been done at the time the policy was issued. The charge will not
exceed 3% (currently 11/2%) of the policy's Excess Value exceeds at the time of
the premium recalculation. See "Guaranteed death benefit charge" on page 11.
The amount of any account value that is considered Excess Value under your
policy may increase or decrease as a result of a premium recalculation. See
"Excess Value and its components" above
HOW WILL THE VALUE OF MY INVESTMENT IN THE POLICY CHANGE OVER TIME?
From each premium payment you make, we deduct the charges described under
"Deductions from premium payments" below. We invest the rest in the investment
options you've elected.
Over time, the amount you've invested in any variable investment option will
increase or decrease the same as if you had invested the same amount directly in
the corresponding fund of the Trust and had reinvested all fund dividends and
distributions in additional fund shares; except that we will deduct certain
additional charges which will reduce your account value. We describe these
charges under "What charges will JHVLICO deduct from my investment in the
policy?" below.
The amount you've invested in the fixed investment option will earn interest
at a rate we declare from time to time. We guarantee that this rate will be at
least 4%. If you want to know what the current declared rate is, just call or
write to us. The current declared rate will also appear in the annual statement
we will send you. Amounts you invest in the fixed investment option will not be
---
subject to the mortality and expense risk charge or the guaranteed death benefit
charge described on page 11. Otherwise, the charges applicable to the fixed
investment option are the same as those applicable to the variable investment
options.
At any time, the "account value" of your policy is equal to:
. the amount you invested,
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<PAGE>
. plus or minus the investment experience of the investment options
you've chosen,
. minus all charges we deduct, and
. minus all withdrawals you have made.
If you take a loan on the policy, however, your account value will be computed
somewhat differently. This is discussed beginning on page 15.
WHAT CHARGES WILL JHVLICO DEDUCT FROM MY INVESTMENT IN THE POLICY?
Deductions from premium payments
. Premium tax charge - A charge to cover state premium taxes we currently
------------------
expect to pay, on average. This charge is currently 2.35% of each premium.
. DAC tax charge - A charge to cover the increased Federal income tax
--------------
burden that we currently expect will result from receipt of premiums. This
charge is currently 1.25% of each premium.
. Premium sales charge - A charge to help defray our sales costs. The
--------------------
charge is 5% of the premiums you pay each policy year that do not total
more than the Required Premium for that policy year. We currently waive
30% of this charge for policies with a Guaranteed Death Benefit of
$250,000 or higher, but continuation of that waiver is not guaranteed.
Also, we currently intend to stop making this charge on premiums received
after the 10th policy year, but this is not guaranteed either. Because
policies of this type were first offered for sale in 1994, no termination
of this charge has yet occurred.
Deductions from account value
. Issue charge - A monthly charge to help defray our administrative costs.
------------
This is a flat dollar charge of $20 and is deducted only during the first
policy year.
. Maintenance charge - A monthly charge to help defray our administrative
------------------
costs. This is a flat dollar charge of up to $8 (currently $6).
. Insurance charge - A monthly charge for the cost of insurance. To
----------------
determine the charge, we multiply the amount of insurance for which we are
at risk by a cost of insurance rate. The rate is derived from an actuarial
table. The table in your policy will show the maximum cost of insurance
-------
rates. The cost of insurance rates that we currently apply are generally
less than the maximum rates. We will review the cost of insurance rates at
least every 5 years and may change them from time to time. However, those
rates will never be more than rates based on the 1980 Commissioners'
Standard Ordinary Mortality Tables. The table of rates we use will depend
on the insurance risk characteristics and (usually) gender of the insured
person, the Guaranteed Death Benefit and the length of time the policy has
been in effect. Regardless of the table used, cost of insurance rates
generally increase each year that you own your policy, as the insured
person's attained age increases. (The insured person's "attained age" on
any date is his or her age on the birthday nearest that date.)
10
<PAGE>
If the Guaranteed Death Benefit at issue is $100,000 or more, the insured
person may be eligible for the "preferred" underwriting class, which has
the lowest cost of insurance charges for policies of this type. In
addition, we currently apply a lower insurance charge for policies with a
Guaranteed Death Benefit of $250,000 or higher, but continuation of that
practice is not guaranteed. Also, it is our current intention to reduce
the insurance charge in the 10th policy year and thereafter below what it
otherwise would be, but such a reduction is not guaranteed either. Because
policies of this type were first offered for sale in 1994, no reductions
have yet been made.
. Guaranteed death benefit charge - A monthly charge for our guarantee that
---------------------------------
the death benefit will never be less than the Guaranteed Death Benefit.
This charge is currently 1c per $1,000 of the Guaranteed Death Benefit at
the time the charge is deducted. We guarantee that this charge will never
exceed 3c per $1,000 of the Guaranteed Death Benefit at the time the
charge is deducted.
. Extra mortality risk charge - An insured person who does not qualify for
-----------------------------
either the preferred or standard underwriting class must pay an additional
Required Premium because of the extra mortality risk. We collect this
additional premium in two ways: up to 8.6% of the additional premium is
deducted from premiums when paid and the remainder of the additional
premium is deducted monthly from your policy's account value in equal
installments.
. M &E charge - A daily charge for mortality and expense risks we assume.
-------------
This charge is deducted from the variable investment options. It does not
apply to the fixed investment option. The current charge is at an
effective annual rate of .60% of the value of the assets in each variable
investment option. We guarantee that this charge will never exceed an
effective annual rate of .60%.
. Optional insurance benefits charges - An additional Required Premium must
-------------------------------------
be paid if you elect to purchase any additional insurance benefit that is
added to the policy by means of a rider. We collect this additional
premium in two ways: up to 8.6% of the additional premium is deducted from
premiums when paid and the remainder of the additional premium is deducted
monthly from your policy's account value in equal installments.
. Premium recalculation charge - When we perform any recalculation as
------------------------------
described in the subsection titled "Premium recalculation" on page 8, we
deduct a one-time charge in the amount described in that subsection.
. Administrative surrender charge - A charge we deduct if the policy lapses
---------------------------------
or is surrendered in the first 9 policy years. We deduct this charge to
compensate us for administrative expenses that we would otherwise not
recover in the event of early lapse or surrender. The amount of the charge
depends upon the policy year in which lapse or surrender occurs and the
policy's Guaranteed Death Benefit at that time. The maximum charge is $5
per $1,000 of the policy's Guaranteed Death benefit in policy years 1
through 6, $4 per $1,000 in policy year 8 and $3 per $1,000 in policy year
9. For insured persons age 24 or less at issue, this charge will never be
more than $200 and will be charged only in the first four policy years.
Currently a policy with a Guaranteed Death Benefit at time of surrender or
lapse of $250,000 or more is not charged. A policy of less than $250,000
Guaranteed Death Benefit at time of surrender or lapse is not currently
charged if the surrender or lapse is after the fourth policy year
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<PAGE>
and is charged no more than $300 if the surrender or lapse is in the first
four policy years. We may withdraw or modify these lower current charges
at any time.
. Contingent deferred sales charge ("CDSC") - A charge we deduct if the
-------------------------------------------
policy lapses or is surrendered within the first thirteen policy years. A
pro-rata portion of the charge is deducted in the event of a decrease in
the Sum Insured. We deduct this charge to compensate us for sales expenses
that we would otherwise not recover in the event of early lapse or
surrender. The CDSC is a percentage of the lesser of (a) the total amount
of premiums you have actually paid before the date of surrender or lapse
and (b) the sum of the base policy premiums due (whether or not actually
paid) on or before the date of surrender or lapse. (For this purpose base
policy premiums are pro-rated through the end of the policy month in which
the surrender or lapse occurs).
<TABLE>
<CAPTION>
Maximum Contingent Deferred Sales
Charge as a Percentage of Base Policy
Premiums Due Through Effective
For Surrenders or Lapses Effective During: Date of Surrender or Lapse
------------------------------------------ -------------------------------------
<S> <C>
Policy Years 1-6 . . . . . . . . . . . . 15.00%
Policy Year 7 . . . . . . . . . . . . . . 12.85%
Policy Year 8 . . . . . . . . . . . . . . 10.00%
Policy Year 9 . . . . . . . . . . . . . . 7.77%
Policy Year 10 . . . . . . . . . . . . . 6.00%
Policy Year 11 . . . . . . . . . . . . . 4.55%
Policy Year 12 . . . . . . . . . . . . . 2.92%
Policy Year 13 . . . . . . . . . . . . . 1.54%
Policy Year 14 and Later . . . . . . . . 0%
</TABLE>
The amount of the CDSC is calculated on the basis of the base policy
premium for the attained age of the insured person at the time the policy
is issued. The base policy premium that we use to compute the CDSC is not
affected by (1) any recalculation of the type referred to under "premium
recalculation" on page 8, or (2) the non-mandatory character of any
Required Premium due to Excess Value in the policy on that premium's due
date. The CDSC, as reflected in the above table, reaches its maximum at
the end of the sixth policy year and is reduced in each policy year
thereafter until it reaches zero in policy year 14. At issue ages higher
than 54, the maximum is reached at an earlier policy year and may be
reduced to zero over a shorter number of years.
. Partial withdrawal charge - A charge of $20 for each partial withdrawal
---------------------------
of Excess Value to compensate us for the administrative expenses of
processing the withdrawal.
WHAT CHARGES WILL THE TRUST DEDUCT FROM MY INVESTMENT IN THE POLICY?
The Trust must pay investment management fees and other operating expenses.
These fees and expenses are different for each fund of the Trust and reduce the
investment return of each fund. Therefore, they also indirectly reduce the
return you will earn on any variable investment options you select. The figures
in the following chart are expressed as percentages of each fund's average daily
net assets for 1999 (rounded to two decimal places).
12
<PAGE>
<TABLE>
<CAPTION>
Investment Other Operating Total Fund Other Operating
Management Expenses* With Operating Expenses Absent
Fund Name Fee* Reimbursement Expenses Reimbursement
--------- ---------- --------------- ---------- ----------------
<S> <C> <C> <C> <C>
Managed. . . . . . . 0.67% 0.03% 0.70% 0.03%
Growth & Income . . . 0.67% 0.03% 0.70% 0.03%
Equity Index . . . . . 0.14% 0.00% 0.14% 0.08%
Large Cap Value . . . 0.74% 0.10% 0.84% 0.11%
Large Cap Growth . . . 0.36% 0.03% 0.39% 0.03%
Mid Cap Value . . . . 0.80% 0.10% 0.90% 0.12%
Mid Cap Growth . . . . 0.82% 0.10% 0.92% 0.11%
Real Estate Equity . . 1.01% 0.10% 1.11% 0.10%
Small/Mid Cap CORE/
SM/ . . . . . . . . . 0.80% 0.10% 0.90% 0.66%
Small/Mid Cap Growth . 0.75% 0.10% 0.85% 0.10%
Small Cap Equity * . . 0.90% 0.10% 1.00% 0.16%
Small Cap Growth . . . 0.75% 0.10% 0.85% 0.14%
Global Balanced * . . 1.05% 0.10% 1.15% 0.46%
International Equity
Index . . . . . . . . 0.16% 0.10% 0.26% 0.22%
International
Opportunities . . . . 0.87% 0.10% 0.97% 0.29%
Emerging Markets
Equity . . . . . . . 1.27% 0.10% 1.37% 2.17%
Short-Term Bond . . . 0.30% 0.10% 0.40% 0.13%
Bond Index . . . . . . 0.15% 0.10% 0.25% 0.20%
Active Bond * . . . . 0.61% 0.03% 0.64% 0.03%
Global Bond . . . . . 0.85% 0.10% 0.95% 0.15%
High Yield Bond . . . 0.65% 0.10% 0.75% 0.39%
Money Market . . . . . 0.25% 0.06% 0.31% 0.06%
</TABLE>
* John Hancock Variable Series Trust I funds' percentages for "other fund
expenses" are based on the allocation methodology and expense
reimbursement policy adopted April 23, 1999, and are calculated as if that
allocation methodology and expense reimbursement policy had been in effect
for all of 1999. Under the expense reimbursement policy, John Hancock
Life Insurance Company voluntarily reimburses a fund when the fund's
"other fund expenses" exceed 0.10% of the fund's average daily net assets
(0.00% for Equity Index). Shareholders of the Managed, Growth & Income,
Real Estate Equity, Small Cap Equity, Global Balanced, Active Bond, and
Global Bond funds have approved new management fee schedules, which apply
to these funds effective November 1, 2000. The investment management fee
percentages for each of these funds are calculated as if those new fee
schedules had been in effect for all of 1999. The investment management
fee percentages for all other funds reflect the investment management fees
that were actually payable for 1999.
** Small Cap Equity was formerly "Small Cap Value", Global Balanced was
formerly "International Balanced" and Active Bond was formerly "Sovereign
Bond".
"CORE /SM"/ IS A SERVICE MARK OF GOLDMAN, SACHS & CO.
WHAT OTHER CHARGES COULD JHVLICO IMPOSE IN THE FUTURE?
Except for the DAC tax charge, we currently make no charge for our Federal
income taxes. However, if we incur, or expect to incur, additional income taxes
attributable to any subaccount of the Account or this class of policies in
future years, we reserve the right to make a charge for such taxes. Any such
charge would reduce what you earn on any affected investment options. However,
we expect that no such charge will be necessary.
We also reserve the right to increase the premium tax charge and the DAC tax
charge in order to correspond, respectively, with changes in the state premium
tax levels and with changes in the Federal income tax treatment of the deferred
acquisition costs for this type of policy.
13
<PAGE>
Under current laws, we may incur state and local taxes (in addition to premium
taxes) in several states. At present, these taxes are not significant. If there
is a material change in applicable state or local tax laws, we may make charges
for such taxes.
HOW CAN I CHANGE MY POLICY'S INVESTMENT ALLOCATIONS?
Future premium payments
At any time, you may change the investment options in which future premium
payments will be invested. You make the original allocation in the application
for the policy. The percentages you select must be in whole numbers and must
Total 100%.
Transfers of existing account value
You may also transfer your existing account value from one investment option
to another. To do so, you must tell us how much to transfer, either as a whole
number percentage or as a specific dollar amount.
Under our current rules, you can make transfers out of any variable investment
option anytime you wish. However, transfers out of the fixed investment option
are currently subject to the following restrictions:
. You can only make such a transfer once a year and only during the 31 day
period following your policy anniversary.
. We must receive the request for such a transfer during the period
beginning 60 days prior to the policy anniversary and ending 30 days after
it.
. The most you can transfer at any one time is the greater of $500 or 20%
of the assets in your fixed investment option.
We reserve the right to impose a minimum amount limit on transfers out of the
fixed investment option.
Limitation on number of investment options
Whether through the allocation of premium or through the transfer of existing
account value, you can never be invested in more than ten investment options at
any one time.
Dollar cost averaging
This is a program of automatic monthly transfers out of the Money Market
investment option into one or more of the other variable investment options. You
choose the investment options and the dollar amount and timing of the transfers.
The program is designed to reduce the risks that result from market
fluctuations. It does this by spreading out the allocation of your money to
investment options over a longer period of time. This allows you to reduce the
risk of investing most of your money at a time when market prices are high.
Obviously, the success of this strategy depends on market trends and is not
guaranteed.
14
<PAGE>
HOW CAN I ACCESS MY INVESTMENT IN THE POLICY?
Full surrender
You may surrender your policy in full at any time. If you do, we will pay you
the account value, less any policy loans and less any CDSC and administrative
surrender charge that then applies. This is called your "surrender value." You
must return your policy when you request a full surrender.
Partial withdrawals of Excess Value
Under our current administrative rules, you may make a partial withdrawal of
your policy's Excess Value, if any, at any time after the first policy year (see
"Excess Value and its components" on page 6). Each partial withdrawal must be at
least $1,000. There is a $20 charge for each partial withdrawal. We will
automatically reduce the account value of your policy by the amount of the
withdrawal and the related charge. Each investment option will be reduced in the
same proportion as the account value is then allocated among them.
Policy loans
You may borrow from your policy at any time after it has been in effect for 1
year by completing a form satisfactory to us or, if the telephone transaction
authorization form has been completed, by telephone. The maximum amount you can
borrow is equal to 100% of that portion of your surrender value that is
attributable to the fixed investment option plus one of the following:
. In policy years 2 and 3 - - 75% of that portion of your surrender
value that is attributable to the variable investment options
. In all later policy years - - 90% of that portion of your surrender
value that is attributable to the variable investment options
The minimum amount of each loan is $300, unless the loan is used to pay
premiums. The interest charged on any loan is an effective annual rate of 5.0%.
Accrued interest will be added to the loan daily and will bear interest at the
same rate as the original loan amount. The amount of the loan is deducted from
the investment options in the same proportion as the account value is then
allocated among them and is placed in a special loan account. This special loan
account will earn interest at an effective annual rate of 4.0% for the first 20
policy years and 4.5% thereafter. However, if we determine that a loan will be
treated as a taxable distribution because of the differential between the loan
interest rate and the rate being credited on the special loan account, we
reserve the right to decrease the rate credited on the special loan account to a
rate that would, in our reasonable judgement, result in the transaction being
treated as a loan under Federal tax law.
You can repay all or part of a loan at any time. Each repayment will be
allocated among the investment options as follows:
. The same proportionate part of the loan as was borrowed from the
fixed investment option will be repaid to the fixed investment
option.
15
<PAGE>
. The remainder of the repayment will be allocated among the investment
options in the same way a new premium payment would be allocated.
If you want a payment to be used as a loan repayment, you must include
instructions to that effect. Otherwise, all payments will be assumed to be
premium payments.
HOW MUCH WILL JHVLICO PAY WHEN THE INSURED PERSON DIES?
In your application for the policy, you will tell us how much life insurance
coverage you want on the life of the insured person. This is called your
"Guaranteed Death Benefit". In the policy, this may also be referred to as the
"Sum Insured."
When the insured person dies, we will pay the death benefit minus any
outstanding loans. There are 3 ways of calculating the death benefit. You choose
which one you want in the application. The three death benefit options are:
. Option 1 - The death benefit will equal the greater of (1) the
Guaranteed Death Benefit or (2) the minimum insurance amount under
the "guideline premium and cash value corridor test" (as described
below).
. Option 2 - The death benefit will equal the greater of (1) the
Guaranteed Death Benefit plus your policy's Excess Value (if any) on
the date of death, or (2) the minimum insurance amount under the
"guideline premium and cash value corridor test".
. Option 3 - The death benefit will equal the greater of (1) the
Guaranteed Death Benefit or (2) the minimum insurance amount under
the "cash value accumulation test" (as described below).
For the same premium payments, the death benefit under Option 2 will tend to
be higher than the death benefit under Options 1 or 3. On the other hand, the
monthly insurance charge will be higher under Option 2 to compensate us for the
additional insurance risk. Because of that, the account value will tend to be
higher under Options 1 or 3 than under Option 2 for the same premium payments.
The minimum insurance amount
In order for a policy to qualify as life insurance under Federal tax law,
there has to be a minimum amount of insurance in relation to account value.
There are two tests that can be applied under Federal tax law. Death benefit
Options 1 and 2 use the "guideline premium and cash value corridor test" while
Option 3 uses the "cash value accumulation test." For Options 1 and 2, we
compute the minimum insurance amount each business day by multiplying the
account value on that date by the so-called "corridor factor" applicable on that
date. The corridor factors are derived by applying the "guideline premium and
cash value corridor test." The corridor factor starts out at 2.50 for ages at or
below 40 and decreases as attained age increases, reaching a low of 1.0 at age
95. A table showing the factor for each age will appear in the policy. For
Option 3, we compute the minimum insurance amount each business day by
multiplying the account value on that date by the so-called "death benefit
factor" applicable on that date. The
16
<PAGE>
death benefit factors are derived by applying the "cash value accumulation
test." The death benefit factor decreases as attained age increases. A table
showing the factor for each age will appear in the policy.
HOW CAN I CHANGE MY POLICY'S INSURANCE COVERAGE?
Change of Sum Insured
You may request a decrease in your Sum Insured at any time, subject to our
administrative rules in effect at the time. If approved, any such decrease will
be effective on the monthly processing date next following our receipt of the
request. A pro-rata portion of any contingent deferred sales charge will be
deducted from your account value as a result of any such decrease.
You may request an increase in your Sum Insured at any time, subject to our
administrative rules in effect at the time. We will require evidence that the
insured person still meets our requirements for issuing coverage. This is
because such a change increases our insurance risk exposure.
Change of death benefit option
You may request to change your coverage from death benefit Option 1 to Option
2 or vice-versa. If you request a change from Option 1 to Option 2, we will
require evidence that the insured person still meets our requirements for
issuing coverage. This is because such a change increases our insurance risk
exposure. If you have chosen death benefit Option 3, you can never change to
either Option 1 or Option 2.
Partial surrenders
You may partially surrender your policy upon submission of a written request
satisfactory to us in accordance with our rules. Currently, the policy after
partial surrender must have a Guaranteed Death Benefit at least as large as the
minimum amount for which we would issue a policy on the life of the insured
person. The Required Premium for the policy will be adjusted to prospectively
reflect the new Guaranteed Death Benefit. A pro-rata portion of the account
value will be paid to you and a pro-rata portion of any contingent deferred
sales charge and any administrative surrender charge will be deducted. Possible
alternatives to the partial surrender of the policy would be withdrawal of some
or all of your Excess Value or taking a policy loan.
Tax consequences
Please read "Tax considerations" starting on page 35 to learn about possible
tax consequences of changing your insurance coverage under the policy.
CAN I CANCEL MY POLICY AFTER IT'S ISSUED?
You have the right to cancel your policy within the latest of the following
periods:
. 10 days after you receive it (this period may be longer in some
states);
. 10 days after mailing by JHVLICO of the Notice of Withdrawal Right;
or
17
<PAGE>
. 45 days after the date Part A of the application has been completed.
This is often referred to as the "free look" period. To cancel your policy,
simply deliver or mail the policy to us at one of the addresses shown on page 1,
or to the JHVLICO representative who delivered the policy to you.
In most states, you will receive a refund of any premiums you've paid. In some
states, the refund will be your account value on the date of cancellation plus
all charges deducted by JHVLICO or the Trust prior to that date. The date of
cancellation will be the date of such mailing or delivery.
CAN I CHOOSE THE FORM IN WHICH JHVLICO PAYS OUT POLICY PROCEEDS?
Choosing a payment option
You may choose to receive proceeds from the policy as a single sum. This
includes proceeds that become payable because of death or full surrender.
Alternatively, you can elect to have proceeds of $1,000 or more applied to any
of a number of other payment options, including the following:
. Option 1 - Proceeds left with us to accumulate with interest
. Option 2A - Equal monthly payments of a specified amount until all
proceeds are paid out
. Option 2B - Equal monthly payments for a specified period of time
. Option 3 - Equal monthly payments for life, but with payments
guaranteed for a specific number of years
. Option 4 - Equal monthly payments for life with no refund
. Option 5 - Equal monthly payments for life with a refund if all of
the proceeds haven't been paid out
You cannot choose an option if the monthly payments under the option would be
less than $50. We will issue a supplementary agreement when the proceeds are
applied to any alternative payment option. That agreement will spell out the
terms of the option in full. We will credit interest on each of the above
options. For Options 1 and 2A, the interest will be at least an effective annual
rate of 3 1/2%.
Changing a payment option
You can change the payment option at any time before the proceeds are payable.
If you haven't made a choice, the payee of the proceeds has a prescribed period
in which he or she can make that choice.
18
<PAGE>
Tax impact
There may be tax consequences to you or your beneficiary depending upon which
payment option is chosen. You should consult with a qualified tax adviser before
making that choice.
TO WHAT EXTENT CAN JHVLICO VARY THE TERMS AND CONDITIONS OF ITS POLICIES IN
PARTICULAR CASES?
Listed below are some variations we can make in the terms of our policies. Any
variation will be made only in accordance with uniform rules that we apply
fairly to all of our customers.
State law insurance requirements
Insurance laws and regulations apply to JHVLICO in every state in which its
policies are sold. As a result, various terms and conditions of your insurance
coverage may vary from the terms and conditions described in this prospectus,
depending upon where you reside. These variations will be reflected in your
policy or in endorsements attached to your policy.
Variations in expenses or risks
We may vary the charges and other terms of our policies where special
circumstances result in sales or administrative expenses, mortality risks or
other risks that are different from those normally associated with the policies.
These include the type of variations discussed under "Reduced charges for
eligible classes" on page 34. No variation in any charge will exceed any maximum
stated in this prospectus with respect to that charge.
HOW WILL MY POLICY BE TREATED FOR INCOME TAX PURPOSES?
Generally, death benefits paid under policies such as yours are not subject to
income tax. Earnings on your account value are not subject to income tax as long
as we don't pay them out to you. If we do pay out any amount of your account
value upon surrender or partial withdrawal, all or part of that distribution
should generally be treated as a return of the premiums you've paid and should
not be subject to income tax. Amounts you borrow are generally not taxable to
you.
However, some of the tax rules change if your policy is found to be a
"modified endowment contract." This can happen if you've paid more than a
certain amount of premiums that is prescribed by the tax laws. Additional taxes
and penalties may be payable for policy distributions of any kind.
For further information about the tax consequences of owning a policy, please
read "Tax considerations" beginning on page 35.
HOW DO I COMMUNICATE WITH JHVLICO?
General Rules
You should mail or express all checks and money orders for premium payments
and loan repayments to the JHVLICO Life Servicing Office at the appropriate
address shown on page 1.
Certain requests must be made in writing and be signed and dated by you,
except as discussed below under "Telephone Transactions.". They include the
following:
19
<PAGE>
. loans, surrenders (including partial surrenders) or partial
withdrawals
. transfers of account value among investment options
. change of allocation among investment options for new premium
payments
. change of death benefit option
. change of beneficiary
. election of payment option for policy proceeds
. tax withholding elections
. election of telephone transaction privilege
You should mail or express these requests to the JHVLICO Life Servicing Office
at the appropriate address shown on page 1. You should also send notice of the
insured person's death and related documentation to the JHVLICO Life Servicing
Office. We don't consider that we've "received" any communication until such
time as it has arrived at the proper place and in the proper and complete form.
We have special forms that should be used for a number of the requests
mentioned above. You can obtain these forms from the JHVLICO Life Servicing
Office or your JHVLICO representative. Each communication to us must include
your name, your policy number and the name of the insured person. We cannot
process any request that doesn't include this required information. Any
communication that arrives after the close of our business day, or on a day that
is not a business day, will be considered "received" by us on the next following
business day. Our business day currently closes at 4:00 p.m. Eastern Standard
Time, but special circumstances (such as suspension of trading on a major
exchange) may dictate an earlier closing time.
Telephone Transactions
If you complete a special authorization form, you can request loans, transfers
among investment options and changes of allocation among investment options
simply by telephoning us at 1-800-732-5543 or by faxing us at 1-617-886-3048.
Any fax request should include your name, daytime telephone number, policy
number and, in the case of transfers and changes of allocation, the names of the
investment options involved. We will honor telephone instructions from anyone
who provides the correct identifying information, so there is a risk of loss to
you if this service is used by an unauthorized person. However, you will receive
written confirmation of all telephone transactions. There is also a risk that
you will be unable to place your request due to equipment malfunction or heavy
phone line usage. If this occurs, you should submit your request in writing.
The policies are not designed for professional market timing organizations or
other persons or entities that use programmed or frequent transfers among
investment options. For reasons such as that, we reserve the right to change our
telephone transaction policies or procedures at any time. We also reserve the
right to suspend or terminate the privilege altogether.
20
<PAGE>
ILLUSTRATION OF DEATH BENEFITS, ACCOUNT VALUES, SURRENDER VALUES AND
ACCUMULATED PREMIUMS
The following tables illustrate the changes in death benefit, account value
and surrender value of the policy under certain hypothetical circumstances that
we assume solely for this purpose. Each table separately illustrates the
operation of a policy for a specified issue age, premium payment schedule and
Guaranteed Death Benefit. The amounts shown are for the end of each policy year
and assume that all of the account value is invested in funds that achieve
investment returns at constant annual rates of 0%, 6% and 12% (i.e., before any
fees or expenses deducted from Trust assets). After the deduction of average
fees and expenses at the Trust level (as described below) the corresponding net
annual rates of return would be -0.74%, 5.22% and 11.17%. Investment return
reflects investment income and all realized and unrealized capital gains and
losses. The tables assume annual Required Premiums that are paid at the
beginning of each policy year for an insured person who is a 35 year old male
standard non-smoker underwriting risk when the policy is issued.
Tables are provided for each of the three death benefit options. The tables
headed "Current Charges" assume that the current rates for all charges deducted
by JHVLICO will apply in each year illustrated, including the reduction in the
monthly insurance charge after the ninth policy year and the waiver after the
tenth policy year of the sales charge deducted from premiums. The tables headed
"Maximum Charges" are the same, except that the maximum permitted rates for all
years are used for all charges. The tables do not reflect any charge that we
reserve the right to make but are not currently making.
With respect to fees and expenses deducted from Trust assets, the amounts
shown in all tables reflect (1) investment management fees equivalent to an
effective annual rate of .66%, and (2) an assumed average asset charge for all
other Trust operating expenses equivalent to an effective annual rate of .08%.
These rates are the arithmetic average for all funds of the Trust. In other
words, they are based on the hypothetical assumption that policy account values
are allocated equally among the variable investment options. The actual rates
associated with any policy will vary depending upon the actual allocation of
policy values among the investment options. The charge shown above for all other
Trust operating expenses reflects reimbursements to certain funds as described
in the footnote to the table on page 13. We currently expect those reimbursement
arrangements to continue indefinitely, but that is not guaranteed.
The second column of each table shows the amount you would have at the end of
each policy year if an amount equal to the assumed Required Premiums were
invested to earn interest, after taxes, at 5% compounded annually. This is not a
policy value. It is included for comparison purposes only.
Because your circumstances will no doubt differ from those in the
illustrations that follow, values under your policy will differ, in most cases
substantially. Upon request, we will furnish you with a comparable illustration
reflecting your proposed insured person's issue age, sex and underwriting risk
classification, and the Guaranteed Death Benefit and annual Required Premium
amount requested.
21
<PAGE>
DEATH BENEFIT OPTION 1: --LEVEL DEATH BENEFIT
ILLUSTRATION ASSUMES CURRENT CHARGES
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK SUM INSURED AT ISSUE
(GUARANTEED DEATH BENEFIT): $100,000 $900 BASE POLICY PREMIUM (1)
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
---------------------------- ------------------------------ ------------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ---------------------------- ------------------------------ ------------------------------
Year Per Year (2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- -------- --------- -------- -------- --------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
<C> <C> <C>
1 945 100,000 100,000 100,000 323 356 390 0 0 0
2 1,937 100,000 100,000 100,000 873 968 1,066 303 398 496
3 2,979 100,000 100,000 100,000 1,407 1,597 1,804 702 892 1,099
4 4,073 100,000 100,000 100,000 1,922 2,244 2,608 1,082 1,404 1,768
5 5,222 100,000 100,000 100,000 2,418 2,908 3,484 1,743 2,233 2,809
6 6,428 100,000 100,000 100,000 2,894 3,590 4,439 2,084 2,780 3,629
7 7,694 100,000 100,000 100,000 3,348 4,288 5,479 2,538 3,478 4,669
8 9,024 100,000 100,000 100,000 3,779 5,001 6,614 3,059 4,281 5,894
9 10,420 100,000 100,000 100,000 4,186 5,728 7,849 3,556 5,098 7,219
10 11,886 100,000 100,000 100,000 4,579 6,485 9,218 4,039 5,945 8,678
11 13,425 100,000 100,000 100,000 4,992 7,306 10,768 4,542 6,856 10,318
12 15,042 100,000 100,000 100,000 5,380 8,149 12,468 5,065 7,834 12,153
13 16,739 100,000 100,000 100,000 5,742 9,012 14,337 5,562 8,832 14,157
14 18,521 100,000 100,000 100,000 6,078 9,897 16,392 6,078 9,897 16,392
15 20,392 100,000 100,000 100,000 6,384 10,802 18,654 6,384 10,802 18,654
16 22,356 100,000 100,000 100,000 6,660 11,728 21,147 6,660 11,728 21,147
17 24,419 100,000 100,000 100,000 6,896 12,667 23,889 6,896 12,667 23,889
18 26,585 100,000 100,000 100,000 7,086 13,615 26,907 7,086 13,615 26,907
19 28,859 100,000 100,000 100,000 7,226 14,568 30,232 7,226 14,568 30,232
20 31,247 100,000 100,000 100,000 7,309 15,520 33,898 7,309 15,520 33,898
25 45,102 100,000 100,000 100,000 6,640 20,118 59,009 6,640 20,118 59,009
30 62,785 100,000 100,000 122,366 3,252 23,727 101,971 3,252 23,727 101,971
35 85,353 100,000 100,000 198,900 0 24,289 172,956 0 24,289 172,956
40 142,301 100,000 100,000 304,008 0 35,428 289,532 0 35,428 289,532
45 214,983 100,000 100,000 508,011 0 30,476 483,820 0 30,476 483,820
</TABLE>
(1) Assumes annual premium payments of $900 per year until the premium
recalculation at age 70 and annual recalculated premium amounts thereafter. If
premiums are paid more frequently than annually, the above values shown would
be affected.
(2) Assumes payment of recalculated annual premium amounts of $5,751 after age
70. As indicated in note (3) below, the actual recalculated premium may be
lower or higher than this amount.
(3) Assumes payment of recalculated premiums after age 70 in annual amounts of
$8,404 at 0%, $5,751 at 6% and $0 at 12%, subject to any maximums required to
maintain the Policy's status for federal income tax purposes.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT, ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%
OR 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE
FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE
HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
22
<PAGE>
DEATH BENEFIT OPTION 1: LEVEL DEATH BENEFIT
ILLUSTRATION ASSUMES MAXIMUM CHARGES
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK
SUM INSURED AT ISSUE (GUARANTEED DEATH BENEFIT): $100,000
$900 BASE POLICY PREMIUM (1)
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
------------------------------ ----------------------------- -----------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest
Year Per Year (2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- --------- --------- -------- -------- --------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 945 100,000 100,000 100,000 276 307 339 0 0 0
2 1,937 100,000 100,000 100,000 779 867 959 9 97 189
3 2,979 100,000 100,000 100,000 1,265 1,442 1,635 360 537 730
4 4,073 100,000 100,000 100,000 1,734 2,033 2,370 694 993 1,330
5 5,222 100,000 100,000 100,000 2,184 2,638 3,169 1,009 1,463 1,994
6 6,428 100,000 100,000 100,000 2,615 3,257 4,040 1,305 1,947 2,730
7 7,694 100,000 100,000 100,000 3,025 3,889 4,987 1,815 2,679 3,777
8 9,024 100,000 100,000 100,000 3,412 4,534 6,017 2,292 3,414 4,897
9 10,420 100,000 100,000 100,000 3,775 5,189 7,138 2,845 4,259 6,208
10 11,886 100,000 100,000 100,000 4,115 5,857 8,360 3,575 5,317 7,820
11 13,425 100,000 100,000 100,000 4,427 6,533 9,690 3,977 6,083 9,240
12 15,042 100,000 100,000 100,000 4,710 7,216 11,139 4,395 6,901 10,824
13 16,739 100,000 100,000 100,000 4,964 7,906 12,719 4,784 7,726 12,539
14 18,521 100,000 100,000 100,000 5,185 8,601 14,444 5,185 8,601 14,444
15 20,392 100,000 100,000 100,000 5,373 9,299 16,327 5,373 9,299 16,327
16 22,356 100,000 100,000 100,000 5,523 9,998 18,384 5,523 9,998 18,384
17 24,419 100,000 100,000 100,000 5,631 10,692 20,632 5,631 10,692 20,632
18 26,585 100,000 100,000 100,000 5,691 11,375 23,086 5,691 11,375 23,086
19 28,859 100,000 100,000 100,000 5,697 12,043 25,770 5,697 12,043 25,770
20 31,247 100,000 100,000 100,000 5,640 12,685 28,702 5,640 12,685 28,702
25 45,102 100,000 100,000 100,000 4,198 15,285 48,237 4,198 15,285 48,237
30 62,785 100,000 100,000 100,000 0 15,778 80,539 0 15,778 80,539
35 85,353 100,000 100,000 154,406 0 11,174 134,266 0 11,174 134,266
40 150,615 100,000 100,000 231,444 0 14,956 220,423 0 14,956 220,423
45 233,908 100,000 100,000 379,496 0 0 361,425 0 0 361,425
</TABLE>
(1) Assumes annual premium payments of $900 per year until the premium
recalculation at age 70 and annual recalculated premium amounts thereafter. If
premiums are paid more frequently than annually, the above values shown would
be affected.
(2) Assumes payment of recalculated annual premium amounts of $7,184 after age
70. As indicated in note (3) below, the actual recalculated premium may be
lower or higher than this amount.
(3) Assumes payment of recalculated premiums after age 70 in annual amounts of
$8,404 at 0%, $7,184 at 6% and $0 at 12%, subject to any maximums required to
maintain the Policy's status for federal income tax purposes.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT, ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%
OR 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE
FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE
HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
23
<PAGE>
DEATH BENEFIT OPTION 2: VARIABLE DEATH BENEFIT
ILLUSTRATION ASSUMES CURRENT CHARGES
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK
SUM INSURED AT ISSUE (GUARANTEED DEATH BENEFIT): $100,000
$900 BASE POLICY PREMIUM (1)
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
----------------------------- ----------------------------- -----------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ----------------------------- -----------------------------
Year Per Year (2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- -------- --------- -------- -------- --------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 945 100,000 100,000 100,000 323 356 390 0 0 0
2 1,937 100,000 100,000 100,000 873 968 1,066 303 398 496
3 2,979 100,000 100,000 100,000 1,407 1,597 1,804 702 892 1,099
4 4,073 100,000 100,000 100,000 1,922 2,244 2,608 1,082 1,404 1,768
5 5,222 100,000 100,000 100,000 2,418 2,908 3,484 1,743 2,233 2,809
6 6,428 100,000 100,000 100,000 2,894 3,590 4,439 2,084 2,780 3,629
7 7,694 100,000 100,000 100,000 3,348 4,288 5,479 2,538 3,478 4,669
8 9,024 100,000 100,000 100,000 3,779 5,001 6,614 3,059 4,281 5,894
9 10,420 100,000 100,000 100,000 4,186 5,728 7,849 3,556 5,098 7,219
10 11,886 100,000 100,000 100,000 4,579 6,485 9,218 4,039 5,945 8,678
11 13,425 100,000 100,000 100,000 4,992 7,306 10,768 4,542 6,856 10,318
12 15,042 100,000 100,000 100,000 5,380 8,149 12,468 5,065 7,834 12,153
13 16,739 100,000 100,000 100,000 5,742 9,012 14,337 5,562 8,832 14,157
14 18,521 100,000 100,000 100,000 6,078 9,897 16,392 6,078 9,897 16,392
15 20,392 100,000 100,000 100,000 6,384 10,802 18,654 6,384 10,802 18,654
16 22,356 100,000 100,000 100,280 6,660 11,728 21,147 6,660 11,728 21,147
17 24,419 100,000 100,000 101,402 6,896 12,667 23,887 6,896 12,667 23,887
18 26,585 100,000 100,000 102,758 7,086 13,615 26,895 7,086 13,615 26,895
19 28,859 100,000 100,000 104,377 7,226 14,568 30,198 7,226 14,568 30,198
20 31,247 100,000 100,000 106,292 7,309 15,520 33,825 7,309 15,520 33,825
25 45,102 100,000 100,000 121,637 6,640 20,118 58,136 6,640 20,118 58,136
30 62,785 100,000 100,000 151,542 3,252 23,727 97,491 3,252 23,727 97,491
35 85,353 100,000 100,000 206,073 0 24,289 161,502 0 24,289 161,502
40 142,301 100,000 100,911 295,720 0 34,916 268,776 0 34,916 268,776
45 214,983 100,000 100,000 469,481 0 29,512 447,125 0 29,512 447,125
</TABLE>
(1) Assumes annual premium payments of $900 per year until the premium
recalculation at age 70 and annual recalculated premium amounts thereafter. If
premiums are paid more frequently than annually, the above values shown would
be affected.
(2) Assumes payment of recalculated annual premium amounts of $5,751 after age
70. As indicated in note (3) below, the actual recalculated premium may be
lower or higher than this amount.
(3) Assumes payment of recalculated premiums after age 70 in annual amounts of
$8,404 at 0%, $5,751 at 6% and $0 at 12%, subject to any maximum required to
maintain the Policy's status for federal income tax purposes.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT, ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%
OR 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE
FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE
HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
24
<PAGE>
DEATH BENEFIT OPTION 2: VARIABLE DEATH BENEFIT
ILLUSTRATION ASSUMES MAXIMUM CHARGES
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK
SUM INSURED AT ISSUE (GUARANTEED DEATH BENEFIT): $100,000
$900 BASE POLICY PREMIUM (1)
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
----------------------------- ----------------------------- -----------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ----------------------------- -----------------------------
Year Per Year (2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- -------- --------- -------- -------- --------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 945 100,000 100,000 100,000 276 307 339 0 0 0
2 1,937 100,000 100,000 100,000 779 867 959 9 97 189
3 2,979 100,000 100,000 100,000 1,265 1,442 1,635 360 537 730
4 4,073 100,000 100,000 100,000 1,734 2,033 2,370 694 993 1,330
5 5,222 100,000 100,000 100,000 2,184 2,638 3,169 1,009 1,463 1,994
6 6,428 100,000 100,000 100,000 2,615 3,257 4,040 1,305 1,947 2,730
7 7,694 100,000 100,000 100,000 3,025 3,889 4,987 1,815 2,679 3,777
8 9,024 100,000 100,000 100,000 3,412 4,534 6,017 2,292 3,414 4,897
9 10,420 100,000 100,000 100,000 3,775 5,189 7,138 2,845 4,259 6,208
10 11,886 100,000 100,000 100,000 4,115 5,857 8,360 3,575 5,317 7,820
11 13,425 100,000 100,000 100,000 4,427 6,533 9,690 3,977 6,083 9,240
12 15,042 100,000 100,000 100,000 4,710 7,216 11,139 4,395 6,901 10,824
13 16,739 100,000 100,000 100,000 4,964 7,906 12,719 4,784 7,726 12,539
14 18,521 100,000 100,000 100,000 5,185 8,601 14,444 5,185 8,601 14,444
15 20,392 100,000 100,000 100,000 5,373 9,299 16,327 5,373 9,299 16,327
16 22,356 100,000 100,000 100,000 5,523 9,998 18,384 5,523 9,998 18,384
17 24,419 100,000 100,000 100,000 5,631 10,692 20,632 5,631 10,692 20,632
18 26,585 100,000 100,000 100,000 5,691 11,375 23,086 5,691 11,375 23,086
19 28,859 100,000 100,000 100,000 5,697 12,043 25,770 5,697 12,043 25,770
20 31,247 100,000 100,000 101,167 5,640 12,685 28,701 5,640 12,685 28,701
25 45,102 100,000 100,000 111,417 4,198 15,285 47,916 4,198 15,285 47,916
30 62,785 100,000 100,000 131,944 0 15,778 77,893 0 15,778 77,893
35 85,353 100,000 100,000 169,519 0 11,174 124,948 0 11,174 124,948
40 150,615 100,000 100,000 228,814 0 14,793 201,871 0 14,793 201,871
45 233,908 100,000 100,000 347,457 0 0 326,659 0 0 326,659
</TABLE>
(1) Assumes annual premium payments of $900 per year until the premium
recalculation at age 70 and annual recalculated premium amounts thereafter. If
premiums are paid more frequently than annually, the above values shown would
be affected.
(2) Assumes payment of recalculated annual premium amounts of $7,184 after age
70. As indicated in note (3) below, the actual recalculated premium may be
lower or higher than this amount.
(3) Assumes payment of recalculated premiums after age 70 in annual amounts of
$8,404 at 0%, $7,184 at 6% and $0 at 12%, subject to any maximums required to
maintain the Policy's status for federal income tax purposes.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT, ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%
OR 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE
FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE
HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
25
<PAGE>
DEATH BENEFIT OPTION 3: LEVEL DEATH BENEFIT WITH GREATER FUNDING
ILLUSTRATION ASSUMES CURRENT CHARGES
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK
SUM INSURED AT ISSUE (GUARANTEED DEATH BENEFIT): $100,000
$900 BASE POLICY PREMIUM (1)
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
----------------------------- ----------------------------- -----------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ----------------------------- -----------------------------
Year Per Year (2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- -------- --------- -------- -------- --------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 945 100,000 100,000 100,000 323 356 390 0 0 0
2 1,937 100,000 100,000 100,000 873 968 1,066 303 398 496
3 2,979 100,000 100,000 100,000 1,407 1,597 1,804 702 892 1,099
4 4,073 100,000 100,000 100,000 1,922 2,244 2,608 1,082 1,404 1,768
5 5,222 100,000 100,000 100,000 2,418 2,908 3,484 1,743 2,233 2,809
6 6,428 100,000 100,000 100,000 2,894 3,590 4,439 2,084 2,780 3,629
7 7,694 100,000 100,000 100,000 3,348 4,288 5,479 2,538 3,478 4,669
8 9,024 100,000 100,000 100,000 3,779 5,001 6,614 3,059 4,281 5,894
9 10,420 100,000 100,000 100,000 4,186 5,728 7,849 3,556 5,098 7,219
10 11,886 100,000 100,000 100,000 4,579 6,485 9,218 4,039 5,945 8,678
11 13,425 100,000 100,000 100,000 4,992 7,306 10,768 4,542 6,856 10,318
12 15,042 100,000 100,000 100,000 5,380 8,149 12,468 5,065 7,834 12,153
13 16,739 100,000 100,000 100,000 5,742 9,012 14,337 5,562 8,832 14,157
14 18,521 100,000 100,000 100,000 6,078 9,897 16,392 6,078 9,897 16,392
15 20,392 100,000 100,000 100,000 6,384 10,802 18,654 6,384 10,802 18,654
16 22,356 100,000 100,000 100,000 6,660 11,728 21,147 6,660 11,728 21,147
17 24,419 100,000 100,000 100,000 6,896 12,667 23,889 6,896 12,667 23,889
18 26,585 100,000 100,000 100,000 7,086 13,615 26,907 7,086 13,615 26,907
19 28,859 100,000 100,000 100,000 7,226 14,568 30,232 7,226 14,568 30,232
20 31,247 100,000 100,000 100,000 7,309 15,520 33,898 7,309 15,520 33,898
25 45,102 100,000 100,000 114,303 6,640 20,118 58,825 6,640 20,118 58,825
30 62,785 100,000 100,000 166,844 3,252 23,727 98,028 3,252 23,727 98,028
35 85,353 100,000 100,000 238,706 0 24,289 157,707 0 24,289 157,707
40 142,301 100,000 100,000 338,022 16,304 35,428 246,947 16,304 35,428 246,947
45 214,983 100,000 100,000 476,857 31,158 51,043 377,679 31,158 51,043 377,679
</TABLE>
(1) Assumes annual premium payments of $900 per year until the premium
recalculation at age 70 and annual recalculated premium amounts thereafter. If
premiums are paid more frequently than annually, the above values shown would
be affected.
(2) Assumes payment of recalculated annual premium amounts of $5,751 after age
70. As indicated in note (3) below, the actual recalculated premium may be
lower or higher than this amount.
(3) Assumes payment of recalculated premiums after age 70 in annual amounts of
$8,404 at 0%, $5,751 at 6% and $0 at 12%, subject to any maximums required to
maintain the Policy's status for federal income tax purposes.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT, ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%
OR 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE
FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE
HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
26
<PAGE>
DEATH BENEFIT OPTION 3: LEVEL DEATH BENEFIT WITH GREATER FUNDING
ILLUSTRATION ASSUMES MAXIMUM CHARGES
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK
SUM INSURED AT ISSUE (GUARANTEED DEATH BENEFIT): $100,000
$900 BASE POLICY PREMIUM (1)
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
----------------------------- ----------------------------- -----------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ----------------------------- -----------------------------
Year Per Year (2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- -------- --------- -------- -------- --------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 945 100,000 100,000 100,000 276 307 339 0 0 0
2 1,937 100,000 100,000 100,000 779 867 959 9 97 189
3 2,979 100,000 100,000 100,000 1,265 1,442 1,635 360 537 730
4 4,073 100,000 100,000 100,000 1,734 2,033 2,370 694 993 1,330
5 5,222 100,000 100,000 100,000 2,184 2,638 3,169 1,009 1,463 1,994
6 6,428 100,000 100,000 100,000 2,615 3,257 4,040 1,305 1,947 2,730
7 7,694 100,000 100,000 100,000 3,025 3,889 4,987 1,815 2,679 3,777
8 9,024 100,000 100,000 100,000 3,412 4,534 6,017 2,292 3,414 4,897
9 10,420 100,000 100,000 100,000 3,775 5,189 7,138 2,845 4,259 6,208
10 11,886 100,000 100,000 100,000 4,115 5,857 8,360 3,575 5,317 7,820
11 13,425 100,000 100,000 100,000 4,427 6,533 9,690 3,977 6,083 9,240
12 15,042 100,000 100,000 100,000 4,710 7,216 11,139 4,395 6,901 10,824
13 16,739 100,000 100,000 100,000 4,964 7,906 12,719 4,784 7,726 12,539
14 18,521 100,000 100,000 100,000 5,185 8,601 14,444 5,185 8,601 14,444
15 20,392 100,000 100,000 100,000 5,373 9,299 16,327 5,373 9,299 16,327
16 22,356 100,000 100,000 100,000 5,523 9,998 18,384 5,523 9,998 18,384
17 24,419 100,000 100,000 100,000 5,631 10,692 20,632 5,631 10,692 20,632
18 26,585 100,000 100,000 100,000 5,691 11,375 23,086 5,691 11,375 23,086
19 28,859 100,000 100,000 100,000 5,697 12,043 25,770 5,697 12,043 25,770
20 31,247 100,000 100,000 100,000 5,640 12,685 28,702 5,640 12,685 28,702
25 45,102 100,000 100,000 100,000 4,198 15,285 48,237 4,198 15,285 48,237
30 62,785 100,000 100,000 134,371 0 15,778 78,949 0 15,778 78,949
35 85,353 100,000 100,000 188,335 0 11,174 124,429 0 11,174 124,429
40 150,615 100,000 100,000 259,935 6,488 23,662 189,900 6,488 23,662 189,900
45 233,908 100,000 100,000 356,624 11,363 39,798 282,452 11,363 39,798 282,452
</TABLE>
(1) Assumes annual premium payments of $900 per year until the premium
recalculation at age 70 and annual recalculated premium amounts thereafter. If
premiums are paid more frequently than annually, the above values shown would
be affected.
(2) Assumes payment of recalculated annual premium amounts of $7,184 after age
70. As indicated in note (3) below, the actual recalculated premium may be
lower or higher than this amount.
(3) Assumes payment of recalculated premiums after age 70 in annual amounts of
$8,404 at 0%, $7,184 at 6% and $0 at 12%, subject to any maximums required to
maintain the Policy's status for federal income tax purposes.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT, ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%
OR 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE
FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE
HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
27
<PAGE>
ADDITIONAL INFORMATION
This section of the prospectus provides additional detailed information that
is not contained in the Basic Information section on pages 3 through 20.
<TABLE>
<CAPTION>
CONTENTS OF THIS SECTION BEGINNING ON PAGE
------------------------ -----------------
<S> <C>
Description of JHVLICO...................... 29
How we support the policy and investment options 29
Procedures for issuance of a policy......... 30
Commencement of investment performance...... 31
How we process certain policy transactions.. 31
Effects of policy loans..................... 33
How we calculate "basic policy value"....... 33
Additional information about how certain policy charges 33
work........................................
How we market the policies.................. 34
Tax considerations.......................... 35
Reports that you will receive............... 37
Voting privileges that you will have........ 37
Changes that JHVLICO can make as to your policy 38
Adjustments we make to death benefits....... 39
When we pay policy proceeds................. 39
Other details about exercising rights and paying benefits 39
Legal matters............................... 40
Registration statement filed with the SEC... 40
Accounting and actuarial experts............ 40
Financial statements of JHVLICO and the Account 40
List of Directors and Executive Officers of JHVLICO 41
</TABLE>
28
<PAGE>
DESCRIPTION OF JHVLICO
We are JHVLICO, a stock life insurance company chartered in 1979 under
Massachusetts law. We are authorized to transact a life insurance and annuity
business in all states other than New York and in the District of Columbia. We
began selling variable life insurance policies in 1980.
We are regulated and supervised by the Massachusetts Commissioner of
Insurance, who periodically examines our affairs. We also are subject to the
applicable insurance laws and regulations of all jurisdictions in which we are
authorized to do business. We are required to submit annual statements of our
operations, including financial statements, to the insurance departments of the
various jurisdictions in which we do business for purposes of determining
solvency and compliance with local insurance laws and regulations. The
regulation to which we are subject, however, does not provide a guarantee as to
such matters.
We are a wholly-owned subsidiary of John Hancock Life Insurance Company ("John
Hancock"), a Massachusetts stock life insurance company. On February 1, 2000,
John Hancock Mutual Life Insurance Company (which was chartered in Massachusetts
in 1862) converted to a stock company by "demutualizing" and changed its name to
John Hancock Life Insurance Company. As part of the demutualization process,
John Hancock became a subsidiary of John Hancock Financial Services, Inc., a
newly formed publicly-traded corporation. John Hancock's home office is at John
Hancock Place, Boston, Massachusetts 02117. As of December 31, 1999, John
Hancock's assets were approximately $71 billion and it had invested
approximately $575 million in JHVLICO in connection with JHVLICO's organization
and operation. It is anticipated that John Hancock will from time to time make
additional capital contributions to JHVLICO to enable us to meet our reserve
requirements and expenses in connection with our business. John Hancock is
committed to make additional capital contributions if necessary to ensure that
we maintain a positive net worth.
HOW WE SUPPORT THE POLICY AND INVESTMENT OPTIONS
Separate Account V
The variable investment options shown on page 1 are in fact subaccounts of
Separate Account V (the "Account"), a separate account established by us under
Massachusetts law. The Account meets the definition of "separate account" under
the Federal securities laws and is registered as a unit investment trust under
the Investment Company Act of 1940 ("1940 Act"). Such registration does not
involve supervision by the SEC of the management of the Account or JHVLICO.
The Account's assets are the property of JHVLICO. Each policy provides that
amounts we hold in the Account pursuant to the policies cannot be reached by any
other persons who may have claims against us.
The assets in each subaccount are invested in the corresponding fund of the
Trust. New subaccounts may be added as new funds are added to the Trust and made
available to policy owners. Existing subaccounts may be deleted if existing
funds are deleted from the Trust.
We will purchase and redeem Trust shares for the Account at their net asset
value without any sales or redemption charges. Shares of the Trust represent an
interest in one of the funds of the Trust which corresponds to a subaccount of
the Account. Any dividend or capital gains distributions received by the Account
will be reinvested in shares of that same fund at their net asset value as of
the dates paid.
On each business day, shares of each fund are purchased or redeemed by us for
each subaccount based on, among other things, the amount of net premiums
allocated to the subaccount, distributions reinvested, and transfers to, from
and among subaccounts, all to be effected as of that date. Such
29
<PAGE>
purchases and redemptions are effected at each fund's net asset value per share
determined for that same date. A "business day" is any date on which the New
York Stock Exchange is open for trading. We compute policy values for each
business day as of the close of that day (usually 4:00 p.m. Eastern Standard
Time).
Our general account
Our obligations under the policy's fixed investment option are backed by our
general account assets. Our general account consists of assets owned by us other
than those in the Account and in other separate accounts that we may establish.
Subject to applicable law, we have sole discretion over the investment of assets
of the general account and policy owners do not share in the investment
experience of, or have any preferential claim on, those assets. Instead, we
guarantee that the account value allocated to the fixed investment option will
accrue interest daily at an effective annual rate of at least 4% without regard
to the actual investment experience of the general account.
Because of exemptive and exclusionary provisions, interests in our fixed
investment option have not been registered under the Securities Act of 1933 and
our general account has not been registered as an investment company under the
1940 Act. Accordingly, neither the general account nor any interests therein are
subject to the provisions of these acts, and we have been advised that the staff
of the SEC has not reviewed the disclosure in this prospectus relating to the
fixed investment option. Disclosure regarding the fixed investment option may,
however, be subject to certain generally-applicable provisions of the Federal
securities laws relating to accuracy and completeness of statements made in
prospectuses.
PROCEDURES FOR ISSUANCE OF A POLICY
Generally, the policy is available with a minimum Guaranteed Death Benefit at
issue of $50,000. At the time of issue, the insured person must have an attained
age of 75 or less. All insured persons must meet certain health and other
insurance risk criteria called "underwriting standards".
Policies issued in Montana or in connection with certain employee plans will
not directly reflect the sex of the insured person in either the premium rates
or the charges or values under the policy. The illustrations set forth in this
prospectus are sex-distinct and, therefore, may not reflect the rates, charges,
or values that would apply to such policies.
Commencement of insurance coverage
After you apply for a policy, it can sometimes take up to several weeks for us
to gather and evaluate all the information we need to decide whether to issue a
policy to you and, if so, what the insured person's rate class should be. After
we approve an application for a policy and assign an appropriate insurance rate
class, we will prepare the policy for delivery. We will not pay a death benefit
under a policy unless the policy is in effect when the insured person dies
(except for the circumstances described under "Temporary insurance coverage
prior to policy delivery" on page 31).
The policy will take effect only if all of the following conditions are
satisfied:
. The policy is delivered to and received by the applicant.
. At least the first Required Premium is received by us.
. Each insured person is living and still meets our health criteria for
issuing insurance.
If all of the above conditions are satisfied, the policy will take effect on
the date shown in the policy as the "date of issue." That is the date on which
we begin to deduct monthly charges. Policy months, policy years and policy
anniversaries are all measured from the date of issue.
30
<PAGE>
Backdating
In order to preserve a younger age at issue for the insured person, we can
designate a date of issue that is up to 60 days earlier than the date that would
otherwise apply. This is referred to as "backdating" and is allowed under state
insurance laws. Backdating can also be used in certain corporate-owned life
insurance cases involving multiple policies to retain a common monthly deduction
date.
The conditions for coverage described above under "Commencement of insurance
coverage" must still be satisfied, but in a backdating situation the policy
always takes effect retroactively. Backdating results in a lower insurance
charge (because of the insured person's younger age at issue), but monthly
charges begin earlier than would otherwise be the case. Those monthly charges
will be deducted as soon as we receive premiums sufficient to pay them.
Temporary coverage prior to policy delivery
If a specified amount of premium is paid with the application for a policy and
other conditions are met, we will provide temporary term life insurance coverage
on the insured person for a period prior to the time coverage under the policy
takes effect. Such temporary term coverage will be subject to the terms and
conditions described in the application for the policy, including limits on
amount and duration of coverage.
Monthly deduction dates
Each charge that we deduct monthly is assessed against your account value or
the subaccounts at the close of business on the date of issue and at the close
of the first business day in each subsequent policy month.
COMMENCEMENT OF INVESTMENT PERFORMANCE
All premium payments will be allocated among the investment options on the
date as of which they are processed (as discussed below).
HOW WE PROCESS CERTAIN POLICY TRANSACTIONS
Premium payments
We will process any premium payment as of the day we receive it, unless one of
the following exceptions applies:
(1) We will process a payment received prior to a policy's date of issue as if
received on the business day that first precedes the date of issue.
(2) If you pay a sufficient premium to take your policy out of a grace period,
the portion of such premium that equals the overdue Required Premium will be
processed as of that Required Premium's due date.
(3) If the first Required Premium is not received prior to the date of issue,
we will process each premium payment received thereafter as if received on the
business day immediately preceding the date of issue until all of the first
Required Premium is received.
(4) We will process the portion of any premium payment for which we require
evidence of the insured person's continued insurability only after we have
received such evidence and found it satisfactory to us.
(5) If we receive any premium payment that we think will cause a policy to
become a modified endowment or will cause a policy to lose its status as life
insurance under the tax laws, we will not accept the excess portion of that
premium payment and will immediately notify the owner. We will refund the excess
premium when the premium payment check has had time to clear the banking system
(but in no case more than two weeks after receipt), except in the following
circumstances:
. The tax problem resolves itself prior to the date the refund is to be
made; or
. The tax problem relates to modified endowment status and we receive a
signed acknowledgment from the owner prior to the refund date instructing
us to process the
31
<PAGE>
premium notwithstanding the tax issues involved.
In the above cases, we will treat the excess premium as having been received on
the date the tax problem resolves itself or the date we receive the signed
acknowledgment. We will then process it accordingly.
(6) If a premium payment is received or is otherwise scheduled to be processed
(as specified above) on a date that is not a business day, the premium payment
will be processed on the business day next following that date.
Transfers among investment options
Any reallocation among investment options must be such that the total in all
investment options after reallocation equals 100% of account value. Transfers
out of a variable investment option will be effective at the end of the business
day in which we receive at our Life Servicing Office notice satisfactory to us.
If received on or before the policy anniversary, requests for transfer out of
the fixed investment option will be processed on the policy anniversary (or the
next business day if the policy anniversary does not occur on a business day).
If received after the policy anniversary, such a request will be processed at
the end of the business day in which we receive the request at our Life
Servicing Office. If you request a transfer out of the fixed investment option
61 days or more prior to the policy anniversary, we will not process that
portion of the reallocation, and your confirmation statement will not reflect a
transfer out of the fixed investment option as to such request. Currently, there
is no minimum amount limit on transfers into the fixed investment option, but we
reserve the right to impose such a limit in the future. We have the right to
defer transfers of amounts out of the fixed investment option for up to six
months.
Dollar cost averaging
Scheduled transfers under this option may be made from the Money Market
investment option to not more than nine other variable investment options.
However, the amount transferred to any one investment option must be at least
$100.
Once we receive the election in form satisfactory to us at our Life Servicing
Office, transfers will begin on the second monthly deduction date following its
receipt. If you have any questions with respect to this provision, call
1-800-732-5543.
Once elected, the scheduled monthly transfer option will remain in effect for
so long as you have at least $2,500 of your account value in the Money Market
investment option, or until we receive written notice from you of cancellation
of the option or notice of the death of the insured person. We reserve the right
to modify, terminate or suspend the dollar cost averaging program at any time.
Telephone transfers and policy loans
Once you have completed a written authorization, you may request a transfer or
policy loan by telephone or by fax. If the fax request option becomes
unavailable, another means of telecommunication will be substituted.
If you authorize telephone transactions, you will be liable for any loss,
expense or cost arising out of any unauthorized or fraudulent telephone
instructions which we reasonably believe to be genuine, unless such loss,
expense or cost is the result of our mistake or negligence. We employ procedures
which provide safeguards against the execution of unauthorized transactions, and
which are reasonably designed to confirm that instructions received by telephone
are genuine. These procedures include requiring personal identification, tape
recording calls, and providing written confirmation to the owner. If we do not
employ reasonable procedures to confirm that instructions communicated by
telephone are genuine, we may be liable for any loss due to unauthorized or
fraudulent instructions.
32
<PAGE>
Effective date of other policy transactions
A change of death benefit option is effective on the policy anniversary on or
next following the date we approve the request.
Reinstatements of lapsed policies take effect on the monthly deduction date on
or next following the date we approve the request for reinstatement.
We process loans, surrenders, partial withdrawals, partial surrenders and loan
repayments as of the day we receive such request or repayment.
EFFECTS OF POLICY LOANS
The account value, the surrender value, and any death benefit above the
Guaranteed Death Benefit are permanently affected by any loan, whether or not it
is repaid in whole or in part. This is because the amount of the loan is
deducted from the investment options and placed in a special loan account. The
investment options and the special loan account will generally have different
rates of investment return.
The amount of the outstanding loan (which includes accrued and unpaid
interest) is subtracted from the amount otherwise payable when the policy
proceeds become payable.
Whenever the outstanding loan exceeds the surrender value of the policy, the
policy will terminate 31 days after we have mailed notice of termination to you
(and to any assignee of record at such assignee's last known address) specifying
the minimum amount that must be paid to avoid termination, unless a repayment of
at least the amount specified is made within that period.
HOW WE CALCULATE BASIC ACCOUNT VALUE
"Basic account value" is discussed generally under "Is there a minimum amount
I must invest?" beginning on page 5. More specifically, the basic account value
at any time is what the policy's account value would have been at that time if
(1) level annual premiums (and no additional premiums) had been paid in the
amount of the maximum guaranteed recalculation premium at issue and earned a
constant net return of 4% per annum and (2) the cost of insurance charges had
been deducted at the maximum rates set forth in the policy, and no other
charges. The maximum guaranteed recalculation premium at issue is described
under "Premium recalculation" and its amount is specified in each policy.
Notwithstanding the foregoing, if there is a policy loan outstanding, the
basic account value will not be less than 110% of the outstanding loan. Also, in
all cases where optional rider benefits have been selected, or the insured
person is in a substandard risk category, an additional amount will be added in
computing the basic account value to cover these items through the end of the
then-current policy year.
ADDITIONAL INFORMATION ABOUT HOW CERTAIN POLICY CHARGES WORK
Sales expenses and related charges
The sales charges (i.e., the premium sales charge and the CDSC) help to
compensate us for the cost of selling our policies. (See "What charges will
JHVLICO deduct from my investment in the policy?" in the Basic Information
section of this prospectus.) The amount of the charges in any policy year does
not specifically correspond to sales expenses for that year. We expect to
recover our total sales expenses over the life of the policies. To the extent
that the sales charges do not cover total sales expenses, the sales expenses may
be recovered from other sources, including gains from the charge for mortality
and expense risks and other gains with respect to the policies, or from our
general assets. (See "How we market the policies" on page 34.)
Effect of premium payment pattern
You may structure the timing and amount of premium payments to minimize the
sales charges, although doing so involves certain risks. Paying more than one
Required Premium in any policy year could
33
<PAGE>
reduce your total sales charges. For example, if you paid a Required Premium of
$1,000 in each of the first two policy years, you would pay total premium sales
charges of $100. If instead you paid $2,000 (i.e., two times the Required
Premium amount) in the first policy year, you would pay total premium sales
charges of only $50. Accelerating the payment of Required Premiums to earlier
policy years could result in a larger CDSC and/or cause aggregate premiums paid
to exceed the policy's 7-pay premium limit and, as a result, cause the policy to
become a modified endowment, with adverse tax consequences to you upon receipt
of policy distributions. (See "Tax considerations" beginning on page 35.) On the
other hand, to pay less than the amount of Required Premiums by their due dates
runs the risk that the policy will lapse, resulting in loss of coverage and
additional charges.
Monthly charges
We deduct the monthly charges described in the Basic Information section from
your policy's investment options in proportion to the amount of account value
you have in each. For each month that we cannot deduct any charge because of
insufficient account value, the uncollected charges will accumulate and be
deducted when and if sufficient account value becomes available.
The insurance under the policy continues in full force during any grace period
but, if the insured person dies during the policy grace period, the amount of
unpaid monthly charges is deducted from the death benefit otherwise payable.
Reduced charges for eligible classes
The charges otherwise applicable may be reduced with respect to policies
issued to a class of associated individuals or to a trustee, employer or similar
entity where we anticipate that the sales to the members of the class will
result in lower than normal sales or administrative expenses, lower taxes or
lower risks to us. We will make these reductions in accordance with our rules in
effect at the time of the application for a policy. The factors we consider in
determining the eligibility of a particular group for reduced charges, and the
level of the reduction, are as follows: the nature of the association and its
organizational framework; the method by which sales will be made to the members
of the class; the facility with which premiums will be collected from the
associated individuals and the association's capabilities with respect to
administrative tasks; the anticipated lapse and surrender rates of the policies;
the size of the class of associated individuals and the number of years it has
been in existence; and any other such circumstances which result in a reduction
in sales or administrative expenses, lower taxes or lower risks. Any reduction
in charges will be reasonable and will apply uniformly to all prospective policy
purchasers in the class and will not unfairly discriminate against any owner.
HOW WE MARKET THE POLICIES
Signator Investors, Inc. ("Signator"), an indirect wholly-owned subsidiary of
John Hancock located at 197 Clarendon Street, Boston, MA 02117, is registered as
a broker-dealer under the Securities Exchange Act of 1934 and is a member of the
National Association of Securities Dealers, Inc. and the Securities Investor
Protection Corporation. Signator acts as principal underwriter and principal
distributor of the policies pursuant to a sales agreement among John Hancock,
Signator, JHVLICO, and the Account. Signator also serves as principal
underwriter for John Hancock Variable Annuity Accounts U, I and V, John Hancock
Mutual Variable Life Insurance Account UV and John Hancock Variable Life
Accounts V and S, all of which are registered under the 1940 Act. Signator is
also the principal underwriter for John Hancock Variable Series Trust I.
Applications for policies are solicited by agents who are licensed by state
insurance authorities to sell JHVLICO's policies and who are also registered
representatives ("representatives") of Signator or other broker-dealer firms, as
discussed below. John Hancock (on behalf of JHVLICO) performs
34
<PAGE>
insurance underwriting and determines whether to accept or reject the
application for a policy and each insured person's risk classification. JHVLICO
will make the appropriate refund if a policy ultimately is not issued or is
returned under the "free look" provision. Officers and employees of John Hancock
and JHVLICO are covered by a blanket bond by a commercial carrier in the amount
of $25 million.
Signator's representatives are compensated for sales of the policies on a
commission and service fee basis by Signator, and JHVLICO reimburses Signator
for such compensation and for other direct and indirect expenses (including
agency expense allowances, general agent, district manager and supervisor's
compensation, agent's training allowances, deferred compensation and insurance
benefits of agents, general agents, district managers and supervisors, agency
office clerical expenses and advertising) actually incurred in connection with
the marketing and sale of the policies.
The maximum commission payable to a Signator representative for selling a
policy is 50% of the base policy premiums (prior to any premium recalculation)
that would be payable in the first policy year, 8% of the such premiums payable
in the second through fourth policy years, and 3% of any such premiums received
by us in each policy year thereafter. The maximum commission on any premium paid
in any policy year in excess of such base policy premium is 3%.
Representatives with less than four years of service with Signator and those
compensated on salary plus bonus or level commission programs may be paid on a
different basis. Representatives who meet certain productivity and persistency
standards with respect to the sale of policies issued by JHVLICO and John
Hancock will be eligible for additional compensation.
The policies are also sold through other registered broker-dealers that have
entered into selling agreements with Signator and whose representatives are
authorized by applicable law to sell variable life insurance policies. The
commissions which will be paid by such broker-dealers to their representatives
will be in accordance with their established rules. The commission rates may be
more or less than those set forth above for Signator's representatives. In
addition, their qualified registered representatives may be reimbursed by the
broker-dealers under expense reimbursement allowance programs in any year for
approved voucherable expenses incurred. Signator will compensate the
broker-dealers as provided in the selling agreements, and JHVLICO will reimburse
Signator for such amounts and for certain other direct expenses in connection
with marketing the policies through other broker-dealers.
Representatives of Signator and the other broker-dealers mentioned above may
also earn "credits" toward qualification for attendance at certain business
meetings sponsored by John Hancock.
The offering of the policies is intended to be continuous, but neither JHVLICO
nor Signator is obligated to sell any particular amount of policies.
TAX CONSIDERATIONS
This description of federal income tax consequences is only a brief summary
and is not intended as tax advice. Tax consequences will vary based on your own
particular circumstances, and for further information you should consult a
qualified tax advisor. Federal, state and local tax laws, regulations and
interpretations can change from time to time. As a result, the tax consequences
to you and the beneficiary may be altered, in some cases retroactively.
Policy proceeds
We believe the policy will receive the same federal income and estate tax
treatment as fixed benefit life insurance policies. Section 7702 of the Internal
Revenue Code (the "Code") defines life insurance for federal tax purposes. If
certain standards are met at issue and over the life of the
35
<PAGE>
policy, the policy will satisfy that definition. We will monitor compliance with
these standards.
If the policy complies with the definition of life insurance, we believe the
death benefit under the policy will be excludable from the beneficiary's gross
income under the Code. In addition, increases in account value as a result of
interest or investment experience will not be subject to federal income tax
unless and until values are actually received through distributions.
Distributions for tax purposes can include amounts received upon full or partial
surrender or partial withdrawals. You may also be deemed to have received a
distribution for tax purposes if you assign all or part of your policy rights or
change your policy's ownership.
In general, the owner will be taxed on the amount of distributions that exceed
the premiums paid under the policy. But under certain circumstances within the
first 15 policy years, the owner may be taxed on a distribution even if total
withdrawals do not exceed total premiums paid. Any taxable distribution will be
ordinary income to the owner (rather than capital gains).
We also believe that, except as noted below, loans received under the policy
will be treated as indebtedness of an owner and that no part of any loan will
constitute income to the owner. However, the amount of any outstanding loan that
was not previously considered income (as discussed below) will be treated as if
it had been distributed to the owner if the policy terminates for any reason.
It is possible that, despite our monitoring, a policy might fail to qualify as
life insurance under Section 7702 of the Code. This could happen, for example,
if we inadvertently failed to return to you any premium payments that were in
excess of permitted amounts, or if the Trust failed to meet certain investment
diversification or other requirements of the Code. If this were to occur, you
would be subject to income tax on the income and gains under the policy for the
period of the disqualification and for subsequent periods and the death benefit
proceeds would lose their non-taxable status.
In the past, the United States Treasury Department has stated that it
anticipated issuing guidelines prescribing circumstances in which the ability of
a policy owner to direct his or her investment to particular funds may cause the
policy owner, rather than the insurance company, to be treated as the owner of
the shares of those funds. In that case, any income and gains attributable to
those shares would be included in your current gross income for federal income
tax purposes. Under current law, however, we believe that we, and not the owner
of a policy, would be considered the owner of the fund's shares for tax
purposes.
Tax consequences of ownership or receipt of policy proceeds under federal,
state and local estate, inheritance, gift and other tax laws depend on the
circumstances of each owner or beneficiary.
Because there may be unfavorable tax consequences (including recognition of
taxable income and the loss of income tax-free treatment for any death benefit
payable to the beneficiary), you should consult a qualified tax adviser prior to
changing the policy's ownership or making any assignment of ownership interests.
7-pay premium limit
At the time of policy issuance, we will determine whether the premium payments
for which we will bill you will exceed the 7-pay limit discussed below. If so,
our standard procedures prohibit issuance of the policy unless you sign a form
acknowledging that fact.
The 7-pay limit is the total of net level premiums that would have been
payable at any time for a comparable fixed policy to be fully "paid-up" after
the payment of 7 equal annual premiums. "Paid-up" means that no further premiums
would be required to continue the coverage in force indefinitely, based on
certain prescribed assumptions. If the total premiums
36
<PAGE>
paid at any time during the first 7 policy years exceed the 7-pay limit, the
policy will be treated as a "modified endowment", which can have adverse tax
consequences.
The owner will be taxed on distributions and loans from a "modified endowment"
to the extent of any income (gain) to the owner (on an income-first basis). The
distributions and loans affected will be those made on or after, and within the
two year period prior to, the time the policy becomes a modified endowment.
Additionally, a 10% penalty tax may be imposed on taxable portions of such
distributions or loans that are made before the owner attains age 591/2.
Furthermore, any time there is a "material change" in a policy (such as a
Guaranteed Death Benefit increase, the addition of certain other policy benefits
after issue, a change in death benefit option, or reinstatement of a lapsed
policy), the policy will have a new 7-pay limit as if it were a newly-issued
policy. If a prescribed portion of the policy's then account value, plus all
other premiums paid within 7 years after the material change, at any time exceed
the new 7-pay limit, the policy will become a modified endowment.
Moreover, if benefits under a policy are reduced (such as a partial surrender,
a reduction in the Guaranteed Death Benefit, or the reduction or cancellation of
certain rider benefits) during the 7 years in which a 7-pay test is being
applied, the 7-pay limit will be recalculated based on the reduced benefits. If
the premiums paid to date are greater than the recalculated 7-pay limit, the
policy will become a modified endowment.
All modified endowments issued by the same insurer (or its affiliates) to the
owner during any calendar year generally will be treated as one contract for the
purpose of applying the modified endowment rules. A policy received in exchange
for a modified endowment will itself also be a modified endowment. You should
consult your tax advisor if you have questions regarding the possible impact of
the 7-pay limit on your policy.
Corporate and H.R. 10 plans
The policy may be acquired in connection with the funding of retirement plans
satisfying the qualification requirements of Section 401 of the Code. If so, the
Code provisions relating to such plans and life insurance benefits thereunder
should be carefully scrutinized. We are not responsible for compliance with the
terms of any such plan or with the requirements of applicable provisions of the
Code.
REPORTS THAT YOU WILL RECEIVE
At least annually, we will send you a statement setting forth at least the
following information as of the end of the most recent reporting period: the
Guaranteed Death Benefit, the account value, the portion of the account value in
each investment option, the surrender value, premiums received and charges
deducted from premiums since the last report, and any outstanding policy loan
(and interest charged for the preceding policy year). Moreover, you also will
receive confirmations of transfers among investment options, policy loans,
partial withdrawals and certain other policy transactions. Premium payments not
in response to a billing notice are "unscheduled" and will be separately
confirmed. Therefore, if you make a premium payment that differs by more than
$25 from that billed, you will receive a separate confirmation of that premium
payment.
Semiannually we will send you a report containing the financial statements of
the Trust, including a list of securities held in each fund.
VOTING PRIVILEGES THAT YOU WILL HAVE
All of the assets in the subaccounts of the Account are invested in shares of
the corresponding funds of the Trust. We will vote the shares of each of the
funds of the Trust which are deemed attributable to variable life insurance
policies at regular and special meetings of the Trust's shareholders in
accordance with instructions received from owners of
37
<PAGE>
such policies. Shares of the Trust held in the Account which are not
attributable to such policies, as well as shares for which instructions from
owners are not received, will be represented by us at the meeting. We will vote
such shares for and against each matter in the same proportions as the votes
based upon the instructions received from the owners of such policies.
We determine the number of a fund's shares held in a subaccount attributable
to each owner by dividing the amount of a policy's account value held in the
subaccount by the net asset value of one share in the fund. Fractional votes
will be counted. We determine the number of shares as to which the owner may
give instructions as of the record date for the Trust's meeting. Owners of
policies may give instructions regarding the election of the Board of Trustees
of the Trust, ratification of the selection of independent auditors, approval of
Trust investment advisory agreements and other matters requiring a shareholder
vote. We will furnish owners with information and forms to enable owners to give
voting instructions.
However, we may, in certain limited circumstances permitted by the SEC's
rules, disregard voting instructions. If we do disregard voting instructions,
you will receive a summary of that action and the reasons for it in the next
semi-annual report to owners.
CHANGES THAT JHVLICO CAN MAKE AS TO YOUR POLICY
Changes relating to the Trust or the Account
The voting privileges described in this prospectus reflect our understanding
of applicable Federal securities law requirements. To the extent that applicable
law, regulations or interpretations change to eliminate or restrict the need for
such voting privileges, we reserve the right to proceed in accordance with any
such revised requirements. We also reserve the right, subject to compliance with
applicable law, including approval of owners if so required, (1) to transfer
assets determined by JHVLICO to be associated with the class of policies to
which your policy belongs from the Account to another separate account or
subaccount, (2) to operate the Account as a "management-type investment company"
under the 1940 Act, or in any other form permitted by law, the investment
adviser of which would be JHVLICO, John Hancock or an affiliate of either, (3)
to deregister the Account under the 1940 Act, (4) to substitute for the fund
shares held by a subaccount any other investment permitted by law, and (5) to
take any action necessary to comply with or obtain any exemptions from the 1940
Act. We would notify owners of any of the foregoing changes and, to the extent
legally required, obtain approval of owners and any regulatory body prior
thereto. Such notice and approval, however, may not be legally required in all
cases.
Other permissible changes
We reserve the right to make any changes in the policy necessary to ensure the
policy is within the definition of life insurance under the Federal tax laws and
is in compliance with any changes in Federal or state tax laws.
In our policies, we reserve the right to make certain changes if they would
serve the best interests of policy owners or would be appropriate in carrying
out the purposes of the policies. Such changes include the following:
. Changes necessary to comply with or obtain or continue exemptions under
the federal securities laws
. Combining or removing investment options
. Changes in the form of organization of any separate account
Any such changes will be made only to the extent permitted by applicable laws
and only in the manner permitted by such laws. When required by law, we will
obtain your approval of the changes and the approval of any appropriate
regulatory authority.
38
<PAGE>
ADJUSTMENTS WE MAKE TO DEATH BENEFITS
If the insured person commits suicide within certain time periods, the amount
of death benefit we pay will be limited as described in the policy. Also, if an
application misstated the age or gender of the insured person, we will adjust
the amount of any death benefit as described in the policy.
WHEN WE PAY POLICY PROCEEDS
General
We will pay any death benefit, withdrawal, surrender value or loan within 7
days after we receive the last required form or request (and, with respect to
the death benefit, any other documentation that may be required). If we don't
have information about the desired manner of payment within 7 days after the
date we receive notification of the insured person's death, we will pay the
proceeds as a single sum, normally within 7 days thereafter.
Delay to challenge coverage
We may challenge the validity of your insurance policy based on any material
misstatements made to us in the application for the policy. We cannot make such
a challenge, however, beyond certain time limits that are specified in the
policy.
Delay for check clearance
We reserve the right to defer payment of that portion of your account value
that is attributable to a premium payment made by check for a reasonable period
of time (not to exceed 15 days) to allow the check to clear the banking system.
Delay of separate account proceeds
We reserve the right to defer payment of any death benefit, loan or other
distribution that is derived from a variable investment option if (a) the New
York Stock Exchange is closed (other than customary weekend and holiday
closings) or trading on the New York Stock Exchange is restricted; (b) an
emergency exists, as a result of which disposal of securities is not reasonably
practicable or it is not reasonably practicable to fairly determine the account
value; or (c) the SEC by order permits the delay for the protection of owners.
Transfers and allocations of account value among the investment options may also
be postponed under these circumstances. If we need to defer calculation of
separate account values for any of the foregoing reasons, all delayed
transactions will be processed at the next values that we do compute.
OTHER DETAILS ABOUT EXERCISING RIGHTS AND PAYING BENEFITS
Joint ownership
If more than one person owns a policy, all owners must join in most requests
to exercise rights under the policy.
Assigning your policy
You may assign your rights in the policy to someone else as collateral for a
loan or for some other reason. Assignments do not require the consent of any
revocable beneficiary. A copy of the assignment must be forwarded to us. We are
not responsible for any payment we make or any action we take before we receive
notice of the assignment in good order. Nor are we responsible for the validity
of the assignment. An absolute assignment is a change of ownership. All
collateral assignees of record must consent to any full surrender, partial
withdrawal or loan from the policy.
Your beneficiary
You name your beneficiary when you apply for the policy. The beneficiary is
entitled to the proceeds we pay following the insured person's death. You may
change the beneficiary during the insured person's lifetime. Such a change
requires the consent of any irrevocable named beneficiary. A new beneficiary
designation is effective as of the date you sign it, but will not affect any
payments we make before we receive it. If no beneficiary is living when
39
<PAGE>
the insured person dies, we will pay the insurance proceeds to the owner or the
owner's estate.
LEGAL MATTERS
The legal validity of the policies described in this prospectus has been
passed on by Ronald J. Bocage, Vice President and Counsel for JHVLICO. Messrs.
Freedman, Levy, Kroll & Simonds, Washington, D.C., have advised us on certain
Federal securities law matters in connection with the policies.
REGISTRATION STATEMENT FILED WITH THE SEC
This prospectus omits certain information contained in the Registration
Statement which has been filed with the SEC. More details may be obtained from
the SEC upon payment of the prescribed fee.
ACCOUNTING AND ACTUARIAL EXPERTS
Certain of the financial statements of JHVLICO and the Account included in
this prospectus have been audited by Ernst & Young LLP, independent auditors,
for the periods indicated in their reports thereon which appear elsewhere herein
and have been included in reliance on their reports given on their authority as
experts in accounting and auditing. Actuarial matters included in this
prospectus have been examined by Todd G. Engelsen, F.S.A., an Actuary of JHVLICO
and Second Vice President of John Hancock.
FINANCIAL STATEMENTS OF JHVLICO AND THE ACCOUNT
The financial statements of JHVLICO included herein should be distinguished
from the financial statements of the Account and should be considered only as
bearing upon the ability of JHVLICO to meet its obligations under the policies.
In addition to those financial statements of JHVLICO and the Account included
herein that have been audited by Ernst & Young LLP, this prospectus also
contains unaudited financial statements of both JHVLICO and the Account for a
period subsequent to the audited financial statements.
40
<PAGE>
LIST OF DIRECTORS AND EXECUTIVE OFFICERS OF JHVLICO
The Directors and Executive Officers of JHVLICO and their principal
occupations during the past five years are as follows:
<TABLE>
<CAPTION>
Directors and Executive Principal Occupations
----------------------- ---------------------
Officers
--------
<S> <C>
David F. D'Alessandro Chairman of the Board and Chief Executive
Officer of JHVLICO; President and Chief
Executive Officer, John Hancock Life Insurance
Company.
Michele G. Van Leer. Vice Chairman of the Board and President of
JHVLICO; Senior Vice President, John Hancock
Life Insurance Company.
Ronald J. Bocage. . . Director, Vice President and Counsel of JHVLICO;
Vice President and Counsel, John Hancock Life
Insurance Company.
Bruce M. Jones. . . . Director and Vice President of JHVLICO; Vice
President, John Hancock Life Insurance Company.
Thomas J. Lee. . . . Director and Vice President of JHVLICO; Vice
President, John Hancock Life Insurance Company.
Barbara L. Luddy. . . Director, Vice President and Actuary of JHVLICO;
Senior Vice President, John Hancock Life
Insurance Company.
Robert S. Paster. . . Director and Vice President of JHVLICO; Vice
President, John Hancock Life Insurance Company.
Robert R. Reitano. . Director and Vice President of JHVLICO; Vice
President, John Hancock Life Insurance Company.
Paul Strong. . . . . Director and Vice President of JHVLICO; Vice
President, John Hancock Life Insurance Company.
Daniel L. Ouellette. Vice President, Marketing, of JHVLICO; Senior
Vice President, John Hancock Life Insurance
Company.
Edward P. Dowd. . . . Vice President, Investments, of JHVLICO; Senior
Vice President, John Hancock Life Insurance
Company
Roger G. Nastou. . . Vice President, Investments, of JHVLICO; Vice
President, John Hancock Life Insurance Company
Todd G. Engelsen. . . Vice President and Illustration Actuary of
JHVLICO; Second Vice President, John Hancock
Life Insurance Company
Julie H. Indge. . . . Treasurer of JHVLICO; Financial Officer, John
Hancock Life Insurance Company
Patrick J. Gill. . . Controller of JHVLICO; Senior Associate
Controller, John Hancock Life Insurance Company.
Peter Scavongelli. . Secretary of JHVLICO; State Compliance Officer,
John Hancock Life Insurance Company
</TABLE>
The business address of all Directors and officers of JHVLICO is John Hancock
Place, Boston, Massachusetts 02117.
41
<PAGE>
FOR
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
SECOND QUARTER 2000
42
<PAGE>
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
STATEMENTS OF FINANCIAL POSITION
<TABLE>
<CAPTION>
(UNAUDITED)
JUNE 30, DECEMBER 31,
2000 1999
----------------------- --------------
(IN MILLIONS)
<S> <C> <C>
ASSETS
Bonds . . . . . . . . . . . . . . . . $ 1,344.7 $ 1,216.3
Preferred stocks . . . . . . . . . . 36.9 35.9
Common stocks . . . . . . . . . . . . 2.0 3.2
Investment in affiliates . . . . . . 80.5 80.7
Mortgage loans on real estate . . . . 468.2 433.1
Real estate . . . . . . . . . . . . . 24.7 25.0
Policy loans . . . . . . . . . . . . 195.5 172.1
Cash Items:
Cash in banks . . . . . . . . . . . (3.0) 27.2
Temporary cash investments . . . . . 284.6 222.9
---------------------- ---------
281.6 250.1
Premiums due and deferred . . . . . . 28.9 29.9
Investment income due and accrued . . 40.9 33.2
Other general account assets . . . . 43.7 65.3
Assets held in separate accounts . . 8,569.0 8,268.2
---------------------- ---------
Total assets . . . . . . . . . . . $11,116.6 $10,613.0
====================== =========
OBLIGATIONS AND STOCKHOLDER'S EQUITY
Obligations
Policy reserves . . . . . . . . . . $ 2,048.1 $ 1,866.6
Federal income and other taxes
payable . . . . . . . . . . . . . . 97.8 67.3
Other general account obligations . 207.4 219.0
Transfers from separate account, net (229.6) (221.6)
Asset valuation reserve . . . . . . 19.3 23.1
Obligations related to separate
accounts. . . . . . . . . . . . . . 8,562.1 8,261.6
---------------------- ---------
Total obligations . . . . . . . . . 10,705.1 10,216.0
Stockholder's equity
Common Stock, $50 par value;
authorized 50,000 shares; issued and
outstanding 50,000 shares . . . . . 2.5 2.5
Paid-in capital . . . . . . . . . . 572.4 572.4
Unassigned deficit . . . . . . . . . (163.4) (177.9)
---------------------- ---------
Total stockholder's equity . . . . . 411.5 397.0
---------------------- ---------
Total obligations and stockholder's
equity . . . . . . . . . . . . . . $11,116.6 $10,613.0
====================== =========
See condensed notes to the financial
statements (unaudited).
</TABLE>
43
<PAGE>
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
STATEMENTS OF OPERATIONS AND UNASSIGNED DEFICIT
<TABLE>
<CAPTION>
(UNAUDITED)
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
------------------- -----------------
2000 1999 2000 1999
--------- -------- -------- ---------
(IN MILLIONS)
<S> <C> <C> <C> <C>
INCOME
Premiums . . . . . . . . . . . . . . $ 255.7 $228.6 $ 487.0 $452.2
Net investment income . . . . . . . 43.4 31.9 83.0 64.4
Other, net . . . . . . . . . . . . . 110.1 116.6 242.5 261.9
------- ------ ------- ------
409.2 377.1 812.5 778.5
BENEFITS AND EXPENSES
Payments to policyholders and
beneficiaries . . . . . . . . . . . 93.2 94.1 182.4 174.4
Additions to reserves to provide for
future payments to policyholders and
beneficiaries . . . . . . . . . . . 213.4 198.6 429.7 436.8
Expenses of providing service to
policyholders and obtaining new
insurance . . . . . . . . . . . . . 80.4 77.8 153.9 153.5
State and miscellaneous taxes . . . 5.7 8.1 13.3 10.9
------- ------ ------- ------
392.7 378.6 779.3 775.6
------- ------ ------- ------
Gain from operations before federal
income taxes and net realized
capital gains (losses) . . . . . . 16.5 (1.5) 33.2 2.9
Federal income taxes . . . . . . . . 12.2 (1.4) 16.9 (0.4)
------- ------ ------- ------
Gain from operations before net
realized capital gains (losses) . 4.3 (0.1) 16.3 3.3
Net realized capital gains (losses) 0.1 0.5 0.5 (1.0)
------- ------ ------- ------
Net income . . . . . . . . . . . . 4.4 0.4 16.8 2.3
Unassigned deficit at beginning of
period. . . . . . . . . . . . . . . (164.5) (51.2) (177.9) (49.2)
Net unrealized capital gains (losses)
and other adjustments . . . . . . . (3.1) (3.4) (2.0) (3.1)
Other reserves and adjustments . . . (0.2) 2.0 (0.3) (2.2)
------- ------ ------- ------
Unassigned deficit at end of period $(163.4) $(52.2) $(163.4) $(52.2)
======= ====== ======= ======
See condensed notes to the financial
statements (unaudited).
</TABLE>
44
<PAGE>
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
(UNAUDITED)
SIX MONTHS ENDED
JUNE 30,
-----------------
2000 1999
-------- -------
(IN MILLIONS)
<S> <C> <C>
Cash flows from operating activities:
Insurance premiums . . . . . . . . . . . . . . . . . . $ 495.7 $ 452.0
Net investment income . . . . . . . . . . . . . . . . . 75.2 60.5
Benefits to policyholders and beneficiaries . . . . . . (167.9) (274.6)
Dividends paid to policyholders . . . . . . . . . . . . (13.0) (12.6)
Insurance expenses and taxes . . . . . . . . . . . . . . (174.4) (195.0)
Net transfers to separate accounts . . . . . . . . . . . (254.7) (343.7)
Other, net . . . . . . . . . . . . . . . . . . . . . . 257.1 289.9
------- -------
Net cash provided from operations . . . . . . . . . . 218.0 (23.5)
------- -------
Cash flows used in investing activities:
Bond purchases . . . . . . . . . . . . . . . . . . . . (305.5) (143.7)
Bond sales . . . . . . . . . . . . . . . . . . . . . . 128.1 41.3
Bond maturities and scheduled redemptions . . . . . . . 36.6 38.9
Bond prepayments . . . . . . . . . . . . . . . . . . . 7.9 8.0
Stock purchases . . . . . . . . . . . . . . . . . . . . (1.9) (0.2)
Proceeds from stock sales . . . . . . . . . . . . . . . 1.4 3.6
Real estate purchases . . . . . . . . . . . . . . . . . (0.1) (1.5)
Real estate sales . . . . . . . . . . . . . . . . . . . 0.0 17.9
Other invested assets purchases . . . . . . . . . . . . (2.0) (4.5)
Proceeds from the sale of other invested assets . . . . 0.0 0.0
Mortgage loans issued . . . . . . . . . . . . . . . . . (49.7) (39.4)
Mortgage loan repayments . . . . . . . . . . . . . . . 14.5 11.4
Other, net . . . . . . . . . . . . . . . . . . . . . . (15.8) 75.1
------- -------
Net cash used in investing activities . . . . . . . . (186.5) 6.9
------- -------
Cash flows from financing activities:
Net increase (decrease) in short-term note payable . . (0.0) (10.7)
------- -------
Net cash provided from financing activities . . . . . (0.0) (10.7)
------- -------
Increase (decrease) in cash and temporary cash
investments . . . . . . . . . . . . . . . . . . . . . 31.5 (27.3)
Cash and temporary cash investments at beginning of year 250.1 19.9
------- -------
Cash and temporary cash investments at the end of
period. . . . . . . . . . . . . . . . . . . . . . . . $ 281.6 $ (7.4)
======= =======
See condensed notes to the financial statements
(unaudited).
</TABLE>
45
<PAGE>
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
STATEMENTS OF STOCKHOLDER'S EQUITY
<TABLE>
<CAPTION>
COMMON PAID-IN UNASSIGNED
STOCK CAPITAL DEFICIT TOTAL
------ ------- ---------- ---------
(IN MILLIONS)
<S> <C> <C> <C> <C>
FOR THE SIX MONTHS ENDED JUNE 30, 1999
(UNAUDITED)
Balance at January 1, 1999 . . . . . . $2.5 $377.5 $ (49.2) $330.8
1999 Transactions:
Capital contribution
Net gain . . . . . . . . . . . . . . 2.3 2.3
Net unrealized capital gains and other
adjustments. . . . . . . . . . . . . (3.1) (3.1)
Other reserves and adjustments . . . (2.2) (2.2)
------- ------
Balance at June 30, 1999 . . . . . . . $2.5 $377.5 $ (52.2) $327.8
==== ====== ======= ======
FOR THE SIX MONTHS ENDED JUNE 30, 2000
(UNAUDITED)
Balance at January 1, 2000 . . . . . . $2.5 $572.4 $(177.9) $397.0
2000 Transactions:
Capital contribution
Net gain . . . . . . . . . . . . . . 16.8 16.8
Net unrealized capital gains and other
adjustments. . . . . . . . . . . . . (2.0) (2.0)
Other reserves and adjustments . . . (0.3) (0.3)
------- ------
Balance at June 30, 2000 . . . . . . . $2.5 $572.4 $(163.4) $411.5
==== ====== ======= ======
See condensed notes to the financial
statements (unaudited).
</TABLE>
46
<PAGE>
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
CONDENSED NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1--BASIS OF PRESENTATION
The accompanying unaudited interim financial statements have been prepared on
the basis of accounting practices prescribed or permitted by the Commonwealth of
Massachusetts Division of Insurance and in conformity with the practices of the
National Association of Insurance Commissioners, which practices differ from
generally accepted accounting principles (GAAP). Pursuant to Financial
Accounting Standard Board Interpretation 40, "Applicability of General Accepted
Accounting Principles to Mutual Life Insurance and Other Enterprises" (FIN 40),
as amended which was effective for 1996 financial statements, financial
statements based on statutory accounting practices can no longer be described as
prepared in conformity with GAAP.
In the opinion of management, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation have been included.
Operating results for the six-month period ending June 30, 2000 are not
necessarily indicative of the results that may be expected for the year ended
December 31, 2000.
47
<PAGE>
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
To the Directors and Policyholders
John Hancock Variable Life Insurance Company
We have audited the accompanying statutory-basis statements of financial
position of John Hancock Variable Life Insurance Company as of December 31, 1999
and 1998, and the related statutory-basis statements of operations and
unassigned deficit and cash flows for the years then ended. These financial
statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on
our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
As described in Note 1 to the financial statements, the Company presents its
financial statements in conformity with accounting practices prescribed or
permitted by the Commonwealth of Massachusetts Division of Insurance, which
practices differ from accounting principles generally accepted in the United
States. The variances between such practices and accounting principles generally
accepted in the United States also are described in Note 1. The effects on the
financial statements of these variances are not reasonably determinable but are
presumed to be material.
In our opinion, because of the effects of the matter described in the
preceding paragraph, the financial statements referred to above do not present
fairly, in conformity with accounting principles generally accepted in the
United States, the financial position of John Hancock Variable Life Insurance
Company at December 31, 1999 and 1998, or the results of its operations or its
cash flows for the years then ended.
However, in our opinion, the financial statements referred to above present
fairly, in all material respects, the financial position of John Hancock
Variable Life Insurance Company at December 31, 1999 and 1998, and the results
of its operations and its cash flows for the years then ended in conformity with
accounting practices prescribed or permitted by the Commonwealth of
Massachusetts Division of Insurance.
ERNST & YOUNG LLP
Boston, Massachusetts
March 10, 2000
48
<PAGE>
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
STATUTORY-BASIS STATEMENTS OF FINANCIAL POSITION
<TABLE>
<CAPTION>
DECEMBER 31,
---------------------
1999 1998
---------- -----------
(IN MILLIONS)
<S> <C> <C>
ASSETS
Bonds--Note 6 . . . . . . . . . . . . . . . . . . . . $ 1,216.3 $1,185.8
Preferred stocks . . . . . . . . . . . . . . . . . . 35.9 36.5
Common stocks . . . . . . . . . . . . . . . . . . . . 3.2 3.1
Investment in affiliates . . . . . . . . . . . . . . 80.7 81.7
Mortgage loans on real estate--Note 6 . . . . . . . . 433.1 388.1
Real estate . . . . . . . . . . . . . . . . . . . . . 25.0 41.0
Policy loans . . . . . . . . . . . . . . . . . . . . 172.1 137.7
Cash items:
Cash in banks . . . . . . . . . . . . . . . . . . 27.2 11.4
Temporary cash investments . . . . . . . . . . . . 222.9 8.5
--------- --------
250.1 19.9
Premiums due and deferred . . . . . . . . . . . . . . 29.9 32.7
Investment income due and accrued . . . . . . . . . . 33.2 29.8
Other general account assets . . . . . . . . . . . . 65.3 47.5
Assets held in separate accounts . . . . . . . . . . 8,268.2 6,595.2
--------- --------
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . $10,613.0 $8,599.0
========= ========
OBLIGATIONS AND STOCKHOLDER'S EQUITY
OBLIGATIONS
Policy reserves . . . . . . . . . . . . . . . . . . $ 1,866.6 $1,652.0
Federal income and other taxes payable--Note 1 . . 67.3 44.3
Other general account obligations . . . . . . . . . 219.0 150.9
Transfers from separate accounts, net . . . . . . . (221.6) (190.3)
Asset valuation reserve--Note 1 . . . . . . . . . . 23.1 21.9
Obligations related to separate accounts . . . . . 8,261.6 6,589.4
--------- --------
TOTAL OBLIGATIONS . . . . . . . . . . . . . . . . .
10,216.0 8,268.2
STOCKHOLDER'S EQUITY
Common Stock, $50 par value; authorized 50,000
shares;
issued and outstanding 50,000 shares . . . . . . 2.5 2.5
Paid-in capital . . . . . . . . . . . . . . . . . . 572.4 377.5
Unassigned deficit--Note 10 . . . . . . . . . . . . (177.9) (49.2)
--------- --------
TOTAL STOCKHOLDER'S EQUITY . . . . . . . . . . . . 397.0 330.8
--------- --------
TOTAL OBLIGATIONS AND STOCKHOLDER'S EQUITY . . . . . $10,613.0 $8,599.0
========= ========
</TABLE>
The accompanying notes are an integral part of the statutory-basis financial
statements.
49
<PAGE>
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
STATUTORY-BASIS STATEMENTS OF OPERATIONS AND UNASSIGNED DEFICIT
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
1999 1998
--------- ---------
(IN MILLIONS)
<S> <C>
INCOME
Premiums . . . . . . . . . . . . . . . . . . . . . . . . . . $ 950.8 $1,272.3
Net investment income--Note 3 . . . . . . . . . . . . . . . 136.0 122.8
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . 605.4 618.1
--------- --------
1,692.2 2,013.2
BENEFITS AND EXPENSES
Payments to policyholders and beneficiaries . . . . . . . . 349.9 301.4
Additions to reserves to provide for future payments to
policyholders and beneficiaries . . . . . . . . . . . . . 888.8 1,360.2
Expenses of providing service to policyholders and
obtaining new insurance--Note 5 . . . . . . . . . . . . . . 314.4 274.2
State and miscellaneous taxes. . . . . . . . . . . . . . . . 20.5 28.1
---------- --------
1,573.6 1,963.9
----------
Gain from operations before federal income
taxes and net realized capital losses 118.6 49.3
Federal income taxes--Note 1 . . . . . . . . . . . . . . . . 42.9 33.1
---------- --------
GAIN FROM OPERATIONS BEFORE NET REALIZED CAPITAL LOSSES 75.7 16.2
Net realized capital losses--Note 4 . . . . . . . . . . . . (1.7) (0.6)
---------- --------
NET INCOME . . . . . . . . . . . . . . . . . . . . . . . . 74.0 15.6
Unassigned deficit at beginning of year . . . . . . . . . . (49.2) (58.3)
Net unrealized capital losses and other adjustments--Note 4 (3.8) (6.0)
Other reserves and adjustments--Note 10 . . . . . . . . . . (198.9) (0.5)
---------- --------
UNASSIGNED DEFICIT AT END OF YEAR . . . . . . . . . . . $(177.9) $ (49.2)
========== ========
</TABLE>
The accompanying notes are an integral part of the statutory-basis financial
statements.
50
<PAGE>
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
STATUTORY-BASIS STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
YEAR ENDED DECEMBER 31,
-----------
1999 1998
------- --------
(IN MILLIONS)
<S> <C>
Cash flows from operating activities:
Insurance premiums . . . . . . . . . . . . . .
Net investment income . . . . . . . . . . . 134.2 118.2
Benefits to policyholders and beneficiaries . (321.6) (275.5)
Dividends paid to policyholders . . . . . . . . . (25.6) (22.3)
Insurance expenses and taxes . . . . . . . . . (344.8) (296.9)
Net transfers to separate accounts . . . . . . . (705.3) (874.4)
Other, net . . . . . . . . . . . . . . . . . . 540.6 551.3
------- -----------
NET CASH PROVIDED FROM OPERATIONS . . . . . . 236.0 475.7
------- -----------
Cash flows used in investing activities:
Bond purchases . . . . . . . . . . . . . . . . (240.7) (618.8)
Bond sales . . . . . . . . . . . . . . . . . . 108.3 340.7
Bond maturities and scheduled redemptions . . 78.4 111.8
Bond prepayments . . . . . . . . . . . . . . . 18.7 76.5
Stock purchases . . . . . . . . . . . . . . . (3.9) (23.4)
Proceeds from stock sales . . . . . . . . . . 3.6 1.9
Real estate purchases . . . . . . . . . . . . (2.2) (4.2)
Real estate sales . . . . . . . . . . . . . . 17.8 2.1
Other invested assets purchases . . . . . . . (4.5) 0.0
Mortgage loans issued. . . . . . . . . . . . . (70.7) (145.5)
Mortgage loan repayments . . . . . . . . . . . 25.3 33.2
Other, net . . . . . . . . . . . . . . . . . . (68.9) (435.2)
------- -----------
NET CASH USED IN INVESTING ACTIVITIES . . . . (138.8) (660.9)
------- -----------
Cash flows from financing activities:
Capital contribution . . . . . . . . . . . . . 194.9
Net (decrease) increase in short-term note
payable. . . . . . . . . . . . . . . . . . . (61.9) 61.9
------- -----------
NET CASH PROVIDED FROM FINANCING ACTIVITIES . . 133.0 61.9
------- -----------
INCREASE (DECREASE) IN CASH AND TEMPORARY CASH
INVESTMENTS 230.2
Cash and temporary cash investments at beginning
of year. . . . . . . . . . . . . . . . . . . . . 19.9 143.2
------- -----------
CASH AND TEMPORARY CASH INVESTMENTS AT END OF
YEAR. . . . . . . . . . . . . . . . . . . . . 250.1 $19.9
======= ===========
</TABLE>
The accompanying notes are an integral part of the statutory-basis financial
statements.
51
<PAGE>
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS
1. NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING PRACTICES
John Hancock Variable Life Insurance Company (the Company) is a wholly-owned
subsidiary of John Hancock Life Insurance Company (formerly John Hancock Mutual
Life Insurance Company) (John Hancock). The Company, domiciled in the
Commonwealth of Massachusetts, principally writes variable and universal life
insurance policies. Those policies primarily are marketed through John
Hancock's sales organization, Signator Insurance Agency, which includes a career
agency system composed of Company-supported independent general agencies and a
direct brokerage system that markets directly to external independent brokers.
Policies also are sold through various unaffiliated securities broker-dealers
and certain other financial institutions. Currently, the Company writes
business in all states except New York.
The preparation of financial statements requires management to make estimates
and assumptions that affect amounts reported in the financial statements and
accompanying notes. Such estimates and assumptions could change in the future
as more information becomes known, which could impact the amounts reported and
disclosed herein.
Basis of Presentation
The financial statements have been prepared using accounting practices
prescribed or permitted by the Commonwealth of Massachusetts Division of
Insurance and in conformity with the practices of the National Association of
Insurance Commissioners (NAIC), which practices differ from generally accepted
accounting principles (GAAP).
The significant differences from GAAP include: (1) policy acquisition costs
are charged to expense as incurred rather than deferred and amortized in
relation to future estimated gross profits; (2) policy reserves are based on
statutory mortality, morbidity, and interest requirements without consideration
of withdrawals and Company experience; (3) certain assets designated as
"nonadmitted assets" are excluded from the balance sheet by direct charges to
surplus; (4) reinsurance recoverables are netted against reserves and claim
liabilities rather than reflected as an asset; (5) bonds held as available for
sale are recorded at amortized cost or market value as determined by the NAIC
rather than at fair value; (6) an Asset Valuation Reserve and Interest
Maintenance Reserve as prescribed by the NAIC are not calculated under GAAP.
Under GAAP, realized capital gains and losses are reported in the income
statement on a pretax basis as incurred and investment valuation allowances are
provided when there has been a decline in value deemed other than temporary; (7)
investments in affiliates are carried at their net equity value with changes in
value being recorded directly to unassigned deficit rather than consolidated in
the financial statements; (8) no provision is made for the deferred income tax
effects of temporary differences between book and tax basis reporting; and (9)
certain items, including modifications to required policy reserves resulting
from changes in actuarial assumptions, are recorded directly to unassigned
deficit rather than being reflected in income. The effects of the foregoing
variances from GAAP have not been determined but are presumed to be material.
The significant accounting practices of the Company are as follows:
Pending Statutory Standards
During March 1998, the NAIC adopted codified statutory accounting principles
("Codification") effective January 1, 2001. Codification will likely change, to
some extent, prescribed statutory accounting practices and may result in changes
to the accounting practices that the Company uses to prepare its statutory-basis
financial statements. Codification will require adoption by the various states
before it becomes the prescribed statutory basis of accounting for insurance
companies domesticated within those states. Accordingly, before Codification
becomes effective for the Company, the Commonwealth of Massachusetts must adopt
Codification as the prescribed basis of accounting on which domestic insurers
must report their statutory-basis results to the Division
52
<PAGE>
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS--(CONTINUED)
of Insurance. At this time, it is anticipated that the Commonwealth of
Massachusetts will adopt Codification effective January 1, 2001. The impact of
any such changes on the Company's unassigned deficit is not expected to be
material.
Revenues and Expenses
Premium revenues are recognized over the premium-paying period of the policies
whereas expenses, including the acquisition costs of new business, are charged
to operations as incurred and policyholder dividends are provided as paid or
accrued.
Cash and Temporary Cash Investments
Cash includes currency on hand and demand deposits with financial
institutions. Temporary cash investments are short-term, highly-liquid
investments both readily convertible to known amounts of cash and so near
maturity that there is insignificant risk of changes in value because of changes
in interest rates.
Valuation of Assets
General account investments are carried at amounts determined on the following
bases:
Bond and stock values are carried as prescribed by the NAIC; bonds generally
at amortized amounts or cost, preferred stocks generally at cost and common
stocks at fair value. The discount or premium on bonds is amortized using the
interest method.
Investments in affiliates are included on the statutory equity method.
Loan-backed bonds and structured securities are valued at amortized cost using
the interest method including anticipated prepayments. Prepayment assumptions
are obtained from broker dealer surveys or internal estimates and are based on
the current interest rate and economic environment. The retrospective
adjustment method is used to value all such securities except for interest-only
securities, which are valued using the prospective method.
The net interest effect of interest rate and currency rate swap transactions
is recorded as an adjustment of interest income as incurred. The initial cost
of interest rate cap agreements is amortized to net investment income over the
life of the related agreement. Gains and losses on financial futures contracts
used as hedges against interest rate fluctuations are deferred and recognized in
income over the period being hedged.
Mortgage loans are carried at outstanding principal balance or amortized cost.
Investment real estate is carried at depreciated cost, less encumbrances.
Depreciation on investment real estate is recorded on a straight-line basis.
Accumulated depreciation amounted to $1.9 million in 1999 and $3.0 million in
1998.
Real estate acquired in satisfaction of debt and real estate held for sale are
carried at the lower of cost or fair value.
Policy loans are carried at outstanding principal balance, not in excess of
policy cash surrender value.
53
<PAGE>
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS--(CONTINUED)
Asset Valuation and Interest Maintenance Reserves
The Asset Valuation Reserve (AVR) is computed in accordance with the
prescribed NAIC formula and represents a provision for possible fluctuations in
the value of bonds, equity securities, mortgage loans, real estate and other
invested assets. Changes to the AVR are charged or credited directly to the
unassigned deficit.
The Company also records the NAIC prescribed Interest Maintenance Reserve
(IMR) that represents that portion of the after tax net accumulated unamortized
realized capital gains and losses on sales of fixed income securities,
principally bonds and mortgage loans, attributable to changes in the general
level of interest rates. Such gains and losses are deferred and amortized into
income over the remaining expected lives of the investments sold. At December
31, 1999, the IMR, net of 1999 amortization of $2.3 million, amounted to $7.4
million, which is included in policy reserves. The corresponding 1998 amounts
were $2.4 million and $10.7 million, respectively.
Goodwill
The excess of cost over the statutory book value of the net assets of life
insurance business acquired was $8.9 million and $11.4 million at December 31,
1999 and 1998, respectively, and generally is amortized over a ten-year period
using a straight-line method.
Separate Accounts
Separate account assets and liabilities reported in the accompanying
statements of financial position represent funds that are separately
administered, principally for variable life insurance policies, and for which
the contractholder, rather than the Company, generally bears the investment
risk. Separate account obligations are intended to be satisfied from separate
account assets and not from assets of the general account. Separate accounts
generally are reported at fair value. The operations of the separate accounts
are not included in the statement of operations; however, income earned on
amounts initially invested by the Company in the formation of new separate
accounts is included in other income.
Fair Value Disclosure of Financial Instruments
Statement of Financial Accounting Standards (SFAS) No. 107, "Disclosure about
Fair Value of Financial Instruments," requires disclosure of fair value
information about certain financial instruments, whether or not recognized in
the statement of financial position, for which it is practicable to estimate the
value. In situations where quoted market prices are not available, fair values
are based on estimates using present value or other valuation techniques. SFAS
No. 107 excludes certain financial instruments and all nonfinancial instruments
from its disclosure requirements. Therefore, the aggregate fair value amounts
presented do not represent the underlying value of the Company. See Note 11.
The methods and assumptions utilized by the Company in estimating its fair
value disclosures for financial instruments are as follows:
The carrying amounts reported in the statement of financial position for cash
and temporary cash investments approximate their fair values.
Fair values for public bonds are obtained from an independent pricing service.
Fair values for private placement securities and publicly traded bonds not
provided by the independent pricing service are estimated by the
54
<PAGE>
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS--(CONTINUED)
Company by discounting expected future cash flows using current market rates
applicable to the yield, credit quality and maturity of the investments.
The fair values for common and preferred stocks, other than its subsidiary
investments, which are carried at equity values, are based on quoted market
prices.
Fair values for futures contracts are based on quoted market prices. Fair
values for interest rate swap, cap agreements, and currency swap agreements are
based on current settlement values. The current settlement values are based on
brokerage quotes that utilize pricing models or formulas using current
assumptions.
The fair value for mortgage loan is estimated using discounted cash flow
analyses using interest rates adjusted to reflect the credit characteristics of
the underlying loans. Mortgage loans with similar characteristics and credit
risks are engaged into qualitative categories for purposes of the fair value
calculations.
The carrying amount in the statement of financial position for policy loans
approximates their fair value.
The fair value for outstanding commitments to purchase long-term bonds and
issue real estate mortgages is estimated using a discounted cash flow method
incorporating adjustments for the difference in the level of interest rates
between the dates the commitments were made and December 31, 1999.
Capital Gains and Losses
Realized capital gains and losses are determined using the specific
identification method. Realized capital gains and losses, net of taxes and
amounts transferred to the IMR, are included in net gain or loss. Unrealized
gains and losses, which consist of market value and book value adjustments, are
shown as adjustments to the unassigned deficit.
Policy Reserves
Life reserves are developed by actuarial methods and are determined based on
published tables using statutorily specified interest rates and valuation
methods that will provide, in the aggregate, reserves that are greater than or
equal to the minimum or guaranteed policy cash values or the amounts required by
the Commonwealth of Massachusetts Division of Insurance. Reserves for variable
life insurance policies are maintained principally on the modified preliminary
term method using the 1958 and 1980 Commissioner's Standard Ordinary (CSO)
mortality tables, with an assumed interest rate of 4% for policies issued prior
to May 1, 1983 and 41/2% for policies issued on or thereafter. Reserves for
single premium policies are determined by the net single premium method using
the 1958 CSO mortality table, with an assumed interest rate of 4%. Reserves for
universal life policies issued prior to 1985 are equal to the gross account
value which at all times exceeds minimum statutory requirements. Reserves for
universal life policies issued from 1985 through 1988 are maintained at the
greater of the Commissioner's Reserve Valuation Method (CRVM) using the 1958 CSO
mortality table, with 41/2% interest or the cash surrender value. Reserves for
universal life policies issued after 1988 and for flexible variable policies are
maintained using the greater of the cash surrender value or the CRVM method with
the 1980 CSO mortality table and 51/2% interest for policies issued from 1988
through 1992; 5% interest for policies issued in 1993 and 1994; and 41/2%
interest for policies issued in 1995 through 1999.
Federal Income Taxes
Federal income taxes are reported in the financial statements based on amounts
determined to be payable as a result of operations within the current accounting
period. The operations of the Company are consolidated with John Hancock in
filing a consolidated federal income tax return basis for the affiliated group.
The federal income
55
<PAGE>
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS--(CONTINUED)
taxes of the Company are allocated on a separate return basis with certain
adjustments. The Company made federal income tax payments of $10.6 million in
1999 and $38.2 million in 1998.
Income before taxes differs from taxable income principally due to tax-exempt
investment income, the limitation placed on the tax deductibility of
policyholder dividends, accelerated depreciation, differences in policy reserves
for tax return and financial statement purposes, capitalization of policy
acquisition expenses for tax purposes and other adjustments prescribed by the
Internal Revenue Code.
Amounts for disputed tax issues relating to the prior years are charged or
credited directly to policyholders' contingency reserve.
Adjustments to Policy Reserves
From time to time, the Company finds it appropriate to modify certain required
policy reserves because of changes in actuarial assumptions. Reserve
modifications resulting from such determinations are recorded directly to
stockholder's equity. No such refinements were made during 1999 or 1998.
Reinsurance
Premiums, commissions, expense reimbursements, benefits and reserves related
to reinsured business are accounted for on bases consistent with those used in
accounting for the original policies issued and the terms of the reinsurance
contracts. Premiums ceded to other companies have been reported as a reduction
of premium income. Amounts applicable to reinsurance ceded for future policy
benefits, unearned premium reserves and claim liabilities have been reported as
reductions of these items.
2. ACQUISITION
On June 23, 1993, the Company acquired all of the outstanding shares of stock
of Colonial Penn Annuity and Life Insurance Company (CPAL) from Colonial Penn
Life Insurance Company for an aggregate purchase price of approximately $42.5
million. At the date of acquisition, assets of CPAL were approximately $648.5
million, consisting principally of cash and temporary cash investments and
liabilities were approximately $635.2 million, consisting principally of
reserves related to a block of interest sensitive single-premium whole life
insurance business assumed by CPAL from Charter National Life Insurance Company
(Charter). The purchase price includes contingent payments of up to
approximately $7.3 million payable between 1994 and 1998 based on the actual
lapse experience of the business in force on June 23, 1993. The Company made the
final contingent payment to CPAL of $1.5 million during 1998.
56
<PAGE>
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS--(CONTINUED)
On June 24, 1993, the Company contributed $24.6 million in additional capital
to CPAL. CPAL was renamed John Hancock Life Insurance Company of America
(JHLICOA) on July 7, 1993. JHLICOA was subsequently renamed Investors Partner
Life Insurance Company (IPL) on March 5, 1998. IPL manages the business assumed
from Charter and began marketing term life and variable universal life products
through brokers in 1999. Summarized financial information for IPL for 1999 and
1998 is as follows:
<TABLE>
<CAPTION>
1999 1998
------- -------
(IN MILLIONS)
<S> <C> <C>
Total assets. . . . . . . . . . . . . . . . 570.7 587.8
Total liabilities. . . . . . . . . . . . . . 498.9 517.5
Total revenue. . . . . . . . . . . . . . . . 35.6 38.8
Net income. . . . . . . . . . . . . . . . . 3.5 3.8
</TABLE>
3. NET INVESTMENT INCOME
Investment income has been reduced by the following amounts:
<TABLE>
<CAPTION>
<S> <C> <C>
1999 1998
------ ------
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
(IN MILLIONS)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
Investment expenses . . . . . . . . . . . . . $ 9.5 $ 8.3
Interest expense. . . . . . . . . . . . . . 1.7 2.4
Depreciation expense. . . . . . . . . . . . 0.6 0.8
Investment taxes. . . . . . . . . . . . . . 0.3 0.7
------ ------
$12.1 $12.2
====== ======
</TABLE>
57
<PAGE>
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS--(CONTINUED)
4. NET CAPITAL GAINS (LOSSES) AND OTHER ADJUSTMENTS
Net realized capital gains (losses) consist of the following items:
<TABLE>
<CAPTION>
1999 1998
------ ------
(IN MILLIONS)
<S> <C> <C>
Net gains from asset sales . . . . . . . . . . . (2.8) 7.6
Capital gains tax . . . . . . . . . . . . . . . . 0.2 (2.9)
Net capital gains transferred to IMR . . . . . . 0.9 (5.3)
------ ------
Net REALIZED CAPITAL LOSSES . . . . . . . . . . . (1.7) (0.6)
====== ======
</TABLE>
Net unrealized capital gains (losses) and other adjustments consist of the
following items:
<TABLE>
<CAPTION>
1999 1998
------ ------
(IN MILLIONS)
<S> <C> <C>
Net losses from changes in security values and book
value adjustments. . . . . . . . . . . . . . . (2.6) (2.7)
Increase in asset valuation reserve . . . . . . . . (1.2) (3.3)
------ ------
Net UNREALIZED CAPITAL LOSSES AND OTHER ADJUSTMENTS (3.8) (6.0)
====== ======
</TABLE>
58
<PAGE>
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS--(CONTINUED)
5. TRANSACTIONS WITH PARENT
The Company's Parent provides the Company with personnel, property and
facilities in carrying out certain of its corporate functions. The Parent
annually determines a fee for these services and facilities based on a number of
criteria which were revised in 1999 and 1998 to reflect continuing changes in
the Company's operations. The amount of the service fee charged to the Company
was $188.3 million and $157.5 million in 1999 and 1998, respectively, which has
been included in insurance and investment expenses. The Parent has guaranteed
that, if necessary, it will make additional capital contributions to prevent the
Company's stockholder's equity from declining below $1.0 million.
The service fee charged to the Company by the Parent includes $0.2 million and
$0.7 million in 1999 and 1998, respectively, representing the portion of the
provision for retiree benefit plans determined under the accrual method,
including a provision for the 1993 transition liability which is being amortized
over twenty years, that was allocated to the Company.
The Company has a modified coinsurance agreement with John Hancock to reinsure
50% of 1994 through 1999 issues of flexible premium variable life insurance and
scheduled premium variable life insurance policies. In connection with this
agreement, John Hancock transferred $44.5 million and $4.9 million of cash for
tax, commission, and expense allowances to the Company, which increased the
Company's net gain from operations by $20.6 million and $22.2 million in 1999
and 1998, respectively.
Effective January 1, 1996, the Company entered into a modified coinsurance
agreement with John Hancock to reinsure 50% of the 1995 inforce block and 50% of
1996 and all future issue years of certain variable annuity contracts
(Independence Preferred, Declaration, Independence 2000, MarketPlace, and
Revolution). In connection with this agreement, the Company received a net cash
payment of $40.0 million and $12.7 million in 1999 and 1998, respectively, for
surrender benefits, tax, reserve increase, commission, expense allowances and
premium, This agreement increased the Company's net gain from operations by
$26.9 million and $8.4 million in 1999 and 1998, respectively.
Effective January 1, 1997, the Company entered into a stop-loss agreement with
John Hancock to reinsure mortality claims in excess of 110% of expected
mortality claims in 1999 and 1998 for all policies that are not reinsured under
any other indemnity agreement. In connection with the agreement, John Hancock
received $0.8 million and 1.0 million in 1999 and 1998, respectively, for
mortality claims to the Company. This agreement decreased the Company's net
gain from operations in both 1999 and 1998 by $0.5 million.
At December 31, 1998 the Company had outstanding a short-term note of $61.9
million payable to an affiliate at a variable rate of interest. The note was
part of a revolving line of credit and was repaid in 1999. Interest paid in
1999 and 1998 was $1.7 million and $2.9 million, respectively. The note is
included in other general account obligations at December 31, 1998.
59
<PAGE>
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS--(CONTINUED)
6. INVESTMENTS
The statement value and fair value of bonds are shown below:
<TABLE>
<CAPTION>
GROSS UNREALIZED GROSS UNREALIZED
STATEMENT VALUE GAINS LOSSES FAIR VALUE
--------------- --------- --------- ------------
(IN MILLIONS)
<S> <C> <C> <C>
December 31, 1999 . .
U.S. Treasury
securities and
obligations of U.S.
government
corporations and
agencies . . . . . . 5.9 0.0 0.1 5.8
Obligations of states
and political
subdivisions . . . . 2.2 0.1 0.1
2.2
Debit securities
issued by foreign
governments. . . . . 13.9 0.8 0.1
14.6
Corporate securities 964.9 13.0 59.4
918.5
Mortgage-backed
securities . . . . . 229.4 0.5 7.8
222.1
-------- ----- ------
--------
Total bonds . . . . .
======== ===== ======
========
December 31, 1998
U.S. Treasury
securities and
obligations of U.S.
government
corporations and
agencies . . . . . . 5.1 0.1 0.0
5.2
Obligations of states
and political
subdivisions . . . . 3.2 0.3 0.0
3.5
Corporate securities 925.2 50.4 15.0
960.6
Mortgage-backed
securities . . . . . 252.3 10.0 0.1
262.2
-------- ----- ------
--------
Total bonds . . . . . 15.1
======== ===== ======
========
</TABLE>
60
<PAGE>
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS--(CONTINUED)
The statement value and fair value of bonds at December 31, 1999, by
contractual maturity, are shown below. Maturities will differ from contractual
maturities because eligible borrowers may exercise their right to call or prepay
obligations with or without call or prepayment penalties.
<TABLE>
<CAPTION>
FAIR
VALUE VALUE
-------- ---------
<S> <C> <C>
(IN MILLIONS)
Due in one year or less. . . . . . . . . . . . . . $ 58.5 58.2
Due after one year through five years. . . . . . . 286.8 282.0
Due after five years through ten years . . . . . . 425.4 405.6
Due after ten years. . . . . . . . . . . . . . . . 216.2 195.3
-------- ---------
986.9 941.1
Mortgage-backed securities . . . . . . . . . . . . 229.4 222.1
-------- ---------
$1,216.3 $1,163.2
======== =========
</TABLE>
Gross gains of $0.3 million in 1999 and $3.4 million in 1998 and gross losses
of $4.0 million in 1999 and $0.7 million in 1998 were realized from the sale of
bonds.
At December 31, 1999, bonds with an admitted asset value of $9.1 million were
on deposit with state insurance departments to satisfy regulatory requirements.
The cost of common stocks was $3.1 million and $2.1 million at December 31,
1999 and 1998, respectively. At December 31, 1999, gross unrealized
appreciation on common stocks totaled $1.2 million, and gross unrealized
depreciation totaled $1.1 million. The fair value of preferred stock totaled
$35.9 million at December 31, 1999 and $36.5 million at December 31, 1998.
Bonds with amortized cost of $0.4 million were non-income producing for the
twelve months ended December 31, 1999.
At December 31, 1999, the mortgage loan portfolio was diversified by
geographic region and specific collateral property type as displayed below. The
Company controls credit risk through credit approvals, limits and monitoring
procedures.
61
<PAGE>
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS--(CONTINUED)
<TABLE>
<CAPTION>
<S> <C> <C> <C>
GEOGRAPHIC
PROPERTY TYPE CONCENTRATION
Apartments. . . . . . . . $112.1 East North Central $ 71.3
Hotels. . . . . . . . . . 11.3 East South Central 7.4
Industrial. . . . . . . . 66.0 Middle Atlantic 28.5
Office buildings. . . . . 86.4 Mountain 21.0
Retail. . . . . . . . . . 25.5 New England 37.5
Agricultural. . . . . . . 99.6 Pacific 111.1
Other . . . . . . . . . . 32.2 South Atlantic 87.6
West North Central 16.6
West South Central 48.6
Other 3.5
------ ------
$433.1 $433.1
====== ======
</TABLE>
At December 31, 1999, the fair values of the commercial and agricultural
mortgage loans portfolios were $323.5 million and $98.2 million, respectively.
The corresponding amounts as of December 31, 1998 were approximately $331.3
million and $70.0 million, respectively.
The maximum and minimum lending rates for mortgage loans during 1999 were
14.24% and 6.84% for agricultural loans, 7.45% and 7.00% for other properties.
Generally, the maximum percentage of any loan to the value of security at the
time of the loan, exclusive of insured, guaranteed or purchase money mortgages,
is 75%. For city mortgages, fire insurance is carried on all commercial and
residential properties at least equal to the excess of the loan over the maximum
loan which would be permitted by law on the land without the building, except as
permitted by regulations of the Federal Housing Commission on loans fully
insured under the provisions of the National Housing Act. For agricultural
mortgage loans, fire insurance is not normally required on land based loans
except in those instances where a building is critical to the farming operation.
Fire insurance is required on all agri-business facilities in an aggregate
amount equal to the loan balance.
62
<PAGE>
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS--(CONTINUED)
7. REINSURANCE
The Company cedes business to reinsurers to share risks under variable life,
universal life and flexible variable life insurance policies for the purpose of
reducing exposure to large losses. Premiums, benefits and reserves ceded to
reinsurers in 1999 were $594.9 million, $132.8 million, and $13.6 million,
respectively. The corresponding amounts in 1998 were $590.2 million, $63.2
million, and $8.2 million, respectively.
Reinsurance ceded contracts do not relieve the Company from its obligations to
policyholders. The Company remains liable to its policyholders for the portion
reinsured to the extent that any reinsurer does not meet its obligations for
reinsurance ceded to it under the reinsurance agreements. Failure of the
reinsurers to honor their obligations could result in losses to the Company;
consequently, estimates are established for amounts deemed or estimated to be
uncollectible. To minimize its exposure to significant losses from reinsurance
insolvencies, the Company evaluates the financial condition of its reinsurers
and monitors concentration of credit risk arising from similar characteristics
of the reinsurer.
Neither the Company, nor any of its related parties, control, either directly
or indirectly, any external reinsurers with which the Company conducts business.
No policies issued by the Company have been reinsured with a foreign company
which is controlled, either directly or indirectly, by a party not primarily
engaged in the business of insurance.
The Company has not entered into any reinsurance agreement in which the
reinsurer may unilaterally cancel any reinsurance for reasons other than
nonpayment of premiums or other similar credits. The Company does not have any
reinsurance agreements in effect in which the amount of losses paid or accrued
through December 31, 1999 would result in a payment to the reinsurer of amounts
which, in the aggregate and allowing for offset of mutual credits from other
reinsurance agreements with the same reinsurer, exceed the total direct premiums
collected under the reinsured policies.
8. FINANCIAL INSTRUMENTS WITH OFF-BALANCE-SHEET RISK
The notional amounts, carrying values and estimated fail values of the
Company's derivative instruments were as follows at December 31:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <S> <C>
<C>
NUMBER OF CONTRACTS/ ASSETS (LIABILITIES)
------------------
NOTIONAL AMOUNTS 1999
1998
FAIR VALUE
---------
------- ------- ---------
--------- ---------
(IN MILLIONS)
Futures contracts to sell securities $362.0 $947.0 $0.6 $0.6
$(0.5)
Interest rate swap
(17.7)
agreements 965.0 365.0 -- 11.5
--
Interest rate cap
agreements 239.4 89.4 5.6 5.6
3.1
Currency rate swap
(3.3)
agreements 15.8 15.8 -- (1.6)
--
</TABLE>
63
<PAGE>
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS--(CONTINUED)
The Company uses futures contracts, interest rate swap, cap agreements, and
currency rate swap agreements for other than trading purposes to hedge and
manage its exposure to changes in interest rate levels, foreign exchange rate
fluctuations and to manage duration mismatch of assets and liabilities.
The futures contracts expire in 2000. The interest rate swap agreements
expire in 2000 to 2011. The interest rate cap agreements expire in 2006 to 2008.
The currency rate swap agreements expire in 2006 to 2009.
The Company's exposure to credit risk is the risk of loss from a counterparty
failing to perform to the terms of the contract. The Company continually
monitors its position and the credit ratings of the counterparties to these
derivative instruments. To limit exposure associated with counterparty
nonperformance on interest rate and currency swap agreements, the Company enters
into master netting agreements with its counterparties. The Company believes the
risk of incurring losses due to nonperformance by its counterparties is remote
and that such losses, if any, would be immaterial. Futures contracts trade on
organized exchanges and, therefore, have minimal credit risk.
9. POLICY RESERVES POLICYHOLDERS' AND BENIFICIARIES' FUNDS AND OBLIGATIONS
RELATED TO SEPARATE ACCOUNTS
The Company' annuity reserves and deposit fund liabilities that are subject to
discretionary withdrawal, with and without adjustment, are summarized as
follows.
<TABLE>
<CAPTION>
DECEMBER 31, 1999 PERCENT
---------------- ------
(IN MILLIONS)
<S> <C> <C>
Subject to discretionary withdrawal (with
adjustment)
With market value adjustment . . . . . . . . . $ 3.8 0.1%
At book value less surrender charge 40.5 1.5
At market value . . . . . . . . . . . . . . . . 2,326.6 87.1
--------
Total with adjustment. . . . . . . . . . . 2,370.9 88.7
Subject to discretionary withdrawal 287.1 10.7
at book value (without adjustment) . . . . .
Not subject to discretionary withdrawal--general
account. . . . . . . . . . . . . . . . . . . . 15.4 0.6
--------
Total annuity reserves and deposit liabilities $2,673.4 100.0%
========
</TABLE>
64
<PAGE>
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS--(CONTINUED)
10. COMMITMENTS AND CONTINGENCIES
The Company has extended commitments to purchase long-term bonds and issue
real estate mortgages totaling $15.4 million and $3.5 million, respectively, at
December 31, 1999. The Company monitors the creditworthiness of borrowers under
long-term bonds commitments and requires collateral as deemed necessary. If
funded, loans related to real estate mortgages would be fully collateralized by
the related properties. The estimated fair value of the commitments described
above is $19.4 million at December 31, 1999. The majority of these commitments
expire in 2000.
In the normal course of its business operations, the Company is involved with
litigation from time to time with claimants, beneficiaries and others, and a
number of litigation matters were pending as of December 31, 1999. It is the
opinion of management, after consultation with counsel, that the ultimate
liability with respect to these claims, if any, will not materially affect the
financial position or results of operations of the Company.
During 1997, John Hancock entered into a court-approved settlement relating to
a class action lawsuit involving certain individual life insurance policies sold
from 1979 through 1996. In entering into the settlement, John Hancock
specifically denied any wrongdoing. During 1999, the Company recorded a $194.9
million reserve, through a direct charge to its unassigned deficit, representing
the Company's share of the settlement and John Hancock contributed $194.9
million of capital to the Company. The reserve held at December 31, 1999
amounted to $136.5 million and is based on a number of factors, including the
estimated number of claims, the expected type of relief to be sought by class
members (general relief or alternative dispute resolution), the estimated cost
per claim and the estimated costs to administer the claims.
Given the uncertainties associated with estimating the reserve, it is
reasonably possible that the final cost of the settlement could differ
materially from the amounts presently provided for by the Company. John Hancock
and the Company will continue to update their estimate of the final cost of the
settlement as claims are processed and more specific information is developed,
particularly as the actual cost of the claims subject to alternative dispute
resolution becomes available. However, based on information available at this
time, and the uncertainties associated with the final claim processing and
alternative dispute resolution, the range of any additional costs related to the
settlement cannot be reasonably estimated. If the Company's share of the
settlement increases, John Hancock will contribute additional capital to the
Company so that the Company's total stockholder's equity would not be impacted.
65
<PAGE>
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENTS--(CONTINUED)
11. FAIR VALUE OF FINANCIAL INSTRUMENTS
The following table presents the carrying amounts and fair values of the
Company's financial instruments:
<TABLE>
<CAPTION>
DECEMBER 31,
1999 1998
--------------- ---------------------
CARRYING FAIR CARRYING FAIR
AMOUNT VALUE AMOUNT VALUE
(IN MILLIONS)
<S> <C> <C> <C> <C>
ASSETS
Bonds--Note 6. . . . .
Preferred stocks--Note
6. . . . . . . . . . . . 35.9 35.9 36.5 36.5
Common stocks--Note 6. 3.2 3.2 3.1 3.1
Mortgage loans on real
estate--Note 6. . . . . 433.1 421.7 388.1 401.3
Policy loans--Note 1. 172.1 172.1 137.7 137.7
Cash items--Note 1. . 250.1 250.1 19.9 19.9
Derivatives assets
(liabilities) relating
to: --Note 8. . . . .
Futures contracts. . . 0.6 0.6 (0.5) (0.5)
Interest rate swaps. . -- 11.5 -- (17.7)
Currency rate swaps. . -- (1.6) -- (3.3)
Interest rate caps. . 5.6 5.6 3.1 3.1
LIABILITIES
Commitments--Note 10. -- 19.4 -- 32.1
</TABLE>
The carrying amounts in the table are included in the statutory-basis
statements of financial position. The method and assumptions utilized by the
Company in estimating its fair value disclosures are described in Note 1.
12. SUBSEQUENT EVENTS
REORGANIZATION AND INITIAL PUBLIC OFFERING
Pursuant to a Plan of Reorganization approved by the policyholders of John
Hancock and the Commonwealth of Massachusetts Division of Insurance, effective
February 1, 2000, John Hancock converted from a mutual life insurance company to
a stock life insurance company (i.e., demutualized) and became a wholly owned
subsidiary of John Hancock Financial Services, Inc., which is a holding company.
In connection with the reorganization, John Hancock changed its name to John
Hancock Life Insurance Company. In addition, on February 1, 2000, John Hancock
Financial Services, Inc. completed its initial public offering and 102 million
shares of common stock were issued at an initial public offering price of $17
per share.
66
<PAGE>
JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY
NOTES TO STATUTORY-BASIS FINANCIAL STATEMENT--(CONTINUED)
13. IMPACT OF YEAR 2000 (UNAUDITED)
The Company participated in the Year 2000 remediation project of its parent,
John Hancock. By late 1999, John Hancock and the Company completed their Year
2000 readiness plan to address issues that could result from computer programs
written using two digits to define the applicable year rather than four to
define the applicable year and century. As a result, John Hancock and the
Company were prepared for the transition to the Year 2000 and did not experience
any significant Year 2000 problems with respect to mission critical information
technology ("IT") or non-IT systems, applications or infrastructure. During the
date rollover to the year 2000, John Hancock and the Company implemented and
monitored their millennium rollover plan and conducted business as usual on
Monday, January 3, 2000.
Since January 3, 2000, the information systems, including mission critical
systems, which in the event of a Year 2000 failure would have the greatest
impact on operations, have functioned properly. In addition, neither John
Hancock nor the Company have experienced any significant Year 2000 issues
related to interactions with material business partners. No disruptions have
occurred which impact John Hancock or the Company's ability to process claims,
update customer accounts, process financial transactions, or report accurate
data to management and no business interruptions due to Year 2000 issues have
been experienced. While John Hancock and the Company continue to monitor their
systems, and those of material business partners, closely to ensure that no
unexpected Year 2000 issues develop, neither John Hancock nor the Company have
reason to expect any such issues.
The costs of the Year 2000 project consist of internal IT personnel and
external costs such as consultants, programmers, replacement software, and
hardware. The costs of the Year 2000 project are expensed as incurred. The
project is funded partially through a reallocation of resources from
discretionary projects. Through December 31, 1999, John Hancock has incurred
and expensed approximately $20.8 million in related payroll costs for internal
IT personnel on the project. The estimated remaining IT personnel costs of the
project are approximately $1.0 million. Through December 31, 1999, John Hancock
has incurred and expensed approximately $47.0 million in external costs for the
project. John Hancock's estimated remaining external cost of the project is
approximately $2.0 million. The total costs of the Year 2000 project to John
Hancock, based on management's best estimates, include approximately $21.7
million in internal IT personnel, $14.6 million in the external modification of
software, $18.3 million for external solution providers, $9.1 million in
replacement costs of non-compliant IT systems and $6.9 million in oversight,
test facilities and other expenses. Accordingly, the estimated range of total
costs of the Year 2000 project to John Hancock, internal and external, is
approximately $70 to $72.5 million. John Hancock's total Year 2000 project
costs include the estimated impact of external solution providers based on
presently available information.
67
<PAGE>
UNAUDITED FINANCIAL STATEMENTS
FOR
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
SECOND QUARTER 2000
68
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED)
JUNE 30, 2000
<TABLE>
<CAPTION>
LARGE CAP ACTIVE EMERGING
INTERNATIONAL
GROWTH BOND MARKETS EQUITY EQUITY INDEX
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------ ----------- --------------
---------------
<S> <C> <C> <C> <C>
ASSETS
Cash. . . . . . . . . $336,227,905 $88,977,102 $5,772,343 $54,712,702
Investment in shares
of portfolios of John
Hancock Variable
Series Trust I, at
value. . . . . . . . -- -- -- --
Investments in shares
of portfolios of M
Fund Inc., at value. -- -- -- --
Receivable from:
John Hancock Variable
Series Trust I. . . 19,824 526,416 -- 100,739
M Fund Inc.. . . . . -- -- -- --
------------ ----------- ---------- -----------
Total assets. . . . . 336,247,729 89,503,518 5,772,343 54,813,441
LIABILITIES
Payable to:
John Hancock Variable
Life Insurance
Company . . . . . . 5,390 1,465 94 871
M Fund Inc.. . . . . -- -- -- --
Asset charges payable -- -- -- --
------------ ----------- ---------- -----------
Total liabilities . . 5,390 1,465 94 871
------------ ----------- ---------- -----------
Net assets. . . . . . $336,242,339 $89,502,053 $5,772,249 $54,812,570
============ =========== ========== ===========
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL SMALL CAP GLOBAL
OPPORTUNITIES II GROWTH BALANCED MID CAP
GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------- ----------- ----------
----------------
<S> <C> <C> <C> <C>
ASSETS
Cash. . . . . . . . . $566,698 $40,041,880 $1,588,297 $78,949,236
Investment in shares
of portfolios of John
Hancock Variable
Series Trust I, at
value. . . . . . . . -- -- -- --
Investments in shares
of portfolios of M
Fund Inc., at value. -- -- -- --
Receivable from:
John Hancock Variable
Series Trust I. . . 393 -- 3,489 --
M Fund Inc.. . . . . -- -- -- --
-------- ----------- ---------- -----------
Total assets. . . . . 567,091 40,041,880 1,591,786 78,949,236
LIABILITIES
Payable to:
John Hancock Variable
Life Insurance
Company. . . . . . 9 649 26 1,271
M Fund Inc.. . . . . -- -- -- --
Asset charges payable -- -- -- --
-------- ----------- ---------- -----------
Total liabilities. . 9 649 26 1,271
-------- ----------- ---------- -----------
Net assets. . . . . . $567,082 $40,041,231 $1,591,760 $78,947,965
======== =========== ========== ===========
</TABLE>
See accompanying notes.
69
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED) (CONTINUED)
JUNE 30, 2000
<TABLE>
<CAPTION>
SMALL/MID
CAP
LARGE CAP VALUE MONEY MID CAP VALUE
GROWTH
SUBACCOUNT MARKET SUBACCOUNT SUBACCOUNT
SUBACCOUNT
---------------- ----------------- -------------
---------------
<S> <C> <C> <C> <C>
ASSETS
Cash. . . . . . . . . $16,422,014 $24,639,380 $15,302,306 $
50,010,562
Investment in shares
of portfolios of John
Hancock Variable
Series Trust I, at
value. . . . . . . . -- -- --
--
Investments in shares
of portfolios of M
Fund Inc., at value. -- -- --
--
Receivable from:
John Hancock Variable
Series Trust I. . . 21,354 12,905 10,918
--
M Fund Inc.. . . . . -- -- --
--
----------- ----------- -----------
------------
Total assets. . . . . 16,443,368 24,652,285 15,313,224
50,010,562
LIABILITIES
Payable to:
John Hancock Variable
Life Insurance
Company . . . . . . 273 1,212 253
803
M Fund Inc.. . . . . -- -- --
--
Asset charges payable -- -- --
--
----------- ----------- -----------
------------
Total liabilities . . 273 1,212 253
803
----------- ----------- -----------
------------
Net assets. . . . . . $16,443,095 $24,651,073 $15,312,971 $
50,009,759
=========== =========== ===========
============
</TABLE>
<TABLE>
<CAPTION>
BOND SMALL/ REAL ESTATE
INDEX MID CAP CORE EQUITY GROWTH & INCOME
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------- ------------ ------------
-----------------
<S> <C> <C> <C> <C>
ASSETS
Cash. . . . . . . . . $2,360,093 $890,527 $35,684,888 $605,569,894
Investment in shares
of portfolios of John
Hancock Variable
Series Trust I, at
value. . . . . . . . -- -- -- --
Investments in shares
of portfolios of M
Fund Inc., at value. -- -- -- --
Receivable from:
John Hancock Variable
Series Trust I. . . 12,899 1,345 -- 409,233
M Fund Inc.. . . . . -- -- -- --
---------- -------- ----------- ------------
Total assets. . . . . 2,372,992 891,872 35,684,888 605,979,127
LIABILITIES
Payable to:
John Hancock Variable
Life Insurance
Company. . . . . . 39 0 581 9,871
M Fund Inc.. . . . . -- -- -- --
Asset charges payable -- -- -- --
---------- -------- ----------- ------------
Total liabilities. . 39 0 581 9,871
---------- -------- ----------- ------------
Net assets. . . . . . $2,372,953 $891,872 $35,684,307 $605,969,256
========== ======== =========== ============
</TABLE>
See accompanying notes.
70
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED) (CONTINUED)
JUNE 30, 2000
<TABLE>
<CAPTION>
SHORT-TERM
INTERNATIONAL
MANAGED BOND SMALL CAP
OPPORTUNITIES
SUBACCOUNT SUBACCOUNT VALUE SUBACCOUNT
SUBACCOUNT
---------- ---------- ----------------
-------------
<S> <C> <C> <C> <C>
ASSETS
Cash. . . . . . . . . $378,800,651 $4,732,489 $ 8,570,347
$12,197,572
Investment in shares
of portfolios of John
Hancock Variable
Series Trust I, at
value. . . . . . . . -- -- --
--
Investments in shares
of portfolios of M
Fund Inc.,
at value . . . . . . -- -- --
--
Receivable from:
John Hancock Variable
Series Trust I. . . 899,148 24,455 10,872
9,786
M Fund Inc.. . . . . -- -- --
--
------------ ---------- -----------
-----------
Total assets. . . . . 379,699,799 4,756,944 8,581,219
12,207,358
LIABILITIES
Payable to:
John Hancock Variable
Life Insurance
Company . . . . . . 6,198 67 143
198
M Fund Inc.. . . . . -- -- --
--
Asset charges payable -- -- --
--
------------ ---------- -----------
-----------
Total liabilities . . 6,198 67 143
198
------------ ---------- -----------
-----------
Net assets . . . . . $379,693,601 $4,756,877 $ 8,581,076
$12,207,160
============ ========== ===========
===========
</TABLE>
<TABLE>
<CAPTION>
TURNER
HIGH YIELD CORE
EQUITY BOND GLOBAL BOND GROWTH
INDEX SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
---------------- ---------- ------------ ------------
<S> <C> <C> <C> <C>
ASSETS
Cash. . . . . . . . . $ -- $ -- $ -- $ --
Investment in shares
of portfolios of John
Hancock Variable
Series Trust I, at
value. . . . . . . . 44,827,028 309,907 10,110,869 2,181,637
Investments in shares
of portfolios of M
Fund Inc.,
at value. . . . . . -- -- -- --
Receivable from:
John Hancock Variable
Series Trust I. . . 28,306 2,119 43,662 --
M Fund Inc.. . . . . -- -- -- --
----------- -------- ----------- ----------
Total assets. . . . . 44,855,334 312,026 10,154,531 2,181,637
LIABILITIES
Payable to:
John Hancock Variable
Life Insurance
Company. . . . . . 729 5 167 35
M Fund Inc.. . . . . -- -- -- --
Asset charges payable -- -- -- --
----------- -------- ----------- ----------
Total liabilities. . 729 5 167 35
----------- -------- ----------- ----------
Net assets. . . . . . $44,854,605 $312,021 $10,154,364 $2,181,602
=========== ======== =========== ==========
</TABLE>
See accompanying notes.
71
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENT OF ASSETS AND LIABILITIES (UNAUDITED) (CONTINUED)
JUNE 30, 2000
<TABLE>
<CAPTION>
BRANDES FRONTIER CLIFTON
INTERNATIONAL CAPITAL ENHANCED
EQUITY APPRECIATION U.S. EQUITY
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ------------ -------------
<S> <C> <C> <C>
ASSETS
Cash $ -- $ -- $ --
Investment in shares of portfolios
of John Hancock Variable Series
Trust I, at value . . . . . . . . 13,850,163 14,740,753 223,313
Investments in shares of portfolios
of M Fund Inc., at value. . . . . -- -- --
Receivable from:
John Hancock Variable Series Trust
I. . . . . . . . . . . . . . . . -- -- --
M Fund Inc. . . . . . . . . . . . -- -- --
----------- ----------- --------
Total assets . . . . . . . . . . . 13,850,163 14,740,753 223,313
LIABILITIES
Payable to:
John Hancock Variable Life
Insurance Company. . . . . . . . 225 243 4
M Fund Inc. . . . . . . . . . . . -- -- --
Asset charges payable . . . . . . -- -- --
----------- ----------- --------
Total liabilities. . . . . . . . . 225 243 4
----------- ----------- --------
Net assets . . . . . . . . . . . . $13,849,938 $14,740,510 $223,309
=========== =========== ========
</TABLE>
See accompanying notes.
72
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENTS OF OPERATIONS (UNAUDITED)
YEARS AND PERIODS ENDED JUNE 30,
<TABLE>
<CAPTION>
LARGE CAP GROWTH
SUBACCOUNT ACTIVE BOND SUBACCOUNT
----------------------------------------
--------------------------------------
2000 1999
1998 2000 1999 1998
------------ -------------
----------- ------------ ------------ -------------
<S> <C> <C> <C>
<C> <C> <C>
Investment income:
Distributions received from:
John Hancock Variable Series Trust I . . . . $ 376,401 $ 49,742,797
$31,074,914 $ 2,666,529 $ 6,229,567 $6,701,784
M Fund Inc.. . . . . . . . . . . . . . . . . -- --
-- -- -- --
----------- ------------
----------- ----------- ----------- ----------
Total investment income . . . . . . . . . . . 376,401 49,742,797
31,074,914 2,666,529 6,229,567 6,701,784
Expenses:
Mortality and expense risks. . . . . . . . . 955,709 1,809,412
1,577,321 250,784 503,363 486,757
----------- ------------
----------- ----------- ----------- ----------
Net investment income (loss). . . . . . . . . (579,308) 47,933,385
29,497,593 2,415,745 5,726,204 6,215,027
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) . . . . . . . . . . 7,392,676 37,974,300
7,477,359 (1,754,617) 137,370 125,377
Net unrealized appreciation (depreciation)
during the period . . . . . . . . . . . . . 10,198,110 (20,089,860)
50,180,004 1,907,150 (7,170,609) (432,666)
----------- ------------
----------- ----------- ----------- ----------
Net realized and unrealized gain (loss) on
investments. . . . . . . . . . . . . . . . . 17,590,786 17,884,440
57,657,363 152,533 (7,033,239) (307,289)
----------- ------------
----------- ----------- ----------- ----------
Net increase (decrease) in net assets
resulting from operations. . . . . . . . . . $17,011,478 $ 65,817,825
$87,154,956 $ 2,568,278 $(1,307,035) $5,907,738
=========== ============
=========== =========== =========== ==========
</TABLE>
<TABLE>
<CAPTION>
EMERGING MARKETS EQUITY SUBACCOUNT INTERNATIONAL
EQUITY INDEX SUBACCOUNT
-----------------------------------
---------------------------------------
2000 1999 1998* 2000
1999 1998
------------- ---------- -------- -------------
------------ -------------
<S> <C> <C> <C> <C> <C>
<C>
Investment income:
Distributions received
from:
John Hancock Variable
Series Trust I. . $ -- $121,921 $ 1 $ 472,675 $
1,867,788 $6,864,977
M Fund Inc.. . . . -- -- -- --
-- --
---------- -------- --- -----------
----------- ----------
Total investment
income. . . . . . . -- 121,921 1 472,675
1,867,788 6,864,977
Expenses:
Mortality and expense
risks. . . . . . . 15,926 4,687 -- 162,990
280,522 258,595
---------- -------- --- -----------
----------- ----------
Net investment income
(loss). . . . . . . (15,926) 117,234 1 309,685
1,587,266 6,606,382
Net realized and
unrealized gain
(loss) on
investments:
Net realized gain
(loss). . . . . . 267,515 288,630 (1) 736,294
423,295 1,270,070
Net unrealized
appreciation
(depreciation)
during the period. (906,100) 475,390 (4) (4,145,288)
11,546,984 23,662
---------- -------- --- -----------
----------- ----------
Net realized and
unrealized gain
(loss) on investments (638,585) 764,020 (5) (3,408,994)
11,970,279 1,293,732
---------- -------- --- -----------
----------- ----------
Net increase
(decrease) in net
assets resulting from
operations. . . . . $ (654,511) $881,254 $(4) $(3,099,309)
$13,557,545 $7,900,114
========== ======== === ===========
=========== ==========
</TABLE>
---------
* From May 1, 1998 (commencement of operations).
See accompanying notes.
73
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENTS OF OPERATIONS (UNAUDITED) (CONTINUED)
YEARS AND PERIODS ENDED JUNE 30,
<TABLE>
<CAPTION>
INTERNATIONAL OPPORTUNITIES II
SUBACCOUNT SMALL CAP GROWTH SUBACCOUNT
------------------------------------------
-------------------------------------
2000 1999
1998* 2000 1999 1998
-------------- -------------
------------- ------------ ----------- -------------
<S> <C> <C> <C>
<C> <C> <C>
Investment income:
Distributions received from:
John Hancock Variable Series Trust I. . . $ 6,035 $ 935 $
2 $ -- $ 3,360,284 $ --
M Fund Inc. . . . . . . . . . . . . . . . -- --
-- -- -- --
-------- --------
-------- ----------- ----------- ----------
Total investment income. . . . . . . . . . 6,035 935
2 -- 3,360,284 --
Expenses:
Mortality and expense risks . . . . . . . 1,211 435
1 108,823 97,719 57,076
-------- --------
-------- ----------- ----------- ----------
Net investment income (loss) . . . . . . . 4,824 500
1 (108,823) 3,262,565 (57,076)
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss). . . . . . . . . 11,472 1,382
-- 1,359,131 1,209,833 157,975
Net unrealized appreciation (depreciation)
during the period. . . . . . . . . . . . (16,847) 27,261
69 (1,341,523) 5,952,186 1,605,647
-------- --------
-------- ----------- ----------- ----------
Net realized and unrealized gain (loss) on
investments . . . . . . . . . . . . . . . (5,375) 28,643
69 17,608 7,162,019 1,763,622
-------- --------
-------- ----------- ----------- ----------
Net increase (decrease) in net assets
resulting from operations . . . . . . . . $ (551) $ 29,143 $
70 $ (91,215) $10,424,584 $1,706,546
======== ========
======== =========== =========== ==========
</TABLE>
<TABLE>
<CAPTION>
GLOBAL BALANCED SUBACCOUNT MID CAP GROWTH
SUBACCOUNT
------------------------------
-------------------------------------
2000 1999 1998 2000 1999
1998
--------- --------- -------- ------------
----------- ------------
<S> <C> <C> <C> <C> <C>
<C>
Investment income:
Distributions received
from:
John Hancock Variable
Series Trust I. . $ 22,471 $149,495 $111,976 $ -- $
5,920,731 $ 993,504
M Fund Inc.. . . . . -- -- -- --
-- --
-------- -------- -------- -----------
----------- ----------
Total investment
income. . . . . . . 22,471 149,495 111,976 --
5,920,731 993,504
Expenses:
Mortality and expense
risks. . . . . . . 4,809 10,171 8,831 223,064
146,891 42,815
-------- -------- -------- -----------
----------- ----------
Net investment income
(loss). . . . . . . 17,662 139,324 103,145 (223,064)
5,773,840 950,689
Net realized and
unrealized gain
(loss) on
investments:
Net realized gain
(loss). . . . . . (11,784) (975) 20,527 1,825,368
2,379,524 338,131
Net unrealized
appreciation
(depreciation)
during the period. (87,484) (61,234) 108,042 (7,117,948)
17,416,514 1,477,149
-------- -------- -------- -----------
----------- ----------
Net realized and
unrealized gain
(loss) on investments (99,268) (62,209) 128,569 (5,292,580)
19,796,038 1,815,280
-------- -------- -------- -----------
----------- ----------
Net increase
(decrease) in net
assets resulting from
operations. . . . . $(81,606) $ 77,115 $231,714 $(5,515,644)
$25,569,878 $2,765,969
======== ======== ======== ===========
=========== ==========
</TABLE>
---------
* From May 1, 1998 (commencement of operations).
See accompanying notes.
74
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENTS OF OPERATIONS (UNAUDITED) (CONTINUED)
YEARS AND PERIODS ENDED JUNE 30,
<TABLE>
<CAPTION>
LARGE CAP VALUE SUBACCOUNT MONEY
MARKET SUBACCOUNT
-------------------------------------
-------------------------------------
2000 1999 1998 2000
1999 1998
---------- ------------ ------------ ----------
------------ -------------
<S> <C> <C> <C> <C> <C>
<C>
Investment income:
Distributions received
from:
John Hancock Variable
Series Trust I. . . $ 177,767 $ 1,029,319 $ 560,242 $ 819,685 $
1,253,474 $ 1,110,309
M Fund Inc.. . . . . -- -- -- --
-- --
--------- ----------- ----------- ----------
------------ -----------
Total investment
income . . . . . . . 177,767 1,029,319 560,242 819,685
1,253,474 1,110,309
Expenses:
Mortality and expense
risks . . . . . . . 47,677 81,248 54,311 83,972
151,506 125,891
--------- ----------- ----------- ----------
------------ -----------
Net investment income
(loss) . . . . . . . 130,090 948,071 505,931 735,713
1,101,968 984,418
Net realized and
unrealized gain
(loss) on
investments:
Net realized gain
(loss). . . . . . . (57,916) 590,392 364,328 --
-- --
Net unrealized
appreciation
(depreciation)
during the period . (499,449) (1,512,713) (186,805) 1
-- --
--------- ----------- ----------- ----------
------------ -----------
Net realized and
unrealized gain
(loss) on investments (557,365) (922,321) 177,523 1
-- --
--------- ----------- ----------- ----------
------------ -----------
Net increase
(decrease) in net
assets resulting from
operations . . . . . $(427,275) $ 25,750 $ 683,454 $ 735,714 $
1,101,968 $ 984,418
========= =========== =========== ==========
============ ===========
</TABLE>
<TABLE>
<CAPTION>
MID CAP VALUE SUBACCOUNT SMALL/MID CAP
GROWTH SUBACCOUNT
-------------------------------------
-------------------------------------
2000 1999 1998 2000
1999 1998
---------- ------------ ------------ -----------
------------ ------------
<S> <C> <C> <C> <C> <C>
<C>
Investment income:
Distributions received
from:
John Hancock Variable
Series Trust I. . . $ 33,379 $ 99,940 $ 142,246 $ -- $
7,118,263 $ 863,342
M Fund Inc.. . . . . -- -- -- --
-- --
--------- ----------- ----------- ----------
----------- ----------
Total investment
income. . . . . . . 33,379 99,940 142,246 --
7,118,263 863,342
Expenses:
Mortality and expense
risks. . . . . . . 44,292 95,346 95,456 135,896
264,633 281,235
--------- ----------- ----------- ----------
----------- ----------
Net investment income
(loss). . . . . . . (10,913) 4,594 46,790 (135,896)
6,853,630 582,107
Net realized and
unrealized gain
(loss) on
investments:
Net realized gain
(loss). . . . . . . (179,169) (1,354,334) 470,277 (760,505)
332,328 1,879,057
Net unrealized
appreciation
(depreciation)
during the period. 942,303 2,021,700 (2,496,498) 4,618,045
(5,168,619) 3,090
--------- ----------- ----------- ----------
----------- ----------
Net realized and
unrealized gain
(loss) on investments 763,134 667,366 (2,026,221) 3,857,540
(4,836,291) 1,882,147
--------- ----------- ----------- ----------
----------- ----------
Net increase
(decrease) in net
assets resulting from
operations. . . . . $ 752,221 $ 671,960 $(1,979,431) $3,721,644 $
2,017,339 $2,464,254
========= =========== =========== ==========
=========== ==========
</TABLE>
See accompanying notes.
75
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENTS OF OPERATIONS (UNAUDITED) (CONTINUED)
YEARS AND PERIODS ENDED JUNE 30,
<TABLE>
<CAPTION>
BOND INDEX SUBACCOUNT
----------------------------------------
2000 1999
1998*
------------ ------------
-------------
<S> <C> <C> <C>
Investment income:
Distributions received from:
John Hancock Variable Series Trust I. . . $ 81,279 $ 82,521 $
62
M Fund Inc. . . . . . . . . . . . . . . . -- --
--
----------- -----------
------------
Total investment income. . . . . . . . . . 81,279 82,521
62
Expenses:
Mortality and expense risks . . . . . . . 6,896 7,497
1
----------- -----------
------------
Net investment income (loss) . . . . . . . 74,383 75,024
61
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss). . . . . . . . . (16,756) (8,489)
--
Net unrealized appreciation (depreciation)
during the period. . . . . . . . . . . . 25,202 (91,357)
(88)
----------- -----------
------------
Net realized and unrealized gain (loss) on
investments . . . . . . . . . . . . . . . 8,446 (99,846)
(88)
----------- -----------
------------
Net increase (decrease) in net assets
resulting from operations . . . . . . . . $ 82,829 $ (24,822) $
(27)
=========== ===========
============
<CAPTION>
SMALL/MID CAP CORE SUBACCOUNT
------------------------------------------
2000 1999
1998*
------------- ------------
---------------
<S> <C> <C> <C>
Investment income:
Distributions received from:
John Hancock Variable Series Trust I. . . $ 1,372 $ 17,267 $
--
M Fund Inc. . . . . . . . . . . . . . . . -- --
--
------------ ------------
-------------
Total investment income. . . . . . . . . . 1,372 17,267
--
Expenses:
Mortality and expense risks . . . . . . . 3,446 666
16
------------ ------------
-------------
Net investment income (loss) . . . . . . . (2,074) 16,601
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss). . . . . . . . . (13,819) 1,450
--
Net unrealized appreciation (depreciation)
during the period. . . . . . . . . . . . (55,289) 10,057
4,448
------------ ------------
-------------
Net realized and unrealized gain (loss) on
investments . . . . . . . . . . . . . . . (69,108) 11,507
4,448
------------ ------------
-------------
Net increase (decrease) in net assets
resulting from operations . . . . . . . . $ (71,182) $ 28,108 $
4,434
============ ============
=============
</TABLE>
<TABLE>
<CAPTION>
REAL ESTATE EQUITY SUBACCOUNT
GROWTH & INCOME SUBACCOUNT
--------------------------------------
------------------------------------------
2000 1999 1998
2000 1999 1998
---------- ------------
------------- ------------- ------------- --------------
<S> <C> <C> <C>
<C> <C> <C>
Investment income:
Distributions received from:
John Hancock Variable Series Trust I $ 890,269 $ 2,118,195 $
2,281,310 $ 3,070,149 $ 72,156,977 $ 54,199,315
M Fund Inc.. . . . -- --
-- -- -- --
---------- -----------
------------ ------------ ------------ ------------
Total investment income 890,269 2,118,195
2,281,310 3,070,149 72,156,977 54,199,315
Expenses:
Mortality and expense risks 92,472 189,524
219,763 1,797,899 3,537,270 2,856,645
---------- -----------
------------ ------------ ------------ ------------
Net investment income 797,797 1,928,671
2,061,547 1,272,250 68,619,707 51,342,670
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) 98,816 552,631
903,492 16,139,908 19,517,399 12,465,262
Net unrealized appreciation (depreciation)
during the period 3,099,470 (3,233,362)
(10,193,226) (22,842,914) (2,623,478) 60,549,503
---------- -----------
------------ ------------ ------------ ------------
Net realized and unrealized gain (loss) on
investments. . . . 3,198,286 (2,680,731)
(9,289,734) (6,703,006) 16,893,921 73,014,765
---------- -----------
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations $3,996,083 $ (752,060) $
(7,228,187) $ (5,430,756) $ 85,513,628 $124,357,435
========== ===========
============ ============ ============ ============
</TABLE>
---------
* From May 1, 1998 (commencement of operations).
See accompanying notes.
76
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENTS OF OPERATIONS (UNAUDITED) (CONTINUED)
YEARS AND PERIODS ENDED JUNE 30,
<TABLE>
<CAPTION>
MANAGED SUBACCOUNT
SHORT-TERM BOND SUBACCOUNT
----------------------------------------
-----------------------------------
2000 1999
1998 2000 1999 1998
------------ -------------
----------- ---------- ----------- -------------
<S> <C> <C>
<C> <C> <C> <C>
Investment income:
Distributions received from:
John Hancock Variable Series Trust I . . . . . $ 5,856,071 $ 38,226,296
$42,558,328 $ 148,207 $ 321,697 $ 318,055
M Fund Inc.. . . . . . . . . . . . . . . . . . -- --
-- -- -- --
----------- ------------
----------- --------- ---------- ----------
Total investment income . . . . . . . . . . . . 5,856,071 38,226,296
42,558,328 148,207 321,697 318,055
Expenses:
Mortality and expense risks. . . . . . . . . . 1,135,153 2,441,499
2,438,618 11,937 27,433 27,623
Net investment income . . . . . . . . . . . . . 4,720,918 35,784,797
40,119,710 136,270 294,264 290,432
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) . . . . . . . . . . . 5,688,842 23,586,754
5,216,094 (18,255) (61,939) 13,933
Net unrealized appreciation (depreciation)
during the period . . . . . . . . . . . . . . (7,431,057) (25,338,032)
28,230,322 8,831 (116,293) (45,745)
----------- ------------
----------- --------- ---------- ----------
Net realized and unrealized gain (loss) on
investments. . . . . . . . . . . . . . . . . . (1,742,215) (1,751,278)
33,446,416 (9,424) (178,232) (31,812)
----------- ------------
----------- --------- ---------- ----------
Net increase (decrease) in net assets resulting
from operations. . . . . . . . . . . . . . . . $ 2,978,703 $ 34,033,519
$73,566,126 $ 126,846 $ 116,032 $ 258,620
=========== ============
=========== ========= ========== ==========
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL
OPPORTUNITIES
SMALL CAP VALUE SUBACCOUNT
SUBACCOUNT
---------------------------------
----------------------------------
2000 1999 1998 2000 1999
1998
---------- ---------- ---------- ----------
---------- ------------
<S> <C> <C> <C> <C> <C>
<C>
Investment income:
Distributions received
from:
John Hancock Variable
Series Trust I. . . $ 79,824 $ 243,470 $ 54,320 $ 45,420 $
804,607 $ 85,655
M Fund Inc.. . . . . -- -- -- --
-- --
--------- --------- --------- ---------
---------- ----------
Total investment
income. . . . . . . 79,824 243,470 54,320 45,420
804,607 85,655
Expenses:
Mortality and expense
risks. . . . . . . 27,043 61,294 51,961 35,436
88,335 64,058
--------- --------- --------- ---------
---------- ----------
Net investment income 52,781 182,176 2,359 9,984
716,272 21,597
Net realized and
unrealized gain
(loss) on
investments:
Net realized gain
(loss). . . . . . . (578,291) (497,642) 254,157 256,074
1,471,214 196,024
Net unrealized
appreciation
(depreciation)
during the period. 550,858 (88,006) (813,644) (823,276)
1,149,372 1,366,734
--------- --------- --------- ---------
---------- ----------
Net realized and
unrealized gain
(loss) on investments (27,433) (585,648) (559,487) (567,202)
2,620,586 1,562,758
--------- --------- --------- ---------
---------- ----------
Net increase
(decrease) in net
assets resulting from
operations. . . . . $ 25,348 $(403,472) $(557,128) $(557,218)
$3,336,858 $1,584,355
========= ========= ========= =========
========== ==========
</TABLE>
See accompanying notes.
77
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENTS OF OPERATIONS (UNAUDITED) (CONTINUED)
YEARS AND PERIODS ENDED JUNE 30,
<TABLE>
<CAPTION>
EQUITY INDEX SUBACCOUNT HIGH YIELD BOND
SUBACCOUNT
------------------------------------
--------------------------------
2000 1999 1998 2000 1999
1998
------------ ---------- ---------- ----------
---------- -----------
<S> <C> <C> <C> <C> <C>
<C>
Investment income:
Distributions received
from:
John Hancock Variable
Series Trust I. . . $ 241,657 $1,831,467 $ 700,367 $ 12,021 $
7,718 $ 12
M Fund Inc.. . . . . -- -- -- --
-- --
----------- ---------- ---------- ---------
--------- --------
Total investment
income . . . . . . . 241,657 1,831,467 700,367 12,021
7,718 12
Expenses:
Mortality and expense
risks . . . . . . . 128,139 216,154 108,231 821
569 1
----------- ---------- ---------- ---------
--------- --------
Net investment income 113,518 1,615,313 592,136 11,200
7,149 11
Net realized and
unrealized gain
(loss) on
investments:
Net realized gain
(loss). . . . . . . 1,127,564 1,761,823 997,526 (2,247)
(4,898) --
Net unrealized
appreciation
(depreciation)
during the period . (1,595,315) 3,255,121 2,882,597 (14,382)
(611) (9)
----------- ---------- ---------- ---------
--------- --------
Net realized and
unrealized gain
(loss) on investments (467,751) 5,016,944 3,880,123 (16,629)
(5,509) (9)
----------- ---------- ---------- ---------
--------- --------
Net increase
(decrease) in net
assets resulting from
operations . . . . . $ (354,233) $6,632,257 $4,472,259 $ (5,429) $
1,640 $ 2
=========== ========== ========== =========
========= ========
</TABLE>
<TABLE>
<CAPTION>
GLOBAL BOND SUBACCOUNT TURNER CORE GROWTH
SUBACCOUNT
--------------------------------
------------------------------
2000 1999 1998 2000 1999
1998
---------- ---------- -------- ---------- --------
----------
<S> <C> <C> <C> <C> <C>
<C>
Investment income:
Distributions received
from:
John Hancock Variable
Series Trust I. . . $ 164,507 $ 407,783 $217,011 $ 24,984 $ --
$ --
M Fund Inc.. . . . . -- -- -- -- 243,054
48,858
--------- --------- -------- --------- --------
--------
Total investment
income. . . . . . . 164,507 407,783 217,011 24,984 243,054
48,858
Expenses:
Mortality and expense
risks. . . . . . . 29,067 44,023 23,315 7,763 14,911
4,430
--------- --------- -------- --------- --------
--------
Net investment income
(loss). . . . . . . 135,440 363,760 193,696 17,221 228,143
44,428
Net realized and
unrealized gain
(loss) on
investments:
Net realized gain
(loss). . . . . . . (42,183) 959 25,425 331,118 411,650
38,125
Net unrealized
appreciation
(depreciation)
during the period. (219,831) (578,510) 91,397 (219,831) 25,769
318,448
--------- --------- -------- --------- --------
--------
Net realized and
unrealized gain
(loss) on investments (262,014) (577,551) 116,822 111,287 437,419
356,573
--------- --------- -------- --------- --------
--------
Net increase
(decrease) in net
assets resulting from
operations. . . . . $(126,574) $(213,791) $310,518 $ 128,508 $665,562
$401,001
======== ======== ======= ======== =======
=======
</TABLE>
See accompanying notes.
78
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENTS OF OPERATIONS (UNAUDITED) (CONTINUED)
YEARS AND PERIODS ENDED JUNE 30,
<TABLE>
<CAPTION>
BRANDES INTERNATIONAL EQUITY FRONTIER CAPITAL
APPRECIATION
SUBACCOUNT SUBACCOUNT
------------------------------
--------------------------------
2000 1999 1998 2000 1999
1998
-------- ---------- -------- ---------- ----------
-----------
<S> <C> <C> <C> <C> <C>
<C>
Investment income:
Distributions received
from:
John Hancock Variable
Series Trust I. . . $171,481 $ -- $ -- $ 395,888 $ --
$ --
M Fund Inc.. . . . . -- 391,652 76,526 -- 363,096
14,932
-------- ---------- -------- ---------- ----------
--------
Total investment
income . . . . . . . 171,481 391,652 76,526 395,888 363,096
14,932
Expenses:
Mortality and expense
risks . . . . . . . 36,713 26,814 6,543 43,109 55,548
24,050
-------- ---------- -------- ---------- ----------
--------
Net investment income
(loss) . . . . . . . 134,768 364,838 69,983 352,779 307,548
(9,118)
Net realized and
unrealized gain on
investments:
Net realized gain. . 33,908 40,298 8,487 206,679 161,229
89,974
Net unrealized
appreciation during
the period. . . . . 401,022 1,857,041 101,256 1,264,109 3,089,604
524,011
-------- ---------- -------- ---------- ----------
--------
Net realized and
unrealized gain on
investments. . . . . 434,930 1,897,339 109,743 1,470,788 3,250,833
613,985
-------- ---------- -------- ---------- ----------
--------
Net increase in net
assets resulting from
operations . . . . . $569,698 $2,262,177 $179,726 $1,823,567 $3,558,381
$604,867
======== ========== ======== ========== ==========
========
</TABLE>
<TABLE>
<CAPTION>
CLIFTON
ENHANCED U.S. EQUITY
SUBACCOUNT
---------------------
2000 1999**
----------- ----------
<S> <C> <C>
Investment income:
Distributions received from:
John Hancock Variable Series Trust I . . . . . . . . $ 5,849 $ --
M Fund Inc.. . . . . . . . . . . . . . . . . . . . . -- --
-------- -----
Total investment income . . . . . . . . . . . . . . . 5,849 --
Expenses:
Mortality and expense risks 333 22
-------- -----
Net investment income (loss). . . . . . . . . . . . . 5,516 (22)
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) . . . . . . . . . . . . . . 6 (746)
Net unrealized appreciation (depreciation) during the
period. . . . . . . . . . . . . . . . . . . . . . . (11,845) --
-------- -----
Net realized and unrealized gain (loss) on investments (11,839) (746)
-------- -----
Net increase (decrease) in net assets resulting from
operations . . . . . . . . . . . . . . . . . . . . . $ (6,323) $(768)
======== =====
</TABLE>
---------
** From August 18, 1999 (commencement of operations).
See accompanying notes.
79
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED)
YEARS AND PERIODS ENDED JUNE 30,
<TABLE>
<CAPTION>
LARGE CAP GROWTH SUBACCOUNT
ACTIVE BOND SUBACCOUNT
-------------------------------------------
-----------------------------------------
2000 1999 1998
2000 1999 1998
------------- --------------
------------- ------------ ------------- ---------------
<S> <C> <C> <C>
<C> <C> <C>
Increase (decrease) in net assets from
operations:
Net investment income (loss). . . . . $ (579,308) $ 47,933,385 $
29,497,593 $ 2,415,745 $ 5,726,204 $ 6,215,027
Net realized gains (losses) . . . . . 7,392,676 37,974,300
7,477,359 (1,754,617) 137,370 125,377
Net unrealized appreciation
(depreciation) during the
period . . . . . . . . . . . . . . . 10,198,110 (20,089,860)
50,180,004 1,907,150 (7,170,609) (432,666)
------------ -------------
------------ ----------- ------------ ------------
Net increase (decrease) in net assets
resulting from operations . . . . . . 17,011,478 65,817,825
87,154,956 2,568,278 (1,307,035) 5,907,738
From policyholder transactions:
Net premiums from
policyholders. . . . . . . . . . . . 25,649,606 47,366,436
50,518,731 12,901,856 14,339,968 17,861,340
Net benefits to policyholders . . . . (28,603,532) (109,055,989)
(40,022,049) (9,057,766) (15,723,809) (15,352,996)
------------ -------------
------------ ----------- ------------ ------------
Net increase (decrease) in net assets
resulting from policyholder
transactions. . . . . . . . . . . . . (2,953,926) (61,689,553)
10,496,682 3,844,090 (1,383,841) 2,508,344
------------ -------------
------------ ----------- ------------ ------------
Net increase (decrease) in net assets. 14,057,552 4,128,272
97,651,638 6,412,368 (2,690,876) 8,416,082
Net assets at beginning of period. . . 322,184,787 318,056,515
220,404,877 83,089,685 85,780,561 77,364,479
------------ -------------
------------ ----------- ------------ ------------
Net assets at end of period. . . . . . $336,242,339 $ 322,184,787
$318,056,515 $89,502,053 $ 83,089,685 $ 85,780,561
============ =============
============ =========== ============ ============
</TABLE>
<TABLE>
<CAPTION>
EMERGING MARKETS EQUITY SUBACCOUNT
INTERNATIONAL EQUITY INDEX SUBACCOUNT
-----------------------------------
------------------------------------------
2000 1999 1998*
2000 1999 1998
------------ ------------ -------
------------- ------------- ---------------
<S> <C> <C> <C>
<C> <C> <C>
Increase (decrease) in net assets from
operations:
Net investment income (loss) $ (15,926) $ 117,234 $ 1 $
309,685 $ 1,587,266 $ 6,606,382
Net realized gains (losses) 267,515 288,630 (1)
736,294 423,295 1,270,070
Net unrealized appreciation
(depreciation) during the
period. . . . . (906,100) 475,390 (4)
(4,145,288) 11,546,984 23,662
----------- ----------- ------
-------- -------- -----
Net increase (decrease) in net assets
resulting from operations (654,511) 881,254 (4)
(3,099,309) 13,557,545 7,900,114
From policyholder transactions:
Net premiums from
policyholders. 5,282,122 2,935,233 1,730
5,665,237 12,752,321 11,092,106
Net benefits to policyholders (1,412,911) (1,260,627) (37)
(7,122,562) (11,265,586) (16,638,265)
----------- ----------- ------
------------ ------------ ------------
Net increase (decrease) in net assets
resulting from policyholder
transactions. . 3,869,211 1,674,606 1,693
(1,457,325) 1,486,735 (5,546,159)
----------- ----------- ------
------------ ------------ ------------
Net increase (decrease) in net assets 3,214,700 2,555,860 1,689
(4,556,634) 15,044,280 2,353,955
Net assets at beginning of period 2,557,549 1,689 --
59,369,204 44,324,924 41,970,969
----------- ----------- ------
------------ ------------ ------------
Net assets at end of period $ 5,772,249 $ 2,557,549 $1,689 $
54,812,570 $ 59,369,204 $ 44,324,924
=========== =========== ======
============ ============ ============
</TABLE>
---------
* From May 1, 1998 (commencement of operations).
See accompanying notes.
80
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONTINUED)
YEARS AND PERIODS ENDED JUNE 30,
<TABLE>
<CAPTION>
INTERNATIONAL OPPORTUNITIES II
SUBACCOUNT
SMALL CAP GROWTH SUBACCOUNT
--------------------------------------
-----------------------------------------
2000 1999
1998* 2000 1999 1998
----------- ------------
------------ -------------- ------------ --------------
<S> <C> <C> <C>
<C> <C> <C>
Increase (decrease) in net assets from
operations:
Net investment income (loss) . . . . . . . $ 4,824 $ 500 $
61 $ (108,823) $ 3,262,565 $ (57,076)
Net realized gains . . . . . . . . . . . . 11,472 1,382
-- 1,359,131 1,209,833 157,975
Net unrealized appreciation (depreciation)
during the period . . . . . . . . . . . . (16,847) 27,261
69 (1,341,523) 5,952,186 1,605,647
---------- -----------
----------- ------------- ----------- -----------
Net increase (decrease) in net assets
resulting from operations. . . . . . . . . (551) 29,143
70 (91,215) 10,424,584 1,706,546
From policyholder transactions:
Net premiums from policyholders. . . . . . 429,157 275,194
1,850 20,073,221 9,698,604 6,942,161
Net benefits to policyholders. . . . . . . (138,634) (29,112)
(35) (7,353,810) (6,196,218) (3,551,395)
---------- -----------
----------- ------------- ----------- -----------
Net increase in net assets resulting from
policyholder transactions. . . . . . . . . 290,523 246,082
1,815 12,719,411 3,502,386 3,390,766
---------- -----------
----------- ------------- ----------- -----------
Net increase in net assets. . . . . . . . . 289,972 275,225
1,885 12,628,196 13,926,970 5,097,312
Net assets at beginning of period . . . . . 277,110 1,885
-- 27,413,035 13,486,065 8,388,753
---------- -----------
----------- ------------- ----------- -----------
Net assets at end of period . . . . . . . . $ 567,082 $ 277,110 $
1,885 $ 40,041,231 $27,413,035 $13,486,065
========== ===========
=========== ============= =========== ===========
</TABLE>
<TABLE>
<CAPTION>
GLOBAL BALANCED
SUBACCOUNT
------------------------------------
2000 1999
1998
----------- -----------
-----------
<S> <C> <C> <C>
Increase (decrease) in net assets from
operations:
Net investment income (loss) $ 17,662 $ 139,324 $
103,145
Net realized gains (losses) (11,784) (975)
20,527
Net unrealized appreciation (depreciation)
during the period. (87,484) (61,234)
108,042
---------- ----------
----------
Net increase (decrease) in net assets resulting
from operations. . . (81,606) 77,115
231,714
From policyholder transactions:
Net premiums from policyholders 154,405 408,648
775,469
Net benefits to policyholders (240,179) (457,724)
(433,887)
---------- ----------
----------
Net increase (decrease) in net assets resulting
from policyholder transactions (85,774) (49,076)
341,582
---------- ----------
----------
Net increase (decrease) in net assets (167,380) 28,039
573,296
Net assets at beginning of period 1,759,140 1,731,101
1,157,805
---------- ----------
----------
Net assets at end of period $1,591,760 $1,759,140
$1,731,101
========== ==========
==========
<CAPTION>
MID CAP GROWTH
SUBACCOUNT
----------------------------------------
2000 1999
1998
------------- ------------
--------------
<S> <C> <C>
<C>
Increase (decrease) in net assets from
operations:
Net investment income (loss) $ (223,064) $ 5,773,840
$ 950,689
Net realized gains (losses) 1,825,368 2,379,524
338,131
Net unrealized appreciation (depreciation)
during the period. (7,117,948) 17,416,514
1,477,149
------------ -----------
-----------
Net increase (decrease) in net assets resulting (5,515,644) 25,569,878
2,765,969
from operations. . .
From policyholder transactions:
Net premiums from policyholders 37,904,385 31,236,463
6,310,992
Net benefits to policyholders (12,161,915) (9,304,845)
(2,644,280)
------------ -----------
-----------
Net increase (decrease) in net assets resulting
from policyholder transactions 25,740,470 21,931,618
3,666,712
------------ -----------
-----------
Net increase (decrease) in net assets 20,226,826 47,501,496
6,432,681
Net assets at beginning of period 58,721,139 11,219,643
4,786,962
------------ -----------
-----------
Net assets at end of period $ 78,947,965 $58,721,139
$11,219,643
============ ===========
===========
</TABLE>
---------
* From May 1, 1998 (commencement of operations).
See accompanying notes.
81
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONTINUED)
YEARS AND PERIODS ENDED JUNE 30,
<TABLE>
<CAPTION>
LARGE CAP VALUE SUBACCOUNT
MONEY MARKET SUBACCOUNT
---------------------------------------
------------------------------------------
2000 1999 1998
2000 1999 1998
------------ ------------
------------ ------------- ------------- ---------------
<S> <C> <C> <C>
<C> <C> <C>
Increase in net assets from operations:
Net investment income . . . . . . . . . $ 130,090 $ 948,071 $
505,931 $ 735,713 $ 1,101,968 $ 984,418
Net realized gains (losses) . . . . . . (57,916) 590,392
364,328 -- -- --
Net unrealized appreciation
(depreciation) during the period . . . (499,449) (1,512,713)
(186,805) 1 -- --
----------- -----------
----------- ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations . . . . . . . (427,275) 25,750
683,454 735,714 1,101,968 984,418
From policyholder transactions:
Net premiums from policyholders . . . . 3,046,322 10,870,610
6,344,623 17,860,548 38,178,810 29,578,379
Net benefits to policyholders . . . . . (2,261,112) (5,528,175)
(2,846,246) (26,593,203) (27,659,025) (26,039,388)
----------- -----------
----------- ------------ ------------ -------------
Net increase (decrease) in net assets
resulting from policyholder transactions 785,210 5,342,435
3,498,377 (8,732,655) 10,519,785 3,538,991
----------- -----------
----------- ------------ ------------ -------------
Net increase (decrease) in net assets. . 357,935 5,368,185
4,181,831 (7,996,941) 11,621,753 4,523,409
Net assets at beginning of period. . . . 16,085,160 10,716,975
6,535,144 32,648,014 21,026,261 16,502,852
----------- -----------
----------- ------------ ------------ ------------
Net assets at end of period. . . . . . . $16,443,095 $16,085,160
$10,716,975 $ 24,651,073 $ 32,648,014 $ 21,026,261
=========== ===========
=========== ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
MID CAP VALUE SUBACCOUNT
SMALL/MID CAP GROWTH SUBACCOUNT
---------------------------------------
------------------------------------------
2000 1999 1998
2000 1999 1998
------------ ------------
------------ ------------- ------------- ---------------
<S> <C> <C> <C>
<C> <C> <C>
Increase (decrease) in net assets from
operations:
Net investment income (loss) $ (10,913) $ 4,594 $
46,790 $ (135,896) $ 6,853,630 $ 582,107
Net realized gains (losses) (179,169) (1,354,334)
470,277 (760,505) 332,328 1,879,057
Net unrealized appreciation
(depreciation) during the period 942,303 2,021,700
(2,496,498) 4,618,045 (5,168,619) 3,090
----------- -----------
----------- ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations 752,221 671,960
(1,979,431) 3,721,644 2,017,339 2,464,254
From policyholder transactions:
Net premiums from policyholders 2,624,110 7,348,479
12,176,727 1,312,528 12,408,208 15,336,390
Net benefits to policyholders (2,810,238) (9,527,903)
(7,125,389) (1,805,352) (13,127,845) (24,152,376)
----------- -----------
----------- ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from policyholder transactions (186,128) (2,179,424)
5,051,338 (492,824) (719,637) (8,815,986)
----------- -----------
----------- ------------ ------------ ------------
Net increase (decrease) in net assets 566,093 (1,507,464)
3,071,907 3,228,820 1,297,702 (6,351,732)
Net assets at beginning of period 14,746,878 16,254,342
13,182,435 46,780,939 45,483,237 51,834,969
----------- -----------
----------- ------------ ------------ ------------
Net assets at end of period $15,312,971 $14,746,878
$16,254,342 $ 50,009,759 $ 46,780,939 $ 45,483,237
=========== ===========
=========== ============ ============ ============
</TABLE>
See accompanying notes.
82
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONTINUED)
YEARS AND PERIODS ENDED JUNE 30,
<TABLE>
<CAPTION>
BOND INDEX SUBACCOUNT
SMALL/MID CAP CORE SUBACCOUNT
----------------------------------------
-------------------------------------------
2000 1999 1998*
2000 1999 1998*
------------ ------------
------------- ------------- ------------- ----------------
<S> <C> <C> <C>
<C> <C> <C>
Increase (decrease) in net assets from
operations:
Net investment income (loss). . . . . $ 74,383 $ 75,024 $
61 $ (2,074) $ 16,601 $ (14)
Net realized gains (losses) . . . . . (16,756) (8,489)
-- (13,819) 1,450 --
Net unrealized appreciation
(depreciation) during the period . . 25,202 (91,357)
(88) (55,289) 10,057 4,448
----------- -----------
------------ ------------ ------------ -------------
Net increase (decrease) in net assets
resulting from operations . . . . . . 82,829 (24,822)
(27) (71,182) 28,108 4,434
From policyholder transactions:
Net premiums from policyholders . . . 131,358 2,363,570
4,217 1,940,705 126,096 51,606
Net benefits to policyholders . . . . (58,389) (125,783)
-- (1,177,190) (10,705) --
----------- -----------
------------ ------------ ------------ -------------
Net increase (decrease) in net assets
resulting from policyholder
transactions. . . . . . . . . . . . . 72,969 2,237,787
4,190 763,515 115,391 51,606
----------- -----------
------------ ------------ ------------ -------------
Net increase (decrease) in net assets. 155,798 2,212,965
692,333 143,499 56,040
Net assets at beginning of period. . . 2,217,155 4,190
-- 199,539 56,040 --
----------- -----------
------------ ------------ ------------ -------------
Net assets at end of period. . . . . . $ 2,372,953 $ 2,217,155 $
4,190 $ 891,872 $ 199,539 $ 56,040
=========== ===========
============ ============ ============ =============
</TABLE>
<TABLE>
<CAPTION>
REAL ESTATE EQUITY SUBACCOUNT
GROWTH & INCOME SUBACCOUNT
----------------------------------------
------------------------------------------
2000 1999 1998
2000 1999 1998
------------ ------------
------------- ------------- ------------- ---------------
<S> <C> <C> <C>
<C> <C> <C>
Increase in net assets from operations:
Net investment income $ 797,797 $ 1,928,671 $
2,061,547 $ 1,272,250 $ 68,619,707 $ 51,342,670
Net realized gains 98,816 552,631
903,492 16,139,908 19,517,399 12,465,262
Net unrealized appreciation
(depreciation) during the period 3,099,470 (3,233,362)
(10,193,226) (22,842,914) (2,623,478) 60,549,503
----------- -----------
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations 3,996,083 (752,060)
(7,228,187) (5,430,756) 85,513,628 124,357,435
From policyholder transactions:
Net premiums from policyholders 4,748,137 7,015,135
9,200,146 40,368,665 91,655,386 92,202,780
Net benefits to policyholders (4,255,199) (9,317,401)
(10,281,699) (63,151,010) (95,299,988) (79,305,839)
----------- -----------
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from policyholder
transactions. . 492,938 (2,302,266)
(1,081,553) (22,782,345) (3,644,602) 12,896,941
----------- -----------
------------ ------------ ------------ ------------
Net increase (decrease) in net assets 4,489,021 (3,054,326)
(8,309,740) (28,213,101) 81,869,026 137,254,376
Net assets at beginning of period 31,195,286 34,249,612
42,559,352 634,182,357 552,313,331 415,058,955
----------- -----------
------------ ------------ ------------ ------------
Net assets at end of period $35,684,307 $31,195,286 $
34,249,612 $605,969,256 $634,182,357 $552,313,331
=========== ===========
============ ============ ============ ============
</TABLE>
---------
* From May 1, 1998 (commencement of operations).
See accompanying notes.
83
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONTINUED)
YEARS AND PERIODS ENDED JUNE 30,
<TABLE>
<CAPTION>
MANAGED SUBACCOUNT
-------------------------------------------
2000 1999
1998
------------- --------------
-------------
<S> <C> <C> <C>
Increase (decrease) in net assets from
operations:
Net investment income. . . . . . . . . . $ 4,720,918 $ 35,784,797 $
40,119,710
Net realized gains (losses). . . . . . . 5,688,842 23,586,754
5,216,094
Net unrealized appreciation
(depreciation) during the period. . . . (7,431,057) (25,338,032)
28,230,322
------------ -------------
------------
Net increase in net assets resulting from
operations . . . . . . . . . . . . . . . 2,978,703 34,033,519
73,566,126
From policyholder transactions:
Net premiums from policyholders. . . . . 23,285,933 54,900,113
67,707,213
Net benefits to policyholders. . . . . . (44,622,147) (141,629,545)
(60,791,416)
------------ -------------
------------
Net increase (decrease) in net assets
resulting from policyholder transactions (21,336,214) (86,729,432)
6,915,797
------------ -------------
------------
Net increase (decrease) in net assets . . (18,357,511) (52,695,913)
80,481,923
Net assets at beginning of period . . . . 398,051,112 450,747,025
370,265,102
------------ -------------
------------
Net assets at end of period . . . . . . . $379,693,601 $ 398,051,112
$450,747,025
============ =============
============
<CAPTION>
SHORT-TERM BOND SUBACCOUNT
---------------------------------------
2000 1999 1998
------------ ------------
--------------
<S> <C> <C> <C>
Increase (decrease) in net assets from
operations:
Net investment income. . . . . . . . . . $ 136,270 $ 294,264 $
290,432
Net realized gains (losses). . . . . . . (18,255) (61,939)
13,933
Net unrealized appreciation
(depreciation) during the period. . . . 8,831 (116,293)
(45,745)
----------- -----------
-----------
Net increase in net assets resulting from 126,846 116,032
258,620
operations . . . . . . . . . . . . . . .
From policyholder transactions:
Net premiums from policyholders. . . . . 440,916 (2,276,021)
3,006,339
Net benefits to policyholders. . . . . . (497,139) 3,751,891)
(1,696,858)
----------- -----------
-----------
Net increase (decrease) in net assets
resulting from policyholder transactions (56,223) (1,475,870)
1,309,481
----------- -----------
-----------
Net increase (decrease) in net assets . . 70,623 (1,359,838)
1,568,101
Net assets at beginning of period . . . . 4,686,254 6,046,092
4,477,991
----------- -----------
-----------
Net assets at end of period . . . . . . . $ 4,756,877 $ 4,686,254 $
6,046,092
=========== ===========
===========
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL
OPPORTUNITIES
SMALL CAP VALUE SUBACCOUNT
SUBACCOUNT
---------------------------------------
----------------------------------------
2000 1999 1998
2000 1999 1998
------------ ------------
------------ ------------ ------------- --------------
<S> <C> <C> <C>
<C> <C> <C>
Increase (decrease) in net assets from
operations:
Net investment income $ 52,781 $ 182,176 $ 2,359
$ 9,984 $ 716,272 $ 21,597
Net realized gains (losses) (578,291) (497,642) 254,157
256,074 1,471,214 196,024
Net unrealized appreciation
(depreciation) during the period 550,858 (88,006)
(813,644) (823,276) 1,149,372 1,366,734
----------- ----------- -----------
----------- ------------ -----------
Net increase (decrease) in net assets
resulting from operations 25,348 (403,472)
(557,128) (557,218) 3,336,858 1,584,355
From policyholder transactions:
Net premiums from policyholders 1,903,162 4,969,799 7,056,455
3,697,470 3,603,306 11,422,860
Net benefits to policyholders (3,592,944) (4,194,616)
(3,706,669) (1,991,966) (12,969,789) (2,428,740)
----------- ----------- -----------
----------- ------------ -----------
Net increase (decrease) in net assets
resulting from policyholder
transactions. . (1,689,782) 775,183 3,349,786
1,705,504 (9,366,483) 8,994,120
----------- ----------- -----------
----------- ------------ -----------
Net increase (decrease) in net assets (1,664,434) 371,711 2,792,658
1,148,286 (6,029,625) 10,578,475
Net assets at beginning of period 10,245,510 9,873,799 7,081,141
11,058,874 17,088,499 6,510,024
----------- ----------- -----------
----------- ------------ -----------
Net assets at end of period $ 8,581,076 $10,245,510 $ 9,873,799
$12,207,160 $ 11,058,874 $17,088,499
=========== =========== ===========
=========== ============ ===========
</TABLE>
See accompanying notes.
84
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONTINUED)
YEARS AND PERIODS ENDED JUNE 30,
<TABLE>
<CAPTION>
EQUITY INDEX SUBACCOUNT
HIGH YIELD BOND SUBACCOUNT
----------------------------------------
-------------------------------------
2000 1999
1998 2000 1999 1998*
------------ -------------
------------ ------------ ----------- -------------
<S> <C> <C> <C>
<C> <C> <C>
Increase (decrease) in net assets from
operations:
Net investment income. . . . . . . . . . . . $ 113,518 $ 1,615,313 $
592,136 $ 11,200 $ 7,149 $ 11
Net realized gains (losses). . . . . . . . . 1,127,564 1,761,823
997,526 (2,247) (4,898) --
Net unrealized appreciation (depreciation)
during the period . . . . . . . . . . . . . (1,595,315) 3,255,121
2,882,597 (14,382) (611) (9)
----------- ------------
----------- ----------- ---------- ----------
Net increase (decrease) in net assets
resulting from operations. . . . . . . . . . (354,233) 6,632,257
4,472,259 (5,429) 1,640 2
From policyholder transactions:
Net premiums from policyholders. . . . . . . 8,643,740 21,134,600
18,349,859 240,481 270,875 1,791
Net benefits to policyholders. . . . . . . . (7,395,787) (10,605,541)
(6,452,625) (85,097) (112,214) (28)
----------- ------------
----------- ----------- ---------- ----------
Net increase in net assets resulting from
policyholder transactions. . . . . . . . . . 1,247,953 10,529,059
11,897,234 155,384 158,661 1,763
----------- ------------
----------- ----------- ---------- ----------
Net increase in net assets. . . . . . . . . . 893,720 17,161,316
16,369,493 149,955 160,301 1,765
Net assets at beginning of period . . . . . . 43,960,885 26,799,569
10,430,076 162,066 1,765 --
----------- ------------
----------- ----------- ---------- ----------
Net assets at end of period . . . . . . . . . $44,854,605 $ 43,960,885
$26,799,569 $ 312,021 $ 162,066 $ 1,765
=========== ============
=========== =========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
GLOBAL BOND SUBACCOUNT
--------------------------------------
2000 1999
1998
------------ ------------
-----------
<S> <C> <C>
<C>
Increase (decrease) in net assets from
operations:
Net investment income $ 135,440 $ 363,760 $
193,696
Net realized gains (losses) (42,183) 959
25,425
Net unrealized appreciation (depreciation)
during the period. 184,230 (578,510)
91,397
----------- -----------
----------
Net increase (decrease) in net assets resulting
from operations. . 277,487 (213,791)
310,518
From policyholder transactions:
Net premiums from policyholders 1,432,397 6,601,235
2,562,718
Net benefits to policyholders (976,067) (1,575,307)
(892,634)
----------- -----------
----------
Net increase (decrease) in net assets resulting
from policyholder transactions 456,330 5,025,928
1,670,084
----------- -----------
----------
Net increase (decrease) in net assets 733,817 4,812,137
1,980,602
Net assets at beginning of period 9,420,547 4,608,410
2,627,808
----------- -----------
----------
Net assets at end of period $10,154,364 $ 9,420,547
$4,608,410
=========== ===========
==========
<CAPTION>
TURNER CORE GROWTH
SUBACCOUNT
--------------------------------------
2000 1999
1998
------------ ------------
-------------
<S> <C> <C>
<C>
Increase (decrease) in net assets from
operations:
Net investment income $ 17,221 $ 228,143 $
44,428
Net realized gains (losses) 331,118 411,650
38,125
Net unrealized appreciation (depreciation)
during the period. (219,831) 25,769
318,448
----------- -----------
----------
Net increase (decrease) in net assets resulting 128,508 665,562
401,001
from operations. .
From policyholder transactions:
Net premiums from policyholders 364,158 1,780,115
2,940,093
Net benefits to policyholders (1,200,463) (2,330,735)
(811,472)
----------- -----------
----------
Net increase (decrease) in net assets resulting
from policyholder transactions (836,305) (550,620)
2,128,621
----------- -----------
----------
Net increase (decrease) in net assets (707,797) 114,942
2,529,622
Net assets at beginning of period 2,889,399 2,774,457
244,835
----------- -----------
----------
Net assets at end of period $ 2,181,602 $ 2,889,399
$2,774,457
=========== ===========
==========
</TABLE>
---------
* From May 1, 1998 (commencement of operations).
See accompanying notes.
85
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENTS OF CHANGES IN NET ASSETS (UNAUDITED) (CONTINUED)
YEARS AND PERIODS ENDED JUNE 30,
<TABLE>
<CAPTION>
BRANDES INTERNATIONAL EQUITY
FRONTIER CAPITAL APPRECIATION
SUBACCOUNT
SUBACCOUNT
--------------------------------------
---------------------------------------
2000 1999
1998 2000 1999 1998
------------ ------------
----------- ------------ ------------ --------------
<S> <C> <C> <C>
<C> <C> <C>
Increase (decrease) in net assets from
operations:
Net investment income (loss) . . . . . . . $ 134,768 $ 364,838 $
69,983 $ 352,779 $ 307,548 $ (9,118)
Net realized gains . . . . . . . . . . . . 33,908 40,298
8,487 206,679 161,229 89,974
Net unrealized appreciation (depreciation)
during the period . . . . . . . . . . . . 401,022 1,857,041
101,256 1,264,109 3,089,604 524,011
----------- -----------
---------- ----------- ----------- -----------
Net increase in net assets resulting from
operations . . . . . . . . . . . . . . . . 569,698 2,262,177
179,726 1,823,567 3,558,381 604,867
From policyholder transactions:
Net premiums from policyholders. . . . . . 958,527 8,879,281
457,392 951,733 3,638,304 5,165,104
Net benefits to policyholders. . . . . . . (82,150) (92,663)
(76,919) (694,921) (1,766,348) (1,076,779)
----------- -----------
---------- ----------- ----------- -----------
Net increase in net assets resulting from
policyholder transactions. . . . . . . . . 876,377 8,786,618
380,473 256,812 1,871,956 4,088,325
----------- -----------
---------- ----------- ----------- -----------
Net increase in net assets. . . . . . . . . 1,446,075 11,048,795
560,199 2,080,379 5,430,337 4,693,192
Net assets at beginning of period . . . . . 12,403,863 1,355,068
794,869 2,660,131 7,229,794 2,536,602
----------- -----------
---------- ----------- ----------- -----------
Net assets at end of period . . . . . . . . $13,849,938 $12,403,863
$1,355,068 $14,740,510 $12,660,131 $ 7,229,794
=========== ===========
========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
ENHANCED U.S. EQUITY
SUBACCOUNT
----------------------
2000 1999**
---------- ------------
<S> <C> <C>
Increase (decrease) in net assets from operations:
Net investment income (loss). . . . . . . . . . . . $ 5,516 $ (22)
Net realized gains (losses) . . . . . . . . . . . . 6 (746)
Net unrealized appreciation (depreciation) during
the period . . . . . . . . . . . . . . . . . . . . (11,845) --
-------- --------
Net increase (decrease) in net assets resulting from
operations. . . . . . . . . . . . . . . . . . . . . (6,323) (768)
From policyholder transactions:
Net premiums from policyholders . . . . . . . . . . 231,150 19,988
Net benefits to policyholders . . . . . . . . . . . (1,518) (19,220)
-------- --------
Net increase in net assets resulting from
policyholder transactions . . . . . . . . . . . . . 229,632 768
-------- --------
Net increase in net assets . . . . . . . . . . . . . 223,309 --
Net assets at beginning of period. . . . . . . . . . -- --
-------- --------
Net assets at end of period. . . . . . . . . . . . . $223,309 $ --
======== ========
</TABLE>
---------
** From August 18, 1999 (commencement of operations).
See accompanying notes.
86
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
YEARS AND PERIODS ENDED JUNE 30, 2000
1. ORGANIZATION
John Hancock Variable Life Account V (the Account) is a separate investment
account of John Hancock Variable Life Insurance Company (JHVLICO), a
wholly-owned subsidiary of John Hancock Life Insurance Company (John Hancock).
The Account was formed to fund variable life insurance policies (Policies)
issued by JHVLICO. The Account is operated as a unit investment trust registered
under the Investment Company Act of 1940, as amended, and currently consists of
twenty-seven subaccounts. The assets of each subaccount are invested exclusively
in shares of a corresponding Portfolio of John Hancock Variable Series Trust I
(the Fund) or of M Fund Inc. (M Fund). New subaccounts may be added as new
portfolios are added to the Fund or to M Fund, or as other investment options
are developed and made available to policyholders. The twenty-seven Portfolios
of the Fund and M Fund which are currently available are the Large Cap Growth,
Active Bond (formerly, Sovereign Bond), Emerging Markets Equity, International
Equity Index, International Opportunities II (formerly, Global Equity), Small
Cap Growth, Global Balanced (formerly, International Balanced), Mid Cap Growth,
Large Cap Value, Money Market, Mid Cap Value, Small/Mid Cap Growth (formerly,
Diversified Mid Cap Growth), Bond Index, Small/Mid Cap CORE, Real Estate Equity,
Growth & Income, Managed, Short-Term Bond, Small Cap Value, International
Opportunities, Equity Index, High Yield Bond, Global Bond (formerly, Strategic
Bond), Turner Core Growth, Brandes International Equity, Frontier Capital
Appreciation and Clifton Enhanced U.S. Equity (formerly, Enhanced U.S. Equity)
Portfolios. Each Portfolio has a different investment objective.
The net assets of the Account may not be less than the amount required under
state insurance law to provide for death benefits (without regard to the minimum
death benefit guarantee) and other policy benefits. Additional assets are held
in JHVLICO's general account to cover the contingency that the guaranteed
minimum death benefit might exceed the death benefit which would have been
payable in the absence of such guarantee.
The assets of the Account are the property of JHVLICO. The portion of the
Account's assets applicable to the policies may not be charged with liabilities
arising out of any other business JHVLICO may conduct.
2. SIGNIFICANT ACCOUNTING POLICIES
Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
Valuation of Investments
Investment in shares of the Fund and of M Fund are valued at the reported net
asset values of the respective Portfolios. Investment transactions are recorded
on the trade date. Dividend income is recognized on the ex-dividend date.
Realized gains and losses on sales of underlying Portfolio shares are determined
on the basis of identified cost.
Federal Income Taxes
The operations of the Account are included in the federal income tax return of
JHVLICO, which is taxed as a life insurance company under the Internal Revenue
Code. JHVLICO has the right to charge the Account any federal income taxes, or
provision for federal income taxes, attributable to the operations of the
Account or to the policies funded in the Account. Currently, JHVLICO does not
make a charge for income or other taxes. Charges for state and local taxes, if
any, attributable to the Account may also be made.
87
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
2. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Expenses
JHVLICO assumes mortality and expense risks of the variable life insurance
policies for which asset charges are deducted at an annual rate of .60% of net
assets of the Account. In addition, a monthly charge at varying levels for the
cost of insurance is deducted from the net assets of the Account.
JHVLICO makes certain deductions for administrative expenses and state premium
taxes from premium payments before amounts are transferred to the Account.
3. TRANSACTIONS WITH AFFILIATES
John Hancock acts as the distributor, principal underwriter and investment
advisor for the Fund.
Certain officers of the Account are officers and directors of JHVLICO, the
Fund or John Hancock.
88
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. DETAILS OF INVESTMENTS
The details of the shares owned and cost and value of investments in the
Portfolios of the Fund and of M Fund at June 30, 2000 were as follows:
<TABLE>
<CAPTION>
PORTFOLIO SHARES OWNED COST VALUE
--------- ------------ ------------ --------------
<S> <C> <C> <C>
Large Cap Growth . . . . . . 11,650,301 $225,511,149 $336,227,905
Active Bond. . . . . . . . . 9,733,816 93,656,584 88,977,102
Emerging Markets Equity. . . 505,572 5,914,430 5,772,343
International Equity Index . 2,958,476 48,637,779 54,712,702
International
Opportunities II. . . . . . 47,189 555,227 566,698
Small Cap Growth . . . . . . 1,985,623 31,970,251 40,041,880
Global Balanced. . . . . . . 157,373 1,683,264 1,588,297
Mid Cap Growth . . . . . . . 2,817,908 64,188,074 78,949,236
Large Cap Value. . . . . . . 1,260,150 17,417,001 16,422,014
Money Market . . . . . . . . 2,463,938 24,652,287 24,639,380
Mid Cap Value. . . . . . . . 1,135,322 16,038,831 15,302,306
Small/Mid Cap Growth . . . . 3,282,440 49,855,552 50,010,562
Bond Index . . . . . . . . . 252,399 2,447,725 2,360,093
Small/Mid Cap Core . . . . . 86,550 931,207 890,527
Real Estate Equity . . . . . 2,814,515 36,659,701 35,684,888
Growth & Income. . . . . . . 30,549,998 492,252,316 605,569,894
Managed. . . . . . . . . . . 24,603,525 334,684,509 378,800,651
Short-Term
U.S Government. . . . . . . 487,802 4,963,847 4,732,489
Small Cap Value. . . . . . . 782,639 9,424,146 8,570,347
International Opportunities. 839,237 9,224,401 12,197,572
Equity Index . . . . . . . . 2,214,598 37,518,440 44,827,028
High Yield Bond. . . . . . . 36,682 331,926 309,907
Global Bond. . . . . . . . . 1,014,262 10,451,029 10,110,869
Turner Core Growth . . . . . 91,512 2,446,933 2,181,637
Brandes International Equity 867,805 10,471,285 13,850,163
Frontier Capital Appreciation 622,235 9,063,580 14,740,753
Clifton Enhanced US Equity
Fund. . . . . . . . . . . . 11,222 752 223,313
</TABLE>
89
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
4. DETAILS OF INVESTMENTS (CONTINUED)
Purchases, including reinvestment of dividend distributions and proceeds from
sales of shares in the Portfolios of the Fund and of M Fund during 1999, were as
follows:
<TABLE>
<CAPTION>
PORTFOLIO PURCHASES SALES
--------- ----------- -------------
<S> <C> <C>
Large Cap Growth. . . . . . . . . . . $17,582,052 $21,109,894
Active Bond . . . . . . . . . . . . . 25,115,687 18,854,356
Emerging Markets Equity . . . . . . . 4,987,564 1,134,184
International Equity Index. . . . . . 3,293,637 4,440,404
International Opportunities II. . . . 402,327 106,972
Small Cap Growth. . . . . . . . . . . 15,476,804 2,865,569
Global Balanced . . . . . . . . . . . 141,759 209,848
Mid Cap Growth. . . . . . . . . . . . 28,814,605 3,293,926
Large Cap Value . . . . . . . . . . . 2,006,203 1,090,630
Money Market. . . . . . . . . . . . . 25,897,480 33,893,207
Mid Cap Value . . . . . . . . . . . . 2,124,530 2,321,319
Small/Mid Cap Growth. . . . . . . . . 3,823,390 4,451,307
Bond Index. . . . . . . . . . . . . . 378,313 230,921
Small/Mid Cap Core. . . . . . . . . . 1,898,782 1,137,340
Real Estate Equity. . . . . . . . . . 4,161,005 2,869,688
Growth & Income . . . . . . . . . . . 21,723,940 43,224,164
Managed . . . . . . . . . . . . . . . 15,063,453 31,672,551
Short-Term U.S Government . . . . . . 469,322 389,207
Small Cap Value . . . . . . . . . . . 1,245,459 2,882,317
International Opportunities . . . . . 3,034,462 1,318,775
Equity Index. . . . . . . . . . . . . 5,270,077 3,907,877
High Yield Bond . . . . . . . . . . . 239,609 73,020
Global Bond . . . . . . . . . . . . . 1,403,751 811,813
Turner Core Growth. . . . . . . . . . 0 0
Brandes International Equity. . . . . 0 0
Frontier Capital Appreciation . . . . 0 0
Clifton Enhanced US Equity Fund . . . 0 0
</TABLE>
90
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
5. NET ASSETS
Accumulation shares attributable to net assets of contractowners and
accumulation shares values for each subaccount at June 30, 2000 were as follows:
<TABLE>
<CAPTION>
FLEX V CLASS #1 FLEX V ENHANCED CLASS #2
CLASS 98 (COMPANY CLASS)
--------------------- -------------------------
-------------------------
ACCUMULATION SHARES ACCUMULATION SHARES
ACCUMULATION SHARES
PORTFOLIO SHARES VALUE SHARES VALUE
SHARES VALUE
--------- ------------ ------- -------------- ---------
--------------- -----------
<S> <C> <C> <C> <C>
<C> <C>
Large Cap Growth. . . . . . . 3,036,338 83.98 967,072 83.98
Active Bond . . . . . . . . . 2,769,597 24.41 896,669 24.41
Emerging Markets Equity . . . 37,478 11.88 114,155 11.88
International Equity Index. . 1,517,370 26.08 530,190 26.08
50,131 28.05
International Opportunities II 31,418 12.21 15,037 12.21
Small Cap Growth. . . . . . . 1,097,156 22.82 657,435 22.82
Global Balanced . . . . . . . 68,872 12.67 56,765 12.67
Mid Cap Growth. . . . . . . . 1,529,749 34.02 791,314 34.02
Large Cap Value . . . . . . . 570,575 15.74 473,886 15.74
Money Market. . . . . . . . . 999,407 18.58 327,476 18.58
Mid Cap Value . . . . . . . . 402,696 14.82 630,215 14.82
Small/Mid Cap Growth. . . . . 1,032,939 21.43 1,248,704 21.43
50,000 22.23
Bond Index. . . . . . . . . . 36,018 10.72 185,421 10.72
Small/Mid Cap CORE. . . . . . 65,148 11.27 14,004 11.27
Real Estate Equity. . . . . . 1,088,958 25.09 279,388 25.09
50,242 26.97
Growth & Income . . . . . . . 6,705,013 67.63 2,255,017 67.63
Managed . . . . . . . . . . . 7,956,862 40.02 1,532,406 40.02
Short-Term Bond . . . . . . . 160,681 13.34 144,056 13.34
50,000 13.84
Small Cap Value . . . . . . . 354,242 12.43 336,368 12.43
International Opportunities . 484,593 15.85 285,567 15.85
Equity Index. . . . . . . . . 922,529 22.90 1,036,392 22.90
High Yield Bond . . . . . . . 21,720 9.88 9,870 9.88
Global Bond . . . . . . . . . 418,696 12.51 392,843 12.51
Turner Core Growth. . . . . . 10,621 27.61 68,392 27.61
Brandes International Equity. 443,945 17.80 334,070 17.80
Frontier Capital Appreciation 328,086 24.26 281,064 24.26
Clifton Enhanced U.S. Equity. 17,350 12.87 0 12.87
</TABLE>
91
<PAGE>
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
To the Policyholders of
John Hancock Variable Life Account V of John Hancock Variable Life Insurance
Company
We have audited the accompanying statement of assets and liabilities of John
Hancock Variable Life Account V (the Account) (comprising, respectively, the
Large Cap Growth, Sovereign Bond, Emerging Markets Equity, International Equity
Index, Global Equity, Small Cap Growth, International Balanced, Mid Cap Growth,
Large Cap Value, Money Market, Mid Cap Value, Small/Mid Cap Growth (formerly,
Diversified Mid Cap Growth), Bond Index, Small/Mid Cap CORE, Real Estate Equity,
Growth & Income, Managed, Short-Term Bond, Small Cap Value, International
Opportunities, Equity Index, High Yield Bond, Global Bond (formerly Strategic
Bond), Turner Core Growth, Brandes International Equity, Frontier Capital
Appreciation and Enhanced U.S. Equity Subaccounts) as of December 31, 1999, and
the related statements of operations and changes in net assets for each of the
periods indicated therein. These financial statements are the responsibility of
the Account's management. Our responsibility is to express an opinion on these
financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally
accepted in the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of each of the respective
subaccounts constituting John Hancock Variable Life Account V at December 31,
1999, the results of their operations and the changes in their net assets for
each of the periods indicated, in conformity with accounting principles
generally accepted in the United States.
ERNST & YOUNG LLP
Boston, Massachusetts
February 11, 2000
92
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENT OF ASSETS AND LIABILITIES
DECEMBER 31, 1999
<TABLE>
<CAPTION>
LARGE CAP
SOVEREIGN EMERGING INTERNATIONAL GLOBAL
GROWTH
BOND MARKETS EQUITY EQUITY INDEX EQUITY
SUBACCOUNT
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
-------------------------------------
----------- -------------- ------------- -------------
<S> <C> <C>
<C> <C> <C>
ASSETS
Cash . . . . . . . . . . . . . . $ 36,967 $
9,527 $ 374 $ 6,467 $ 27
Investment in shares of
portfolios of John Hancock
Variable Series Trust I, at
value . . . . . . . . . . . . . 322,184,787
83,089,685 2,557,550 59,369,203 277,111
Investments in shares of
portfolios of M Fund Inc., at
value . . . . . . . . . . . . . --
-- -- -- --
Receivable from:
John Hancock Variable Series
Trust I . . . . . . . . . . . 89,607
198,769 4,655 84,008 4,935
M Fund Inc. . . . . . . . . . . --
-- -- -- --
-------------------------------------
----------- ----------- ----------- -----------
Total assets . . . . . . . . . . 322,311,361
83,297,981 2,562,579 59,459,678 282,073
LIABILITIES
Payable to:
John Hancock Variable Life
Insurance
Company . . . . . . . . . . . 84,323
197,403 4,614 83,060 4,931
M Fund Inc. . . . . . . . . . . --
-- -- -- --
Asset charges payable . . . . . 42,251
10,893 416 7,414 32
-------------------------------------
----------- ----------- ----------- -----------
Total liabilities . . . . . . . 126,574
208,296 5,030 90,474 4,953
-------------------------------------
----------- ----------- ----------- -----------
Net assets . . . . . . . . . . . $322,184,787
$83,089,685 $ 2,557,549 $59,369,204 $ 277,110
=====================================
=========== =========== =========== ===========
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP INTERNATIONAL MID CAP LARGE CAP
MONEY
GROWTH BALANCED GROWTH VALUE
MARKET
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
SUBACCOUNT
----------- ------------- ----------- -----------
-------------
<S> <C> <C> <C> <C>
<C>
ASSETS
Cash . . . . . . . . $ 3,073 $ 201 $ 6,640 $ 1,822 $
1,844
Investment in shares
of portfolios of John
Hancock Variable
Series Trust I, at
value. . . . . . . . 27,413,036 1,759,141 58,721,139 16,085,160
32,648,013
Investments in shares
of portfolios of M
Fund Inc., at value -- -- -- --
--
Receivable from:
John Hancock Variable
Series Trust I . . 61,325 377 88,012 2,402
355,772
M Fund Inc. . . . . -- -- -- --
--
----------- ---------- ----------- -----------
-----------
Total assets . . . . 27,477,434 1,759,719 58,815,791 16,089,384
33,005,629
LIABILITIES
Payable to:
John Hancock Variable
Life Insurance
Company . . . . . . 60,884 349 87,054 2,139
355,241
M Fund Inc. . . . . -- -- -- --
--
Asset charges payable 3,515 230 7,598 2,085
2,374
----------- ---------- ----------- -----------
-----------
Total liabilities . . 64,399 579 94,652 4,224
357,615
----------- ---------- ----------- -----------
-----------
Net assets . . . . . $27,413,035 $1,759,140 $58,721,139 $16,085,160
$32,648,014
=========== ========== =========== ===========
===========
</TABLE>
See accompanying notes.
93
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
SMALL/MID CAP BOND
SMALL/
MID CAP VALUE GROWTH INDEX
MID CAP CORE
SUBACCOUNT SUBACCOUNT SUBACCOUNT
SUBACCOUNT
------------- -------------
----------------------------- ---------------------------------------
<S> <C> <C> <C>
<C>
ASSETS
Cash . . . . . . . . $ 1,628 $ 5,084 $
244 $ 22
Investment in shares
of portfolios of John
Hancock Variable
Series Trust I, at
value. . . . . . . . 14,746,878 46,780,938
2,217,155 199,539
Investments in shares
of portfolios of M
Fund Inc., at value -- --
-- --
Receivable from:
John Hancock Variable
Series Trust I . . 1,739 15,602
37 3
M Fund Inc. . . . . -- --
-- --
------------ ------------
----------------------------- ---------------------------------------
Total assets . . . . 14,750,245 46,801,624
2,217,436 199,564
LIABILITIES
Payable to:
John Hancock Variable
Life Insurance
Company . . . . . . 1,499 14,855
-- --
M Fund Inc. . . . . -- --
-- --
Asset charges payable 1,868 5,830
281 25
------------ ------------
----------------------------- ---------------------------------------
Total liabilities . . 3,367 20,685
281 25
------------ ------------
----------------------------- ---------------------------------------
Net assets . . . . . $ 14,746,878 $ 46,780,939
$2,217,155 $ 199,539
============ ============
============================= =======================================
<CAPTION>
REAL ESTATE EQUITY
SUBACCOUNT
--------------------
<S> <C>
ASSETS
Cash . . . . . . . . $ 3,368
Investment in shares 31,195,285
of portfolios of John
Hancock Variable
Series Trust I, at
value. . . . . . . .
Investments in shares --
of portfolios of M
Fund Inc., at value
Receivable from:
John Hancock Variable 2,821
Series Trust I . .
M Fund Inc. . . . . --
-----------
Total assets . . . . 31,201,474
LIABILITIES
Payable to:
John Hancock Variable 2,330
Life Insurance
Company . . . . . .
M Fund Inc. . . . . --
Asset charges payable 3,858
-----------
Total liabilities . . 6,188
-----------
Net assets . . . . . $31,195,286
===========
</TABLE>
<TABLE>
<CAPTION>
GROWTH & SHORT-TERM SMALL CAP
INTERNATIONAL
INCOME MANAGED BOND VALUE
OPPORTUNITIES
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
SUBACCOUNT
------------ ------------ ---------- -----------
---------------
<S> <C> <C> <C> <C> <C>
ASSETS
Cash . . . . . . . . $ 72,466 $ 45,649 $ 455 $ 1,145 $
1,233
Investment in shares
of portfolios of John
Hancock Variable
Series Trust I, at
value. . . . . . . . 634,182,356 398,051,112 4,686,254 10,245,510
11,058,874
Investments in shares
of portfolios of M
Fund Inc., at value -- -- -- --
--
Receivable from:
John Hancock Variable
Series Trust I . . 392,892 70,254 1,323 8,615
6,012
M Fund Inc. . . . . -- -- -- --
--
------------ ------------ ---------- -----------
-----------
Total assets . . . . 634,647,714 398,167,015 4,688,032 10,255,270
11,066,119
LIABILITIES
Payable to:
John Hancock Variable
Life Insurance
Company . . . . . . 382,510 63,721 1,257 8,449
5,831
M Fund Inc. . . . . -- -- -- --
--
Asset charges payable 82,847 52,182 521 1,311
1,414
------------ ------------ ---------- -----------
-----------
Total liabilities . . 465,357 115,903 1,778 9,760
7,245
------------ ------------ ---------- -----------
-----------
Net assets . . . . . $634,182,357 $398,051,112 $4,686,254 $10,245,510
$11,058,874
============ ============ ========== ===========
===========
</TABLE>
See accompanying notes.
94
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENT OF ASSETS AND LIABILITIES (CONTINUED)
DECEMBER 31, 1999
<TABLE>
<CAPTION>
TURNER
EQUITY HIGH YIELD CORE
INDEX BOND GLOBAL BOND GROWTH
SUBACCOUNT SUBACCOUNT SUBACCOUNT SUBACCOUNT
----------- ---------- ----------- ------------
<S> <C> <C> <C> <C>
ASSETS
Cash . . . . . . . . . . . $ 4,889 $ 19 $ 971 $ 281
Investment in shares of
portfolios of John Hancock
Variable Series Trust I,
at value . . . . . . . . 43,960,886 162,066 9,420,547 --
Investments in shares of
portfolios of M Fund Inc.,
at value . . . . . . . . -- -- -- 2,889,399
Receivable from:
John Hancock Variable
Series Trust I . . . . . 37,505 5 6,650 --
M Fund Inc. . . . . . . . -- -- -- 47
----------- -------- ---------- ----------
Total assets . . . . . . . 44,003,280 162,090 9,428,168 2,889,727
LIABILITIES
Payable to:
John Hancock Variable Life
Insurance Company . . . 36,785 3 6,494 --
M Fund Inc. . . . . . . . -- -- -- --
Asset charges payable . . 5,610 21 1,27 328
----------- -------- ---------- ----------
Total liabilities . . . . 43,295 24 7,621 328
----------- -------- ---------- ----------
Net assets . . . . . . . . $43,960,885 $162,066 $9,420,547 $2,889,399
=========== ======== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
BRANDES FRONTIER
INTERNATIONAL CAPITAL ENHANCED
EQUITY APPRECIATION U.S. EQUITY
SUBACCOUNT SUBACCOUNT SUBACCOUNT
------------- ------------ -------------
---------------
<S> <C> <C> <C>
ASSETS
Cash . . . . . . . . . . . . . . . $ 1,358 $ 1,323 $--
Investment in shares of portfolios
of John Hancock Variable Series
Trust I, at value . . . . . . . . -- -- --
Investments in shares of portfolios
of M Fund Inc., at value . . . . 12,403,863 12,660,131 --
Receivable from:
John Hancock Variable Series Trust
I. . . . . . . . . . . . . . . . -- -- --
M Fund Inc. . . . . . . . . . . . 10,825 7,392 --
----------- ----------- ---
Total assets . . . . . . . . . . . 12,416,046 12,668,846 --
LIABILITIES
Payable to:
John Hancock Variable Life
Insurance Company . . . . . . . 10,622 7,188 --
M Fund Inc. . . . . . . . . . . . -- -- --
Asset charges payable . . . . . . 1,561 1,527 --
----------- ----------- ---
Total liabilities . . . . . . . . 12,183 8,715 --
----------- ----------- ---
Net assets . . . . . . . . . . . . $12,403,863 $12,660,131 $--
=========== =========== ===
</TABLE>
See accompanying notes.
95
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENT OF OPERATIONS
YEARS AND PERIODS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
LARGE CAP GROWTH
SUBACCOUNT SOVEREIGN BOND SUBACCOUNT
---------------------------------------
-------------------------------------
1999 1998
1997 1999 1998 1997
------------- -----------
----------- ------------ ----------- -------------
<S> <C> <C>
<C> <C> <C> <C>
Investment income:
Distributions received from:
John Hancock Variable Series Trust I . . . . . $ 49,742,797 $31,074,914
$19,906,569 $ 6,229,567 $6,701,784 $5,517,405
M Fund Inc. . . . . . . . . . . . . . . . . . -- --
-- -- -- --
------------ -----------
----------- ----------- ---------- ----------
Total investment income . . . . . . . . . . . . 49,742,797 31,074,914
19,906,569 6,229,567 6,701,784 5,517,405
Expenses:
Mortality and expense risks . . . . . . . . . 1,809,412 1,577,321
1,152,388 503,363 486,757 417,812
------------ -----------
----------- ----------- ---------- ----------
Net investment income . . . . . . . . . . . . . 47,933,385 29,497,593
18,754,181 5,726,204 6,215,027 5,099,593
Net realized and unrealized gain (loss) on
investments:
Net realized gain (loss) . . . . . . . . . . . 37,974,300 7,477,359
5,377,678 137,370 125,377 (316,608)
Net unrealized appreciation (depreciation)
during
the period . . . . . . . . . . . . . . . . . (20,089,860) 50,180,004
24,886,516 (7,170,609) (432,666) 1,592,275
------------ -----------
----------- ----------- ---------- ----------
Net realized and unrealized gain (loss) on
investments. . . . . . . . . . . . . . . . . . 17,884,440 57,657,363
30,264,194 (7,033,239) (307,289) 1,275,667
------------ -----------
----------- ----------- ---------- ----------
Net increase (decrease) in net assets resulting
from operations . . . . . . . . . . . . . . . $ 65,817,825 $87,154,956
$49,018,375 $(1,307,035) $5,907,738 $6,375,260
============ ===========
=========== =========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
EMERGING MARKETS EQUITY SUBACCOUNT INTERNATIONAL
EQUITY INDEX SUBACCOUNT
-----------------------------------
--------------------------------------
1999 1998* 1999
1998 1997
----------------- ---------------- ------------
----------- ---------------
<S> <C> <C> <C> <C>
<C>
Investment income:
Distributions received
from:
John Hancock Variable
Series Trust I . . $121,921 $ 1 $ 1,867,788
$6,864,977 $ 2,032,258
M Fund Inc. . . . . -- -- --
-- --
-------- --- -----------
---------- -----------
Total investment
income . . . . . . . 121,921 1 1,867,788
6,864,977 2,032,258
Expenses:
Mortality and expense
risks . . . . . . . 4,687 -- 280,522
258,595 249,823
-------- --- -----------
---------- -----------
Net investment income 117,234 1 1,587,266
6,606,382 1,782,435
Net realized and
unrealized gain
(loss) on
investments:
Net realized gain
(loss). . . . . . . 288,630 (1) 423,295
1,270,070 958,182
Net unrealized
appreciation
(depreciation)
during the period . 475,390 (4) 11,546,984
23,662 (4,981,747)
-------- --- -----------
---------- -----------
Net realized and
unrealized gain
(loss) on investments 764,020 (5) 11,970,279
1,293,732 (4,023,565)
-------- --- -----------
---------- -----------
Net increase
(decrease) in net
assets resulting from
operations . . . . . $881,254 $(4) $13,557,545
$7,900,114 $(2,241,130)
======== === ===========
========== ===========
</TABLE>
---------
* From May 1, 1998 (commencement of operations).
See accompanying notes.
96
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENT OF OPERATIONS (CONTINUED)
YEARS AND PERIODS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
GLOBAL EQUITY SUBACCOUNT SMALL CAP GROWTH
SUBACCOUNT
-------------------------
----------------------------------
1999 1998* 1999 1998
1997
------------- ----------- ----------- -----------
-----------
<S> <C> <C> <C> <C>
<C>
Investment income:
Distributions received
from:
John Hancock Variable
Series Trust I . . $ 935 $ 2 $ 3,360,284 $ -- $
3,380
M Fund Inc. . . . . -- -- -- --
--
------- --- ----------- ----------
--------
Total investment
income . . . . . . . 935 2 3,360,284 --
3,380
Expenses:
Mortality and expense
risks . . . . . . . 435 1 97,719 57,076
33,986
------- --- ----------- ----------
--------
Net investment income
(loss) . . . . . . . 500 1 3,262,565 (57,076)
(30,606)
Net realized and
unrealized gain on
investments:
Net realized gain . 1,382 -- 1,209,833 157,975
116,210
Net unrealized
appreciation during
the period . . . . 27,261 69 5,952,186 1,605,647
732,330
------- --- ----------- ----------
--------
Net realized and
unrealized gain on
investments. . . . . 28,643 69 7,162,019 1,763,622
848,540
------- --- ----------- ----------
--------
Net increase in net
assets resulting from
operations . . . . . $29,143 $70 $10,424,584 $1,706,546
$817,934
======= === =========== ==========
========
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL BALANCED SUBACCOUNT MID CAP GROWTH
SUBACCOUNT
----------------------------------
---------------------------------
1999 1998 1997 1999
1998 1997
----------- ---------- ----------- -----------
---------- -----------
<S> <C> <C> <C> <C> <C>
<C>
Investment income:
Distributions received
from:
John Hancock Variable
Series Trust I . . $149,495 $111,976 $ 62,258 $ 5,920,731 $
993,504 $ --
M Fund Inc. . . . . -- -- -- --
-- --
-------- -------- -------- -----------
---------- --------
Total investment
income . . . . . . . 149,495 111,976 62,258 5,920,731
993,504
Expenses:
Mortality and expense
risks . . . . . . . 10,171 8,831 6,972 146,891
42,815 20,278
-------- -------- -------- -----------
---------- --------
Net investment income
(loss) . . . . . . . 139,324 103,145 55,286 5,773,840
950,689 (20,278)
Net realized and
unrealized gain
(loss) on
investments:
Net realized gain
(loss). . . . . . . (975) 20,527 29,092 2,379,524
338,131 64,078
Net unrealized
appreciation
(depreciation)
during the period . (61,234) 108,042 (68,785) 17,416,514
1,477,149 567,677
-------- -------- -------- -----------
---------- --------
Net realized and
unrealized gain
(loss) on investments (62,209) 128,569 (39,693) 19,796,038
1,815,280 631,755
-------- -------- -------- -----------
---------- --------
Net increase in net
assets resulting from
operations . . . . . $ 77,115 $231,714 $ 15,593 $25,569,878
$2,765,969 $611,477
======== ======== ======== ===========
========== ========
</TABLE>
---------
* From May 1, 1998 (commencement of operations).
See accompanying notes.
97
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENT OF OPERATIONS (CONTINUED)
YEARS AND PERIODS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
LARGE CAP VALUE SUBACCOUNT
MONEY MARKET SUBACCOUNT
------------------------------------------------------
------------------------------------------------
1999 1998 1997
1999 1998 1997
---------------------------- ------------ ----------
------------------------ ---------- ------------
<S> <C> <C> <C>
<C> <C> <C>
Investment income:
Distributions received
from:
John Hancock Variable
Series Trust I . . . $ 1,029,319 $ 560,242 $ 259,192
$ 1,253,474 $1,110,309 $ 895,867
M Fund Inc. . . . . . -- -- --
-- -- --
--------------------------- ----------- ----------
------------------------ ---------- ----------
Total investment income 1,029,319 560,242 259,192
1,253,474 1,110,309 895,867
Expenses:
Mortality and expense
risks. . . . . . . . 81,248 54,311 23,604
151,506 125,891 101,168
--------------------------- ----------- ----------
------------------------ ---------- ----------
Net investment income 948,071 505,931 235,588
1,101,968 984,418 794,699
Net realized and
unrealized gain (loss)
on investments:
Net realized gain . . 590,392 364,328 147,209
-- -- --
Net unrealized
appreciation
(depreciation) during
the period . . . . . (1,512,713) (186,805) 547,716
-- -- --
--------------------------- ----------- ----------
------------------------ ---------- ----------
Net realized and
unrealized gain (loss)
on investments . . . (922,321) 177,523 694,925
-- -- --
--------------------------- ----------- ----------
------------------------ ---------- ----------
Net increase in net
assets resulting from
operations. . . . . . $ 25,750 $ 683,454 $ 930,513
$ 1,101,968 $ 984,418 $ 794,699
=========================== =========== ==========
======================== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
MID CAP VALUE SUBACCOUNT
----------------------------------------------------
1999 1998 1997
-------------------------- ------------ ----------
<S> <C> <C> <C>
Investment income:
Distributions received
from:
John Hancock Variable
Series Trust I . . $ 99,940 $ 142,246 $ 972,249
M Fund Inc. . . . . -- --
------------------------- ----------- ----------
Total investment
income . . . . . . . 99,940 142,246 972,249
Expenses:
Mortality and expense
risks . . . . . . . 95,346 95,456 36,967
------------------------- ----------- ----------
Net investment income 4,594 46,790 935,282
Net realized and
unrealized gain
(loss) on
investments:
Net realized gain
(loss). . . . . . . (1,354,334) 470,277 148,954
Net unrealized
appreciation
(depreciation)
during the period . 2,021,700 (2,496,498) 58,693
------------------------- ----------- ----------
Net realized and
unrealized gain
(loss) on investments 667,366 (2,026,221) 207,647
------------------------- ----------- ----------
Net increase
(decrease) in net
assets resulting from
operations . . . . . $ 671,960 $(1,979,431) $1,142,929
========================= =========== ==========
<CAPTION>
SMALL/MID CAP GROWTH SUBACCOUNT
----------------------------------------------------------
1999 1998 1997
--------------------------------- ----------
--------------
<S> <C> <C> <C>
Investment income:
Distributions received
from:
John Hancock Variable $ 7,118,263 $ 863,342 $
5,058,010
Series Trust I . .
M Fund Inc. . . . . -- --
--
-------------------------------- ----------
-----------
Total investment 7,118,263 863,342
5,058,010
income . . . . . . .
Expenses:
Mortality and expense
risks . . . . . . . 264,633 281,235
296,759
-------------------------------- ----------
-----------
Net investment income 6,853,630 582,107
4,761,251
Net realized and
unrealized gain
(loss) on
investments:
Net realized gain 332,328 1,879,057
4,458,015
(loss). . . . . . .
Net unrealized
appreciation (5,168,619) 3,090
(7,254,086)
(depreciation) -------------------------------- ----------
-----------
during the period .
Net realized and
unrealized gain (4,836,291)
(loss) on investments -------------------------------- 1,882,147
(2,796,071)
----------
-----------
Net increase
(decrease) in net $ 2,017,339 $2,464,254 $
1,965,180
assets resulting from ================================ ==========
===========
operations . . . . .
</TABLE>
See accompanying notes.
98
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENT OF OPERATIONS (CONTINUED)
YEARS AND PERIODS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
SMALL/MID CAP CORE
BOND INDEX SUBACCOUNT SUBACCOUNT
----------------------
-------------------------------------
1999 1998* 1999
1998*
----------- --------- -----------------------------
---------
<S> <C> <C> <C>
<C>
Investment income:
Distributions received
from:
John Hancock Variable
Series Trust I . . $ 82,521 $ 62 $ 17,267
$ --
M Fund Inc. . . . . -- -- --
--
-------- ------ -----------------------------
------
Total investment
income . . . . . . . 82,521 62 17,267
Expenses:
Mortality and expense
risks . . . . . . . 7,497 1 666
14
-------- ------ -----------------------------
------
Net investment income 75,024 61 16,601
(14)
Net realized and
unrealized gain
(loss) on
investments:
Net realized gain
(loss). . . . . . . (8,489) 1,450
Net unrealized
appreciation
(depreciation)
during the period . (91,357) (88) 10,057
4,448
-------- ------ -----------------------------
------
Net realized and
unrealized gain
(loss) on investments (99,846) (88) 11,507
4,448
-------- ------ -----------------------------
------
Net increase
(decrease) in net
assets resulting from
operations . . . . . $(24,822) $ (27) $ 28,108
$4,434
======== ====== =============================
======
</TABLE>
<TABLE>
<CAPTION>
REAL ESTATE EQUITY
SUBACCOUNT
GROWTH & INCOME SUBACCOUNT
---------------------------------------------------------
---------------------------------------
1999 1998
1997 1999 1998 1997
------------------------------ -------------
---------- ------------ ------------ -------------
-----------------------------------------
<S> <C> <C>
<C> <C> <C> <C>
Investment income:
Distributions received from:
John Hancock Variable Series
Trust I . . . . . . . . . $ 2,118,195 $ 2,281,310
$2,934,672 $72,156,977 $ 54,199,315 $52,442,930
M Fund Inc. . . . . . . . . -- --
-- -- -- --
----------------------------- ------------
---------- ----------- ------------ -----------
Total investment income . . 2,118,195 2,281,310
2,934,672 72,156,977 54,199,315 52,442,930
Expenses:
Mortality and expense risks 189,524 219,763
212,177 3,537,270 2,856,645 2,178,739
----------------------------- ------------
---------- ----------- ------------ -----------
Net investment income . . . 1,928,671 2,061,547
2,722,495 68,619,707 51,342,670 50,264,191
Net realized and unrealized
gain (loss) on investments:
Net realized gain . . . . . 552,631 903,492
751,985 19,517,399 12,465,262 7,351,086
Net unrealized appreciation
(depreciation) during the
period . . . . . . . . . . (3,233,362) (10,193,226)
2,343,294 (2,623,478) 60,549,503 32,872,184
----------------------------- ------------
---------- ----------- ------------ -----------
Net realized and unrealized
gain (loss) on
investments . . . . . . . . (2,680,731) (9,289,734)
3,095,279 16,893,921 73,014,765 40,223,270
----------------------------- ------------
---------- ----------- ------------ -----------
Net increase (decrease) in
net assets resulting from
operations. . . . . . . . . $ (752,060) $ (7,228,187)
$5,817,774 $85,513,628 $124,357,435 $90,487,461
============================= ============
========== =========== ============ ===========
</TABLE>
---------
* From May 1, 1998 (commencement of operations).
See accompanying notes.
99
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENT OF OPERATIONS (CONTINUED)
YEARS AND PERIODS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
MANAGED SUBACCOUNT SHORT-TERM
BOND SUBACCOUNT
---------------------------------------
-----------------------------------
1999 1998 1997 1999
1998 1997
------------- ----------- ----------- -----------
----------- ------------
--------------------------------------
<S> <C> <C> <C> <C>
<C> <C>
Investment income:
Distributions received
from:
John Hancock Variable
Series Trust I . . $ 38,226,296 $42,558,328 $34,981,042 $ 321,697 $
318,055 $ 216,077
M Fund Inc. . . . . -- -- -- --
-- --
------------ ----------- ----------- ----------
---------- ---------
Total investment
income . . . . . . . 38,226,296 42,558,328 34,981,042 321,697
318,055 216,077
Expenses:
Mortality and expense
risks . . . . . . . 2,441,499 2,438,618 2,035,959 27,433
27,623 17,975
------------ ----------- ----------- ----------
---------- ---------
Net investment income 35,784,797 40,119,710 32,945,083 294,264
290,432 198,102
Net realized and
unrealized gain
(loss) on
investments:
Net realized gain
(loss). . . . . . . 23,586,754 5,216,094 3,754,808 (61,939)
13,933 (12,481)
Net unrealized
appreciation
(depreciation)
during the period . (25,338,032) 28,230,322 19,460,056 (116,293)
(45,745) 24,408
------------ ----------- ----------- ----------
---------- ---------
Net realized and
unrealized gain
(loss) on
investments . . . . (1,751,278) 33,446,416 23,214,864 (178,232)
(31,812) 11,927
------------ ----------- ----------- ----------
---------- ---------
Net increase in net
assets resulting from
operations . . . . . $ 34,033,519 $73,566,126 $56,159,947 $ 116,032 $
258,620 $ 210,029
============ =========== =========== ==========
========== =========
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL
OPPORTUNITIES
SMALL CAP VALUE SUBACCOUNT
SUBACCOUNT
--------------------------------
---------------------------------
1999 1998 1997 1999 1998
1997
---------- ---------- --------- ----------
---------- ------------
------------------------------------
<S> <C> <C> <C> <C> <C>
<C>
Investment income:
Distributions received
from:
John Hancock Variable
Series Trust I . . $ 243,470 $ 54,320 $537,451 $ 804,607 $
85,655 $ 85,488
M Fund Inc. . . . . -- -- -- --
-- --
--------- --------- -------- ----------
---------- ---------
Total investment
income . . . . . . . 243,470 54,320 537,451 804,607
85,655 85,488
Expenses:
Mortality and expense
risks . . . . . . . 61,294 51,961 21,374 88,335
64,058 27,161
--------- --------- -------- ----------
---------- ---------
Net investment income 182,176 2,359 516,077 716,272
21,597 58,327
Net realized and
unrealized gain
(loss) on
investments:
Net realized gain
(loss). . . . . . . (497,642) 254,157 179,065 1,471,214
196,024 104,001
Net unrealized
appreciation
(depreciation)
during the period . (88,006) (813,644) (60,841) 1,149,372
1,366,734 (279,934)
--------- --------- -------- ----------
---------- ---------
Net realized and
unrealized gain
(loss) on
investments . . . . (585,648) (559,487) 118,224 2,620,586
1,562,758 (175,933)
--------- --------- -------- ----------
---------- ---------
Net increase
(decrease) in net
assets resulting from
operations . . . . . $(403,472) $(557,128) $634,301 $3,336,858
$1,584,355 $(117,606)
========= ========= ======== ==========
========== =========
</TABLE>
See accompanying notes.
100
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENT OF OPERATIONS (CONTINUED)
YEARS AND PERIODS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
HIGH YIELD BOND
EQUITY INDEX SUBACCOUNT SUBACCOUNT
---------------------------------- ----------------
1999 1998 1997 1999 1998*
---------- ---------- ---------- --------- --------
-------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment income:
Distributions received
from:
John Hancock Variable
Series Trust I . . $1,831,467 $ 700,367 $ 289,092 $ 7,718 $12
M Fund Inc. . . . . -- -- -- -- --
---------- ---------- ---------- ------- ---
Total investment
income . . . . . . . 1,831,467 700,367 289,092 7,718 12
Expenses:
Mortality and expense
risks . . . . . . . 216,154 108,231 33,761 569 1
---------- ---------- ---------- ------- ---
Net investment income 1,615,313 592,136 255,331 7,149 11
Net realized and
unrealized gain
(loss) on
investments:
Net realized gain
(loss). . . . . . . 1,761,823 997,526 72,875 (4,898) --
Net unrealized
appreciation
(depreciation)
during the period . 3,255,121 2,882,597 973,872 (611) (9)
---------- ---------- ---------- ------- ---
Net realized and
unrealized gain
(loss) on investments 5,016,944 3,880,123 1,046,747 (5,509) (9)
---------- ---------- ---------- ------- ---
Net increase in net
assets resulting from
operations . . . . . $6,632,257 $4,472,259 $1,302,078 $ 1,640 $ 2
========== ========== ========== ======= ===
</TABLE>
<TABLE>
<CAPTION>
TURNER CORE GROWTH
GLOBAL BOND SUBACCOUNT SUBACCOUNT
------------------------------
---------------------------
1999 1998 1997 1999 1998
1997
---------- -------- -------- -------- --------
---------
-----------------------------
<S> <C> <C> <C> <C> <C> <C>
Investment income:
Distributions received
from:
John Hancock Variable
Series Trust I . . $ 407,783 $217,011 $155,751 $ -- $ -- $
--
M Fund Inc. . . . . -- -- -- 243,054 48,858
22,593
--------- -------- -------- -------- --------
-------
Total investment
income . . . . . . . 407,783 217,011 155,751 243,054 48,858
22,593
Expenses:
Mortality and expense
risks . . . . . . . 44,023 23,315 10,483 14,911 4,430
828
--------- -------- -------- -------- --------
-------
Net investment income 363,760 193,696 145,268 228,143 44,428
21,765
Net realized and
unrealized gain
(loss) on
investments:
Net realized gain . 959 25,425 4,242 411,650 38,125
1,020
Net unrealized
appreciation
(depreciation)
during the period . (578,510) 91,397 7,679 25,769 318,448
17,720
--------- -------- -------- -------- --------
-------
Net realized and
unrealized gain
(loss) on investments (577,551) 116,822 11,921 437,419 356,573
18,740
--------- -------- -------- -------- --------
-------
Net increase
(decrease) in net
assets resulting from
operations . . . . . $(213,791) $310,518 $157,189 $665,562 $401,001
$40,505
========= ======== ======== ======== ========
=======
</TABLE>
---------
* From May 1, 1998 (commencement of operations).
See accompanying notes.
101
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENT OF OPERATIONS (CONTINUED)
YEARS AND PERIODS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
ENHANCED
U.S.
BRANDES INTERNATIONAL EQUITY
FRONTIER CAPITAL APPRECIATION EQUITY
SUBACCOUNT
SUBACCOUNT SUBACCOUNT
------------------------------
------------------------------ ---------------
1999 1998 1997
1999 1998 1997 1999*
---------- --------
--------- ---------- --------- ------- ---------------
--------------------------------
<S> <C> <C> <C>
<C> <C> <C> <C>
Investment income:
Distributions received from:
John Hancock Variable Series Trust I . . . . . $ -- $ -- $
-- $ -- $ -- $ -- $ --
M Fund Inc. . . . . . . . . . . . . . . . . . . 391,652 76,526
11,174 363,096 14,932 59,777 --
---------- --------
-------- ---------- -------- ------- ------
Total investment income . . . . . . . . . . . . 391,652 76,526
11,174 363,096 14,932 59,777 --
Expenses:
Mortality and expense risks . . . . . . . . . . 26,814 6,543
2,688 55,548 24,050 7,104 22
---------- --------
-------- ---------- -------- ------- ------
Net investment income (loss) . . . . . . . . . . 364,838 69,983
8,486 307,548 (9,118) 52,673 (22)
Net realized and unrealized gain (loss) on
investments:
Net realized gain . . . . . . . . . . . . . . . 40,298 8,487
371 161,229 89,974 10,828 (746)
Net unrealized appreciation (depreciation)
during the period . . . . . . . . . . . . . . 1,857,041 101,256
(32,110) 3,089,604 524,011 28,386 --
---------- --------
-------- ---------- -------- ------- ------
Net realized and unrealized gain (loss) on
investments . . . . . . . . . . . . . . . . . . 1,897,339 109,743
(31,739) 3,250,833 613,985 39,214 (746)
---------- --------
-------- ---------- -------- ------- ------
Net increase (decrease) in net assets resulting
from operations . . . . . . . . . . . . . . . . $2,262,177 $179,726
$(23,253) $3,558,381 $604,867 $91,887 $ (768)
========== ========
======== ========== ======== ======= ======
</TABLE>
---------
* From August 18, 1999 (commencement of operations).
See accompanying notes.
102
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENTS OF CHANGES IN NET ASSETS
YEARS AND PERIODS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
LARGE CAP GROWTH
SOVEREIGN BOND
SUBACCOUNT
SUBACCOUNT
-------------------------------------------
------------------------------------------
1999 1998 1997
1999 1998 1997
-------------- -------------
------------- ------------- ------------- ---------------
-------------------------------------------------------------------------------------------
<S> <C> <C> <C>
<C> <C> <C>
Increase (decrease) in net assets from
operations:
Net investment income . . . . . . . $ 47,933,385 $ 29,497,593 $
18,754,181 $ 5,726,204 $ 6,215,027 $ 5,099,593
Net realized gains (losses) . . . . 37,974,300 7,477,359
5,377,678 137,370 125,377 (316,608)
Net unrealized appreciation
(depreciation) during the period . (20,089,860) 50,180,004
24,886,516 (7,170,609) (432,666) 1,592,275
------------- ------------
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations . . . . . 65,817,825 87,154,956
49,018,375 (1,307,035) 5,907,738 6,375,260
From policyholder transactions:
Net premiums from policyholders . . 47,366,436 50,518,731
50,870,640 14,339,968 17,861,340 21,348,125
Net benefits to policyholders . . . (109,055,989) (40,022,049)
(32,643,981) (15,723,809) (15,352,996) (14,778,316)
------------- ------------
------------ ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from policyholder
transactions . . . . . . . . . . . . (61,689,553) 10,496,682
18,226,659 (1,383,841) 2,508,344 6,569,809
------------- ------------
------------ ------------ ------------ ------------
Net increase (decrease) in net assets 4,128,272 97,651,638
67,245,034 (2,690,876) 8,416,082 12,945,069
Net assets at beginning of period . . 318,056,515 220,404,877
153,159,843 85,780,561 77,364,479 64,419,410
------------- ------------
------------ ------------ ------------ ------------
Net assets at end of period . . . . . $ 322,184,787 $318,056,515
$220,404,877 $ 83,089,685 $ 85,780,561 $ 77,364,479
============= ============
============ ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
EMERGING
MARKETS EQUITY INTERNATIONAL EQUITY
INDEX
SUBACCOUNT SUBACCOUNT
--------------------
------------------------------------------
1999 1998* 1999 1998
1997
------------ ------- ------------- -------------
---------------
--------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Increase (decrease) in
net assets from
operations:
Net investment income $ 117,234 $ 1 $ 1,587,266 $ 6,606,382 $
1,782,435
Net realized gains . 288,630 (1) 423,295 1,270,070
958,182
Net unrealized
appreciation
(depreciation)
during the period . 475,390 (4) 11,546,984 23,662
(4,981,747)
----------- ------ ------------ ------------
------------
Net increase
(decrease) in net
assets resulting from
operations . . . . . 881,254 (4) 13,557,545 7,900,114
(2,241,130)
From policyholder
transactions:
Net premiums from
policyholders . . . 2,935,233 1,730 12,752,321 11,092,106
17,654,531
Net benefits to
policyholders . . . (1,260,627) (37) (11,265,586) (16,638,265)
(12,889,618)
----------- ------ ------------ ------------
------------
Net increase
(decrease) in net
assets resulting from
policyholder
transactions . . . . 1,674,606 1,693 1,486,735 (5,546,159)
4,764,913
----------- ------ ------------ ------------
------------
Net increase in net
assets . . . . . . . 2,555,860 1,689 15,044,280 2,353,955
2,523,783
Net assets at
beginning of period 1,689 0 44,324,924 41,970,969
39,447,186
----------- ------ ------------ ------------
------------
Net assets at end of
period . . . . . . . $ 2,557,549 $1,689 $ 59,369,204 $ 44,324,924 $
41,970,969
=========== ====== ============ ============
============
</TABLE>
---------
* From May 1, 1998 (commencement of operations).
See accompanying notes.
103
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
YEARS AND PERIODS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
GLOBAL EQUITY SMALL CAP GROWTH
SUBACCOUNT SUBACCOUNT
-----------------
---------------------------------------
1999 1998* 1999 1998 1997
--------- ------- ------------ ------------
--------------
--------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Increase (decrease) in
net assets from
operations:
Net investment income $ 500 $ 1 $ 3,262,565 $ (57,076) $
(30,606)
Net realized gains . 1,382 -- 1,209,833 157,975
116,210
Net unrealized
appreciation during
the period . . . . 27,261 69 5,952,186 1,605,647
732,330
-------- ------ ----------- -----------
-----------
Net increase in net
assets resulting from
operations . . . . . 29,143 70 10,424,584 1,706,546
817,934
From policyholder
transactions:
Net premiums from
policyholders . . . 275,194 1,850 9,698,604 6,942,160
7,111,430
Net benefits to
policyholders . . . (29,112) (35) (6,196,218) (3,551,395)
(2,474,024)
-------- ------ ----------- -----------
-----------
Net increase in net
assets resulting from
policyholder
transactions . . . . 246,082 1,815 3,502,386 3,390,766
4,637,406
-------- ------ ----------- -----------
-----------
Net increase in net
assets . . . . . . . 275,225 1,885 13,926,970 5,097,312
5,455,340
Net assets at
beginning of period 1,885 -- 13,486,065 8,388,753
2,933,413
-------- ------ ----------- -----------
-----------
Net assets at end of
period . . . . . . . $277,110 $1,885 $27,413,035 $13,486,065 $
8,388,753
======== ====== =========== ===========
===========
</TABLE>
<TABLE>
<CAPTION>
INTERNATIONAL BALANCED
MID CAP GROWTH
SUBACCOUNT
SUBACCOUNT
------------------------------------
---------------------------------------
1999 1998
1997 1999 1998 1997
----------- -----------
----------- ------------ ------------ --------------
---------------------------------------------------------------------------------
<S> <C> <C> <C>
<C> <C> <C>
Increase (decrease) in net assets from
operations:
Net investment income . . . . . . . . . . . . $ 139,324 $ 103,145 $
55,286 $ 5,773,840 $ 950,689 $ (20,278)
Net realized gains (losses) . . . . . . . . . (975) 20,527
29,092 2,379,524 338,131 64,078
Net unrealized appreciation (depreciation)
during the period . . . . . . . . . . . . . . (61,234) 108,042
(68,785) 17,416,514 1,477,149 567,677
---------- ----------
---------- ----------- ----------- -----------
Net increase in net assets resulting from
operations . . . . . . . . . . . . . . . . . . 77,115 231,714
15,593 25,569,878 2,765,969 611,477
From policyholder transactions:
Net premiums from policyholders . . . . . . . 408,648 775,469
1,210,054 31,236,463 6,310,992 3,564,986
Net benefits to policyholders . . . . . . . . (457,724) (433,887)
(811,533) (9,304,845) (2,644,280) (1,603,972)
---------- ----------
---------- ----------- ----------- -----------
Net increase (decrease) in net assets resulting
from policyholder transactions . . . . . . . . (49,076) 341,582
398,521 21,931,618 3,666,712 1,961,014
---------- ----------
---------- ----------- ----------- -----------
Net increase in net assets . . . . . . . . . . 28,039 573,296
414,114 47,501,496 6,432,681 2,572,491
Net assets at beginning of period . . . . . . . 1,731,101 1,157,805
743,691 11,219,643 4,786,962 2,214,471
---------- ----------
---------- ----------- ----------- -----------
Net assets at end of period . . . . . . . . . . $1,759,140 $1,731,101
$1,157,805 $58,721,139 $11,219,643 $ 4,786,962
========== ==========
========== =========== =========== ===========
</TABLE>
---------
* From May 1, 1998 (commencement of operations).
See accompanying notes.
104
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
YEARS AND PERIODS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
LARGE CAP VALUE
MONEY MARKET
SUBACCOUNT
SUBACCOUNT
---------------------------------------
------------------------------------------
1999 1998 1997
1999 1998 1997
------------ ------------
------------ ------------- ------------- ---------------
---------------------------------------------------------------------------------------
<S> <C> <C> <C>
<C> <C> <C>
Increase (decrease) in net assets from
operations:
Net investment income . . . . . . . . . $ 948,071 $ 505,931 $
235,588 $ 1,101,968 $ 984,418 $ 794,699
Net realized gains . . . . . . . . . . . 590,392 364,328
147,209 -- -- --
Net unrealized appreciation
(depreciation) during the period . . . (1,512,713) (186,805)
547,716 -- -- --
----------- -----------
----------- ------------ ------------ ------------
Net increase in net assets resulting from
operations . . . . . . . . . . . . . . . 25,750 683,454
930,513 1,101,968 984,418 794,699
From policyholder transactions:
Net premiums from policyholders . . . . 10,870,610 6,344,623
5,175,373 38,178,810 29,578,379 19,719,031
Net benefits to policyholders . . . . . (5,528,175) (2,846,246)
(1,416,071) (27,659,025) (26,039,388) (21,386,542)
----------- -----------
----------- ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from policyholder transactions 5,342,435 3,498,377
3,759,302 10,519,785 3,538,991 (1,667,511)
----------- -----------
----------- ------------ ------------ ------------
Net increase (decrease) in net assets . . 5,368,185 4,181,831
4,689,815 11,621,753 4,523,409 (872,812)
Net assets at beginning of period . . . . 10,716,975 6,535,144
1,845,329 21,026,261 16,502,852 17,375,664
----------- -----------
----------- ------------ ------------ ------------
Net assets at end of period . . . . . . . $16,085,160 $10,716,975 $
6,535,144 $ 32,648,014 $ 21,026,261 $ 16,502,852
=========== ===========
=========== ============ ============ ============
</TABLE>
<TABLE>
<CAPTION>
MID CAP VALUE
SMALL/MID CAP GROWTH
SUBACCOUNT
SUBACCOUNT
---------------------------------------
------------------------------------------
1999 1998 1997
1999 1998 1997
------------ ------------
------------ ------------- ------------- ---------------
---------------------------------------------------------------------------------------
<S> <C> <C> <C>
<C> <C> <C>
Increase (decrease) in net assets from
operations:
Net investment income . . . . . . . . . $ 4,594 $ 46,790 $
935,282 $ 6,853,630 $ 582,107 $ 4,761,251
Net realized gains (losses). . . . . . . (1,354,334) 470,277
148,954 332,328 1,879,057 4,458,015
Net unrealized appreciation
(depreciation) during the period . . . 2,021,700 (2,496,498)
58,693 (5,168,619) 3,090 (7,254,086)
----------- -----------
----------- ------------ ------------ -------------
Net increase (decrease) in net assets
resulting from operations . . . . . . . 671,960 (1,979,431)
1,142,929 2,017,339 2,464,254 1,965,180
From policyholder transactions:
Net premiums from policyholders . . . . 7,348,479 12,176,727
12,224,626 12,408,208 15,336,390 26,820,224
Net benefits to policyholders . . . . . (9,527,903) (7,125,389)
(1,523,046) (13,127,845) (24,152,376) (23,391,073)
----------- -----------
----------- ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from policyholder transactions (2,179,424) 5,051,338
10,701,580 (719,637) (8,815,986) 3,429,151
----------- -----------
----------- ------------ ------------ ------------
Net increase (decrease) in net assets . . (1,507,464) 3,071,907
11,844,509 1,297,702 (6,351,732) 5,394,331
Net assets at beginning of period . . . . 16,254,342 13,182,435
1,337,926 45,483,237 51,834,969 46,440,638
----------- -----------
----------- ------------ ------------ ------------
Net assets at end of period . . . . . . . $14,746,878 $16,254,342
$13,182,435 $ 46,780,939 $ 45,483,237 $ 51,834,969
=========== ===========
=========== ============ ============ ============
</TABLE>
See accompanying notes.
105
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
YEARS AND PERIODS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
SMALL/MID CAP CORE
BOND INDEX SUBACCOUNT SUBACCOUNT
---------------------- -------------------
1999 1998* 1999 1998*
------------ -------- --------- ----------
---------------------------------------------
<S> <C> <C> <C> <C>
Increase (decrease) in net
assets from operations:
Net investment income (loss) . $ 75,024 $ 61 $ 16,601 $ (14)
Net realized gains (losses). . (8,489) -- 1,450 --
Net unrealized appreciation
(depreciation) during the
period. . . . . . . . . . . . (91,357) (88) 10,057 4,448
---------- ------ -------- -------
Net increase (decrease) in net
assets resulting from
operations . . . . . . . . . . (24,822) (27) 28,108 4,434
From policyholder transactions:
Net premiums from policyholders 2,363,570 4,217 126,096 51,606
Net benefits to policyholders (125,783) -- (10,705) --
---------- ------ -------- -------
Net increase in net assets
resulting from policyholder
transactions . . . . . . . . . 2,237,787 4,217 115,391 51,606
---------- ------ -------- -------
Net increase in net assets . . 2,212,965 4,190 143,499 56,040
Net assets at beginning of
period . . . . . . . . . . . . 4,190 -- 56,040 --
---------- ------ -------- -------
Net assets at end of period . . $2,217,155 $4,190 $199,539 $56,040
========== ====== ======== =======
</TABLE>
<TABLE>
<CAPTION>
REAL ESTATE EQUITY
GROWTH & INCOME
SUBACCOUNT
SUBACCOUNT
----------------------------------------
------------------------------------------
1999 1998 1997
1999 1998 1997
------------ -------------
------------ ------------- ------------- ---------------
----------------------------------------------------------------------------------------
<S> <C> <C> <C>
<C> <C> <C>
Increase (decrease) in net assets from
operations:
Net investment income . . . . . . . . . $ 1,928,671 $ 2,061,547 $
2,722,495 $ 68,619,707 $ 51,342,670 $ 50,264,191
Net realized gains . . . . . . . . . . 552,631 903,492
751,985 19,517,399 12,465,262 7,351,086
Net unrealized appreciation
(depreciation) during the period . . . (3,233,362) (10,193,226)
2,343,294 (2,623,478) 60,549,503 32,872,184
----------- ------------
----------- ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from operations . . . . . . . (752,060) (7,228,187)
5,817,774 85,513,628 124,357,435 90,487,461
From policyholder transactions:
Net premiums from policyholders . . . . 7,015,135 9,200,146
13,842,210 91,655,386 92,202,780 94,961,660
Net benefits to policyholders . . . . . (9,317,401) (10,281,699)
(8,886,892) (95,299,988) (79,305,839) (70,387,297)
----------- ------------
----------- ------------ ------------ ------------
Net increase (decrease) in net assets
resulting from policyholder transactions (2,302,266) (1,081,553)
4,955,318 (3,644,602) 12,896,941 24,574,363
----------- ------------
----------- ------------ ------------ ------------
Net increase (decrease) in net assets . (3,054,326) (8,309,740)
10,773,092 81,869,026 137,254,376 115,061,824
Net assets at beginning of period . . . 34,249,612 42,559,352
31,786,260 552,313,331 415,058,955 299,997,131
----------- ------------
----------- ------------ ------------ ------------
Net assets at end of period . . . . . . $31,195,286 $ 34,249,612
$42,559,352 $634,182,357 $552,313,331 $415,058,955
=========== ============
=========== ============ ============ ============
</TABLE>
---------
* From May 1, 1998 (commencement of operations).
See accompanying notes.
106
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
YEARS AND PERIODS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
MANAGED
SHORT-TERM BOND
SUBACCOUNT
SUBACCOUNT
-------------------------------------------
-----------------------------------------
1999 1998 1997
1999 1998 1997
-------------- -------------
------------- ------------- ------------ ---------------
------------------------------------------------------------------------------------------
<S> <C> <C> <C>
<C> <C> <C>
Increase (decrease) in net assets from
operations:
Net investment income . . . . . . . . $ 35,784,797 $ 40,119,710 $
32,945,083 $ 294,264 $ 290,432 $ 198,102
Net realized gains (losses) . . . . . 23,586,754 5,216,094
3,754,808 (61,939) 13,933 (12,481)
Net unrealized appreciation
(depreciation) during the period . . (25,338,032) 28,230,322
19,460,056 (116,293) (45,745) 24,408
------------- ------------
------------ ------------ ----------- ------------
Net increase in net assets resulting
from operations . . . . . . . . . . . 34,033,519 73,566,126
56,159,947 116,032 258,620 210,029
From policyholder transactions:
Net premiums from policyholders . . . 54,900,113 67,707,213
71,811,719 2,276,021 3,006,339 3,042,915
Net benefits to policyholders . . . . (141,629,545) (60,791,416)
(61,937,355) (3,751,891) (1,696,858) (1,790,137)
------------- ------------
------------ ------------ ----------- ------------
Net increase (decrease) in net assets
resulting from policyholder
transactions. . . . . . . . . . . . . (86,729,432) 6,915,797
9,874,364 (1,475,870) 1,309,481 1,252,778
------------- ------------
------------ ------------ ----------- ------------
Net increase (decrease) in net assets (52,695,913) 80,481,923
66,034,311 (1,359,838) 1,568,101 1,462,807
Net assets at beginning of period . . 450,747,025 370,265,102
304,230,791 6,046,092 4,477,991 3,015,184
------------- ------------
------------ ------------ ----------- ------------
Net assets at end of period . . . . . $ 398,051,112 $450,747,025
$370,265,102 $ 4,686,254 $ 6,046,092 $ 4,477,991
============= ============
============ ============ =========== ============
</TABLE>
<TABLE>
<CAPTION>
SMALL CAP VALUE
INTERNATIONAL OPPORTUNITIES
SUBACCOUNT
SUBACCOUNT
--------------------------------------------
---------------------------------------------
1999 1998 1997
1999 1998 1997
------------- ---------------
------------- ------------- --------------- ----------------
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C>
<C> <C> <C>
Increase (decrease) in net assets
from operations:
Net investment income . . . . . $ 182,176 $ 2,359 $ 516,077
$ 716,272 $ 21,597 $ 58,327
Net realized gains (losses). . . (497,642) 254,157 179,065
1,471,214 196,024 104,001
Net unrealized appreciation
(depreciation) during the period (88,006) (813,644)
(60,841) 1,149,372 1,366,734 (279,934)
------------ -------------- ------------
------------ -------------- -------------
Net increase (decrease) in net
assets resulting from operations (403,472) (557,128) 634,301
3,336,858 1,584,355 (117,606)
From policyholder transactions:
Net premiums from policyholders 4,969,799 7,056,455 6,430,967
3,603,306 11,422,860 6,249,522
Net benefits to policyholders . (4,194,616) (3,706,669)
(1,313,921) (12,969,789) (2,428,740) (1,882,431)
------------ -------------- ------------
------------ -------------- -------------
Net increase (decrease) in net
assets resulting from
policyholder transactions . . . 775,183 3,349,786 5,117,046
(9,366,483) 8,994,120 4,367,091
------------ -------------- ------------
------------ -------------- -------------
Net increase (decrease) in net
assets . . . . . . . . . . . . . 371,711 2,792,658 5,751,347
(6,029,625) 10,578,475 4,249,485
Net assets at beginning of period 9,873,799 7,081,141 1,329,794
17,088,499 6,510,024 2,260,539
------------ -------------- ------------
------------ -------------- -------------
Net assets at end of period . . . $ 10,245,510 $ 9,873,799 $ 7,081,141
$ 11,058,874 $ 17,088,499 $ 6,510,024
============ ============== ============
============ ============== =============
</TABLE>
See accompanying notes.
107
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
YEARS AND PERIODS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
EQUITY INDEX HIGH YIELD
BOND
SUBACCOUNT
SUBACCOUNT
----------------------------------------
------------------
1999 1998 1997 1999
1998*
------------- ------------ ------------ ----------
---------
----------------------------------------------------------------
<S> <C> <C> <C> <C>
<C>
Increase (decrease) in
net assets from
operations:
Net investment income $ 1,615,313 $ 592,136 $ 255,331 $ 7,149
$ 11
Net realized gains
(losses). . . . . . 1,761,823 997,526 72,875 (4,898)
--
Net unrealized
appreciation
(depreciation)
during the period . 3,255,121 2,882,597 973,872 (611)
(9)
------------ ----------- ----------- ---------
------
Net increase in net
assets resulting from
operations . . . . . 6,632,257 4,472,259 1,302,078 1,640
2
From policyholder
transactions:
Net premiums from
policyholders . . . 21,134,600 18,349,859 9,373,895 270,875
1,791
Net benefits to
policyholders . . . (10,605,541) (6,452,625) (1,445,089) (112,214)
(28)
------------ ----------- ----------- ---------
------
Net increase in net
assets resulting from
policyholder
transactions . . . . 10,529,059 11,897,234 7,928,806 158,661
1,763
------------ ----------- ----------- ---------
------
Net increase in net
assets . . . . . . . 17,161,316 16,369,493 9,230,884 160,301
1,765
Net assets at
beginning of period 26,799,569 10,430,076 1,199,192 1,765
0
------------ ----------- ----------- ---------
------
Net assets at end of
period . . . . . . . $ 43,960,885 $26,799,569 $10,430,076 $ 162,066
$1,765
============ =========== =========== =========
======
</TABLE>
<TABLE>
<CAPTION>
GLOBAL BOND TURNER
CORE GROWTH
SUBACCOUNT
SUBACCOUNT
-------------------------------------
-----------------------------------
1999 1998 1997 1999
1998 1997
------------ ----------- ----------- ------------
----------- -----------
------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
<C> <C>
Increase (decrease) in
net assets from
operations:
Net investment income $ 363,760 $ 193,696 $ 145,268 $ 228,143 $
44,428 $ 21,765
Net realized gains . 959 25,425 4,242 411,650
38,125 1,020
Net unrealized
appreciation
(depreciation)
during the period . (578,510) 91,397 7,679 25,769
318,448 17,720
----------- ---------- ---------- -----------
---------- --------
Net increase
(decrease) in net
assets resulting from
operations . . . . . (213,791) 310,518 157,189 665,562
401,001 40,505
From policyholder
transactions:
Net premiums from
policyholders . . . 6,601,235 2,562,718 2,575,091 1,780,115
2,940,093 209,202
Net benefits to
policyholders . . . (1,575,307) (892,634) (522,585) (2,330,735)
(811,472) (7,612)
----------- ---------- ---------- -----------
---------- --------
Net increase
(decrease) in net
assets resulting from
policyholder
transactions . . . . 5,025,928 1,670,084 2,052,506 (550,620)
2,128,621 201,590
----------- ---------- ---------- -----------
---------- --------
Net increase in net
assets . . . . . . . 4,812,137 1,980,602 2,209,695 114,942
2,529,622 242,095
Net assets at
beginning of period 4,608,410 2,627,808 418,113 2,774,457
244,835 2,740
----------- ---------- ---------- -----------
---------- --------
Net assets at end of
period . . . . . . . $ 9,420,547 $4,608,410 $2,627,808 $ 2,889,399
$2,774,457 $244,835
=========== ========== ========== ===========
========== ========
</TABLE>
---------
* From May 1, 1998 (commencement of operations).
See accompanying notes.
108
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
YEARS AND PERIODS ENDED DECEMBER 31,
<TABLE>
<CAPTION>
BRANDES
FRONTIER CAPITAL ENHANCED U.S.
INTERNATIONAL EQUITY
APPRECIATION EQUITY
SUBACCOUNT
SUBACCOUNT SUBACCOUNT
-----------------------------------
-------------------------------------- ----------------
1999 1998 1997
1999 1998 1997 1999*
------------ ----------- ---------
------------ ------------ ----------- ----------------
-----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
<C> <C> <C>
Increase (decrease) in net assets
from operations:
Net investment income (loss) . . $ 364,838 $ 69,983 $ 8,486 $
307,548 $ (9,118) $ 52,673 $ (22)
Net realized gains . . . . . . . 40,298 8,487 371
161,229 89,974 10,828 (746)
Net unrealized appreciation
(depreciation) during the period 1,857,041 101,256 (32,110)
3,089,604 524,011 28,386 --
----------- ---------- --------
----------- ----------- ---------- --------
Net increase (decrease) in net
assets resulting from operations 2,262,177 179,726 (23,253)
3,558,381 604,867 91,887 (768)
From policyholder transactions:
Net premiums from policyholders 8,879,281 457,392 764,978
3,638,304 5,165,104 2,429,648 19,988
Net benefits to policyholders . (92,663) (76,919) (10,047)
(1,766,348) (1,076,779) (47,057) (19,220)
----------- ---------- --------
----------- ----------- ---------- --------
Net increase in net assets
resulting from policyholder
transactions . . . . . . . . . . 8,786,618 380,473 754,931
1,871,956 4,088,325 2,382,591 768
----------- ---------- --------
----------- ----------- ---------- --------
Net increase in net assets . . . 11,048,795 560,199 731,678
5,430,337 4,693,192 2,474,478 --
Net assets at beginning of period 1,355,068 794,869 63,191
7,229,794 2,536,602 62,124 --
----------- ---------- --------
----------- ----------- ---------- --------
Net assets at end of period . . . $12,403,863 $1,355,068 $794,869
$12,660,131 $ 7,229,794 $2,536,602 $ --
=========== ========== ========
=========== =========== ========== ========
</TABLE>
---------
* From August 18, 1999 (commencement of operations).
See accompanying notes.
109
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 1999
1. ORGANIZATION
John Hancock Variable Life Account V (the Account) is a separate investment
account of John Hancock Variable Life Insurance Company (JHVLICO), a
wholly-owned subsidiary of John Hancock Mutual Life Insurance Company (John
Hancock). The Account was formed to fund variable life insurance policies
(Policies) issued by JHVLICO. The Account is operated as a unit investment
trust registered under the Investment Company Act of 1940, as amended, and
currently consists of twenty-seven subaccounts. The assets of each subaccount
are invested exclusively in shares of a corresponding Portfolio of John Hancock
Variable Series Trust I (the Fund) or of M Fund Inc. (M Fund). New subaccounts
may be added as new portfolios are added to the Fund or to M Fund, or as other
investment options are developed and made available to policyholders. The
twenty-seven Portfolios of the Fund and M Fund which are currently available are
the Large Cap Growth, Sovereign Bond, Emerging Markets Equity, International
Equity Index, Global Equity, Small Cap Growth, International Balanced, Mid Cap
Growth, Large Cap Value, Money Market, Mid Cap Value, Small/Mid Cap Growth
(formerly, Diversified Mid Cap Growth), Bond Index, Small/Mid Cap CORE, Real
Estate Equity, Growth & Income, Managed, Short-Term Bond, Small Cap Value,
International Opportunities, Equity Index, High Yield Bond, Global Bond
(formerly, Strategic Bond), Turner Core Growth, Brandes International Equity,
Frontier Capital Appreciation and Enhanced U.S. Equity Portfolios. Each
Portfolio has a different investment objective.
The net assets of the Account may not be less than the amount required under
state insurance law to provide for death benefits (without regard to the minimum
death benefit guarantee) and other policy benefits. Additional assets are held
in JHVLICO's general account to cover the contingency that the guaranteed
minimum death benefit might exceed the death benefit which would have been
payable in the absence of such guarantee.
The assets of the Account are the property of JHVLICO. The portion of the
Account's assets applicable to the policies may not be charged with liabilities
arising out of any other business JHVLICO may conduct.
2. SIGNIFICANT ACCOUNTING POLICIES
Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the reported amounts of assets and liabilities and disclosure of
contingent assets and liabilities at the date of the financial statements and
the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
Valuation of Investments
Investment in shares of the Fund and of M Fund are valued at the reported net
asset values of the respective Portfolios. Investment transactions are recorded
on the trade date. Dividend income is recognized on the ex-dividend date.
Realized gains and losses on sales of underlying Portfolio shares are
determined on the basis of identified cost.
Federal Income Taxes
The operations of the Account are included in the federal income tax return of
JHVLICO, which is taxed as a life insurance company under the Internal Revenue
Code. JHVLICO has the right to charge the Account any federal income taxes, or
provision for federal income taxes, attributable to the operations of the
Account or to the policies funded in the Account. Currently, JHVLICO does not
make a charge for income or other taxes. Charges for state and local taxes, if
any, attributable to the Account may also be made.
110
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
Expenses
JHVLICO assumes mortality and expense risks of the variable life insurance
policies for which asset charges are deducted at an annual rate of .60% of net
assets of the Account. In addition, a monthly charge at varying levels for the
cost of insurance is deducted from the net assets of the Account.
JHVLICO makes certain deductions for administrative expenses and state premium
taxes from premium payments before amounts are transferred to the Account.
3. TRANSACTIONS WITH AFFILIATES
John Hancock acts as the distributor, principal underwriter and investment
advisor for the Fund.
Certain officers of the Account are officers and directors of JHVLICO, the
Fund or John Hancock.
111
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
4. DETAILS OF INVESTMENTS
The details of the shares owned and cost and value of investments in the
Portfolios of the Fund and of M Fund at December 31, 1999 were as follows:
<TABLE>
<CAPTION>
PORTFOLIO SHARES OWNED COST VALUE
--------- ------------ ------------ --------------
<S> <C> <C> <C>
Large Cap Growth . . . . . . 11,787,670 $259,620,615 $322,184,787
Sovereign Bond . . . . . . . 9,107,510 89,287,240 83,089,685
Emerging Markets Equity . . . 208,571 2,082,165 2,557,550
International Equity Index . 3,022,115 49,471,547 59,369,203
Global Equity . . . . . . . . 22,836 249,782 277,111
Small Cap Growth . . . . . . 1,434,077 19,209,718 27,413,036
International Balanced . . . 164,323 1,762,162 1,759,141
Mid Cap Growth . . . . . . . 2,008,985 39,221,551 58,721,139
Large Cap Value . . . . . . . 1,192,316 17,149,736 16,085,160
Money Market . . . . . . . . 3,264,801 32,648,014 32,648,013
Mid Cap Value . . . . . . . . 1,154,192 15,060,455 14,746,878
Small/Mid Cap Growth . . . . 3,333,171 51,576,302 46,780,938
Bond Index . . . . . . . . . 237,940 2,308,600 2,217,155
Small/Mid Cap CORE . . . . . 20,329 185,034 199,539
Real Estate Equity . . . . . 2,718,783 35,822,199 31,195,285
Growth & Income . . . . . . . 31,691,185 517,130,031 634,182,356
Managed . . . . . . . . . . . 25,766,772 369,191,519 398,051,112
Short-Term Bond . . . . . . . 482,031 4,840,048 4,686,254
Small Cap Value . . . . . . . 938,482 11,141,653 10,245,510
International Opportunities . 728,882 8,723,854 11,058,874
Equity Index . . . . . . . . 2,148,838 36,790,499 43,960,886
High Yield Bond . . . . . . . 18,034 162,686 162,066
Global Bond . . . . . . . . . 959,431 9,902,233 9,420,547
Turner Core Growth . . . . . 126,010 2,527,465 2,889,399
Brandes International Equity 799,218 10,477,675 12,403,863
Frontier Capital Appreciation 599,438 9,018,130 12,660,131
Enhanced U.S. Equity . . . . -- -- --
</TABLE>
112
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
Purchases, including reinvestment of dividend distributions and proceeds from
sales of shares in the Portfolios of the Fund and of M Fund during 1999, were as
follows:
<TABLE>
<CAPTION>
PORTFOLIO PURCHASES SALES
--------- ------------ --------------
------------------------------------------------------------------
<S> <C> <C>
Large Cap Growth . . . . . . . . . $ 71,192,062 $ 89,948,230
Sovereign Bond . . . . . . . . . . 18,768,818 14,426,455
Emerging Markets Equity . . . . . . 2,971,480 1,179,639
International Equity Index . . . . 9,412,771 6,338,770
Global Equity . . . . . . . . . . . 274,423 27,839
Small Cap Growth . . . . . . . . . 10,160,703 3,395,750
International Balanced . . . . . . 466,071 375,821
Mid Cap Growth . . . . . . . . . . 32,202,688 4,497,230
Large Cap Value . . . . . . . . . . 10,666,546 4,376,042
Money Market . . . . . . . . . . . 33,681,591 22,059,838
Mid Cap Value . . . . . . . . . . . 4,708,779 6,883,610
Small/Mid Cap Growth . . . . . . . 14,310,567 8,176,576
Bond Index . . . . . . . . . . . . 2,471,132 158,321
Small/Mid Cap CORE . . . . . . . . 144,191 12,199
Real Estate Equity . . . . . . . . 5,646,529 6,020,124
Growth & Income . . . . . . . . . . 115,948,019 50,972,915
Managed . . . . . . . . . . . . . . 60,220,117 111,164,751
Short-Term Bond . . . . . . . . . . 2,241,538 3,423,145
Small Cap Value . . . . . . . . . . 3,641,205 2,683,846
International Opportunities . . . . 3,391,076 12,041,286
Equity Index . . . . . . . . . . . 17,594,261 5,449,888
High Yield Bond . . . . . . . . . . 302,394 136,584
Global Bond . . . . . . . . . . . . 6,723,256 1,333,568
Turner Core Growth . . . . . . . . 2,009,448 2,331,926
Brandes International Equity . . . 9,317,326 165,871
Frontier Capital Appreciation . . . 3,798,929 1,619,426
Enhanced U.S. Equity . . . . . . . 19,619 18,873
</TABLE>
113
<PAGE>
JOHN HANCOCK VARIABLE LIFE ACCOUNT V
NOTES TO FINANCIAL STATEMENTS--(CONTINUED)
5. NET ASSETS
Accumulation shares attributable to net assets of contractowners and
accumulation shares values for each subaccount at December 31, 1999 were as
follows:
<TABLE>
<CAPTION>
CLASS
98
FLEX V CLASS #1 FLEX V ENHANCED CLASS
#2 (COMPANY CLASS)
------------------------
------------------------- --------------------------------
ACCUMULATION SHARES ACCUMULATION
SHARES ACCUMULATION SHARES
PORTFOLIO SHARES VALUE SHARES
VALUE SHARES VALUE
--------- --------------- ------- --------------
--------- ----------------------- ---------
<S> <C> <C> <C> <C>
<C> <C>
Large Cap Growth . . . . . . 3,106,446 $ 80.00 936,672 $
79.68 -- --
Sovereign Bond . . . . . . . 2,894,651 23.69 612,925
23.69 -- --
Emerging Markets Equity . . . 146,465 12.77 53,760
12.77 -- --
International Equity Index . 1,552,416 27.55 548,767
27.55 50,131 $ 29.54
Global Equity . . . . . . . . 15,456 12.23 7,209
12.23 -- --
Small Cap Growth . . . . . . 753,944 21.70 509,520
21.70 -- --
International Balanced . . . 69,582 13.29 62,782
13.29 -- --
Mid Cap Growth . . . . . . . 1,059,727 35.59 590,165
35.59 -- --
Large Cap Value . . . . . . . 553,562 16.17 441,513
16.17 -- --
Money Market . . . . . . . . 1,463,048 18.10 341,250
18.10 -- --
Mid Cap Value . . . . . . . . 415,778 14.06 632,757
14.06 -- --
Small/Mid Cap Growth . . . . 1,032,806 19.80 1,278,020
19.80 50,000 20.48
Bond Index . . . . . . . . . 28,882 10.34 185,511
10.34 -- --
Small/Mid Cap CORE . . . . . 12,726 10.76 5,814
10.76 -- --
Real Estate Equity . . . . . 1,081,365 22.14 274,017
22.14 50,243 23.73
Growth & Income . . . . . . . 7,039,546 68.13 2,268,912
68.13 -- --
Managed . . . . . . . . . . . 8,456,417 39.65 1,582,418
39.65 -- --
Short-Term Bond . . . . . . . 166,277 12.99 142,786
12.99 50,000 13.44
Small Cap Value . . . . . . . 434,574 12.32 397,327
12.32 -- --
International Opportunities . 435,347 16.54 233,555
16.54 -- --
Equity Index . . . . . . . . 915,344 23.08 989,278
23.08 -- --
High Yield Bond . . . . . . . 442,669 12.16 352,069
12.16 -- --
Global Bond . . . . . . . . . 422,669 12.16 352,069
12.16 -- --
Turner Core Growth . . . . . 41,442 26.33 68,302
26.33 -- --
Brandes International Equity 414,650 17.14 308,793
17.14 -- --
Frontier Capital Appreciation 324,311 21.11 276,873
21.11 -- --
Enhanced U.S. Equity . . . . -- 13.25 --
13.25 -- --
</TABLE>
114
<PAGE>
ALPHABETICAL INDEX OF KEY WORDS AND PHRASES
This index should help you locate more information about many of the important
concepts in this prospectus.
<TABLE>
<CAPTION>
KEY WORD OR PHRASE PAGE KEY WORD OR PHRASE PAGE
<S> <C> <C> <C> <C>
Account . . . . . . . . . . 29 16
account value . . . . . . . 9 11
attained age. . . . . . . . 10 4
beneficiary . . . . . . . . 39 17
business day. . . . . . . . 30 15
changing Option 1 or 2. . . 17 12
charges . . . . . . . . . . 10 18
Code. . . . . . . . . . . . 35 30
cost of insurance rates . . 10 30
date of issue . . . . . . . 30 4
death benefit . . . . . . . 4 8
deductions. . . . . . . . . 10 2
dollar cost averaging . . . 14 20
Excess Value. . . . . . . . 6 7
expenses of the Trust . . . 12 5
fixed investment option . . 30 10
full surrender. . . . . . . 15 2
fund. . . . . . . . . . . . 2 29
grace period. . . . . . . . 6 1
guaranteed death benefit . 16 15
guaranteed maximum
recalculation premium. . . 8 29
insurance charge. . . . . . 10 16
insured person. . . . . . . 4 15
investment options. . . . . 1 11
JHVLICO . . . . . . . . . . 29 15
John Hancock Variable Series
Trust. . . . . . . . . . . 2 35
lapse . . . . . . . . . . . 6 20
loan. . . . . . . . . . . . 15 14
loan interest . . . . . . . 15 1
maximum premiums. . . . . . 5 29
minimum insurance amount. . 16 15
modified endowment contract 36 12
monthly deduction date. . . 31 4
mortality and expense risk
charge . . . . . . . . . . 11
</TABLE>
115
<PAGE>
SUPPLEMENT DATED NOVEMBER 1, 2000
TO
PROSPECTUSES DATED NOVEMBER 1, 2000
__________________________
This Supplement is intended to be distributed with certain prospectuses dated
November 1, 2000 for variable life insurance policies issued by John Hancock
Life Insurance Company or John Hancock Variable Life Insurance Company. The
prospectuses involved bear the title "Medallion Variable Life", "Medallion
Variable Universal Life II", "Medallion Executive Variable Life", "Medallion
Executive Variable Life III", "Variable Estate Protection", "Variable Estate
Protection II", "Flex V-1" or "Flex V-2". We refer to these prospectuses as the
"Product Prospectuses."
This Supplement will be used only with policies sold through the Product
Prospectuses and through registered representatives affiliated with the M
Financial Group.
__________________________
GUIDE TO THIS SUPPLEMENT
. Page 2 of this Supplement contains amendments to the Product Prospectuses
relating to FOUR ADDITIONAL VARIABLE INVESTMENT OPTIONS.
. Starting on Page 3 of this Supplement, we provide REVISED ILLUSTRATIONS of
death benefits, account values, surrender values and accumulated premiums to
replace the illustration contained in each of the following Product
Prospectuses.
<TABLE>
<CAPTION>
Product Prospectus: Revised illustration begins on page:
------------------- ------------------------------------
<S> <C>
Medallion Variable Life ............... 3
Medallion Variable Universal Life II .. 17
Medallion Executive Variable Life ..... 25
Medallion Executive Variable Life III . 33
Variable Estate Protection ............ 41
Variable Estate Protection II .........
Flex V-2 ..............................
Flex V-1 .............................. 75
</TABLE>
THIS SUPPLEMENT IS ACCOMPANIED WITH A PROSPECTUS DATED MAY 1, 2000 FOR THE M
FUND, INC. THAT CONTAINS DETAILED INFORMATION ABOUT THE FUNDS. BE SURE TO READ
THAT PROSPECTUS BEFORE SELECTING ANY OF THE FOUR ADDITIONAL VARIABLE INVESTMENT
OPTIONS.
1
<PAGE>
AMENDMENTS TO PRODUCT PROSPECTUSES
----------------------------------
1. The table on the cover page of each Product Prospectus is amended to
include the following four additional variable investment options:
<TABLE>
<CAPTION>
VARIABLE INVESTMENT OPTION MANAGED BY:
-------------------------- --------- -
<S> <C>
Brandes International Equity . . . . . . . . . . . . . . . . . . Brandes Investment Partners, L.P.
Turner Core Growth . . . . Turner Investment Partners, Inc.
Frontier Capital Appreciation Frontier Capital Managment Company, LLC
Clifton Enhanced U.S. Equity . . . . . . . . . . . . . . . . . . The Clifton Group
------------------------------------------------------------------------------ --------------------------------
</TABLE>
2. The second paragraph on page 2 of each Product Prospectus is amended to
include the following:
"If you select one or more of the Brandes International Equity, Turner
Core Growth, Frontier Capital Appreciation or Clifton Enhanced U.S. Equity
variable investment options, we will invest your money in the corresponding
investment option(s) of the M Fund, Inc. M Fund, Inc. is a so-called "series"
type mutual fund registered with the SEC. In the prospectus, the term 'Trusts'
includes M Fund, Inc., and the term 'funds' includes the corresponding
investment options of M Fund, Inc. We may modify or delete the variable
investment options in the future."
3. The fund expense table appearing in the section of each Product Prospectus
entitled "What charges will the Trusts deduct from my investment in the policy?"
is amended to include the following:
<TABLE>
<CAPTION>
Investment Distribution Other Operating Total Fund Other Operating
Management and Service Expenses With Operating Expenses Absent
Fund Name Fee (12b-1) Fees Reimbursement Expenses Reimbursement*
--------- ---------- ------------- - -------------- ---------- ------------------
<S> <C> <C> <C> <C> <C>
M FUND, INC.:
Brandes International Equity 0.96% N/A 0.25% 1.21% 0.97%
Turner Core Growth . . 0.45% N/A 0.25% 0.70% 0.95%
Frontier Capital Appreciation 0.90% N/A 0.25% 1.15% 0.57%
Clifton Enhanced U.S. Equity 0.55% N/A 0.25% 0.80% 1.08%
</TABLE>
* M Financial Advisers, Inc. reimburses a fund when the fund's other operating
expenses exceed 0.25% of the fund's average daily net assets.
2
<PAGE>
MEDALLION VARIABLE LIFE
REVISED ILLUSTRATION OF DEATH BENEFITS, ACCOUNT VALUES, SURRENDER VALUES AND
ACCUMULATED PREMIUMS
The following tables on pages 4 TO 9 replace the illustration in the John
Hancock Life Insurance Company ("JOHN HANCOCK") Medallion Variable Life Product
Prospectus. The tables on pages 10 TO 15 replace the illustration in the John
Hancock Variable Life Insurance Company ("JHVLICO") Medallion Variable Life
Product Prospectus.
The assumptions used for the revised illustrations are generally the same as
those described in the respective Medallion Variable Life Product Prospectus.
With respect to fees and expenses deducted from Trust assets, however, the
amounts shown in all tables reflect (1) investment management fees equivalent to
an effective annual rate of .66, and (2) an assumed average asset charge for all
other Trust-level operating expenses equivalent to an effective annual rate of
.11%. These rates are the arithmetic average for all funds that are available
as investment options. In other words, they are based on the hypothetical
assumption that policy account values are allocated equally among the variable
investment options.
Each table separately illustrates the operation of a policy for a specified
issue age, premium payment schedule and face amount. The amounts shown are for
the end of each policy year and assume that all of the account value is invested
in funds that achieve investment returns at constant annual rates of 0%, 6% and
12% (i.e., before any fees or expenses deducted from Trust assets). After
deduction of the average Trust-level fees and expenses (as described above) the
corresponding net annual rates of return would be -.77%, 5.18% and 11.14%.
Investment return reflects investment income and all realized and unrealized
capital gains and losses.
The actual rates associated with any policy will vary depending upon the
actual allocation of policy values among the investment options. The charge
shown above for all other Trust-level operating expenses reflects reimbursements
to certain funds as described in the footnotes to the Fund expense table. We
currently expect those reimbursement arrangements to continue indefinitely, but
that is not guaranteed.
The second column of each table shows the amount you would have at the end of
each policy year if an amount equal to the assumed Planned Premiums were
invested to earn interest, after taxes, at 5% compounded annually. This is not a
policy value. It is included for comparison purposes only.
Because your circumstances will no doubt differ from those in the
illustrations that follow, values under your policy will differ, in most cases
substantially. Upon request, we will furnish you with a comparable illustration
reflecting your proposed insured person's issue age, sex and underwriting risk
classification, and the face amount and annual Planned Premium amount requested.
3
<PAGE>
JOHN HANCOCK MEDALLION VARIABLE LIFE
DEATH BENEFIT OPTION 1: LEVEL DEATH BENEFIT
ILLUSTRATION ASSUMES CURRENT CHARGES
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK
FACE AMOUNT: $100,000
$760 PLANNED PREMIUM*
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
------------------------------ --------------------- ---------- -------------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ------------------------------ --------------------- ---------- -------------------------------
Year Per Year 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------ -------------- -------- --------- --------- --------- --------- ---------- --------- --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 798 100,000 100,000 100,000 218 244 270 0 0 0
2 1,636 100,000 100,000 100,000 663 737 814 0 0 71
3 2,516 100,000 100,000 100,000 1,092 1,242 1,405 0 149 312
4 3,439 100,000 100,000 100,000 1,504 1,759 2,047 412 667 954
5 4,409 100,000 100,000 100,000 1,898 2,287 2,742 805 1,194 1,649
6 5,428 100,000 100,000 100,000 2,273 2,825 3,497 1,181 1,732 2,405
7 6,497 100,000 100,000 100,000 2,627 3,372 4,315 1,534 2,279 3,223
8 7,620 100,000 100,000 100,000 2,960 3,927 5,203 2,066 3,033 4,309
9 8,799 100,000 100,000 100,000 3,269 4,489 6,166 2,574 3,793 5,471
10 10,037 100,000 100,000 100,000 3,562 5,067 7,227 3,266 4,771 6,931
11 11,337 100,000 100,000 100,000 3,859 5,684 8,415 3,661 5,486 8,218
12 12,702 100,000 100,000 100,000 4,133 6,311 9,715 4,035 6,213 9,616
13 14,135 100,000 100,000 100,000 4,382 6,948 11,136 4,382 6,948 11,136
14 15,640 100,000 100,000 100,000 4,604 7,593 12,692 4,604 7,593 12,692
15 17,220 100,000 100,000 100,000 4,796 8,244 14,396 4,796 8,244 14,396
16 18,879 100,000 100,000 100,000 4,958 8,901 16,265 4,958 8,901 16,265
17 20,621 100,000 100,000 100,000 5,088 9,563 18,318 5,088 9,563 18,318
18 22,450 100,000 100,000 100,000 5,180 10,224 20,571 5,180 10,224 20,571
19 24,370 100,000 100,000 100,000 5,227 10,879 23,043 5,227 10,879 23,043
20 26,387 100,000 100,000 100,000 5,237 11,534 25,769 5,237 11,534 25,769
25 38,086 100,000 100,000 100,000 4,749 14,862 44,492 4,749 14,862 44,492
30 53,018 100,000 100,000 100,000 3,236 18,271 76,634 3,236 18,271 76,634
35 72,076 ** 100,000 151,226 ** 20,805 131,500 ** 20,805 131,500
40 96,398 ** 100,000 233,818 ** 20,665 222,684 ** 20,665 222,684
45 127,441 ** 100,000 393,938 ** 14,885 375,179 ** 14,885 375,179
</TABLE>
---------
* If premiums are paid more frequently than annually, the above values shown
would be affected.
** Policy lapses unless additional premium payments are made.
THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE
DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT
RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF
FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE DEATH BENEFIT,
ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. WE CAN MAKE NO REPRESENTATION THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR CONTINUED OVER ANY PERIOD OF TIME.
4
<PAGE>
JOHN HANCOCK MEDALLION VARIABLE LIFE
DEATH BENEFIT OPTION 1: LEVEL DEATH BENEFIT
ILLUSTRATION ASSUMES MAXIMUM CHARGES
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK
FACE AMOUNT: $100,000
$760 PLANNED PREMIUM*
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
------------------------------ --------------------- ---------- -------------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ------------------------------ --------------------- ---------- -------------------------------
Year Per Year 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------ -------------- -------- --------- --------- --------- --------- ---------- --------- --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 798 100,000 100,000 100,000 191 217 242 0 0 0
2 1,636 100,000 100,000 100,000 609 680 754 0 0 11
3 2,516 100,000 100,000 100,000 1,011 1,153 1,308 0 60 215
4 3,439 100,000 100,000 100,000 1,395 1,635 1,906 302 542 813
5 4,409 100,000 100,000 100,000 1,759 2,124 2,552 666 1,031 1,459
6 5,428 100,000 100,000 100,000 2,104 2,621 3,249 1,011 1,528 2,157
7 6,497 100,000 100,000 100,000 2,426 3,122 4,002 1,334 2,029 2,909
8 7,620 100,000 100,000 100,000 2,727 3,627 4,814 1,833 2,733 3,920
9 8,799 100,000 100,000 100,000 3,003 4,135 5,690 2,308 3,440 4,995
10 10,037 100,000 100,000 100,000 3,263 4,656 6,651 2,967 4,359 6,355
11 11,337 100,000 100,000 100,000 3,496 5,177 7,692 3,298 4,979 7,494
12 12,702 100,000 100,000 100,000 3,700 5,698 8,818 3,602 5,599 8,719
13 14,135 100,000 100,000 100,000 3,876 6,216 10,039 3,876 6,216 10,039
14 15,640 100,000 100,000 100,000 4,020 6,731 11,365 4,020 6,731 11,365
15 17,220 100,000 100,000 100,000 4,130 7,240 12,803 4,130 7,240 12,803
16 18,879 100,000 100,000 100,000 4,205 7,739 14,367 4,205 7,739 14,367
17 20,621 100,000 100,000 100,000 4,237 8,223 16,063 4,237 8,223 16,063
18 22,450 100,000 100,000 100,000 4,221 8,684 17,904 4,221 8,684 17,904
19 24,370 100,000 100,000 100,000 4,152 9,117 19,904 4,152 9,117 19,904
20 26,387 100,000 100,000 100,000 4,020 9,511 22,072 4,020 9,511 22,072
25 38,086 100,000 100,000 100,000 2,190 10,618 36,178 2,190 10,618 36,178
30 53,018 ** 100,000 100,000 ** 8,982 58,591 ** 8,982 58,591
35 72,076 ** ** 111,311 ** 970 96,793 ** 970 96,793
40 96,398 ** ** 168,479 ** ** 160,456 ** ** 160,456
45 127,441 ** ** 277,758 ** ** 264,531 ** ** 264,531
</TABLE>
---------
* If premiums are paid more frequently than annually, the above values shown
would be affected.
** Policy lapses unless additional premium payments are made.
THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE
DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT
RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF
FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE DEATH BENEFIT,
ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. WE CAN MAKE NO REPRESENTATION THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR CONTINUED OVER ANY PERIOD OF TIME.
5
<PAGE>
JOHN HANCOCK MEDALLION VARIABLE LIFE
DEATH BENEFIT OPTION 2: VARIABLE DEATH BENEFIT
ILLUSTRATION ASSUMES CURRENT CHARGES
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK
FACE AMOUNT: $100,000
$760 PLANNED PREMIUM*
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
------------------------------ --------------------- ---------- -------------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ------------------------------ --------------------- ---------- -------------------------------
Year Per Year 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------ -------------- -------- --------- --------- --------- --------- ---------- --------- --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 798 100,217 100,243 100,270 217 243 270 0 0 0
2 1,636 100,661 100,734 100,812 661 734 812 0 0 69
3 2,516 101,088 101,237 101,400 1,088 1,237 1,400 0 144 307
4 3,439 101,497 101,750 102,036 1,497 1,750 2,036 404 658 943
5 4,409 101,886 102,272 102,724 1,886 2,272 2,724 794 1,180 1,632
6 5,428 102,256 102,803 103,469 2,256 2,803 3,469 1,164 1,711 2,377
7 6,497 102,604 103,340 104,274 2,604 3,340 4,274 1,511 2,247 3,181
8 7,620 102,928 103,883 105,143 2,928 3,883 5,143 2,034 2,989 4,249
9 8,799 103,228 104,430 106,082 3,228 4,430 6,082 2,533 3,734 5,387
10 10,037 103,510 104,989 107,111 3,510 4,989 7,111 3,214 4,693 6,814
11 11,337 103,794 105,583 108,258 3,794 5,583 8,258 3,597 5,385 8,060
12 12,702 104,054 106,183 109,506 4,054 6,183 9,506 3,956 6,084 9,407
13 14,135 104,287 106,786 110,862 4,287 6,786 10,862 4,287 6,786 10,862
14 15,640 104,490 107,392 112,336 4,490 7,392 12,336 4,490 7,392 12,336
15 17,220 104,661 107,996 113,938 4,661 7,996 13,938 4,661 7,996 13,938
16 18,879 104,800 108,598 115,681 4,800 8,598 15,681 4,800 8,598 15,681
17 20,621 104,907 109,198 117,579 4,907 9,198 17,579 4,907 9,198 17,579
18 22,450 104,970 109,784 119,639 4,970 9,784 19,639 4,970 9,784 19,639
19 24,370 104,988 110,352 121,874 4,988 10,352 21,874 4,988 10,352 21,874
20 26,387 104,965 110,907 124,310 4,965 10,907 24,310 4,965 10,907 24,310
25 38,086 104,295 113,499 140,400 4,295 13,499 40,400 4,295 13,499 40,400
30 53,018 102,596 115,615 166,099 2,596 15,615 66,099 2,596 15,615 66,099
35 72,076 ** 115,840 206,427 ** 15,840 106,427 ** 15,840 106,427
40 96,398 ** 111,705 269,046 ** 11,705 169,046 ** 11,705 169,046
45 127,441 ** ** 366,706 ** ** 266,706 ** ** 266,706
</TABLE>
---------
* If premiums are paid more frequently than annually, the above values shown
would be affected.
** Policy lapses unless additional premium payments are made.
THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE
DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT
RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF
FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE DEATH BENEFIT,
ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. WE CAN MAKE NO REPRESENTATION THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR CONTINUED OVER ANY PERIOD OF TIME.
6
<PAGE>
JOHN HANCOCK MEDALLION VARIABLE LIFE
DEATH BENEFIT OPTION 2: VARIABLE DEATH BENEFIT
ILLUSTRATION ASSUMES MAXIMUM CHARGES
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK
FACE AMOUNT: $100,000
$760 PLANNED PREMIUM*
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
----------------------------- ---------------------- ------- -----------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ---------------------- ------- -----------------------------
Year Per Year 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------ -------------- -------- -------- --------- -------- -------- -- ------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 798 100,191 100,216 100,242 191 216 242 0 0 0
2 1,636 100,607 100,678 100,752 607 678 752 0 0 9
3 2,516 101,007 101,148 101,302 1,007 1,148 1,302 0 55 209
4 3,439 101,387 101,626 101,896 1,387 1,626 1,896 295 534 803
5 4,409 101,748 102,110 102,535 1,748 2,110 2,535 655 1,017 1,442
6 5,428 102,088 102,600 103,223 2,088 2,600 3,223 995 1,507 2,130
7 6,497 102,404 103,092 103,963 2,404 3,092 3,963 1,312 1,999 2,870
8 7,620 102,698 103,586 104,758 2,698 3,586 4,758 1,804 2,692 3,864
9 8,799 102,965 104,080 105,611 2,965 4,080 5,611 2,270 3,385 4,916
10 10,037 103,215 104,583 106,543 3,215 4,583 6,543 2,918 4,287 6,247
11 11,337 103,436 105,084 107,546 3,436 5,084 7,546 3,239 4,886 7,348
12 12,702 103,628 105,579 108,625 3,628 5,579 8,625 3,529 5,480 8,526
13 14,135 103,788 106,067 109,786 3,788 6,067 9,786 3,788 6,067 9,786
14 15,640 103,916 106,546 111,036 3,916 6,546 11,036 3,916 6,546 11,036
15 17,220 104,008 107,012 112,381 4,008 7,012 12,381 4,008 7,012 12,381
16 18,879 104,062 107,462 113,829 4,062 7,462 13,829 4,062 7,462 13,829
17 20,621 104,072 107,888 115,382 4,072 7,888 15,382 4,072 7,888 15,382
18 22,450 104,031 108,281 117,045 4,031 8,281 17,045 4,031 8,281 17,045
19 24,370 103,936 108,635 118,824 3,936 8,635 18,824 3,936 8,635 18,824
20 26,387 103,776 108,937 120,721 3,776 8,937 20,721 3,776 8,937 20,721
25 38,086 101,799 109,337 132,184 1,799 9,337 32,184 1,799 9,337 32,184
30 53,018 ** 106,465 147,310 ** 6,465 47,310 ** 6,465 47,310
35 72,076 ** ** 165,588 ** ** 65,588 ** ** 65,588
40 96,398 ** ** 184,493 ** ** 84,493 ** ** 84,493
45 127,441 ** ** 196,398 ** ** 96,398 ** ** 96,398
</TABLE>
---------
* If premiums are paid more frequently than annually, the above values shown
would be affected.
** Policy lapses unless additional premium payments are made.
THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE
DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT
RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF
FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE DEATH BENEFIT,
ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. WE CAN MAKE NO REPRESENTATION THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR CONTINUED OVER ANY PERIOD OF TIME.
7
<PAGE>
JOHN HANCOCK MEDALLION VARIABLE LIFE
DEATH BENEFIT OPTION 3: LEVEL DEATH BENEFIT WITH GREATER FUNDING
ILLUSTRATION ASSUMES CURRENT CHARGES
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK
FACE AMOUNT: $100,000
$760 PLANNED PREMIUM*
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
----------------------------- ---------------------- ------- -----------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ---------------------- ------- -----------------------------
Year Per Year 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------ -------------- -------- -------- --------- -------- -------- -- ------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 798 100,000 100,000 100,000 218 244 270 0 0 0
2 1,636 100,000 100,000 100,000 663 737 814 0 0 71
3 2,516 100,000 100,000 100,000 1,092 1,242 1,405 0 149 312
4 3,439 100,000 100,000 100,000 1,504 1,759 2,047 412 667 954
5 4,409 100,000 100,000 100,000 1,898 2,287 2,742 805 1,194 1,649
6 5,428 100,000 100,000 100,000 2,273 2,825 3,497 1,181 1,732 2,405
7 6,497 100,000 100,000 100,000 2,627 3,372 4,315 1,534 2,279 3,223
8 7,620 100,000 100,000 100,000 2,960 3,927 5,203 2,066 3,033 4,309
9 8,799 100,000 100,000 100,000 3,269 4,489 6,166 2,574 3,793 5,471
10 10,037 100,000 100,000 100,000 3,562 5,067 7,227 3,266 4,771 6,931
11 11,337 100,000 100,000 100,000 3,859 5,684 8,415 3,661 5,486 8,218
12 12,702 100,000 100,000 100,000 4,133 6,311 9,715 4,035 6,213 9,616
13 14,135 100,000 100,000 100,000 4,382 6,948 11,136 4,382 6,948 11,136
14 15,640 100,000 100,000 100,000 4,604 7,593 12,692 4,604 7,593 12,692
15 17,220 100,000 100,000 100,000 4,796 8,244 14,396 4,796 8,244 14,396
16 18,879 100,000 100,000 100,000 4,958 8,901 16,265 4,958 8,901 16,265
17 20,621 100,000 100,000 100,000 5,088 9,563 18,318 5,088 9,563 18,318
18 22,450 100,000 100,000 100,000 5,180 10,224 20,571 5,180 10,224 20,571
19 24,370 100,000 100,000 100,000 5,227 10,879 23,043 5,227 10,879 23,043
20 26,387 100,000 100,000 100,000 5,237 11,534 25,769 5,237 11,534 25,769
25 38,086 100,000 100,000 100,000 4,749 14,862 44,492 4,749 14,862 44,492
30 53,018 100,000 100,000 129,345 3,236 18,271 75,996 3,236 18,271 75,996
35 72,076 ** 100,000 191,588 ** 20,805 126,577 ** 20,805 126,577
40 96,398 ** 100,000 282,918 ** 20,665 206,691 ** 20,665 206,691
45 127,441 ** 100,000 420,701 ** 14,885 333,202 ** 14,885 333,202
</TABLE>
---------
* If premiums are paid more frequently than annually, the above values shown
would be affected.
** Policy lapses unless additional premium payments are made.
THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE
DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT
RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF
FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE DEATH BENEFIT,
ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. WE CAN MAKE NO REPRESENTATION THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR CONTINUED OVER ANY PERIOD OF TIME.
8
<PAGE>
JOHN HANCOCK MEDALLION VARIABLE LIFE
DEATH BENEFIT OPTION 3: LEVEL DEATH BENEFIT WITH GREATER FUNDING
ILLUSTRATION ASSUMES MAXIMUM CHARGES
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK
FACE AMOUNT: $100,000
$760 PLANNED PREMIUM*
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
----------------------------- ---------------------- ------- -----------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ---------------------- ------- -----------------------------
Year Per Year 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------ -------------- -------- -------- --------- -------- -------- -- ------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 798 100,000 100,000 100,000 191 217 242 0 0 0
2 1,636 100,000 100,000 100,000 609 680 754 0 0 11
3 2,516 100,000 100,000 100,000 1,011 1,153 1,308 0 60 215
4 3,439 100,000 100,000 100,000 1,395 1,635 1,906 302 542 813
5 4,409 100,000 100,000 100,000 1,759 2,124 2,552 666 1,031 1,459
6 5,428 100,000 100,000 100,000 2,104 2,621 3,249 1,011 1,528 2,157
7 6,497 100,000 100,000 100,000 2,426 3,122 4,002 1,334 2,029 2,909
8 7,620 100,000 100,000 100,000 2,727 3,627 4,814 1,833 2,733 3,920
9 8,799 100,000 100,000 100,000 3,003 4,135 5,690 2,308 3,440 4,995
10 10,037 100,000 100,000 100,000 3,263 4,656 6,651 2,967 4,359 6,355
11 11,337 100,000 100,000 100,000 3,496 5,177 7,692 3,298 4,979 7,494
12 12,702 100,000 100,000 100,000 3,700 5,698 8,818 3,602 5,599 8,719
13 14,135 100,000 100,000 100,000 3,876 6,216 10,039 3,876 6,216 10,039
14 15,640 100,000 100,000 100,000 4,020 6,731 11,365 4,020 6,731 11,365
15 17,220 100,000 100,000 100,000 4,130 7,240 12,803 4,130 7,240 12,803
16 18,879 100,000 100,000 100,000 4,205 7,739 14,367 4,205 7,739 14,367
17 20,621 100,000 100,000 100,000 4,237 8,223 16,063 4,237 8,223 16,063
18 22,450 100,000 100,000 100,000 4,221 8,684 17,904 4,221 8,684 17,904
19 24,370 100,000 100,000 100,000 4,152 9,117 19,904 4,152 9,117 19,904
20 26,387 100,000 100,000 100,000 4,020 9,511 22,072 4,020 9,511 22,072
25 38,086 100,000 100,000 100,000 2,190 10,618 36,178 2,190 10,618 36,178
30 53,018 ** 100,000 100,000 ** 8,982 58,586 ** 8,982 58,586
35 72,076 ** 100,000 141,182 ** 970 93,276 ** 970 93,276
40 96,398 ** ** 196,656 ** ** 143,670 ** ** 143,670
45 127,441 ** ** 271,181 ** ** 214,780 ** ** 214,780
</TABLE>
---------
* If premiums are paid more frequently than annually, the above values shown
would be affected.
** Policy lapses unless additional premium payments are made.
THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE
DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT
RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF
FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE DEATH BENEFIT,
ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. WE CAN MAKE NO REPRESENTATION THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR CONTINUED OVER ANY PERIOD OF TIME.
9
<PAGE>
JHVLICO MEDALLION VARIABLE LIFE
DEATH BENEFIT OPTION 1: LEVEL DEATH BENEFIT
ILLUSTRATION ASSUMES CURRENT CHARGES
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK
FACE AMOUNT: $100,000
$760 PLANNED PREMIUM*
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
------------------------------ --------------------- ---------- -------------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ------------------------------ --------------------- ---------- -------------------------------
Year Per Year 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------ -------------- -------- --------- --------- --------- --------- ---------- --------- --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 798 100,000 100,000 100,000 218 244 270 0 0 0
2 1,636 100,000 100,000 100,000 663 737 815 0 0 72
3 2,516 100,000 100,000 100,000 1,093 1,243 1,406 0 150 313
4 3,439 100,000 100,000 100,000 1,506 1,761 2,048 413 668 956
5 4,409 100,000 100,000 100,000 1,900 2,289 2,745 807 1,196 1,652
6 5,428 100,000 100,000 100,000 2,276 2,828 3,501 1,183 1,736 2,408
7 6,497 100,000 100,000 100,000 2,631 3,376 4,321 1,538 2,283 3,228
8 7,620 100,000 100,000 100,000 2,964 3,932 5,211 2,070 3,038 4,317
9 8,799 100,000 100,000 100,000 3,274 4,496 6,176 2,579 3,801 5,481
10 10,037 100,000 100,000 100,000 3,568 5,076 7,240 3,272 4,780 6,944
11 11,337 100,000 100,000 100,000 3,866 5,695 8,432 3,669 5,497 8,234
12 12,702 100,000 100,000 100,000 4,142 6,325 9,736 4,043 6,226 9,637
13 14,135 100,000 100,000 100,000 4,392 6,965 11,163 4,392 6,965 11,163
14 15,640 100,000 100,000 100,000 4,615 7,612 12,725 4,615 7,612 12,725
15 17,220 100,000 100,000 100,000 4,809 8,267 14,437 4,809 8,267 14,437
16 18,879 100,000 100,000 100,000 4,972 8,928 16,315 4,972 8,928 16,315
17 20,621 100,000 100,000 100,000 5,105 9,595 18,379 5,105 9,595 18,379
18 22,450 100,000 100,000 100,000 5,197 10,260 20,644 5,197 10,260 20,644
19 24,370 100,000 100,000 100,000 5,247 10,920 23,132 5,247 10,920 23,132
20 26,387 100,000 100,000 100,000 5,258 11,581 25,875 5,258 11,581 25,875
25 38,086 100,000 100,000 100,000 4,777 14,946 44,737 4,777 14,946 44,737
30 53,018 100,000 100,000 100,000 3,271 18,411 77,172 3,271 18,411 77,172
35 72,076 ** 100,000 152,466 ** 21,031 132,579 ** 21,031 132,579
40 96,398 ** 100,000 236,015 ** 21,024 224,777 ** 21,024 224,777
45 127,441 ** 100,000 398,132 ** 15,461 379,174 ** 15,461 379,174
</TABLE>
---------
* If premiums are paid more frequently than annually, the above values shown
would be affected.
** Policy lapses unless additional premium payments are made.
THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE
DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT
RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF
FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE DEATH BENEFIT,
ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. WE CAN MAKE NO REPRESENTATION THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR CONTINUED OVER ANY PERIOD OF TIME.
10
<PAGE>
JHVLICO MEDALLION VARIABLE LIFE
DEATH BENEFIT OPTION 1: LEVEL DEATH BENEFIT
ILLUSTRATION ASSUMES MAXIMUM CHARGES
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK
FACE AMOUNT: $100,000
$760 PLANNED PREMIUM*
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
------------------------------ --------------------- ---------- -------------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ------------------------------ --------------------- ---------- -------------------------------
Year Per Year 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------ -------------- -------- --------- --------- --------- --------- ---------- --------- --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 798 100,000 100,000 100,000 191 217 242 0 0 0
2 1,636 100,000 100,000 100,000 609 680 754 0 0 11
3 2,516 100,000 100,000 100,000 1,011 1,153 1,308 0 60 215
4 3,439 100,000 100,000 100,000 1,395 1,635 1,906 302 542 813
5 4,409 100,000 100,000 100,000 1,759 2,124 2,552 666 1,031 1,459
6 5,428 100,000 100,000 100,000 2,104 2,621 3,249 1,011 1,528 2,157
7 6,497 100,000 100,000 100,000 2,426 3,122 4,002 1,334 2,029 2,909
8 7,620 100,000 100,000 100,000 2,727 3,627 4,814 1,833 2,733 3,920
9 8,799 100,000 100,000 100,000 3,003 4,135 5,690 2,308 3,440 4,995
10 10,037 100,000 100,000 100,000 3,256 4,646 6,638 2,960 4,349 6,341
11 11,337 100,000 100,000 100,000 3,481 5,156 7,660 3,284 4,958 7,462
12 12,702 100,000 100,000 100,000 3,677 5,662 8,763 3,579 5,563 8,664
13 14,135 100,000 100,000 100,000 3,843 6,164 9,955 3,843 6,164 9,955
14 15,640 100,000 100,000 100,000 3,978 6,660 11,243 3,978 6,660 11,243
15 17,220 100,000 100,000 100,000 4,078 7,146 12,636 4,078 7,146 12,636
16 18,879 100,000 100,000 100,000 4,141 7,620 14,144 4,141 7,620 14,144
17 20,621 100,000 100,000 100,000 4,162 8,075 15,773 4,162 8,075 15,773
18 22,450 100,000 100,000 100,000 4,134 8,504 17,531 4,134 8,504 17,531
19 24,370 100,000 100,000 100,000 4,052 8,901 19,431 4,052 8,901 19,431
20 26,387 100,000 100,000 100,000 3,908 9,255 21,481 3,908 9,255 21,481
25 38,086 100,000 100,000 100,000 2,023 10,088 34,554 2,023 10,088 34,554
30 53,018 ** 100,000 100,000 ** 8,044 54,575 ** 8,044 54,575
35 72,076 ** ** 100,671 ** ** 87,540 ** ** 87,540
40 96,398 ** ** 149,796 ** ** 142,663 ** ** 142,663
45 127,441 ** ** 242,576 ** ** 231,025 ** ** 231,025
</TABLE>
---------
* If premiums are paid more frequently than annually, the above values shown
would be affected.
** Policy lapses unless additional premium payments are made.
THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE
DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT
RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF
FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE DEATH BENEFIT,
ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. WE CAN MAKE NO REPRESENTATION THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR CONTINUED OVER ANY PERIOD OF TIME.
11
<PAGE>
JHVLICO MEDALLION VARIABLE LIFE
DEATH BENEFIT OPTION 2: VARIABLE DEATH BENEFIT
ILLUSTRATION ASSUMES CURRENT CHARGES
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK
FACE AMOUNT: $100,000
$760 PLANNED PREMIUM*
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
------------------------------ --------------------- ---------- -------------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ------------------------------ --------------------- ---------- -------------------------------
Year Per Year 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------ -------------- -------- --------- --------- --------- --------- ---------- --------- --------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 798 100,217 100,243 100,270 217 243 270 0 0 0
2 1,636 100,661 100,734 100,812 661 734 812 0 0 69
3 2,516 101,088 101,237 101,400 1,088 1,237 1,400 0 144 307
4 3,439 101,497 101,750 102,036 1,497 1,750 2,036 404 658 943
5 4,409 101,886 102,272 102,724 1,886 2,272 2,724 794 1,180 1,632
6 5,428 102,256 102,803 103,469 2,256 2,803 3,469 1,164 1,711 2,377
7 6,497 102,604 103,340 104,274 2,604 3,340 4,274 1,511 2,247 3,181
8 7,620 102,928 103,883 105,143 2,928 3,883 5,143 2,034 2,989 4,249
9 8,799 103,228 104,430 106,082 3,228 4,430 6,082 2,533 3,734 5,387
10 10,037 103,510 104,989 107,111 3,510 4,989 7,111 3,214 4,693 6,814
11 11,337 103,794 105,583 108,258 3,794 5,583 8,258 3,597 5,385 8,060
12 12,702 104,054 106,183 109,506 4,054 6,183 9,506 3,956 6,084 9,407
13 14,135 104,287 106,786 110,862 4,287 6,786 10,862 4,287 6,786 10,862
14 15,640 104,490 107,392 112,336 4,490 7,392 12,336 4,490 7,392 12,336
15 17,220 104,661 107,996 113,938 4,661 7,996 13,938 4,661 7,996 13,938
16 18,879 104,800 108,598 115,681 4,800 8,598 15,681 4,800 8,598 15,681
17 20,621 104,907 109,198 117,579 4,907 9,198 17,579 4,907 9,198 17,579
18 22,450 104,970 109,784 119,639 4,970 9,784 19,639 4,970 9,784 19,639
19 24,370 104,988 110,352 121,874 4,988 10,352 21,874 4,988 10,352 21,874
20 26,387 104,965 110,907 124,310 4,965 10,907 24,310 4,965 10,907 24,310
25 38,086 104,295 113,499 140,400 4,295 13,499 40,400 4,295 13,499 40,400
30 53,018 102,596 115,615 166,099 2,596 15,615 66,099 2,596 15,615 66,099
35 72,076 ** 115,840 206,427 ** 15,840 106,427 ** 15,840 106,427
40 96,398 ** 111,705 269,046 ** 11,705 169,046 ** 11,705 169,046
45 127,441 ** ** 366,706 ** ** 266,706 ** ** 266,706
</TABLE>
---------
* If premiums are paid more frequently than annually, the above values shown
would be affected.
** Policy lapses unless additional premium payments are made.
THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE
DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT
RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF
FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE DEATH BENEFIT,
ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. WE CAN MAKE NO REPRESENTATION THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR CONTINUED OVER ANY PERIOD OF TIME.
12
<PAGE>
JHVLICO MEDALLION VARIABLE LIFE
DEATH BENEFIT OPTION 2: VARIABLE DEATH BENEFIT
ILLUSTRATION ASSUMES MAXIMUM CHARGES
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK
FACE AMOUNT: $100,000
$760 PLANNED PREMIUM*
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
----------------------------- ---------------------- ------- -----------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ---------------------- ------- -----------------------------
Year Per Year 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------ -------------- -------- -------- --------- -------- -------- -- ------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 798 100,191 100,216 100,242 191 216 242 0 0 0
2 1,636 100,607 100,678 100,752 607 678 752 0 0 9
3 2,516 101,007 101,148 101,302 1,007 1,148 1,302 0 55 209
4 3,439 101,387 101,626 101,896 1,387 1,626 1,896 295 534 803
5 4,409 101,748 102,110 102,535 1,748 2,110 2,535 655 1,017 1,442
6 5,428 102,088 102,600 103,223 2,088 2,600 3,223 995 1,507 2,130
7 6,497 102,404 103,092 103,963 2,404 3,092 3,963 1,312 1,999 2,870
8 7,620 102,698 103,586 104,758 2,698 3,586 4,758 1,804 2,692 3,864
9 8,799 102,965 104,080 105,611 2,965 4,080 5,611 2,270 3,385 4,916
10 10,037 103,208 104,574 106,530 3,208 4,574 6,530 2,912 4,277 6,233
11 11,337 103,422 105,062 107,515 3,422 5,062 7,515 3,224 4,865 7,317
12 12,702 103,605 105,544 108,571 3,605 5,544 8,571 3,506 5,445 8,472
13 14,135 103,757 106,016 109,704 3,757 6,016 9,704 3,757 6,016 9,704
14 15,640 103,875 106,477 110,919 3,875 6,477 10,919 3,875 6,477 10,919
15 17,220 103,957 106,922 112,220 3,957 6,922 12,220 3,957 6,922 12,220
16 18,879 104,000 107,348 113,615 4,000 7,348 13,615 4,000 7,348 13,615
17 20,621 104,000 107,746 115,104 4,000 7,746 15,104 4,000 7,746 15,104
18 22,450 103,948 108,109 116,690 3,948 8,109 16,690 3,948 8,109 16,690
19 24,370 103,841 108,430 118,377 3,841 8,430 18,377 3,841 8,430 18,377
20 26,387 103,670 108,695 120,165 3,670 8,695 20,165 3,670 8,695 20,165
25 38,086 101,650 108,862 130,731 1,650 8,862 30,731 1,650 8,862 30,731
30 53,018 ** 105,698 144,000 ** 5,698 44,000 ** 5,698 44,000
35 72,076 ** ** 158,787 ** ** 58,787 ** ** 58,787
40 96,398 ** ** 171,547 ** ** 71,547 ** ** 71,547
45 127,441 ** ** 173,065 ** ** 73,065 ** ** 73,065
</TABLE>
---------
* If premiums are paid more frequently than annually, the above values shown
would be affected.
** Policy lapses unless additional premium payments are made.
THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE
DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT
RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF
FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE DEATH BENEFIT,
ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. WE CAN MAKE NO REPRESENTATION THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR CONTINUED OVER ANY PERIOD OF TIME.
13
<PAGE>
JHVLICO MEDALLION VARIABLE LIFE
DEATH BENEFIT OPTION 3: LEVEL DEATH BENEFIT WITH GREATER FUNDING
ILLUSTRATION ASSUMES CURRENT CHARGES
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK
FACE AMOUNT: $100,000
$760 PLANNED PREMIUM*
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
----------------------------- ---------------------- ------- -----------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ---------------------- ------- -----------------------------
Year Per Year 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------ -------------- -------- -------- --------- -------- -------- -- ------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 798 100,000 100,000 100,000 218 244 270 0 0 0
2 1,636 100,000 100,000 100,000 663 737 814 0 0 71
3 2,516 100,000 100,000 100,000 1,092 1,242 1,405 0 149 312
4 3,439 100,000 100,000 100,000 1,504 1,759 2,047 412 667 954
5 4,409 100,000 100,000 100,000 1,898 2,287 2,742 805 1,194 1,649
6 5,428 100,000 100,000 100,000 2,273 2,825 3,497 1,181 1,732 2,405
7 6,497 100,000 100,000 100,000 2,627 3,372 4,315 1,534 2,279 3,223
8 7,620 100,000 100,000 100,000 2,960 3,927 5,203 2,066 3,033 4,309
9 8,799 100,000 100,000 100,000 3,269 4,489 6,166 2,574 3,793 5,471
10 10,037 100,000 100,000 100,000 3,562 5,067 7,227 3,266 4,771 6,931
11 11,337 100,000 100,000 100,000 3,859 5,684 8,415 3,661 5,486 8,218
12 12,702 100,000 100,000 100,000 4,133 6,311 9,715 4,035 6,213 9,616
13 14,135 100,000 100,000 100,000 4,382 6,948 11,136 4,382 6,948 11,136
14 15,640 100,000 100,000 100,000 4,604 7,593 12,692 4,604 7,593 12,692
15 17,220 100,000 100,000 100,000 4,796 8,244 14,396 4,796 8,244 14,396
16 18,879 100,000 100,000 100,000 4,958 8,901 16,265 4,958 8,901 16,265
17 20,621 100,000 100,000 100,000 5,088 9,563 18,318 5,088 9,563 18,318
18 22,450 100,000 100,000 100,000 5,180 10,224 20,571 5,180 10,224 20,571
19 24,370 100,000 100,000 100,000 5,227 10,879 23,043 5,227 10,879 23,043
20 26,387 100,000 100,000 100,000 5,237 11,534 25,769 5,237 11,534 25,769
25 38,086 100,000 100,000 100,000 4,749 14,862 44,492 4,749 14,862 44,492
30 53,018 100,000 100,000 129,345 3,236 18,271 75,996 3,236 18,271 75,996
35 72,076 ** 100,000 191,588 ** 20,805 126,577 ** 20,805 126,577
40 96,398 ** 100,000 282,918 ** 20,665 206,691 ** 20,665 206,691
45 127,441 ** 100,000 420,701 ** 14,885 333,202 ** 14,885 333,202
</TABLE>
---------
* If premiums are paid more frequently than annually, the above values shown
would be affected.
** Policy lapses unless additional premium payments are made.
THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE
DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT
RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF
FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE DEATH BENEFIT,
ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. WE CAN MAKE NO REPRESENTATION THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR CONTINUED OVER ANY PERIOD OF TIME.
14
<PAGE>
JHVLICO MEDALLION VARIABLE LIFE
DEATH BENEFIT OPTION 3: LEVEL DEATH BENEFIT WITH GREATER FUNDING
ILLUSTRATION ASSUMES MAXIMUM CHARGES
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK
FACE AMOUNT: $100,000
$760 PLANNED PREMIUM*
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
----------------------------- ---------------------- ------- -----------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ---------------------- ------- -----------------------------
Year Per Year 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------ -------------- -------- -------- --------- -------- -------- -- ------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 798 100,000 100,000 100,000 191 217 242 0 0 0
2 1,636 100,000 100,000 100,000 609 680 754 0 0 11
3 2,516 100,000 100,000 100,000 1,011 1,153 1,308 0 60 215
4 3,439 100,000 100,000 100,000 1,395 1,635 1,906 302 542 813
5 4,409 100,000 100,000 100,000 1,759 2,124 2,552 666 1,031 1,459
6 5,428 100,000 100,000 100,000 2,104 2,621 3,249 1,011 1,528 2,157
7 6,497 100,000 100,000 100,000 2,426 3,122 4,002 1,334 2,029 2,909
8 7,620 100,000 100,000 100,000 2,727 3,627 4,814 1,833 2,733 3,920
9 8,799 100,000 100,000 100,000 3,003 4,135 5,690 2,308 3,440 4,995
10 10,037 100,000 100,000 100,000 3,256 4,646 6,638 2,960 4,349 6,341
11 11,337 100,000 100,000 100,000 3,481 5,156 7,660 3,284 4,958 7,462
12 12,702 100,000 100,000 100,000 3,677 5,662 8,763 3,579 5,563 8,664
13 14,135 100,000 100,000 100,000 3,843 6,164 9,955 3,843 6,164 9,955
14 15,640 100,000 100,000 100,000 3,978 6,660 11,243 3,978 6,660 11,243
15 17,220 100,000 100,000 100,000 4,078 7,146 12,636 4,078 7,146 12,636
16 18,879 100,000 100,000 100,000 4,141 7,620 14,144 4,141 7,620 14,144
17 20,621 100,000 100,000 100,000 4,162 8,075 15,773 4,162 8,075 15,773
18 22,450 100,000 100,000 100,000 4,134 8,504 17,531 4,134 8,504 17,531
19 24,370 100,000 100,000 100,000 4,052 8,901 19,431 4,052 8,901 19,431
20 26,387 100,000 100,000 100,000 3,908 9,255 21,481 3,908 9,255 21,481
25 38,086 100,000 100,000 100,000 2,023 10,088 34,554 2,023 10,088 34,554
30 53,018 ** 100,000 100,000 ** 8,044 54,575 ** 8,044 54,575
35 72,076 ** ** 129,243 ** ** 85,388 ** ** 85,388
40 96,398 ** ** 176,949 ** ** 129,273 ** ** 129,273
45 127,441 ** ** 239,696 ** ** 189,843 ** ** 189,843
</TABLE>
---------
* If premiums are paid more frequently than annually, the above values shown
would be affected.
** Policy lapses unless additional premium payments are made.
THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE
DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT
RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF
FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE DEATH BENEFIT,
ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. WE CAN MAKE NO REPRESENTATION THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR CONTINUED OVER ANY PERIOD OF TIME.
15
<PAGE>
[THIS PAGE IS INTENTIONALLY LEFT BLANK.]
16
<PAGE>
MEDALLION VARIABLE UNIVERSAL LIFE II
REVISED ILLUSTRATION OF DEATH BENEFITS, ACCOUNT VALUES, SURRENDER VALUES AND
ACCUMULATED PREMIUMS
The following tables on pages 18 TO 23 replace the illustration in the John
Hancock Variable Life Insurance Company Medallion Variable Universal Life II
Product Prospectus.
The assumptions used for the revised illustration are generally the same as
those described in the Medallion Variable Universal Life II Product Prospectus.
With respect to fees and expenses deducted from Trust assets, however, the
amounts shown in all tables reflect (1) investment management fees equivalent to
an effective annual rate of .71, and (2) an assumed average asset charge for all
other Trust-level operating expenses equivalent to an effective annual rate of
.11%. These rates are the arithmetic average for all funds that are available as
investment options. In other words, they are based on the hypothetical
assumption that policy account values are allocated equally among the variable
investment options.
Each table separately illustrates the operation of a policy for a specified
issue age, premium payment schedule and face amount. The amounts shown are for
the end of each policy year and assume that all of the account value is invested
in funds that achieve investment returns at constant annual rates of 0%, 6% and
12% (i.e., before any fees or expenses deducted from Trust assets). After
deduction of the average Trust-level fees and expenses (as described above) the
corresponding net annual rates of return would be -.82%, 5.13% and 11.08%.
Investment return reflects investment income and all realized and unrealized
capital gains and losses.
The actual rates associated with any policy will vary depending upon the
actual allocation of policy values among the investment options. The charge
shown above for all other Trust-level operating expenses reflects reimbursements
to certain funds as described in the footnotes to the Fund expense table. We
currently expect those reimbursement arrangements to continue indefinitely, but
that is not guaranteed.
The second column of each table shows the amount you would have at the end of
each policy year if an amount equal to the assumed Planned Premiums were
invested to earn interest, after taxes, at 5% compounded annually. This is not a
policy value. It is included for comparison purposes only.
Because your circumstances will no doubt differ from those in the
illustrations that follow, values under your policy will differ, in most cases
substantially. Upon request, we will furnish you with a comparable illustration
reflecting your proposed insured person's issue age, sex and underwriting risk
classification, and the Basic Sum Insured, Additional Sum Insured and annual
Planned Premium amount requested.
17
<PAGE>
MEDALLION VARIABLE UNIVERSAL LIFE II (FLEXIBLE PREMIUM VARIABLE LIFE)
$100,000 TOTAL SUM INSURED
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK CLASS
OPTION A DEATH BENEFIT
GUIDELINE PREMIUM AND CASH VALUE CORRIDOR TEST
PLANNED PREMIUM: $ 760 *
USING CURRENT CHARGES
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
----------------------------- ---------------------- ------- -----------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ---------------------- ------- -----------------------------
Year Per Year 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------ -------------- -------- -------- --------- -------- -------- -- ------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 798 100,000 100,000 100,000 217 243 270 0 0 0
2 1,636 100,000 100,000 100,000 662 736 813 0 0 53
3 2,516 100,000 100,000 100,000 1,090 1,240 1,403 330 480 643
4 3,439 100,000 100,000 100,000 1,502 1,756 2,043 742 996 1,283
5 4,409 100,000 100,000 100,000 1,894 2,283 2,737 1,134 1,523 1,977
6 5,428 100,000 100,000 100,000 2,268 2,819 3,489 1,660 2,211 2,881
7 6,497 100,000 100,000 100,000 2,620 3,363 4,304 2,088 2,831 3,772
8 7,620 100,000 100,000 100,000 2,951 3,916 5,188 2,495 3,460 4,732
9 8,799 100,000 100,000 100,000 3,258 4,475 6,146 2,954 4,171 5,842
10 10,037 100,000 100,000 100,000 3,542 5,040 7,186 3,390 4,888 7,034
11 11,337 100,000 100,000 100,000 3,835 5,650 8,363 3,835 5,650 8,363
12 12,702 100,000 100,000 100,000 4,106 6,271 9,649 4,106 6,271 9,649
13 14,135 100,000 100,000 100,000 4,351 6,901 11,054 4,351 6,901 11,054
14 15,640 100,000 100,000 100,000 4,569 7,537 12,591 4,569 7,537 12,591
15 17,220 100,000 100,000 100,000 4,757 8,179 14,273 4,757 8,179 14,273
16 18,879 100,000 100,000 100,000 4,973 8,883 16,171 4,973 8,883 16,171
17 20,621 100,000 100,000 100,000 5,147 9,585 18,245 5,147 9,585 18,245
18 22,450 100,000 100,000 100,000 5,269 10,275 20,507 5,269 10,275 20,507
19 24,370 100,000 100,000 100,000 5,334 10,947 22,977 5,334 10,947 22,977
20 26,387 100,000 100,000 100,000 5,345 11,604 25,684 5,345 11,604 25,684
25 38,086 100,000 100,000 100,000 4,837 14,911 44,218 4,837 14,911 44,218
30 53,018 100,000 100,000 100,000 3,309 18,290 75,967 3,309 18,290 75,967
35 72,076 ** 100,000 149,549 ** 20,768 130,043 ** 20,768 130,043
40 96,398 ** 100,000 230,677 ** 20,542 219,692 ** 20,542 219,692
45 127,441 ** 100,000 387,694 ** 14,631 369,232 ** 14,631 369,232
</TABLE>
---------
* The illustrations assume that Planned Premiums are equal to the Target
Premium and are paid at the start of each Policy Year. The Death Benefit and
Surrender Value will differ if premiums are paid in different amounts or
frequencies, if policy loans are taken, or if Additional Sum Insured or
optional rider benefits are elected.
** Policy lapses unless additional premium payments are made.
THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE
DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT
RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF
FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE DEATH BENEFIT,
ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. WE CAN MAKE NO REPRESENTATION THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR CONTINUED OVER ANY PERIOD OF TIME.
18
<PAGE>
MEDALLION VARIABLE UNIVERSAL LIFE II (FLEXIBLE PREMIUM VARIABLE LIFE)
$100,000 TOTAL SUM INSURED
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK CLASS
OPTION A DEATH BENEFIT
GUIDELINE PREMIUM AND CASH VALUE CORRIDOR TEST
PLANNED PREMIUM: $ 760 *
USING MAXIMUM CHARGES
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
----------------------------- ---------------------- ------- -----------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ---------------------- ------- -----------------------------
Year Per Year 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------ -------------- -------- -------- --------- -------- -------- -- ------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 798 100,000 100,000 100,000 191 216 242 0 0 0
2 1,636 100,000 100,000 100,000 608 679 753 0 0 0
3 2,516 100,000 100,000 100,000 1,009 1,151 1,305 249 391 545
4 3,439 100,000 100,000 100,000 1,392 1,632 1,902 632 872 1,142
5 4,409 100,000 100,000 100,000 1,755 2,119 2,546 995 1,359 1,786
6 5,428 100,000 100,000 100,000 2,099 2,614 3,241 1,491 2,006 2,633
7 6,497 100,000 100,000 100,000 2,420 3,113 3,990 1,888 2,581 3,458
8 7,620 100,000 100,000 100,000 2,719 3,616 4,799 2,263 3,160 4,343
9 8,799 100,000 100,000 100,000 2,993 4,121 5,670 2,689 3,817 5,366
10 10,037 100,000 100,000 100,000 3,244 4,628 6,611 3,092 4,476 6,459
11 11,337 100,000 100,000 100,000 3,467 5,134 7,626 3,467 5,134 7,626
12 12,702 100,000 100,000 100,000 3,661 5,636 8,721 3,661 5,636 8,721
13 14,135 100,000 100,000 100,000 3,825 6,134 9,903 3,825 6,134 9,903
14 15,640 100,000 100,000 100,000 3,957 6,624 11,180 3,957 6,624 11,180
15 17,220 100,000 100,000 100,000 4,055 7,105 12,559 4,055 7,105 12,559
16 18,879 100,000 100,000 100,000 4,116 7,572 14,050 4,116 7,572 14,050
17 20,621 100,000 100,000 100,000 4,134 8,020 15,661 4,134 8,020 15,661
18 22,450 100,000 100,000 100,000 4,104 8,441 17,398 4,104 8,441 17,398
19 24,370 100,000 100,000 100,000 4,020 8,830 19,272 4,020 8,830 19,272
20 26,387 100,000 100,000 100,000 3,873 9,175 21,293 3,873 9,175 21,293
25 38,086 100,000 100,000 100,000 1,978 9,951 34,140 1,978 9,951 34,140
30 53,018 ** 100,000 100,000 ** 7,827 53,695 ** 7,827 53,695
35 72,076 ** ** 100,000 ** ** 85,669 ** ** 85,669
40 96,398 ** ** 146,316 ** ** 139,349 ** ** 139,349
45 127,441 ** ** 236,445 ** ** 225,186 ** ** 225,186
</TABLE>
---------
* The illustrations assume that Planned Premiums are equal to the Target
Premium and are paid at the start of each Policy Year. The Death Benefit and
Surrender Value will differ if premiums are paid in different amounts or
frequencies, if policy loans are taken, or if Additional Sum Insured or
optional rider benefits are elected.
** Policy lapses unless additional premium payments are made.
THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE
DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT
RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF
FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE DEATH BENEFIT,
ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. WE CAN MAKE NO REPRESENTATION THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR CONTINUED OVER ANY PERIOD OF TIME.
19
<PAGE>
MEDALLION VARIABLE UNIVERSAL LIFE II (FLEXIBLE PREMIUM VARIABLE LIFE)
$100,000 TOTAL SUM INSURED
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK CLASS
OPTION B DEATH BENEFIT
GUIDELINE PREMIUM AND CASH VALUE CORRIDOR TEST
PLANNED PREMIUM: $ 760 *
USING CURRENT CHARGES
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
----------------------------- ---------------------- ------- -----------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ---------------------- ------- -----------------------------
Year Per Year 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------ -------------- -------- -------- --------- -------- -------- -- ------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 798 100,216 100,243 100,269 216 243 269 0 0 0
2 1,636 100,660 100,733 100,811 660 733 811 0 0 51
3 2,516 101,086 101,235 101,398 1,086 1,235 1,398 326 475 638
4 3,439 101,494 101,747 102,033 1,494 1,747 2,033 734 987 1,273
5 4,409 101,882 102,268 102,719 1,882 2,268 2,719 1,122 1,508 1,959
6 5,428 102,251 102,797 103,461 2,251 2,797 3,461 1,643 2,189 2,853
7 6,497 102,597 103,332 104,262 2,597 3,332 4,262 2,065 2,800 3,730
8 7,620 102,920 103,872 105,128 2,920 3,872 5,128 2,464 3,416 4,672
9 8,799 103,218 104,416 106,062 3,218 4,416 6,062 2,914 4,112 5,758
10 10,037 103,490 104,963 107,070 3,490 4,963 7,070 3,338 4,811 6,918
11 11,337 103,771 105,550 108,206 3,771 5,550 8,206 3,771 5,550 8,206
12 12,702 104,028 106,144 109,441 4,028 6,144 9,441 4,028 6,144 9,441
13 14,135 104,257 106,740 110,782 4,257 6,740 10,782 4,257 6,740 10,782
14 15,640 104,456 107,337 112,238 4,456 7,337 12,238 4,456 7,337 12,238
15 17,220 104,624 107,933 113,819 4,624 7,933 13,819 4,624 7,933 13,819
16 18,879 104,820 108,589 115,602 4,820 8,589 15,602 4,820 8,589 15,602
17 20,621 104,972 109,233 117,533 4,972 9,233 17,533 4,972 9,233 17,533
18 22,450 105,068 109,853 119,614 5,068 9,853 19,614 5,068 9,853 19,614
19 24,370 105,104 110,441 121,857 5,104 10,441 21,857 5,104 10,441 21,857
20 26,387 105,082 111,000 124,282 5,082 11,000 24,282 5,082 11,000 24,282
25 38,086 104,389 113,578 140,238 4,389 13,578 40,238 4,389 13,578 40,238
30 53,018 102,673 115,675 165,666 2,673 15,675 65,666 2,673 15,675 65,666
35 72,076 ** 115,866 205,411 ** 15,866 105,411 ** 15,866 105,411
40 96,398 ** 111,691 266,881 ** 11,691 166,881 ** 11,691 166,881
45 127,441 ** ** 362,348 ** ** 262,348 ** ** 262,348
</TABLE>
---------
* The illustrations assume that Planned Premiums are equal to the Target
Premium and are paid at the start of each Policy Year. The Death Benefit and
Surrender Value will differ if premiums are paid in different amounts or
frequencies, if policy loans are taken, or if Additional Sum Insured or
optional rider benefits are elected.
** Policy lapses unless additional premium payments are made.
THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE
DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT
RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF
FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE DEATH BENEFIT,
ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. WE CAN MAKE NO REPRESENTATION THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR CONTINUED OVER ANY PERIOD OF TIME.
20
<PAGE>
MEDALLION VARIABLE UNIVERSAL LIFE II (FLEXIBLE PREMIUM VARIABLE LIFE)
$100,000 TOTAL SUM INSURED
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK CLASS
OPTION B DEATH BENEFIT
GUIDELINE PREMIUM AND CASH VALUE CORRIDOR TEST
PLANNED PREMIUM: $ 760 *
USING MAXIMUM CHARGES
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
----------------------------- ---------------------- ------- -----------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ---------------------- ------- -----------------------------
Year Per Year 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------ -------------- -------- -------- --------- -------- -------- -- ------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 798 100,190 100,215 100,241 190 215 241 0 0 0
2 1,636 100,606 100,677 100,750 606 677 750 0 0 0
3 2,516 101,005 101,146 101,300 1,005 1,146 1,300 245 386 540
4 3,439 101,385 101,623 101,892 1,385 1,623 1,892 625 863 1,132
5 4,409 101,744 102,105 102,529 1,744 2,105 2,529 984 1,345 1,769
6 5,428 102,082 102,593 103,215 2,082 2,593 3,215 1,474 1,985 2,607
7 6,497 102,398 103,083 103,951 2,398 3,083 3,951 1,866 2,551 3,419
8 7,620 102,690 103,575 104,742 2,690 3,575 4,742 2,234 3,119 4,286
9 8,799 102,955 104,066 105,591 2,955 4,066 5,591 2,651 3,762 5,287
10 10,037 103,196 104,556 106,503 3,196 4,556 6,503 3,044 4,404 6,351
11 11,337 103,408 105,041 107,482 3,408 5,041 7,482 3,408 5,041 7,482
12 12,702 103,589 105,519 108,530 3,589 5,519 8,530 3,589 5,519 8,530
13 14,135 103,739 105,987 109,653 3,739 5,987 9,653 3,739 5,987 9,653
14 15,640 103,855 106,442 110,857 3,855 6,442 10,857 3,855 6,442 10,857
15 17,220 103,935 106,881 112,145 3,935 6,881 12,145 3,935 6,881 12,145
16 18,879 103,976 107,301 113,524 3,976 7,301 13,524 3,976 7,301 13,524
17 20,621 103,973 107,693 114,996 3,973 7,693 14,996 3,973 7,693 14,996
18 22,450 103,919 108,049 116,562 3,919 8,049 16,562 3,919 8,049 16,562
19 24,370 103,811 108,362 118,227 3,811 8,362 18,227 3,811 8,362 18,227
20 26,387 103,637 108,620 119,989 3,637 8,620 19,989 3,637 8,620 19,989
25 38,086 101,608 108,739 130,359 1,608 8,739 30,359 1,608 8,739 30,359
30 53,018 ** 105,518 143,271 ** 5,518 43,271 ** 5,518 43,271
35 72,076 ** ** 157,431 ** ** 57,431 ** ** 57,431
40 96,398 ** ** 169,120 ** ** 69,120 ** ** 69,120
45 127,441 ** ** 168,868 ** ** 68,868 ** ** 68,868
</TABLE>
---------
* The illustrations assume that Planned Premiums are equal to the Target
Premium and are paid at the start of each Policy Year. The Death Benefit and
Surrender Value will differ if premiums are paid in different amounts or
frequencies, if policy loans are taken, or if Additional Sum Insured or
optional rider benefits are elected.
** Policy lapses unless additional premium payments are made.
THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE
DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT
RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF
FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE DEATH BENEFIT,
ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. WE CAN MAKE NO REPRESENTATION THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR CONTINUED OVER ANY PERIOD OF TIME.
21
<PAGE>
MEDALLION VARIABLE UNIVERSAL LIFE II (FLEXIBLE PREMIUM VARIABLE LIFE)
$100,000 TOTAL SUM INSURED
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK CLASS
OPTION A DEATH BENEFIT
CASH VALUE ACCUMULATION TEST
PLANNED PREMIUM: $ 760 *
USING CURRENT CHARGES
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
----------------------------- ---------------------- ------- -----------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ---------------------- ------- -----------------------------
Year Per Year 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------ -------------- -------- -------- --------- -------- -------- -- ------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 798 100,000 100,000 100,000 217 243 270 0 0 0
2 1,636 100,000 100,000 100,000 662 736 813 0 0 53
3 2,516 100,000 100,000 100,000 1,090 1,240 1,403 330 480 643
4 3,439 100,000 100,000 100,000 1,502 1,756 2,043 742 996 1,283
5 4,409 100,000 100,000 100,000 1,894 2,283 2,737 1,134 1,523 1,977
6 5,428 100,000 100,000 100,000 2,268 2,819 3,489 1,660 2,211 2,881
7 6,497 100,000 100,000 100,000 2,620 3,363 4,304 2,088 2,831 3,772
8 7,620 100,000 100,000 100,000 2,951 3,916 5,188 2,495 3,460 4,732
9 8,799 100,000 100,000 100,000 3,258 4,475 6,146 2,954 4,171 5,842
10 10,037 100,000 100,000 100,000 3,542 5,040 7,186 3,390 4,888 7,034
11 11,337 100,000 100,000 100,000 3,835 5,650 8,363 3,835 5,650 8,363
12 12,702 100,000 100,000 100,000 4,106 6,271 9,649 4,106 6,271 9,649
13 14,135 100,000 100,000 100,000 4,351 6,901 11,054 4,351 6,901 11,054
14 15,640 100,000 100,000 100,000 4,569 7,537 12,591 4,569 7,537 12,591
15 17,220 100,000 100,000 100,000 4,757 8,179 14,273 4,757 8,179 14,273
16 18,879 100,000 100,000 100,000 4,973 8,883 16,171 4,973 8,883 16,171
17 20,621 100,000 100,000 100,000 5,147 9,585 18,245 5,147 9,585 18,245
18 22,450 100,000 100,000 100,000 5,269 10,275 20,507 5,269 10,275 20,507
19 24,370 100,000 100,000 100,000 5,334 10,947 22,977 5,334 10,947 22,977
20 26,387 100,000 100,000 100,000 5,345 11,604 25,684 5,345 11,604 25,684
25 38,086 100,000 100,000 100,000 4,837 14,911 44,218 4,837 14,911 44,218
30 53,018 100,000 100,000 128,276 3,309 18,290 75,368 3,309 18,290 75,368
35 72,076 ** 100,000 189,568 ** 20,768 125,243 ** 20,768 125,243
40 96,398 ** 100,000 279,270 ** 20,542 204,026 ** 20,542 204,026
45 127,441 ** 100,000 414,264 ** 14,631 328,104 ** 14,631 328,104
</TABLE>
---------
* The illustrations assume that Planned Premiums are equal to the Target
Premium and are paid at the start of each Policy Year. The Death Benefit and
Surrender Value will differ if premiums are paid in different amounts or
frequencies, if policy loans are taken, or if Additional Sum Insured or
optional rider benefits are elected.
** Policy lapses unless additional premium payments are made.
THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE
DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT
RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF
FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE DEATH BENEFIT,
ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. WE CAN MAKE NO REPRESENTATION THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR CONTINUED OVER ANY PERIOD OF TIME.
22
<PAGE>
MEDALLION VARIABLE UNIVERSAL LIFE II (FLEXIBLE PREMIUM VARIABLE LIFE)
$100,000 TOTAL SUM INSURED
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK CLASS
OPTION A DEATH BENEFIT
CASH VALUE ACCUMULATION TEST
PLANNED PREMIUM: $ 760 *
USING MAXIMUM CHARGES
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
----------------------------- ---------------------- ------- -----------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ---------------------- ------- -----------------------------
Year Per Year 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------ -------------- -------- -------- --------- -------- -------- -- ------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 798 100,000 100,000 100,000 191 216 242 0 0 0
2 1,636 100,000 100,000 100,000 608 679 753 0 0 0
3 2,516 100,000 100,000 100,000 1,009 1,151 1,305 249 391 545
4 3,439 100,000 100,000 100,000 1,392 1,632 1,902 632 872 1,142
5 4,409 100,000 100,000 100,000 1,755 2,119 2,546 995 1,359 1,786
6 5,428 100,000 100,000 100,000 2,099 2,614 3,241 1,491 2,006 2,633
7 6,497 100,000 100,000 100,000 2,420 3,113 3,990 1,888 2,581 3,458
8 7,620 100,000 100,000 100,000 2,719 3,616 4,799 2,263 3,160 4,343
9 8,799 100,000 100,000 100,000 2,993 4,121 5,670 2,689 3,817 5,366
10 10,037 100,000 100,000 100,000 3,244 4,628 6,611 3,092 4,476 6,459
11 11,337 100,000 100,000 100,000 3,467 5,134 7,626 3,467 5,134 7,626
12 12,702 100,000 100,000 100,000 3,661 5,636 8,721 3,661 5,636 8,721
13 14,135 100,000 100,000 100,000 3,825 6,134 9,903 3,825 6,134 9,903
14 15,640 100,000 100,000 100,000 3,957 6,624 11,180 3,957 6,624 11,180
15 17,220 100,000 100,000 100,000 4,055 7,105 12,559 4,055 7,105 12,559
16 18,879 100,000 100,000 100,000 4,116 7,572 14,050 4,116 7,572 14,050
17 20,621 100,000 100,000 100,000 4,134 8,020 15,661 4,134 8,020 15,661
18 22,450 100,000 100,000 100,000 4,104 8,441 17,398 4,104 8,441 17,398
19 24,370 100,000 100,000 100,000 4,020 8,830 19,272 4,020 8,830 19,272
20 26,387 100,000 100,000 100,000 3,873 9,175 21,293 3,873 9,175 21,293
25 38,086 100,000 100,000 100,000 1,978 9,951 34,140 1,978 9,951 34,140
30 53,018 ** 100,000 100,000 ** 7,827 53,695 ** 7,827 53,695
35 72,076 ** ** 126,861 ** ** 83,814 ** ** 83,814
40 96,398 ** ** 173,350 ** ** 126,644 ** ** 126,644
45 127,441 ** ** 234,330 ** ** 185,593 ** ** 185,593
</TABLE>
---------
* The illustrations assume that Planned Premiums are equal to the Target
Premium and are paid at the start of each Policy Year. The Death Benefit and
Surrender Value will differ if premiums are paid in different amounts or
frequencies, if policy loans are taken, or if Additional Sum Insured or
optional rider benefits are elected.
** Policy lapses unless additional premium payments are made.
THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY AND SHOULD NOT BE
DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS. ACTUAL INVESTMENT
RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND ON A NUMBER OF
FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE DEATH BENEFIT,
ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. WE CAN MAKE NO REPRESENTATION THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR CONTINUED OVER ANY PERIOD OF TIME.
23
<PAGE>
[THIS PAGE IS INTENTIONALLY LEFT BLANK.]
24
<PAGE>
MEDALLION EXECUTIVE VARIABLE LIFE
REVISED ILLUSTRATION OF DEATH BENEFITS, ACCOUNT VALUES, SURRENDER VALUES AND
ACCUMULATED PREMIUMS
The following tables on pages 26 TO 31 replace the illustration in the John
Hancock Variable Life Insurance Company Medallion Executive Variable Life
Product Prospectus.
The assumptions used for the revised illustration are generally the same as
those described in the Medallion Executive Variable Life Product Prospectus.
With respect to fees and expenses deducted from Trust assets, however, the
amounts shown in all tables reflect (1) investment management fees equivalent to
an effective annual rate of .71%, and (2) an assumed average asset charge for
all other Trust-level operating expenses equivalent to an effective annual rate
of .11%. These rates are the arithmetic average for all funds that are
available as investment options. In other words, they are based on the
hypothetical assumption that policy account values are allocated equally among
the variable investment options.
Each table separately illustrates the operation of a policy for a specified
issue age, premium payment schedule and Total Sum Insured. The amounts shown are
for the end of each policy year and assume that all of the account value is
invested in funds that achieve investment returns at constant annual rates of
0%, 6% and 12% (i.e., before any fees or expenses deducted from Trust assets).
After deduction of the average Trust-level fees and expenses (as described
above) the corresponding net annual rates of return would be -.82%, 5.13% and
11.08%. Investment return reflects investment income and all realized and
unrealized capital gains and losses.
The actual rates associated with any policy will vary depending upon the
actual allocation of policy values among the investment options. The charge
shown above for all other Trust-level operating expenses reflects reimbursements
to certain funds as described in the footnotes to the Fund expense table. We
currently expect those reimbursement arrangements to continue indefinitely, but
that is not guaranteed.
The second column of each table shows the amount you would have at the end of
each policy year if an amount equal to the assumed Planned Premiums were
invested to earn interest, after taxes, at 5% compounded annually. This is not a
policy value. It is included for comparison purposes only.
Because your circumstances will no doubt differ from those in the
illustrations that follow, values under your policy will differ, in most cases
substantially. Upon request, we will furnish you with a comparable illustration
reflecting your proposed insured person's issue age, sex and underwriting risk
classification, and the Total Sum Insured and annual Planned Premium amount
requested.
25
<PAGE>
PLAN: MEDALLION EXECUTIVE VARIABLE LIFE (FLEXIBLE PREMIUM VARIABLE LIFE)
$100,000 TOTAL SUM INSURED MALE, ISSUE AGE 45, FULLY UNDERWRITTEN SELECT
UNDERWRITING CLASS OPTION A DEATH BENEFIT GUIDELINE PREMIUM AND CASH VALUE
CORRIDOR TEST PLANNED PREMIUM: $2,000* USING CURRENT CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
------------------------- ---------------------- --
Assuming hypothetical Assuming hypothetical
End of Planned Premiums gross annual return of gross annual return of
Policy accumulated at ------------------------- ---------------------- --
Year 5% annual interest 0% 6% 12% 0% 6% 12%
------ ------------------ ------- ------- ------- ------ ------- ----- ----
<S> <S> <S> <S> <S> <S> <S> <C>
1 2,100 100,000 100,000 100,000 926 1,006 1,086
2 4,305 100,000 100,000 100,000 2,224 2,448 2,683
3 6,620 100,000 100,000 100,000 3,168 3,611 4,094
4 9,051 100,000 100,000 100,000 4,239 4,976 5,810
5 11,604 100,000 100,000 100,000 5,274 6,382 7,686
6 14,284 100,000 100,000 100,000 6,666 8,235 10,154
7 17,098 100,000 100,000 100,000 8,014 10,150 12,859
8 20,053 100,000 100,000 100,000 9,318 12,127 15,826
9 23,156 100,000 100,000 100,000 10,575 14,167 19,081
10 26,414 100,000 100,000 100,000 11,807 16,305 22,700
11 29,834 100,000 100,000 100,000 13,111 18,642 26,822
12 33,426 100,000 100,000 100,000 14,363 21,063 31,368
13 37,197 100,000 100,000 100,000 15,562 23,568 36,390
14 41,157 100,000 100,000 100,000 16,702 26,162 41,942
15 45,315 100,000 100,000 100,000 17,781 28,847 48,092
16 49,681 100,000 100,000 100,000 18,794 31,628 54,912
17 54,265 100,000 100,000 100,000 19,737 34,510 62,491
18 59,078 100,000 100,000 100,000 20,604 37,496 70,928
19 64,132 100,000 100,000 100,000 21,389 40,594 80,341
20 69,439 100,000 100,000 108,963 22,084 43,811 90,802
25 100,227 100,000 100,000 186,337 23,994 62,110 162,032
30 139,522 100,000 100,000 294,031 22,180 85,977 280,029
35 189,673 100,000 124,505 500,517 13,328 118,576 476,683
</TABLE>
---------
* The illustrations assume that Planned Premiums equal to the Target Premium are
paid at the start of each Policy Year. The Death Benefit and Surrender Value
will differ if premiums are paid in different amounts or frequencies, if policy
loans are taken, or if Additional Sum Insured, or optional rider benefits are
elected.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%, OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
26
<PAGE>
PLAN: MEDALLION EXECUTIVE VARIABLE LIFE (FLEXIBLE PREMIUM VARIABLE LIFE)
$100,000 TOTAL SUM INSURED MALE, ISSUE AGE 45, FULLY UNDERWRITTEN SELECT
UNDERWRITING CLASS OPTION A DEATH BENEFIT GUIDELINE PREMIUM AND CASH VALUE
CORRIDOR TEST PLANNED PREMIUM: $2,000* USING MAXIMUM CHARGES
<TABLE>
<CAPTION>
Death Benefits Surrender Value
------------------------- ---------------------- -
Assuming hypothetical Assuming hypothetical
End of Planned Premiums gross annual return of gross annual return of
Policy accumulated at ------------------------- ---------------------- -
Year 5% annual interest 0% 6% 12% 0% 6% 12%
------ ------------------ ------- ------- ------- ------ ------ ------ ---
<S> <S> <S> <S> <S> <S> <S> <C>
1 2,100 100,000 100,000 100,000 607 676 746
2 4,305 100,000 100,000 100,000 1,568 1,753 1,946
3 6,620 100,000 100,000 100,000 2,161 2,512 2,896
4 9,051 100,000 100,000 100,000 2,865 3,434 4,081
5 11,604 100,000 100,000 100,000 3,516 4,354 5,347
6 14,284 100,000 100,000 100,000 4,505 5,677 7,118
7 17,098 100,000 100,000 100,000 5,429 7,008 9,024
8 20,053 100,000 100,000 100,000 6,283 8,342 11,075
9 23,156 100,000 100,000 100,000 7,059 9,674 13,281
10 26,414 100,000 100,000 100,000 7,751 10,997 15,655
11 29,834 100,000 100,000 100,000 8,414 12,368 18,280
12 33,426 100,000 100,000 100,000 8,983 13,724 21,117
13 37,197 100,000 100,000 100,000 9,455 15,063 24,191
14 41,157 100,000 100,000 100,000 9,827 16,380 27,532
15 45,315 100,000 100,000 100,000 10,091 17,671 31,172
16 49,681 100,000 100,000 100,000 10,237 18,926 35,146
17 54,265 100,000 100,000 100,000 10,251 20,133 39,495
18 59,078 100,000 100,000 100,000 10,117 21,278 44,265
19 64,132 100,000 100,000 100,000 9,813 22,342 49,514
20 69,439 100,000 100,000 100,000 9,318 23,308 55,310
25 100,227 100,000 100,000 110,519 3,191 26,010 96,104
30 139,522 ** 100,000 171,247 ** 21,767 163,092
35 189,673 ** ** 283,683 ** ** 270,174
</TABLE>
---------
* The illustrations assume that Planned Premiums equal to the Target Premium
are paid at the start of each Policy Year. The Death Benefit and Surrender
Value will differ if premiums are paid in different amounts or frequencies, if
policy loans are taken, or if Additional Sum Insured, or optional rider
benefits are elected.
** Policy lapses unless additional premium payments are made.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%, OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
27
<PAGE>
PLAN: MEDALLION EXECUTIVE VARIABLE LIFE (FLEXIBLE PREMIUM VARIABLE LIFE)
$100,000 TOTAL SUM INSURED MALE, ISSUE AGE 45, FULLY UNDERWRITTEN SELECT
UNDERWRITING CLASS OPTION B DEATH BENEFIT GUIDELINE PREMIUM AND CASH VALUE
CORRIDOR TEST PLANNED PREMIUM: $2,000* USING CURRENT CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
------------------------- ---------------------- -
Assuming hypothetical Assuming hypothetical
End of Planned Premiums gross annual return of gross annual return of
Policy accumulated at ------------------------- ---------------------- -
Year 5% annual interest 0% 6% 12% 0% 6% 12%
------ ------------------ ------- ------- ------- ------ ------ ------ ---
<S> <S> <S> <S> <S> <S> <S> <C>
1 2,100 100,924 101,004 101,084 924 1,004 1,084
2 4,305 102,057 102,281 102,516 2,217 2,441 2,676
3 6,620 103,155 103,597 104,077 3,155 3,597 4,077
4 9,051 104,216 104,949 105,778 4,216 4,949 5,778
5 11,604 105,239 106,338 107,632 5,239 6,338 7,632
6 14,284 106,613 108,167 110,067 6,613 8,167 10,067
7 17,098 107,937 110,048 112,724 7,937 10,048 12,724
8 20,053 109,211 111,980 115,625 9,211 11,980 15,625
9 23,156 110,430 113,961 118,788 10,430 13,961 18,788
10 26,414 111,616 116,022 122,283 11,616 16,022 22,283
11 29,834 112,861 118,261 126,237 12,861 18,261 26,237
12 33,426 114,043 120,556 130,563 14,043 20,556 30,563
13 37,197 115,157 122,905 135,294 15,157 22,905 35,294
14 41,157 116,196 125,302 140,467 16,196 25,302 40,467
15 45,315 117,156 127,745 146,124 17,156 27,745 46,124
16 49,681 118,030 130,228 152,310 18,030 30,228 52,310
17 54,265 118,809 132,744 159,072 18,809 32,744 59,072
18 59,078 119,487 135,286 166,465 19,487 35,286 66,465
19 64,132 120,053 137,844 174,546 20,053 37,844 74,546
20 69,439 120,498 140,408 183,379 20,498 40,408 83,379
25 100,227 120,593 152,960 241,625 20,593 52,960 141,625
30 139,522 115,859 163,432 332,991 15,859 63,432 232,991
35 189,673 103,378 167,620 475,677 3,378 67,620 375,677
</TABLE>
---------
* The illustrations assume that Planned Premiums equal to the Target Premium are
paid at the start of each Policy Year. The Death Benefit and Surrender Value
will differ if premiums are paid in different amounts or frequencies, if policy
loans are taken, or if Additional Sum Insured, or optional rider benefits are
elected.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%, OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
28
<PAGE>
PLAN: MEDALLION EXECUTIVE VARIABLE LIFE (FLEXIBLE PREMIUM VARIABLE LIFE)
$100,000 TOTAL SUM INSURED MALE, ISSUE AGE 45, FULLY UNDERWRITTEN SELECT
UNDERWRITING CLASS OPTION B DEATH BENEFIT GUIDELINE PREMIUM AND CASH VALUE
CORRIDOR TEST PLANNED PREMIUM: $2,000* USING MAXIMUM CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
------------------------- ---------------------- --
Assuming hypothetical Assuming hypothetical
End of Planned Premiums gross annual return of gross annual return of
Policy accumulated at ------------------------- ---------------------- --
Year 5% annual interest 0% 6% 12% 0% 6% 12%
------ ------------------ ------- ------- ------- ------ ------- ----- ----
<S> <S> <S> <S> <S> <S> <S> <C>
1 2,100 100,602 100,670 100,740 602 670 740
2 4,305 101,394 101,577 101,768 1,554 1,737 1,928
3 6,620 102,133 102,480 102,858 2,133 2,480 2,858
4 9,051 102,818 103,378 104,014 2,818 3,378 4,014
5 11,604 103,445 104,265 105,236 3,445 4,265 5,236
6 14,284 104,403 105,544 106,946 4,403 5,544 6,946
7 17,098 105,286 106,815 108,765 5,286 6,815 8,765
8 20,053 106,089 108,072 110,699 6,089 8,072 10,699
9 23,156 106,803 109,304 112,748 6,803 9,304 12,748
10 26,414 107,421 110,501 114,913 7,421 10,501 14,913
11 29,834 107,996 111,717 117,267 7,996 11,717 17,267
12 33,426 108,462 112,882 119,752 8,462 12,882 19,752
13 37,197 108,818 113,989 122,379 8,818 13,989 22,379
14 41,157 109,058 115,030 125,154 9,058 15,030 25,154
15 45,315 109,176 115,992 128,082 9,176 15,992 28,082
16 49,681 109,160 116,859 131,166 9,160 16,859 31,166
17 54,265 108,998 117,611 134,406 8,998 17,611 34,406
18 59,078 108,673 118,224 137,795 8,673 18,224 37,795
19 64,132 108,166 118,668 141,327 8,166 18,668 41,327
20 69,439 107,458 118,914 144,991 7,458 18,914 44,991
25 100,227 100,389 116,186 165,067 389 16,186 65,067
30 139,522 ** 102,778 186,009 ** 2,778 86,009
35 189,673 ** ** 200,295 ** ** 100,295
</TABLE>
---------
* The illustrations assume that Planned Premiums equal to the Target Premium
are paid at the start of each Policy Year. The Death Benefit and Surrender
Value will differ if premiums are paid in different amounts or frequencies, if
policy loans are taken, or if Additional Sum Insured, or optional rider
benefits are elected.
** Policy lapses unless additional premium payments are made.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%, OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
29
<PAGE>
PLAN: MEDALLION EXECUTIVE VARIABLE LIFE (FLEXIBLE PREMIUM VARIABLE LIFE)
$100,000 TOTAL SUM INSURED MALE, ISSUE AGE 45, FULLY UNDERWRITTEN SELECT
UNDERWRITING CLASS OPTION A DEATH BENEFIT CASH VALUE ACCUMULATION TEST
PLANNED PREMIUM: $2,000* USING CURRENT CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
------------------------- ---------------------- --
Assuming hypothetical Assuming hypothetical
End of Planned Premiums gross annual return of gross annual return of
Policy accumulated at ------------------------- ---------------------- --
Year 5% annual interest 0% 6% 12% 0% 6% 12%
------ ------------------ ------- ------- ------- ------ ------- ----- ----
<S> <S> <S> <S> <S> <S> <S> <C>
1 2,100 100,000 100,000 100,000 926 1,006 1,086
2 4,305 100,000 100,000 100,000 2,224 2,448 2,683
3 6,620 100,000 100,000 100,000 3,168 3,611 4,094
4 9,051 100,000 100,000 100,000 4,239 4,976 5,810
5 11,604 100,000 100,000 100,000 5,274 6,382 7,686
6 14,284 100,000 100,000 100,000 6,666 8,235 10,154
7 17,098 100,000 100,000 100,000 8,014 10,150 12,859
8 20,053 100,000 100,000 100,000 9,318 12,127 15,826
9 23,156 100,000 100,000 100,000 10,575 14,167 19,081
10 26,414 100,000 100,000 100,000 11,807 16,305 22,700
11 29,834 100,000 100,000 100,000 13,111 18,642 26,822
12 33,426 100,000 100,000 100,000 14,363 21,063 31,368
13 37,197 100,000 100,000 100,000 15,562 23,568 36,390
14 41,157 100,000 100,000 100,000 16,702 26,162 41,942
15 45,315 100,000 100,000 100,000 17,781 28,847 48,092
16 49,681 100,000 100,000 100,314 18,794 31,628 54,909
17 54,265 100,000 100,000 111,201 19,737 34,510 62,409
18 59,078 100,000 100,000 122,814 20,604 37,496 70,636
19 64,132 100,000 100,000 135,222 21,389 40,594 79,655
20 69,439 100,000 100,000 148,492 22,084 43,811 89,539
25 100,227 100,000 100,000 230,654 23,994 62,110 155,009
30 139,522 100,000 115,032 349,000 22,180 84,920 257,641
35 189,673 100,000 139,931 522,847 13,328 111,410 416,280
</TABLE>
---------
* The illustrations assume that Planned Premiums equal to the Target Premium are
paid at the start of each Policy Year. The Death Benefit and Surrender Value
will differ if premiums are paid in different amounts or frequencies, if policy
loans are taken, or if Additional Sum Insured, or optional rider benefits are
elected.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%, OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
30
<PAGE>
PLAN: MEDALLION EXECUTIVE VARIABLE LIFE (FLEXIBLE PREMIUM VARIABLE LIFE)
$100,000 TOTAL SUM INSURED MALE, ISSUE AGE 45, FULLY UNDERWRITTEN SELECT
UNDERWRITING CLASS OPTION A DEATH BENEFIT CASH VALUE ACCUMULATION TEST
PLANNED PREMIUM: $2,000* USING MAXIMUM CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
------------------------- ---------------------- -
Assuming hypothetical Assuming hypothetical
End of Planned Premiums gross annual return of gross annual return of
Policy accumulated at ------------------------- ---------------------- -
Year 5% annual interest 0% 6% 12% 0% 6% 12%
------ ------------------ ------- ------- ------- ------ ------ ------ ---
<S> <S> <S> <S> <S> <S> <S> <C>
1 2,100 100,000 100,000 100,000 607 676 746
2 4,305 100,000 100,000 100,000 1,568 1,753 1,946
3 6,620 100,000 100,000 100,000 2,161 2,512 2,896
4 9,051 100,000 100,000 100,000 2,865 3,434 4,081
5 11,604 100,000 100,000 100,000 3,516 4,354 5,347
6 14,284 100,000 100,000 100,000 4,505 5,677 7,118
7 17,098 100,000 100,000 100,000 5,429 7,008 9,024
8 20,053 100,000 100,000 100,000 6,283 8,342 11,075
9 23,156 100,000 100,000 100,000 7,059 9,674 13,281
10 26,414 100,000 100,000 100,000 7,751 10,997 15,655
11 29,834 100,000 100,000 100,000 8,414 12,368 18,280
12 33,426 100,000 100,000 100,000 8,983 13,724 21,117
13 37,197 100,000 100,000 100,000 9,455 15,063 24,191
14 41,157 100,000 100,000 100,000 9,827 16,380 27,532
15 45,315 100,000 100,000 100,000 10,091 17,671 31,172
16 49,681 100,000 100,000 100,000 10,237 18,926 35,146
17 54,265 100,000 100,000 100,000 10,251 20,133 39,495
18 59,078 100,000 100,000 100,000 10,117 21,278 44,265
19 64,132 100,000 100,000 100,000 9,813 22,342 49,514
20 69,439 100,000 100,000 100,000 9,318 23,308 55,310
25 100,227 100,000 100,000 138,229 3,191 26,010 92,896
30 139,522 ** 100,000 198,224 ** 21,767 146,334
35 189,673 ** ** 276,280 ** ** 219,968
</TABLE>
---------
* The illustrations assume that Planned Premiums equal to the Target Premium
are paid at the start of each Policy Year. The Death Benefit and Surrender
Value will differ if premiums are paid in different amounts or frequencies, if
policy loans are taken, or if Additional Sum Insured, or optional rider
benefits are elected.
** Policy lapses unless additional premium payments are made.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%, OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
31
<PAGE>
[THIS PAGE IS INTENTIONALLY LEFT BLANK.]
32
<PAGE>
MEDALLION EXECUTIVE VARIABLE LIFE III
REVISED ILLUSTRATION OF DEATH BENEFITS, ACCOUNT VALUES, SURRENDER VALUES AND
ACCUMULATED PREMIUMS
The following tables on pages 34 TO 39 replace the illustration in the John
Hancock Variable Life Insurance Company Medallion Executive Variable Life III
Product Prospectus.
The assumptions used for the revised illustration are generally the same as
those described in the Medallion Executive Variable Life III Product Prospectus.
With respect to fees and expenses deducted from Trust assets, however, the
amounts shown in all tables reflect (1) investment management fees equivalent to
an effective annual rate of .71%, and (2) an assumed average asset charge for
all other Trust-level operating expenses equivalent to an effective annual rate
of .11%. These rates are the arithmetic average for all funds that are
available as investment options. In other words, they are based on the
hypothetical assumption that policy account values are allocated equally among
the variable investment options.
Each table separately illustrates the operation of a policy for a specified
issue age, premium payment schedule and Total Sum Insured. The amounts shown are
for the end of each policy year and assume that all of the account value is
invested in funds that achieve investment returns at constant annual rates of
0%, 6% and 12% (i.e., before any fees or expenses deducted from Trust assets).
After deduction of the average Trust-level fees and expenses (as described
above) the corresponding net annual rates of return would be -.82%, 5.13% and
11.08%. Investment return reflects investment income and all realized and
unrealized capital gains and losses.
The actual rates associated with any policy will vary depending upon the
actual allocation of policy values among the investment options. The charge
shown above for all other Trust-level operating expenses reflects reimbursements
to certain funds as described in the footnotes to the Fund expense table. We
currently expect those reimbursement arrangements to continue indefinitely, but
that is not guaranteed.
The second column of each table shows the amount you would have at the end of
each policy year if an amount equal to the assumed Planned Premiums were
invested to earn interest, after taxes, at 5% compounded annually. This is not a
policy value. It is included for comparison purposes only.
Because your circumstances will no doubt differ from those in the
illustrations that follow, values under your policy will differ, in most cases
substantially. Upon request, we will furnish you with a comparable illustration
reflecting your proposed insured person's issue age, sex and underwriting risk
classification, and the Total Sum Insured and annual Planned Premium amount
requested.
33
<PAGE>
PLAN: MEDALLION EXECUTIVE VARIABLE LIFE III (FLEXIBLE PREMIUM VARIABLE LIFE)
$100,000 TOTAL SUM INSURED MALE, ISSUE AGE 45, FULLY UNDERWRITTEN NONTOBACCO
UNDERWRITING CLASS OPTION A DEATH BENEFIT GUIDELINE PREMIUM AND CASH VALUE
CORRIDOR TEST PLANNED PREMIUM: $5,649 FOR SEVEN POLICY YEARS, GUIDELINE
PREMIUM LIMIT THEREAFTER* USING CURRENT CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
------------------------ ----------------------- -
Assuming hypothetical Assuming hypothetical
End of Planned Premiums gross annual return of gross annual return of
Policy accumulated at ------------------------ ----------------------- -
Year 5% annual interest 0% 6% 12% 0% 6% 12%
------ ------------------ ------- ------- ------ ------ ------- ------ ---
<S> <S> <S> <S> <S> <S> <S> <C>
1 5,931 100,000 100,000 4,915 5,214 5,512 100,000
2 12,159 100,000 100,000 9,625 10,522 11,455 100,000
3 18,699 100,000 100,000 14,239 16,041 17,989 100,000
4 25,565 100,000 100,000 18,775 21,798 25,197 100,000
5 32,775 100,000 100,000 19,789 24,153 29,290 100,000
6 40,345 100,000 100,000 19,176 24,909 32,018 100,000
7 48,294 100,000 100,000 18,543 25,677 35,013 100,000
8 50,709 100,000 100,000 17,888 26,454 38,307 100,000
9 53,244 100,000 100,000 17,237 27,265 41,953 100,000
10 55,906 100,000 100,000 16,588 28,112 45,990 100,000
11 58,702 100,000 100,000 16,074 29,169 50,696 100,000
12 61,637 100,000 100,000 15,524 30,246 55,901 100,000
13 64,718 100,000 100,000 14,929 31,337 61,663 100,000
14 67,954 100,000 100,000 14,293 32,450 68,052 100,000
15 71,352 100,000 100,000 13,616 33,585 75,147 100,000
16 74,920 100,000 106,264 12,902 34,750 83,019 106,264
17 78,666 100,000 115,553 12,125 35,926 91,709 115,553
18 82,599 100,000 125,613 11,277 37,113 101,301 125,613
19 86,729 100,000 136,506 10,352 38,309 111,890 136,506
20 91,065 100,000 148,297 9,338 39,509 123,581 148,297
25 95,619 100,000 235,874 3,125 46,318 205,108 235,874
30 100,400 ** 357,747 ** 53,553 340,711 357,747
35 105,420 ** 595,833 ** 60,851 567,460 595,833
</TABLE>
---------
* The illustrations assume that Planned Premiums equal to the Target Premium
are paid at the start of each of the first seven Policy Years and that
premuims equal to the Guideline Premium Limit are paid at the start of each
Policy Year thereafter. The Death Benefit and Surrender Value will differ if
premiums are paid in different amounts or frequencies, if policy loans are
taken, or if Additional Sum Insured, Guaranteed Minimum Death benefit after
the tenth Policy Year, or optional rider benefits are elected.
** Policy lapses unless additional premium payments are made.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%, OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
34
<PAGE>
PLAN: MEDALLION EXECUTIVE VARIABLE LIFE III (FLEXIBLE PREMIUM VARIABLE LIFE)
$100,000 TOTAL SUM INSURED MALE, ISSUE AGE 45, FULLY UNDERWRITTEN NONTOBACCO
UNDERWRITING CLASS OPTION A DEATH BENEFIT GUIDELINE PREMIUM AND CASH VALUE
CORRIDOR TEST PLANNED PREMIUM: $5,649 FOR SEVEN POLICY YEARS, GUIDELINE
PREMIUM LIMIT THEREAFTER* USING MAXIMUM CHARGES
<TABLE>
<CAPTION>
Death Benefits Surrender Value
------------------------- ---------------------- -
Assuming hypothetical Assuming hypothetical
End of Planned Premiums gross annual return of gross annual return of
Policy accumulated at ------------------------- ---------------------- -
Year 5% annual interest 0% 6% 12% 0% 6% 12%
------ ------------------ ------- ------- ------- ------ ------ ------ ---
<S> <S> <S> <S> <S> <S> <S> <C>
1 5,931 100,000 100,000 100,000 4,356 4,635 4,914
2 12,159 100,000 100,000 100,000 8,623 9,451 10,313
3 18,699 100,000 100,000 100,000 12,803 14,459 16,249
4 25,565 100,000 100,000 100,000 16,900 19,669 22,785
5 32,775 100,000 100,000 100,000 17,490 21,464 26,152
6 40,345 100,000 100,000 100,000 16,460 21,639 28,082
7 48,294 100,000 100,000 100,000 15,391 21,775 30,176
8 50,709 100,000 100,000 100,000 14,276 21,865 32,450
9 53,244 100,000 100,000 100,000 13,108 21,899 34,921
10 55,906 100,000 100,000 100,000 11,874 21,865 37,607
11 58,702 100,000 100,000 100,000 10,569 21,757 40,533
12 61,637 100,000 100,000 100,000 9,184 21,562 43,726
13 64,718 100,000 100,000 100,000 7,711 21,273 47,222
14 67,954 100,000 100,000 100,000 6,142 20,877 51,059
15 71,352 100,000 100,000 100,000 4,466 20,362 55,281
16 74,920 100,000 100,000 100,000 2,666 19,708 59,938
17 78,666 100,000 100,000 100,000 723 18,892 65,090
18 82,599 ** 100,000 100,000 ** 17,886 70,804
19 86,729 ** 100,000 100,000 ** 16,654 77,164
20 91,065 ** 100,000 101,116 ** 15,159 84,264
25 95,619 ** 100,000 151,046 ** 2,074 131,344
30 100,400 ** ** 215,959 ** ** 205,676
35 105,420 ** ** 340,938 ** ** 324,703
</TABLE>
---------
* The illustrations assume that Planned Premiums equal to the Target Premium
are paid at the start of each of the first seven Policy Years and that
premuims equal to the Guideline Premium Limit are paid at the start of each
Policy Year thereafter. The Death Benefit and Surrender Value will differ if
premiums are paid in different amounts or frequencies, if policy loans are
taken, or if Additional Sum Insured, Guaranteed Minimum Death benefit after
the tenth Policy Year, or optional rider benefits are elected.
** Policy lapses unless additional premium payments are made.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%, OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
35
<PAGE>
PLAN: MEDALLION EXECUTIVE VARIABLE LIFE III (FLEXIBLE PREMIUM VARIABLE LIFE)
$100,000 TOTAL SUM INSURED MALE, ISSUE AGE 45, FULLY UNDERWRITTEN NONTOBACCO
UNDERWRITING CLASS OPTION B DEATH BENEFIT GUIDELINE PREMIUM AND CASH VALUE
CORRIDOR TEST PLANNED PREMIUM: $5,649 FOR SEVEN POLICY YEARS, GUIDELINE
PREMIUM LIMIT THEREAFTER* USING CURRENT CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
------------------------- ---------------------- -
Assuming hypothetical Assuming hypothetical
End of Planned Premiums gross annual return of gross annual return of
Policy accumulated at ------------------------- ---------------------- -
Year 5% annual interest 0% 6% 12% 0% 6% 12%
------ ------------------ ------- ------- ------- ------ ------ ------ ---
<S> <S> <S> <S> <S> <S> <S> <C>
1 5,931 104,915 105,214 105,512 4,915 5,214 5,512
2 12,159 109,610 110,506 111,437 9,610 10,506 11,437
3 18,699 114,196 115,992 117,934 14,196 15,992 17,934
4 25,565 118,691 121,699 125,080 18,691 21,699 25,080
5 32,775 123,109 127,648 132,956 23,109 27,648 32,956
6 40,345 127,431 133,831 141,617 27,431 33,831 41,617
7 48,294 131,659 140,258 151,144 31,659 40,258 51,144
8 50,709 130,758 141,601 155,987 30,758 41,601 55,987
9 53,244 129,865 143,001 161,331 29,865 43,001 61,331
10 55,906 128,979 144,457 167,225 28,979 44,457 67,225
11 58,702 128,258 146,180 174,005 28,258 46,180 74,005
12 61,637 127,498 147,935 181,460 27,498 47,935 81,460
13 64,718 126,688 149,713 189,649 26,688 49,713 89,649
14 67,954 125,836 151,522 198,658 25,836 51,522 98,658
15 71,352 124,941 153,363 208,575 24,941 53,363 108,575
16 74,920 124,011 155,245 219,503 24,011 55,245 119,503
17 78,666 123,013 157,136 231,518 23,013 57,136 131,518
18 82,599 121,945 159,031 244,728 21,945 59,031 144,728
19 86,729 120,799 160,924 259,255 20,799 60,924 159,255
20 91,065 119,566 162,803 275,228 19,566 62,803 175,228
25 95,619 112,487 172,968 385,977 12,487 72,968 285,977
30 100,400 102,334 182,021 567,406 2,334 82,021 467,406
35 105,420 ** 187,153 864,596 ** 87,153 764,596
</TABLE>
---------
* The illustrations assume that Planned Premiums equal to the Target Premium
are paid at the start of each of the first seven Policy Years and that
premuims equal to the Guideline Premium Limit are paid at the start of each
Policy Year thereafter. The Death Benefit and Surrender Value will differ if
premiums are paid in different amounts or frequencies, if policy loans are
taken, or if Additional Sum Insured, Guaranteed Minimum Death benefit after
the tenth Policy Year, or optional rider benefits are elected.
** Policy lapses unless additional premium payments are made.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%, OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
36
<PAGE>
PLAN: MEDALLION EXECUTIVE VARIABLE LIFE III (FLEXIBLE PREMIUM VARIABLE LIFE)
$100,000 TOTAL SUM INSURED MALE, ISSUE AGE 45, FULLY UNDERWRITTEN NONTOBACCO
UNDERWRITING CLASS OPTION B DEATH BENEFIT GUIDELINE PREMIUM AND CASH VALUE
CORRIDOR TEST PLANNED PREMIUM: $5,649 FOR SEVEN POLICY YEARS, GUIDELINE
PREMIUM LIMIT THEREAFTER* USING MAXIMUM CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
------------------------- ---------------------- -
Assuming hypothetical Assuming hypothetical
End of Planned Premiums gross annual return of gross annual return of
Policy accumulated at ------------------------- ---------------------- -
Year 5% annual interest 0% 6% 12% 0% 6% 12%
------ ------------------ ------- ------- ------- ------ ------ ------ ---
<S> <S> <S> <S> <S> <S> <S> <C>
1 5,931 104,335 104,612 104,890 4,335 4,612 4,890
2 12,159 108,558 109,379 110,234 8,558 9,379 10,234
3 18,699 112,670 114,305 116,075 12,670 14,305 16,075
4 25,565 116,670 119,394 122,460 16,670 19,394 22,460
5 32,775 120,554 124,648 129,439 20,554 24,648 29,439
6 40,345 124,322 130,070 137,068 24,322 30,070 37,068
7 48,294 127,967 135,658 145,404 27,967 35,658 45,404
8 50,709 126,520 136,151 148,952 26,520 36,151 48,952
9 53,244 125,023 136,588 152,777 25,023 36,588 52,777
10 55,906 123,467 136,955 156,898 23,467 36,955 56,898
11 58,702 121,848 137,244 161,338 21,848 37,244 61,338
12 61,637 120,156 137,443 166,120 20,156 37,443 66,120
13 64,718 118,391 137,544 171,276 18,391 37,544 71,276
14 67,954 116,547 137,536 176,833 16,547 37,536 76,833
15 71,352 114,615 137,405 182,825 14,615 37,405 82,825
16 74,920 112,586 137,134 189,282 12,586 37,134 89,282
17 78,666 110,444 136,700 196,233 10,444 36,700 96,233
18 82,599 108,174 136,077 203,709 8,174 36,077 103,709
19 86,729 105,754 135,233 211,738 5,754 35,233 111,738
20 91,065 103,165 134,137 220,353 3,165 34,137 120,353
25 95,619 ** 123,804 273,755 ** 23,804 173,755
30 100,400 ** 101,058 348,556 ** 1,058 248,556
35 105,420 ** ** 449,885 ** ** 349,885
</TABLE>
---------
* The illustrations assume that Planned Premiums equal to the Target Premium
are paid at the start of each of the first seven Policy Years and that
premuims equal to the Guideline Premium Limit are paid at the start of each
Policy Year thereafter. The Death Benefit and Surrender Value will differ if
premiums are paid in different amounts or frequencies, if policy loans are
taken, or if Additional Sum Insured, Guaranteed Minimum Death benefit after
the tenth Policy Year, or optional rider benefits are elected.
** Policy lapses unless additional premium payments are made.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%, OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
37
<PAGE>
PLAN: MEDALLION EXECUTIVE VARIABLE LIFE III (FLEXIBLE PREMIUM VARIABLE LIFE)
$100,000 TOTAL SUM INSURED MALE, ISSUE AGE 45, FULLY UNDERWRITTEN NONTOBACCO
UNDERWRITING CLASS OPTION A DEATH BENEFIT CASH VALUE ACCUMULATION TEST
PLANNED PREMIUM: $5,649 FOR SEVEN POLICY YEARS, GUIDELINE PREMIUM LIMIT
THEREAFTER* USING CURRENT CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
------------------------- ---------------------- --
Assuming hypothetical Assuming hypothetical
End of Planned Premiums gross annual return of gross annual return of
Policy accumulated at ------------------------- ---------------------- --
Year 5% annual interest 0% 6% 12% 0% 6% 12%
------ ------------------ ------- ------- ------- ------ ------- ----- ----
<S> <S> <S> <S> <S> <S> <S> <C>
1 5,931 100,000 100,000 100,000 4,915 5,214 5,512
2 12,159 100,000 100,000 100,000 9,625 10,522 11,455
3 18,699 100,000 100,000 100,000 14,239 16,041 17,989
4 25,565 100,000 100,000 100,000 18,775 21,798 25,197
5 32,775 100,000 100,000 100,000 23,247 27,818 33,163
6 40,345 100,000 100,000 100,731 27,642 34,101 41,957
7 48,294 100,000 100,000 120,360 31,964 40,664 51,619
8 50,709 100,000 100,000 128,249 31,164 42,168 56,612
9 53,244 100,000 100,000 136,763 30,370 43,743 62,111
10 55,906 100,000 100,000 145,959 29,581 45,392 68,167
11 58,702 100,000 100,000 156,489 28,965 47,340 75,123
12 61,637 100,000 100,080 167,806 28,320 49,361 82,765
13 64,718 100,000 101,574 179,949 27,638 51,451 91,151
14 67,954 100,000 103,102 192,994 26,923 53,615 100,361
15 71,352 100,000 104,679 207,037 26,173 55,859 110,479
16 74,920 100,000 106,307 222,155 25,394 58,190 121,602
17 78,666 100,000 107,972 238,406 24,560 60,597 133,801
18 82,599 100,000 109,683 255,891 23,667 63,084 147,174
19 86,729 100,000 111,449 274,727 22,708 65,651 161,833
20 91,065 100,000 113,269 295,013 21,673 68,300 177,890
25 95,619 100,000 124,870 428,289 15,639 83,918 287,829
30 100,400 100,000 138,961 627,651 6,384 102,585 463,348
35 105,420 ** 156,538 931,089 ** 124,632 741,313
</TABLE>
---------
* The illustrations assume that Planned Premiums equal to the Target Premium
are paid at the start of each of the first seven Policy Years and that
premuims equal to the Guideline Premium Limit are paid at the start of each
Policy Year thereafter. The Death Benefit and Surrender Value will differ if
premiums are paid in different amounts or frequencies, if policy loans are
taken, or if Additional Sum Insured, Guaranteed Minimum Death benefit after
the tenth Policy Year, or optional rider benefits are elected.
** Policy lapses unless additional premium payments are made.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%, OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
38
<PAGE>
PLAN: MEDALLION EXECUTIVE VARIABLE LIFE III (FLEXIBLE PREMIUM VARIABLE LIFE)
$100,000 TOTAL SUM INSURED MALE, ISSUE AGE 45, FULLY UNDERWRITTEN NONTOBACCO
UNDERWRITING CLASS OPTION A DEATH BENEFIT CASH VALUE ACCUMULATION TEST
PLANNED PREMIUM: $5,649 FOR SEVEN POLICY YEARS, GUIDELINE PREMIUM LIMIT
THEREAFTER* USING MAXIMUM CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
------------------------- ---------------------- -
Assuming hypothetical Assuming hypothetical
End of Planned Premiums gross annual return of gross annual return of
Policy accumulated at ------------------------- ---------------------- -
Year 5% annual interest 0% 6% 12% 0% 6% 12%
------ ------------------ ------- ------- ------- ------ ------ ------ ---
<S> <S> <S> <S> <S> <S> <S> <C>
1 5,931 100,000 100,000 100,000 4,356 4,635 4,914
2 12,159 100,000 100,000 100,000 8,623 9,451 10,313
3 18,699 100,000 100,000 100,000 12,803 14,459 16,249
4 25,565 100,000 100,000 100,000 16,900 19,669 22,785
5 32,775 100,000 100,000 100,000 20,912 25,092 29,985
6 40,345 100,000 100,000 100,000 24,844 30,741 37,927
7 48,294 100,000 100,000 108,746 28,692 36,628 46,638
8 50,709 100,000 100,000 114,646 27,455 37,464 50,607
9 53,244 100,000 100,000 120,901 26,174 38,293 54,907
10 55,906 100,000 100,000 127,531 24,841 39,110 59,561
11 58,702 100,000 100,000 134,556 23,449 39,913 64,594
12 61,637 100,000 100,000 141,997 21,989 40,698 70,035
13 64,718 100,000 100,000 149,879 20,457 41,461 75,919
14 67,954 100,000 100,000 158,220 18,842 42,200 82,278
15 71,352 100,000 100,000 167,066 17,136 42,910 89,149
16 74,920 100,000 100,000 176,422 15,323 43,583 96,569
17 78,666 100,000 100,000 186,328 13,385 44,211 104,573
18 82,599 100,000 100,000 196,818 11,299 44,780 113,198
19 86,729 100,000 100,000 207,922 9,038 45,276 122,480
20 91,065 100,000 100,000 219,668 6,572 45,685 132,458
25 95,619 ** 100,000 289,482 ** 45,847 194,544
30 100,400 ** 100,000 381,983 ** 39,909 281,990
35 105,420 ** 100,000 504,349 ** 17,046 401,552
</TABLE>
---------
* The illustrations assume that Planned Premiums equal to the Target Premium
are paid at the start of each of the first seven Policy Years and that
premuims equal to the Guideline Premium Limit are paid at the start of each
Policy Year thereafter. The Death Benefit and Surrender Value will differ if
premiums are paid in different amounts or frequencies, if policy loans are
taken, or if Additional Sum Insured, Guaranteed Minimum Death benefit after
the tenth Policy Year, or optional rider benefits are elected.
** Policy lapses unless additional premium payments are made.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%, OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
39
<PAGE>
[THIS PAGE IS INTENTIONALLY LEFT BLANK.]
40
<PAGE>
VARIABLE ESTATE PROTECTION
REVISED ILLUSTRATION OF DEATH BENEFITS, ACCOUNT VALUES, SURRENDER VALUES AND
ACCUMULATED PREMIUMS
The following tables on pages 42 TO 45 replace the illustration in the John
Hancock Life Insurance Company ("JOHN HANCOCK") Variable Estate Protection
Product Prospectus. The tables on pages 46 TO 49 replace the illustration in
the John Hancock Variable Life Insurance Company ("JHVLICO") Variable Estate
Protection Product Prospectus.
The assumptions used for the revised illustration are generally the same as
those described in the respective Variable Estate Protection Product Prospectus.
With respect to fees and expenses deducted from Trust assets, however, the
amounts shown in all tables reflect (1) investment management fees equivalent to
an effective annual rate of .71%, and (2) an assumed average asset charge for
all other Trust-level operating expenses equivalent to an effective annual rate
of .11%. These rates are the arithmetic average for all funds that are available
as investment options. In other words, they are based on the hypothetical
assumption that policy account values are allocated equally among the variable
investment options.
Tables are provided for each of the two death benefit options. The amounts
shown are for the end of each policy year and assume that all of the account
value is invested in funds that achieve investment returns at constant annual
rates of 0%, 6% and 12% (i.e., before any fees or expenses deducted from Trust
assets). After deduction of the average Trust-level fees and expenses (as
described above) the corresponding net annual rates of return would be -.82%,
5.13% and 11.08%. Investment return reflects investment income and all realized
and unrealized capital gains and losses.
The actual rates associated with any policy will vary depending upon the
actual allocation of policy values among the investment options. The charge
shown above for all other Trust-level operating expenses reflects reimbursements
to certain funds as described in the footnotes to the Fund expense table. We
currently expect those reimbursement arrangements to continue indefinitely, but
that is not guaranteed.
The second column of each table shows the amount you would have at the end of
each policy year if an amount equal to the assumed Planned Premiums were
invested to earn interest, after taxes, at 5% compounded annually. This is not a
policy value. It is included for comparison purposes only.
Because your circumstances will no doubt differ from those in the
illustrations that follow, values under your policy will differ, in most cases
substantially. Upon request, we will furnish you with a comparable illustration
reflecting your proposed insured persons' issue ages, sex and underwriting risk
classification, and the Total Sum Insured and annual Planned Premium amount
requested.
41
<PAGE>
PLAN: JOHN HANCOCK VARIABLE ESTATE PROTECTION (FLEXIBLE PREMIUM VARIABLE LIFE
SURVIVORSHIP) $1,000,000 SUM INSURED ($500,000 BASIC SUM INSURED; $500,000
ADDITIONAL SUM INSURED) MALE, ISSUE AGE 55, PREFERRED UNDERWRITING CLASS
FEMALE, ISSUE AGE 50, PREFERRED UNDERWRITING CLASS OPTION A DEATH BENEFIT NO
GUARANTEED MINIMUM DEATH BENEFIT AFTER TENTH POLICY YEAR PLANNED PREMIUM:
$15,969* USING CURRENT CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
------------------------------- ---------------- -------------
Assuming hypothetical Assuming hypothetical
End of Planned Premiums gross annual return of gross annual return of
Policy accumulated at ------------------------------- ---------------- -------------
Year 5% annual interest 0% 6% 12% 0% 6% 12%
------- ------------------ --------- --------- --------- ------- ------- -- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 16,768 1,000,000 1,000,000 1,000,000 11,200 11,904 12,609
2 34,374 1,000,000 1,000,000 1,000,000 23,392 25,562 27,821
3 52,861 1,000,000 1,000,000 1,000,000 35,408 39,831 44,613
4 72,271 1,000,000 1,000,000 1,000,000 47,487 54,981 63,401
5 92,653 1,000,000 1,000,000 1,000,000 59,387 70,805 84,137
6 114,053 1,000,000 1,000,000 1,000,000 72,165 88,429 108,166
7 136,524 1,000,000 1,000,000 1,000,000 84,750 106,832 134,684
8 160,118 1,000,000 1,000,000 1,000,000 97,138 126,044 163,944
9 184,891 1,000,000 1,000,000 1,000,000 109,329 146,096 196,227
10 210,904 1,000,000 1,000,000 1,000,000 121,315 167,017 231,841
11 238,217 1,000,000 1,000,000 1,000,000 133,853 189,637 271,960
12 266,895 1,000,000 1,000,000 1,000,000 146,158 213,221 316,208
13 297,008 1,000,000 1,000,000 1,000,000 158,219 237,799 365,006
14 328,626 1,000,000 1,000,000 1,000,000 170,017 263,398 418,818
15 361,825 1,000,000 1,000,000 1,000,000 181,533 290,045 478,163
16 396,684 1,000,000 1,000,000 1,044,599 192,738 317,766 543,590
17 433,286 1,000,000 1,000,000 1,145,037 203,600 346,584 615,656
18 471,718 1,000,000 1,000,000 1,251,940 214,076 376,522 694,995
19 512,072 1,000,000 1,000,000 1,365,979 224,119 407,601 782,295
20 554,444 1,000,000 1,000,000 1,487,825 233,667 439,841 878,299
25 800,279 1,000,000 1,000,000 2,249,218 274,084 622,750 1,523,123
30 1,114,034 1,000,000 1,115,312 3,366,197 288,814 842,289 2,542,168
35 1,514,473 1,000,000 1,338,337 5,034,083 252,846 1,096,756 4,125,388
</TABLE>
* The illustrations assume that Planned Premiums equal to $15,969.34 are paid at
the start of each Policy Year. The Death Benefit and Surrender Value will
differ if premiums are paid in different amounts or frequencies, if policy
loans are taken, or if Guaranteed Minimum Death Benefit after the tenth Policy
Year, or optional rider benefits are elected.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%, OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
42
<PAGE>
PLAN: JOHN HANCOCK VARIABLE ESTATE PROTECTION (FLEXIBLE PREMIUM VARIABLE LIFE
SURVIVORSHIP) $1,000,000 SUM INSURED ($500,000 BASIC SUM INSURED; $500,000
ADDITIONAL SUM INSURED) MALE, ISSUE AGE 55, PREFERRED UNDERWRITING CLASS
FEMALE, ISSUE AGE 50, PREFERRED UNDERWRITING CLASS OPTION B DEATH BENEFIT NO
GUARANTEED MINIMUM DEATH BENEFIT AFTER TENTH POLICY YEAR PLANNED PREMIUM:
$15,969* USING CURRENT CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
------------------------------- ---------------- -----------
Assuming Hypothetical Assuming Hypothetical
End of Planned Premiums Gross Annual Return of Gross Annual Return of
Policy Accumulated at ------------------------------- ---------------- -----------
Year 5% Annual Interest 0% 6% 12% 0% 6% 12%
------- ------------------ --------- --------- --------- ------- ------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 16,768 1,011,200 1,011,903 1,012,608 11,200 11,903 12,608
2 34,374 1,023,390 1,025,560 1,027,818 23,390 25,560 27,818
3 52,861 1,035,404 1,039,826 1,044,607 35,404 39,826 44,608
4 72,271 1,047,479 1,054,973 1,063,391 47,479 54,973 63,391
5 92,653 1,059,376 1,070,791 1,084,120 59,376 70,791 84,120
6 114,053 1,072,148 1,088,407 1,108,139 72,148 88,407 108,139
7 136,524 1,084,725 1,106,800 1,134,642 84,725 106,800 134,642
8 160,118 1,097,104 1,125,997 1,163,880 97,104 125,997 163,880
9 184,891 1,109,281 1,146,027 1,196,130 109,281 146,027 196,130
10 210,904 1,121,247 1,166,917 1,231,695 121,247 166,917 231,695
11 238,217 1,133,765 1,189,504 1,271,757 133,765 189,504 271,757
12 266,895 1,146,040 1,213,036 1,315,916 146,040 213,036 315,916
13 297,008 1,158,055 1,237,534 1,364,574 158,055 237,534 364,574
14 328,626 1,169,786 1,263,013 1,418,169 169,786 263,013 418,169
15 361,825 1,181,203 1,289,480 1,477,178 181,203 289,480 477,178
16 396,684 1,192,268 1,316,938 1,542,120 192,268 316,938 542,120
17 433,286 1,202,935 1,345,375 1,613,554 202,935 345,375 613,554
18 471,718 1,213,142 1,374,768 1,692,085 213,142 374,768 692,085
19 512,072 1,222,818 1,405,080 1,778,367 222,819 405,080 778,367
20 554,444 1,231,875 1,436,249 1,873,102 231,875 436,249 873,102
25 800,279 1,266,737 1,605,056 2,506,535 266,737 605,056 1,506,535
30 1,114,034 1,265,989 1,777,283 3,501,773 265,989 777,283 2,501,773
35 1,514,473 1,196,987 1,913,469 5,043,925 196,988 913,469 4,043,925
</TABLE>
* The illustrations assume that Planned Premiums equal to $15,969.34 are paid at
the start of each Policy Year. The Death Benefit and Surrender Value will
differ if premiums are paid in different amounts or frequencies, if policy
loans are taken, or if Guaranteed Minimum Death Benefit after the tenth Policy
Year, or optional rider benefits are elected.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%, OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
43
<PAGE>
PLAN: JOHN HANCOCK VARIABLE ESTATE PROTECTION (FLEXIBLE PREMIUM VARIABLE LIFE
SURVIVORSHIP) $1,000,000 SUM INSURED ($500,000 BASIC SUM INSURED; $500,000
ADDITIONAL SUM INSURED) MALE, ISSUE AGE 55, PREFERRED UNDERWRITING CLASS
FEMALE, ISSUE AGE 50, PREFERRED UNDERWRITING CLASS OPTION A DEATH BENEFIT NO
GUARANTEED MINIMUM DEATH BENEFIT AFTER TENTH POLICY YEAR PLANNED PREMIUM:
$15,969* USING MAXIMUM CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
------------------------------- ---------------- -----------
Assuming hypothetical Assuming hypothetical
End of Planned Premiums gross annual return of gross annual return of
Policy accumulated at ------------------------------- ---------------- -----------
Year 5% annual interest 0% 6% 12% 0% 6% 12%
------- ------------------ --------- --------- --------- ------- ------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 16,768 1,000,000 1,000,000 1,000,000 10,901 11,594 12,287
2 34,374 1,000,000 1,000,000 1,000,000 22,718 24,846 27,053
3 52,861 1,000,000 1,000,000 1,000,000 34,245 38,562 43,214
4 72,271 1,000,000 1,000,000 1,000,000 45,703 52,986 61,144
5 92,653 1,000,000 1,000,000 1,000,000 56,834 67,882 80,746
6 114,053 1,000,000 1,000,000 1,000,000 68,671 84,342 103,310
7 136,524 1,000,000 1,000,000 1,000,000 80,120 101,308 127,969
8 160,118 1,000,000 1,000,000 1,000,000 91,155 118,771 154,907
9 184,891 1,000,000 1,000,000 1,000,000 101,747 136,720 184,335
10 210,904 1,000,000 1,000,000 1,000,000 111,860 155,140 216,477
11 238,217 1,000,000 1,000,000 1,000,000 121,960 174,547 252,154
12 266,895 1,000,000 1,000,000 1,000,000 131,474 194,393 291,127
13 297,008 1,000,000 1,000,000 1,000,000 140,331 214,633 333,707
14 328,626 1,000,000 1,000,000 1,000,000 148,441 235,207 380,234
15 361,825 1,000,000 1,000,000 1,000,000 155,697 256,044 431,104
16 396,684 1,000,000 1,000,000 1,000,000 161,984 277,072 486,780
17 433,286 1,000,000 1,000,000 1,018,580 167,116 298,160 547,664
18 471,718 1,000,000 1,000,000 1,105,725 171,044 319,305 613,826
19 512,072 1,000,000 1,000,000 1,197,018 173,563 340,382 685,532
20 554,444 1,000,000 1,000,000 1,292,741 174,480 361,291 763,136
25 800,279 1,000,000 1,000,000 1,849,337 144,641 458,581 1,252,332
30 1,114,034 1,000,000 1,000,000 2,567,693 2,132 521,335 1,939,134
35 1,514,473 ** 1,000,000 3,503,540 ** 494,468 2,871,120
</TABLE>
* The illustrations assume that Planned Premiums equal to $15,969.34 are paid
at the start of each Policy Year. The Death Benefit and Surrender Value will
differ if premiums are paid in different amounts or frequencies, if policy
loans are taken, or if Guaranteed Minimum Death Benefit after the tenth Policy
Year, or optional rider benefits are elected.
** Policy lapses unless additional premium payments are made.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%, OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
44
<PAGE>
PLAN: JOHN HANCOCK VARIABLE ESTATE PROTECTION (FLEXIBLE PREMIUM VARIABLE LIFE
SURVIVORSHIP) $1,000,000 SUM INSURED ($500,000 BASIC SUM INSURED; $500,000
ADDITIONAL SUM INSURED) MALE, ISSUE AGE 55, PREFERRED UNDERWRITING CLASS
FEMALE, ISSUE AGE 50, PREFERRED UNDERWRITING CLASS OPTION B DEATH BENEFIT NO
GUARANTEED MINIMUM DEATH BENEFIT AFTER TENTH POLICY YEAR PLANNED PREMIUM:
$15,969* USING MAXIMUM CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
------------------------------- ---------------- -----------
Assuming hypothetical Assuming hypothetical
End of Planned Premiums gross annual return of gross annual return of
Policy accumulated at ------------------------------- ---------------- -----------
Year 5% annual interest 0% 6% 12% 0% 6% 12%
------- ------------------ --------- --------- --------- ------- ------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
1 16,768 1,010,900 1,011,594 1,012,287 10,900 11,594 12,287
2 34,374 1,022,715 1,024,843 1,027,050 22,715 24,843 27,050
3 52,861 1,034,235 1,038,551 1,043,202 34,235 38,551 43,202
4 72,271 1,045,678 1,052,957 1,061,110 45,678 52,957 61,110
5 92,653 1,056,783 1,067,819 1,080,670 56,783 67,819 80,670
6 114,053 1,068,576 1,084,222 1,103,160 68,576 84,222 103,160
7 136,524 1,079,958 1,101,096 1,127,693 79,958 101,096 127,693
8 160,118 1,090,893 1,118,417 1,154,431 90,893 118,417 154,431
9 184,891 1,101,345 1,136,158 1,183,550 101,345 136,158 183,550
10 210,904 1,111,265 1,154,278 1,215,228 111,265 154,278 215,228
11 238,217 1,121,105 1,173,262 1,250,222 121,105 173,263 250,222
12 266,895 1,130,274 1,192,525 1,288,210 130,274 192,525 288,210
13 297,008 1,138,681 1,211,970 1,329,383 138,681 211,970 329,383
14 328,626 1,146,208 1,231,469 1,373,923 146,208 231,469 373,923
15 361,825 1,152,719 1,250,869 1,422,009 152,719 250,869 422,009
16 396,684 1,158,064 1,269,994 1,473,820 158,064 269,994 473,820
17 433,286 1,162,012 1,288,572 1,529,465 162,012 288,572 529,465
18 471,718 1,164,496 1,306,488 1,589,234 164,496 306,488 589,234
19 512,072 1,165,268 1,323,431 1,653,251 165,268 323,431 653,251
20 554,444 1,164,099 1,339,095 1,721,671 164,099 339,095 721,671
25 800,279 1,118,067 1,382,982 2,132,594 118,067 382,982 1,132,594
30 1,114,034 ** 1,303,944 2,644,892 ** 303,944 1,644,892
35 1,514,473 ** ** 3,209,172 ** ** 2,209,172
</TABLE>
* The illustrations assume that Planned Premiums equal to $15,969.34 are paid
at the start of each Policy Year. The Death Benefit and Surrender Value will
differ if premiums are paid in different amounts or frequencies, if policy
loans are taken, or if Guaranteed Minimum Death Benefit after the tenth Policy
Year, or optional rider benefits are elected.
** Policy lapses unless additional premium payments are made.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%, OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
45
<PAGE>
PLAN: JHVLICO VARIABLE ESTATE PROTECTION (FLEXIBLE PREMIUM VARIABLE LIFE
SURVIVORSHIP) $500,000 TOTAL SUM INSURED MALE, ISSUE AGE 55, PREFERRED
UNDERWRITING CLASS FEMALE, ISSUE AGE 50, PREFERRED UNDERWRITING CLASS OPTION
A DEATH BENEFIT NO GUARANTEED MINIMUM DEATH BENEFIT AFTER TENTH POLICY YEAR
PLANNED PREMIUM: $8,156* USING CURRENT CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
--------------------------- -------------------- -------
Assuming hypothetical Assuming hypothetical
End of Planned Premiums gross annual return of gross annual return of
Policy accumulated at --------------------------- -------------------- -------
Year 5% annual interest 0% 6% 12% 0% 6% 12%
------- ------------------ ------- ------- --------- ------- ------- -- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 8,564 500,000 500,000 500,000 4,292 4,576 4,860
2 17,556 500,000 500,000 500,000 10,122 11,028 11,970
3 26,998 500,000 500,000 500,000 15,058 16,934 18,960
4 36,912 500,000 500,000 500,000 20,443 23,652 27,251
5 47,322 500,000 500,000 500,000 25,749 30,669 36,402
6 58,252 500,000 500,000 500,000 32,037 39,104 47,655
7 69,728 500,000 500,000 500,000 38,231 47,913 60,073
8 81,779 500,000 500,000 500,000 44,328 57,107 73,774
9 94,432 500,000 500,000 500,000 50,328 66,703 88,890
10 107,717 500,000 500,000 500,000 56,226 76,714 105,564
11 121,667 500,000 500,000 500,000 62,669 87,839 124,672
12 136,314 500,000 500,000 500,000 68,993 99,437 145,746
13 151,694 500,000 500,000 500,000 75,192 111,522 168,983
14 167,843 500,000 500,000 500,000 81,258 124,107 194,606
15 184,799 500,000 500,000 500,000 87,179 137,206 222,858
16 202,603 500,000 500,000 500,000 92,941 150,830 254,012
17 221,297 500,000 500,000 536,277 98,530 164,990 288,342
18 240,926 500,000 500,000 587,493 103,922 179,696 326,137
19 261,536 500,000 500,000 642,094 109,095 194,957 367,727
20 283,177 500,000 500,000 700,402 114,016 210,781 413,464
25 408,735 500,000 500,000 1,064,419 134,937 300,440 720,802
30 568,983 500,000 540,508 1,597,663 142,923 408,194 1,206,563
35 773,504 500,000 650,986 2,393,352 125,472 533,477 1,961,331
</TABLE>
* The illustrations assume that Planned Premiums equal to the Target Premium are
paid at the start of each Policy Year. The Death Benefit and Surrender Value
will differ if premiums are paid in different amounts or frequencies, if policy
loans are taken, or if Additional Sum Insured, Guaranteed Minimum Death Benefit
after the tenth Policy Year, or optional rider benefits are elected.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%, OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
46
<PAGE>
PLAN: JHVLICO VARIABLE ESTATE PROTECTION (FLEXIBLE PREMIUM VARIABLE LIFE
SURVIVORSHIP) $500,000 TOTAL SUM INSURED MALE, ISSUE AGE 55, PREFERRED
UNDERWRITING CLASS FEMALE, ISSUE AGE 50, PREFERRED UNDERWRITING CLASS OPTION
B DEATH BENEFIT NO GUARANTEED MINIMUM DEATH BENEFIT AFTER TENTH POLICY YEAR
PLANNED PREMIUM: $8,156* USING CURRENT CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
--------------------------- -------------------- -------
Assuming hypothetical Assuming hypothetical
End of Planned Premiums gross annual return of gross annual return of
Policy accumulated at --------------------------- -------------------- -------
Year 5% annual interest 0% 6% 12% 0% 6% 12%
------- ------------------ ------- ------- --------- ------- ------- -- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 8,564 504,292 504,576 504,860 4,292 4,576 4,860
2 17,556 509,714 510,619 511,561 10,122 11,027 11,969
3 26,998 515,057 516,932 518,957 15,057 16,932 18,957
4 36,912 520,440 523,649 527,247 20,440 23,649 27,247
5 47,322 525,744 530,663 536,395 25,744 30,663 36,395
6 58,252 532,030 539,095 547,643 32,030 39,095 47,643
7 69,728 538,220 547,898 560,054 38,220 47,898 60,054
8 81,779 544,313 557,086 573,745 44,313 57,086 73,745
9 94,432 550,306 566,673 588,846 50,306 66,673 88,847
10 107,717 556,195 576,670 605,498 56,195 76,670 105,498
11 121,667 562,629 587,779 624,581 62,629 87,779 124,581
12 136,314 568,939 599,352 645,614 68,939 99,352 145,614
13 151,694 575,116 611,400 668,787 75,116 111,400 168,787
14 167,843 581,149 623,929 694,309 81,149 123,929 194,309
15 184,799 587,023 636,943 722,406 87,023 136,943 222,406
16 202,603 592,718 650,442 753,322 92,718 150,442 253,322
17 221,297 598,212 664,421 787,323 98,212 164,421 287,323
18 240,926 603,473 678,867 824,694 103,473 178,867 324,694
19 261,536 608,467 693,761 865,744 108,467 193,761 365,744
20 283,177 613,149 709,073 910,803 113,149 209,073 410,803
25 408,735 631,340 791,944 1,211,876 131,340 291,944 711,876
30 568,983 631,672 876,151 1,683,852 131,672 376,151 1,183,852
35 773,504 597,828 941,871 2,412,890 97,828 441,872 1,912,891
</TABLE>
* The illustrations assume that Planned Premiums equal to the Target Premium are
paid at the start of each Policy Year. The Death Benefit and Surrender Value
will differ if premiums are paid in different amounts or frequencies, if policy
loans are taken, or if Additional Sum Insured, Guaranteed Minimum Death Benefit
after the tenth Policy Year, or optional rider benefits are elected.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%, OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
47
<PAGE>
PLAN: JHVLICO VARIABLE ESTATE PROTECTION (FLEXIBLE PREMIUM VARIABLE LIFE
SURVIVORSHIP) $500,000 TOTAL SUM INSURED MALE, ISSUE AGE 55, PREFERRED
UNDERWRITING CLASS FEMALE, ISSUE AGE 50, PREFERRED UNDERWRITING CLASS OPTION
A DEATH BENEFIT NO GUARANTEED MINIMUM DEATH BENEFIT AFTER TENTH POLICY YEAR
PLANNED PREMIUM: $8,156* USING MAXIMUM CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
--------------------------- -------------------- ------
Assuming hypothetical Assuming hypothetical
End of Planned Premiums gross annual return of gross annual return of
Policy accumulated at --------------------------- -------------------- ------
Year 5% annual interest 0% 6% 12% 0% 6% 12%
------- ------------------ ------- ------- --------- ------ ------- --- --------
<S> <C> <C> <C> <C> <C> <C> <C>
1 8,564 500,000 500,000 500,000 4,131 4,409 4,688
2 17,556 500,000 500,000 500,000 9,764 10,647 11,563
3 26,998 500,000 500,000 500,000 14,447 16,268 18,227
4 36,912 500,000 500,000 500,000 19,515 22,615 26,081
5 47,322 500,000 500,000 500,000 24,430 29,161 34,659
6 58,252 500,000 500,000 500,000 30,243 37,008 45,172
7 69,728 500,000 500,000 500,000 35,863 45,091 56,654
8 81,779 500,000 500,000 500,000 41,277 53,403 69,187
9 94,432 500,000 500,000 500,000 46,469 61,938 82,867
10 107,717 500,000 500,000 500,000 51,422 70,687 97,794
11 121,667 500,000 500,000 500,000 56,595 80,147 114,619
12 136,314 500,000 500,000 500,000 61,470 89,811 132,982
13 151,694 500,000 500,000 500,000 66,013 99,656 153,022
14 167,843 500,000 500,000 500,000 70,178 109,650 174,895
15 184,799 500,000 500,000 500,000 73,910 119,755 198,778
16 202,603 500,000 500,000 500,000 77,153 129,930 224,879
17 221,297 500,000 500,000 500,000 79,813 140,108 253,425
18 240,926 500,000 500,000 512,772 81,864 150,283 284,658
19 261,536 500,000 500,000 556,201 83,204 160,387 318,536
20 283,177 500,000 500,000 601,713 83,736 170,364 355,206
25 408,735 500,000 500,000 866,439 69,251 215,884 586,734
30 568,983 ** 500,000 1,207,606 ** 240,694 911,990
35 773,504 ** 500,000 1,651,719 ** 210,051 1,353,569
</TABLE>
* The illustrations assume that Planned Premiums equal to the Target Premium
are paid at the start of each Policy Year. The Death Benefit and Surrender
Value will differ if premiums are paid in different amounts or frequencies, if
policy loans are taken, or if Additional Sum Insured, Guaranteed Minimum Death
Benefit after the tenth Policy Year, or optional rider benefits are elected.
** Policy lapses unless additional premium payments are made.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%, OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
48
<PAGE>
PLAN: JHVLICO VARIABLE ESTATE PROTECTION (FLEXIBLE PREMIUM VARIABLE LIFE
SURVIVORSHIP) $500,000 TOTAL SUM INSURED MALE, ISSUE AGE 55, PREFERRED
UNDERWRITING CLASS FEMALE, ISSUE AGE 50, PREFERRED UNDERWRITING CLASS OPTION
B DEATH BENEFIT NO GUARANTEED MINIMUM DEATH BENEFIT AFTER TENTH POLICY YEAR
PLANNED PREMIUM: $8,156* USING MAXIMUM CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
--------------------------- -------------------- ----
Assuming hypothetical Assuming hypothetical
End of Planned Premiums gross annual return of gross annual return of
Policy accumulated at --------------------------- -------------------- ----
Year 5% annual interest 0% 6% 12% 0% 6% 12%
------- ------------------ ------- ------- --------- ------ ------- --- ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 8,564 504,130 504,409 504,687 4,130 4,409 4,687
2 17,556 509,355 510,238 511,154 9,763 10,646 11,561
3 26,998 514,443 516,263 518,222 14,443 16,263 18,222
4 36,912 519,505 522,603 526,067 19,505 22,603 26,067
5 47,322 524,408 529,134 534,626 24,408 29,134 34,626
6 58,252 530,202 536,956 545,107 30,202 36,956 45,107
7 69,728 535,792 544,997 556,534 35,792 44,997 56,534
8 81,779 541,160 553,246 568,977 41,160 53,246 68,977
9 94,432 546,288 561,687 582,518 46,288 61,687 82,518
10 107,717 551,152 570,299 597,236 51,152 70,299 97,236
11 121,667 556,204 579,565 613,752 56,204 79,565 113,752
12 136,314 560,918 588,960 631,666 60,918 88,960 131,666
13 151,694 565,249 598,436 651,063 65,249 98,436 151,063
14 167,843 569,137 607,930 672,025 69,137 107,930 172,025
15 184,799 572,515 617,363 694,627 72,515 117,363 194,627
16 202,603 575,309 626,647 718,946 75,309 126,647 218,946
17 221,297 577,401 635,646 745,023 77,401 135,646 245,023
18 240,926 578,760 644,302 772,986 78,760 144,302 272,986
19 261,536 579,260 652,459 802,879 79,260 152,459 302,879
20 283,177 578,789 659,963 834,760 78,789 159,963 334,760
25 408,735 556,505 680,285 1,024,827 56,505 180,285 524,827
30 568,983 ** 638,775 1,256,092 ** 138,775 756,092
35 773,504 ** ** 1,498,010 ** ** 998,010
</TABLE>
* The illustrations assume that Planned Premiums equal to the Target Premium
are paid at the start of each Policy Year. The Death Benefit and Surrender
Value will differ if premiums are paid in different amounts or frequencies, if
policy loans are taken, or if Additional Sum Insured, Guaranteed Minimum Death
Benefit after the tenth Policy Year, or optional rider benefits are elected.
** Policy lapses unless additional premium payments are made.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%, OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
49
<PAGE>
[THIS PAGE IS INTENTIONALLY LEFT BLANK.]
50
<PAGE>
VARIABLE ESTATE PROTECTION II
REVISED ILLUSTRATION OF DEATH BENEFITS, ACCOUNT VALUES, SURRENDER VALUES AND
ACCUMULATED PREMIUMS
The following tables on pages 52 TO 61 replace the illustration in the John
Hancock Variable Life Insurance Company Variable Estate Protection II Product
Prospectus.
The assumptions used for the revised illustration are generally the same as
those described in the Variable Estate Protection II Product Prospectus. With
respect to fees and expenses deducted from Trust assets, however, the amounts
shown in all tables reflect (1) investment management fees equivalent to an
effective annual rate of .71%, and (2) an assumed average asset charge for all
other Trust-level operating expenses equivalent to an effective annual rate of
.11%. These rates are the arithmetic average for all funds that are available
as investment options. In other words, they are based on the hypothetical
assumption that policy account values are allocated equally among the variable
investment options.
Tables are provided for each of the two death benefit options. The amounts
shown are for the end of each policy year and assume that all of the account
value is invested in funds that achieve investment returns at constant annual
rates of 0%, 6% and 12% (i.e., before any fees or expenses deducted from Trust
assets). After deduction of the average Trust-level fees and expenses (as
described above) the corresponding net annual rates of return would be -.82%,
5.13% and 11.08%. Investment return reflects investment income and all realized
and unrealized capital gains and losses.
The actual rates associated with any policy will vary depending upon the
actual allocation of policy values among the investment options. The charge
shown above for all other Trust-level operating expenses reflects reimbursements
to certain funds as described in the footnotes to the Fund expense table. We
currently expect those reimbursement arrangements to continue indefinitely, but
that is not guaranteed.
The second column of each table shows the amount you would have at the end of
each policy year if an amount equal to the assumed Planned Premiums were
invested to earn interest, after taxes, at 5% compounded annually. This is not a
policy value. It is included for comparison purposes only.
Because your circumstances will no doubt differ from those in the
illustrations that follow, values under your policy will differ, in most cases
substantially. Upon request, we will furnish you with a comparable illustration
reflecting the issue age, sex and underwriting risk classification of each of
your proposed insured persons, and the Total Sum Insured and annual Planned
Premium amount requested.
51
<PAGE>
PLAN: VARIABLE ESTATE PROTECTION II (FLEXIBLE PREMIUM VARIABLE LIFE
SURVIVORSHIP) $500,000 TOTAL SUM INSURED MALE, ISSUE AGE 55, PREFERRED
UNDERWRITING CLASS FEMALE, ISSUE AGE 50, PREFERRED UNDERWRITING CLASS OPTION
A DEATH BENEFIT GUIDELINE PREMIUM AND CASH VALUE CORRIDOR TEST
NO GUARANTEED MINIMUM DEATH BENEFIT AFTER TENTH POLICY YEAR PLANNED PREMIUM:
$8,156* USING CURRENT CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
--------------------------- -------------------- -------
Assuming hypothetical Assuming hypothetical
End of Planned Premiums gross annual return of gross annual return of
Policy accumulated at --------------------------- -------------------- -------
Year 5% annual interest 0% 6% 12% 0% 6% 12%
------- ------------------ ------- ------- --------- ------- ------- -- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 8,564 500,000 500,000 500,000 4,283 4,566 4,850
2 17,556 500,000 500,000 500,000 10,095 10,998 11,936
3 26,998 500,000 500,000 500,000 15,004 16,873 18,887
4 36,912 500,000 500,000 500,000 20,352 23,546 27,121
5 47,322 500,000 500,000 500,000 25,612 30,504 36,192
6 58,252 500,000 500,000 500,000 31,847 38,864 47,337
7 69,728 500,000 500,000 500,000 37,976 47,579 59,614
8 81,779 500,000 500,000 500,000 43,999 56,660 73,136
9 94,432 500,000 500,000 500,000 49,915 66,121 88,026
10 107,717 500,000 500,000 500,000 55,721 75,974 104,422
11 121,667 500,000 500,000 500,000 62,061 86,914 123,189
12 136,314 500,000 500,000 500,000 68,274 98,299 143,849
13 151,694 500,000 500,000 500,000 74,352 110,141 166,589
14 167,843 500,000 500,000 500,000 80,287 122,452 191,616
15 184,799 500,000 500,000 500,000 86,069 135,241 219,160
16 202,603 500,000 500,000 500,000 92,148 149,267 250,736
17 221,297 500,000 500,000 500,000 98,068 163,896 285,673
18 240,926 500,000 500,000 500,000 103,807 179,142 324,340
19 261,536 500,000 500,000 500,000 109,339 195,020 367,157
20 283,177 500,000 500,000 500,000 114,633 211,545 414,601
25 408,735 500,000 500,000 778,830 137,609 306,250 741,743
30 568,983 500,000 500,000 1,349,037 147,952 423,789 1,284,797
35 773,504 500,000 604,624 2,288,241 133,255 575,832 2,179,277
</TABLE>
* The illustrations assume that Planned Premiums equal to the Target Premium are
paid at the start of each Policy Year. The Death Benefit and Surrender Value
will differ if premiums are paid in different amounts or frequencies, if policy
loans are taken, or if Additional Sum Insured, Guaranteed Minimum Death Benefit
after the tenth Policy Year, or optional rider benefits are elected.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%, OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
52
<PAGE>
PLAN: VARIABLE ESTATE PROTECTION II (FLEXIBLE PREMIUM VARIABLE LIFE
SURVIVORSHIP) $500,000 TOTAL SUM INSURED MALE, ISSUE AGE 55, PREFERRED
UNDERWRITING CLASS FEMALE, ISSUE AGE 50, PREFERRED UNDERWRITING CLASS OPTION
B DEATH BENEFIT GUIDELINE PREMIUM AND CASH VALUE CORRIDOR TEST
NO GUARANTEED MINIMUM DEATH BENEFIT AFTER TENTH POLICY YEAR PLANNED PREMIUM:
$8,156* USING CURRENT CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
--------------------------- -------------------- -------
Assuming hypothetical Assuming hypothetical
End of Planned Premiums gross annual return of gross annual return of
Policy accumulated at --------------------------- -------------------- -------
Year 5% annual interest 0% 6% 12% 0% 6% 12%
------- ------------------ ------- ------- --------- ------- ------- -- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 8,564 504,283 504,566 504,850 4,283 4,566 4,850
2 17,556 509,686 510,590 511,527 10,094 10,997 11,935
3 26,998 515,002 516,871 518,885 15,002 16,871 18,885
4 36,912 520,349 523,542 527,117 20,349 23,542 27,117
5 47,322 525,608 530,498 536,185 25,608 30,498 36,185
6 58,252 531,840 538,855 547,325 31,840 38,855 47,325
7 69,728 537,966 547,565 559,596 37,966 47,565 59,596
8 81,779 543,984 556,639 573,107 43,984 56,639 73,107
9 94,432 549,893 566,090 587,983 49,893 66,090 87,983
10 107,717 555,690 575,929 604,357 55,690 75,929 104,357
11 121,667 562,022 586,854 623,100 62,022 86,854 123,100
12 136,314 568,220 598,216 643,719 68,220 98,216 143,719
13 151,694 574,277 610,021 666,395 74,277 110,021 166,395
14 167,843 580,180 622,276 691,324 80,180 122,276 191,324
15 184,799 585,915 634,982 718,716 85,915 134,982 218,716
16 202,603 591,927 648,884 750,056 91,927 148,884 250,056
17 221,297 597,752 663,332 784,636 97,752 163,332 284,636
18 240,926 603,359 678,317 822,770 103,359 178,317 322,770
19 261,536 608,711 693,826 864,798 108,711 193,826 364,798
20 283,177 613,762 709,832 911,087 113,762 209,832 411,087
25 408,735 633,937 797,588 1,223,749 133,937 297,588 723,749
30 568,983 636,301 889,538 1,722,895 136,301 389,538 1,222,895
35 773,504 604,121 966,478 2,509,427 104,121 466,478 2,009,427
</TABLE>
* The illustrations assume that Planned Premiums equal to the Target Premium are
paid at the start of each Policy Year. The Death Benefit and Surrender Value
will differ if premiums are paid in different amounts or frequencies, if policy
loans are taken, or if Additional Sum Insured, Guaranteed Minimum Death Benefit
after the tenth Policy Year, or optional rider benefits are elected.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%, OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
53
<PAGE>
PLAN: VARIABLE ESTATE PROTECTION II (FLEXIBLE PREMIUM VARIABLE LIFE
SURVIVORSHIP) $500,000 TOTAL SUM INSURED MALE, ISSUE AGE 55, PREFERRED
UNDERWRITING CLASS FEMALE, ISSUE AGE 50, PREFERRED UNDERWRITING CLASS OPTION
A DEATH BENEFIT GUIDELINE PREMIUM AND CASH VALUE CORRIDOR TEST
NO GUARANTEED MINIMUM DEATH BENEFIT AFTER TENTH POLICY YEAR PLANNED PREMIUM:
$8,156* USING MAXIMUM CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
--------------------------- -------------------- ------
Assuming hypothetical Assuming hypothetical
End of Planned Premiums gross annual return of gross annual return of
Policy accumulated at --------------------------- -------------------- ------
Year 5% annual interest 0% 6% 12% 0% 6% 12%
------- ------------------ ------- ------- --------- ------ ------- --- --------
<S> <C> <C> <C> <C> <C> <C> <C>
1 8,564 500,000 500,000 500,000 4,130 4,408 4,687
2 17,556 500,000 500,000 500,000 9,762 10,644 11,561
3 26,998 500,000 500,000 500,000 14,444 16,263 18,224
4 36,912 500,000 500,000 500,000 19,511 22,608 26,077
5 47,322 500,000 500,000 500,000 24,424 29,151 34,654
6 58,252 500,000 500,000 500,000 30,236 36,995 45,167
7 69,728 500,000 500,000 500,000 35,855 45,074 56,647
8 81,779 500,000 500,000 500,000 41,267 53,381 69,179
9 94,432 500,000 500,000 500,000 46,457 61,911 82,857
10 107,717 500,000 500,000 500,000 51,409 70,654 97,783
11 121,667 500,000 500,000 500,000 56,579 80,107 114,606
12 136,314 500,000 500,000 500,000 61,451 89,762 132,967
13 151,694 500,000 500,000 500,000 65,992 99,598 153,005
14 167,843 500,000 500,000 500,000 70,153 109,581 174,875
15 184,799 500,000 500,000 500,000 73,882 119,674 198,754
16 202,603 500,000 500,000 500,000 77,121 129,835 224,851
17 221,297 500,000 500,000 500,000 79,775 139,997 253,392
18 240,926 500,000 500,000 500,000 81,822 150,154 284,703
19 261,536 500,000 500,000 500,000 83,156 160,237 319,124
20 283,177 500,000 500,000 500,000 83,680 170,191 357,087
25 408,735 500,000 500,000 648,337 69,143 215,534 617,464
30 568,983 ** 500,000 1,086,910 ** 239,964 1,035,152
35 773,504 ** 500,000 1,769,417 ** 208,337 1,685,159
</TABLE>
* The illustrations assume that Planned Premiums equal to the Target Premium
are paid at the start of each Policy Year. The Death Benefit and Surrender
Value will differ if premiums are paid in different amounts or frequencies, if
policy loans are taken, or if Additional Sum Insured, Guaranteed Minimum Death
Benefit after the tenth Policy Year, or optional rider benefits are elected.
** Policy lapses unless additional premium payments are made.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%, OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
54
<PAGE>
PLAN: VARIABLE ESTATE PROTECTION II (FLEXIBLE PREMIUM VARIABLE LIFE
SURVIVORSHIP) $500,000 TOTAL SUM INSURED MALE, ISSUE AGE 55, PREFERRED
UNDERWRITING CLASS FEMALE, ISSUE AGE 50, PREFERRED UNDERWRITING CLASS OPTION
B DEATH BENEFIT GUIDELINE PREMIUM AND CASH VALUE CORRIDOR TEST
NO GUARANTEED MINIMUM DEATH BENEFIT AFTER TENTH POLICY YEAR PLANNED PREMIUM:
$8,156* USING MAXIMUM CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
--------------------------- -------------------- ----
Assuming hypothetical Assuming hypothetical
End of Planned Premiums gross annual return of gross annual return of
Policy accumulated at --------------------------- -------------------- ----
Year 5% annual interest 0% 6% 12% 0% 6% 12%
------- ------------------ ------- ------- --------- ------ ------- --- ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 8,564 504,129 504,408 504,686 4,129 4,408 4,686
2 17,556 509,353 510,235 511,152 9,761 10,643 11,560
3 26,998 514,440 516,258 518,219 14,440 16,258 18,219
4 36,912 519,500 522,596 526,063 19,500 22,596 26,063
5 47,322 524,402 529,124 534,621 24,402 29,124 34,621
6 58,252 530,195 536,943 545,101 30,195 36,943 45,101
7 69,728 535,783 544,981 556,527 35,783 44,981 56,527
8 81,779 541,150 553,224 568,969 41,150 53,224 68,969
9 94,432 546,276 561,660 582,509 46,276 61,660 82,509
10 107,717 551,139 570,267 597,225 51,139 70,267 97,225
11 121,667 556,188 579,525 613,739 56,188 79,525 113,739
12 136,314 560,899 588,912 631,651 60,899 88,912 131,651
13 151,694 565,227 598,379 651,046 65,227 98,379 151,046
14 167,843 569,113 607,862 672,005 69,113 107,862 172,005
15 184,799 572,487 617,283 694,603 72,487 117,283 194,603
16 202,603 575,277 626,554 718,919 75,277 126,554 218,919
17 221,297 577,365 635,539 744,990 77,365 135,539 244,990
18 240,926 578,719 644,178 772,947 78,719 144,178 272,947
19 261,536 579,214 652,316 802,833 79,214 152,316 302,833
20 283,177 578,736 659,800 834,706 78,736 159,800 334,706
25 408,735 556,409 679,984 1,024,700 56,409 179,984 524,700
30 568,983 ** 638,257 1,255,794 ** 138,257 755,794
35 773,504 ** ** 1,497,344 ** ** 997,344
</TABLE>
* The illustrations assume that Planned Premiums equal to the Target Premium
are paid at the start of each Policy Year. The Death Benefit and Surrender
Value will differ if premiums are paid in different amounts or frequencies, if
policy loans are taken, or if Additional Sum Insured, Guaranteed Minimum Death
Benefit after the tenth Policy Year, or optional rider benefits are elected.
** Policy lapses unless additional premium payments are made.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%, OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
55
<PAGE>
PLAN: VARIABLE ESTATE PROTECTION II (FLEXIBLE PREMIUM VARIABLE LIFE
SURVIVORSHIP) $500,000 TOTAL SUM INSURED MALE, ISSUE AGE 55, PREFERRED
UNDERWRITING CLASS FEMALE, ISSUE AGE 50, PREFERRED UNDERWRITING CLASS OPTION
A DEATH BENEFIT CASH VALUE ACCUMULATION TEST
NO GUARANTEED MINIMUM DEATH BENEFIT AFTER TENTH POLICY YEAR PLANNED PREMIUM:
$8,156* USING CURRENT CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
--------------------------- -------------------- -------
Assuming hypothetical Assuming hypothetical
End of Planned Premiums gross annual return of gross annual return of
Policy accumulated at --------------------------- -------------------- -------
Year 5% annual interest 0% 6% 12% 0% 6% 12%
------- ------------------ ------- ------- --------- ------- ------- -- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 8,564 500,000 500,000 500,000 4,283 4,566 4,850
2 17,556 500,000 500,000 500,000 10,095 10,998 11,936
3 26,998 500,000 500,000 500,000 15,004 16,873 18,887
4 36,912 500,000 500,000 500,000 20,352 23,546 27,121
5 47,322 500,000 500,000 500,000 25,612 30,504 36,192
6 58,252 500,000 500,000 500,000 31,847 38,864 47,337
7 69,728 500,000 500,000 500,000 37,976 47,579 59,614
8 81,779 500,000 500,000 500,000 43,999 56,660 73,136
9 94,432 500,000 500,000 500,000 49,915 66,121 88,026
10 107,717 500,000 500,000 500,000 55,721 75,974 104,422
11 121,667 500,000 500,000 500,000 62,061 86,914 123,189
12 136,314 500,000 500,000 500,000 68,274 98,299 143,849
13 151,694 500,000 500,000 500,000 74,352 110,141 166,589
14 167,843 500,000 500,000 500,000 80,287 122,452 191,616
15 184,799 500,000 500,000 500,000 86,069 135,241 219,160
16 202,603 500,000 500,000 500,000 92,148 149,267 250,736
17 221,297 500,000 500,000 531,271 98,068 163,896 285,650
18 240,926 500,000 500,000 584,030 103,807 179,142 324,215
19 261,536 500,000 500,000 640,460 109,339 195,020 366,791
20 283,177 500,000 500,000 700,916 114,633 211,545 413,767
25 408,735 500,000 500,000 1,082,040 137,609 306,250 732,734
30 568,983 500,000 558,933 1,649,014 147,952 422,109 1,245,344
35 773,504 500,000 682,220 2,508,108 133,255 559,074 2,055,373
</TABLE>
* The illustrations assume that Planned Premiums equal to the Target Premium are
paid at the start of each Policy Year. The Death Benefit and Surrender Value
will differ if premiums are paid in different amounts or frequencies, if policy
loans are taken, or if Additional Sum Insured, Guaranteed Minimum Death Benefit
after the tenth Policy Year, or optional rider benefits are elected.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%, OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
56
<PAGE>
PLAN: VARIABLE ESTATE PROTECTION II (FLEXIBLE PREMIUM VARIABLE LIFE
SURVIVORSHIP) $500,000 TOTAL SUM INSURED MALE, ISSUE AGE 55, PREFERRED
UNDERWRITING CLASS FEMALE, ISSUE AGE 50, PREFERRED UNDERWRITING CLASS OPTION
B DEATH BENEFIT CASH VALUE ACCUMULATION TEST
NO GUARANTEED MINIMUM DEATH BENEFIT AFTER TENTH POLICY YEAR PLANNED PREMIUM:
$8,156* USING CURRENT CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
--------------------------- -------------------- -------
Assuming hypothetical Assuming hypothetical
End of Planned Premiums gross annual return of gross annual return of
Policy accumulated at --------------------------- -------------------- -------
Year 5% annual interest 0% 6% 12% 0% 6% 12%
------- ------------------ ------- ------- --------- ------- ------- -- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 8,564 504,283 504,566 504,850 4,283 4,566 4,850
2 17,556 509,686 510,590 511,527 10,094 10,997 11,935
3 26,998 515,002 516,871 518,885 15,002 16,871 18,885
4 36,912 520,349 523,542 527,117 20,349 23,542 27,117
5 47,322 525,608 530,498 536,185 25,608 30,498 36,185
6 58,252 531,840 538,855 547,325 31,840 38,855 47,325
7 69,728 537,966 547,565 559,596 37,966 47,565 59,596
8 81,779 543,984 556,639 573,107 43,984 56,639 73,107
9 94,432 549,893 566,090 587,983 49,893 66,090 87,983
10 107,717 555,690 575,929 604,357 55,690 75,929 104,357
11 121,667 562,022 586,854 623,100 62,022 86,854 123,100
12 136,314 568,220 598,216 643,719 68,220 98,216 143,719
13 151,694 574,277 610,021 666,395 74,277 110,021 166,395
14 167,843 580,180 622,276 691,324 80,180 122,276 191,324
15 184,799 585,915 634,982 718,716 85,915 134,982 218,716
16 202,603 591,927 648,884 750,056 91,927 148,884 250,056
17 221,297 597,752 663,332 784,636 97,752 163,332 284,636
18 240,926 603,359 678,317 822,770 103,359 178,317 322,770
19 261,536 608,711 693,826 864,798 108,711 193,826 364,798
20 283,177 613,762 709,832 911,087 113,762 209,832 411,087
25 408,735 633,937 797,588 1,223,749 133,937 297,588 723,749
30 568,983 636,301 889,538 1,722,895 136,301 389,538 1,222,895
35 773,504 604,121 966,478 2,509,427 104,121 466,478 2,009,427
</TABLE>
* The illustrations assume that Planned Premiums equal to the Target Premium are
paid at the start of each Policy Year. The Death Benefit and Surrender Value
will differ if premiums are paid in different amounts or frequencies, if policy
loans are taken, or if Additional Sum Insured, Guaranteed Minimum Death Benefit
after the tenth Policy Year, or optional rider benefits are elected.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%, OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
57
<PAGE>
PLAN: VARIABLE ESTATE PROTECTION II (FLEXIBLE PREMIUM VARIABLE LIFE
SURVIVORSHIP) $500,000 TOTAL SUM INSURED MALE, ISSUE AGE 55, PREFERRED
UNDERWRITING CLASS FEMALE, ISSUE AGE 50, PREFERRED UNDERWRITING CLASS OPTION
A DEATH BENEFIT CASH VALUE ACCUMULATION TEST
NO GUARANTEED MINIMUM DEATH BENEFIT AFTER TENTH POLICY YEAR PLANNED PREMIUM:
$8,156* USING MAXIMUM CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
--------------------------- -------------------- ------
Assuming hypothetical Assuming hypothetical
End of Planned Premiums gross annual return of gross annual return of
Policy accumulated at --------------------------- -------------------- ------
Year 5% annual interest 0% 6% 12% 0% 6% 12%
------- ------------------ ------- ------- --------- ------ ------- --- --------
<S> <C> <C> <C> <C> <C> <C> <C>
1 8,564 500,000 500,000 500,000 4,130 4,408 4,687
2 17,556 500,000 500,000 500,000 9,762 10,644 11,561
3 26,998 500,000 500,000 500,000 14,444 16,263 18,224
4 36,912 500,000 500,000 500,000 19,511 22,608 26,077
5 47,322 500,000 500,000 500,000 24,424 29,151 34,654
6 58,252 500,000 500,000 500,000 30,236 36,995 45,167
7 69,728 500,000 500,000 500,000 35,855 45,074 56,647
8 81,779 500,000 500,000 500,000 41,267 53,381 69,179
9 94,432 500,000 500,000 500,000 46,457 61,911 82,857
10 107,717 500,000 500,000 500,000 51,409 70,654 97,783
11 121,667 500,000 500,000 500,000 56,579 80,107 114,606
12 136,314 500,000 500,000 500,000 61,451 89,762 132,967
13 151,694 500,000 500,000 500,000 65,992 99,598 153,005
14 167,843 500,000 500,000 500,000 70,153 109,581 174,875
15 184,799 500,000 500,000 500,000 73,882 119,674 198,754
16 202,603 500,000 500,000 500,000 77,121 129,835 224,851
17 221,297 500,000 500,000 500,000 79,775 139,997 253,392
18 240,926 500,000 500,000 512,706 81,822 150,154 284,621
19 261,536 500,000 500,000 556,132 83,156 160,237 318,497
20 283,177 500,000 500,000 601,642 83,680 170,191 355,164
25 408,735 500,000 500,000 866,359 69,143 215,534 586,680
30 568,983 ** 500,000 1,207,522 ** 239,964 911,926
35 773,504 ** 500,000 1,651,637 ** 208,337 1,353,503
</TABLE>
* The illustrations assume that Planned Premiums equal to the Target Premium
are paid at the start of each Policy Year. The Death Benefit and Surrender
Value will differ if premiums are paid in different amounts or frequencies, if
policy loans are taken, or if Additional Sum Insured, Guaranteed Minimum Death
Benefit after the tenth Policy Year, or optional rider benefits are elected.
** Policy lapses unless additional premium payments are made.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%, OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
58
<PAGE>
PLAN: VARIABLE ESTATE PROTECTION II (FLEXIBLE PREMIUM VARIABLE LIFE
SURVIVORSHIP) $500,000 TOTAL SUM INSURED MALE, ISSUE AGE 55, PREFERRED
UNDERWRITING CLASS FEMALE, ISSUE AGE 50, PREFERRED UNDERWRITING CLASS OPTION
B DEATH BENEFIT CASH VALUE ACCUMULATION TEST
NO GUARANTEED MINIMUM DEATH BENEFIT AFTER TENTH POLICY YEAR PLANNED PREMIUM:
$8,156* USING MAXIMUM CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
--------------------------- -------------------- ----
Assuming hypothetical Assuming hypothetical
End of Planned Premiums gross annual return of gross annual return of
Policy accumulated at --------------------------- -------------------- ----
Year 5% annual interest 0% 6% 12% 0% 6% 12%
------- ------------------ ------- ------- --------- ------ ------- --- ------
<S> <C> <C> <C> <C> <C> <C> <C>
1 8,564 504,129 504,408 504,686 4,129 4,408 4,686
2 17,556 509,353 510,235 511,152 9,761 10,643 11,560
3 26,998 514,440 516,258 518,219 14,440 16,258 18,219
4 36,912 519,500 522,596 526,063 19,500 22,596 26,063
5 47,322 524,402 529,124 534,621 24,402 29,124 34,621
6 58,252 530,195 536,943 545,101 30,195 36,943 45,101
7 69,728 535,783 544,981 556,527 35,783 44,981 56,527
8 81,779 541,150 553,224 568,969 41,150 53,224 68,969
9 94,432 546,276 561,660 582,509 46,276 61,660 82,509
10 107,717 551,139 570,267 597,225 51,139 70,267 97,225
11 121,667 556,188 579,525 613,739 56,188 79,525 113,739
12 136,314 560,899 588,912 631,651 60,899 88,912 131,651
13 151,694 565,227 598,379 651,046 65,227 98,379 151,046
14 167,843 569,113 607,862 672,005 69,113 107,862 172,005
15 184,799 572,487 617,283 694,603 72,487 117,283 194,603
16 202,603 575,277 626,554 718,919 75,277 126,554 218,919
17 221,297 577,365 635,539 744,990 77,365 135,539 244,990
18 240,926 578,719 644,178 772,947 78,719 144,178 272,947
19 261,536 579,214 652,316 802,833 79,214 152,316 302,833
20 283,177 578,736 659,800 834,706 78,736 159,800 334,706
25 408,735 556,409 679,984 1,024,700 56,409 179,984 524,700
30 568,983 ** 638,257 1,255,794 ** 138,257 755,794
35 773,504 ** ** 1,497,344 ** ** 997,344
</TABLE>
* The illustrations assume that Planned Premiums equal to the Target Premium
are paid at the start of each Policy Year. The Death Benefit and Surrender
Value will differ if premiums are paid in different amounts or frequencies, if
policy loans are taken, or if Additional Sum Insured, Guaranteed Minimum Death
Benefit after the tenth Policy Year, or optional rider benefits are elected.
** Policy lapses unless additional premium payments are made.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RETURNS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%, OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATE ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
59
<PAGE>
[THIS PAGE IS INTENTIONALLY LEFT BLANK.]
60
<PAGE>
FLEX-V2
REVISED ILLUSTRATION OF DEATH BENEFITS, ACCOUNT VALUES, SURRENDER VALUES AND
ACCUMULATED PREMIUMS
The following tables on pages 62 TO 67 replace the illustration in the John
Hancock Life Insurance Company ("JOHN HANCOCK") Flex V-2 Product Prospectus.
The tables on pages 68 TO 73 replace the illustration in the John Hancock
Variable Life Insurance Company ("JHVLICO") Flex V-2 Product Prospectus.
The assumptions used for the revised illustrations are generally the same as
those described in the respective Flex V-1 Product Prospectus. With respect to
fees and expenses deducted from Trust assets, however, the amounts shown in all
tables reflect (1) investment management fees equivalent to an effective annual
rate of .66%, and (2) an assumed average asset charge for all other Trust- level
operating expenses equivalent to an effective annual rate of .11%. These rates
are the arithmetic average for all funds that are available as investment
options. In other words, they are based on the hypothetical assumption that
policy account values are allocated equally among the variable investment
options.
Tables are provided for each of the three death benefit options. The amounts
shown are for the end of each policy year and assume that all of the account
value is invested in funds that achieve investment returns at constant annual
rates of 0%, 6% and 12% (i.e., before any fees or expenses deducted from Trust
assets). After deduction of the average Trust-level fees and expenses (as
described above) the corresponding net annual rates of return would be -.77%,
5.18% and 11.14%. Investment return reflects investment income and all realized
and unrealized capital gains and losses.
The actual rates associated with any policy will vary depending upon the
actual allocation of policy values among the investment options. The charge
shown above for all other Trust-level operating expenses reflects reimbursements
to certain funds as described in the footnotes to the Fund expense table. We
currently expect those reimbursement arrangements to continue indefinitely, but
that is not guaranteed.
The second column of each table shows the amount you would have at the end of
each policy year if an amount equal to the assumed Required Premiums were
invested to earn interest, after taxes, at 5% compounded annually. This is not a
policy value. It is included for comparison purposes only.
Because your circumstances will no doubt differ from those in the
illustrations that follow, values under your policy will differ, in most cases
substantially. Upon request, we will furnish you with a comparable illustration
reflecting your proposed insured person's issue age, sex and underwriting risk
classification, and the Guaranteed Death Benefit and annual Required Premium
amount requested.
61
<PAGE>
JOHN HANCOCK FLEX V-2
DEATH BENEFIT OPTION 1: --LEVEL DEATH BENEFIT ILLUSTRATION ASSUMES CURRENT
CHARGES
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK SUM INSURED AT ISSUE
(GUARANTEED DEATH BENEFIT): $100,000 $900 BASE POLICY PREMIUM (1)
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
----------------------------- ---------------------- ------- -----------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ---------------------- ------- -----------------------------
Year Per Year (2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- -------- --------- -------- -------- -- ------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 945 100,000 100,000 100,000 323 356 390 0 0 0
2 1,937 100,000 100,000 100,000 873 967 1,066 303 397 496
3 2,979 100,000 100,000 100,000 1,406 1,596 1,803 701 891 1,098
4 4,073 100,000 100,000 100,000 1,920 2,243 2,606 1,080 1,403 1,766
5 5,222 100,000 100,000 100,000 2,415 2,906 3,481 1,740 2,231 2,806
6 6,428 100,000 100,000 100,000 2,891 3,587 4,434 2,081 2,777 3,624
7 7,694 100,000 100,000 100,000 3,343 4,282 5,472 2,533 3,472 4,662
8 9,024 100,000 100,000 100,000 3,774 4,994 6,604 3,054 4,274 5,884
9 10,420 100,000 100,000 100,000 4,179 5,719 7,837 3,549 5,089 7,207
10 11,886 100,000 100,000 100,000 4,571 6,473 9,202 4,031 5,933 8,662
11 13,425 100,000 100,000 100,000 4,982 7,292 10,747 4,532 6,842 10,297
12 15,042 100,000 100,000 100,000 5,369 8,131 12,441 5,054 7,816 12,126
13 16,739 100,000 100,000 100,000 5,729 8,991 14,303 5,549 8,811 14,123
14 18,521 100,000 100,000 100,000 6,063 9,872 16,350 6,063 9,872 16,350
15 20,392 100,000 100,000 100,000 6,367 10,773 18,602 6,367 10,773 18,602
16 22,356 100,000 100,000 100,000 6,641 11,694 21,083 6,641 11,694 21,083
17 24,419 100,000 100,000 100,000 6,875 12,628 23,811 6,875 12,628 23,811
18 26,585 100,000 100,000 100,000 7,064 13,569 26,813 7,064 13,569 26,813
19 28,859 100,000 100,000 100,000 7,201 14,515 30,119 7,201 14,515 30,119
20 31,247 100,000 100,000 100,000 7,281 15,460 33,762 7,281 15,460 33,762
25 45,102 100,000 100,000 100,000 6,602 20,007 58,691 6,602 20,007 58,691
30 62,785 100,000 100,000 121,542 3,204 23,538 101,285 3,204 23,538 101,285
35 85,353 100,000 100,000 197,338 0 23,973 171,598 0 23,973 171,598
40 142,504 100,000 100,000 301,256 0 35,006 286,910 0 35,006 286,910
45 215,445 100,000 100,000 502,783 0 29,472 478,841 0 29,472 478,841
</TABLE>
(1) Assumes annual premium payments of $900 per year until the premium
recalculation at age 70 and annual recalculated premium amounts thereafter. If
premiums are paid more frequently than annually, the above values shown would
be affected.
(2) Assumes payment of recalculated annual premium amounts of $5,751 after age
70. As indicated in note (3) below, the actual recalculated premium may be
lower or higher than this amount.
(3) Assumes payment of recalculated premiums after age 70 in annual amounts of
$8,404 at 0%, $5,751 at 6% and $0 at 12%, subject to any maximums required to
maintain the Policy's status for federal income tax purposes.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT, ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%
OR 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE
FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE
HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
62
<PAGE>
JOHN HANCOCK FLEX V-2
DEATH BENEFIT OPTION 1: LEVEL DEATH BENEFIT ILLUSTRATION ASSUMES MAXIMUM CHARGES
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK SUM INSURED AT ISSUE
(GUARANTEED DEATH BENEFIT): $100,000 $900 BASE POLICY PREMIUM (1)
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
------------------------------ --------------------- -------- -----------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ------------------------------ --------------------- -------- -----------------------------
Year Per Year (2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- --------- --------- -------- -------- - -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 945 100,000 100,000 100,000 276 307 339 0 0 0
2 1,937 100,000 100,000 100,000 778 866 959 8 96 189
3 2,979 100,000 100,000 100,000 1,264 1,441 1,634 359 536 729
4 4,073 100,000 100,000 100,000 1,733 2,031 2,368 693 991 1,328
5 5,222 100,000 100,000 100,000 2,182 2,635 3,167 1,007 1,460 1,992
6 6,428 100,000 100,000 100,000 2,613 3,254 4,036 1,303 1,944 2,726
7 7,694 100,000 100,000 100,000 3,021 3,884 4,980 1,811 2,674 3,770
8 9,024 100,000 100,000 100,000 3,407 4,527 6,009 2,287 3,407 4,889
9 10,420 100,000 100,000 100,000 3,769 5,181 7,126 2,839 4,251 6,196
10 11,886 100,000 100,000 100,000 4,116 5,858 8,362 3,576 5,318 7,822
11 13,425 100,000 100,000 100,000 4,437 6,547 9,710 3,987 6,097 9,260
12 15,042 100,000 100,000 100,000 4,729 7,245 11,184 4,414 6,930 10,869
13 16,739 100,000 100,000 100,000 4,993 7,953 12,795 4,813 7,773 12,615
14 18,521 100,000 100,000 100,000 5,226 8,670 14,560 5,226 8,670 14,560
15 20,392 100,000 100,000 100,000 5,425 9,392 16,493 5,425 9,392 16,493
16 22,356 100,000 100,000 100,000 5,589 10,120 18,613 5,589 10,120 18,613
17 24,419 100,000 100,000 100,000 5,711 10,848 20,937 5,711 10,848 20,937
18 26,585 100,000 100,000 100,000 5,785 11,568 23,486 5,785 11,568 23,486
19 28,859 100,000 100,000 100,000 5,807 12,279 26,284 5,807 12,279 26,284
20 31,247 100,000 100,000 100,000 5,766 12,971 29,356 5,766 12,971 29,356
25 45,102 100,000 100,000 100,000 4,407 15,918 50,141 4,407 15,918 50,141
30 62,785 100,000 100,000 102,564 88 16,986 85,470 88 16,986 85,470
35 85,353 100,000 100,000 166,579 0 13,263 144,852 0 13,263 144,852
40 149,286 100,000 100,000 253,979 0 18,578 241,885 0 18,578 241,885
45 230,884 100,000 100,000 423,713 0 0 403,536 0 0 403,536
</TABLE>
(1) Assumes annual premium payments of $900 per year until the premium
recalculation at age 70 and annual recalculated premium amounts thereafter. If
premiums are paid more frequently than annually, the above values shown would
be affected.
(2) Assumes payment of recalculated annual premium amounts of $7,184 after age
70. As indicated in note (3) below, the actual recalculated premium may be
lower or higher than this amount.
(3) Assumes payment of recalculated premiums after age 70 in annual amounts of
$8,404 at 0%, $7,184 at 6% and $0 at 12%, subject to any maximums required to
maintain the Policy's status for federal income tax purposes.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT, ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%
OR 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE
FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE
HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
63
<PAGE>
JOHN HANCOCK FLEX V-2
DEATH BENEFIT OPTION 2: VARIABLE DEATH BENEFIT ILLUSTRATION ASSUMES CURRENT
CHARGES
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK SUM INSURED AT ISSUE
(GUARANTEED DEATH BENEFIT): $100,000 $900 BASE POLICY PREMIUM (1)
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
----------------------------- ---------------------- ------- -----------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ---------------------- ------- -----------------------------
Year Per Year (2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- -------- --------- -------- -------- -- ------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 945 100,000 100,000 100,000 323 356 390 0 0 0
2 1,937 100,000 100,000 100,000 873 967 1,066 303 397 496
3 2,979 100,000 100,000 100,000 1,406 1,596 1,803 701 891 1,098
4 4,073 100,000 100,000 100,000 1,920 2,243 2,606 1,080 1,403 1,766
5 5,222 100,000 100,000 100,000 2,415 2,906 3,481 1,740 2,231 2,806
6 6,428 100,000 100,000 100,000 2,891 3,587 4,434 2,081 2,777 3,624
7 7,694 100,000 100,000 100,000 3,343 4,282 5,472 2,533 3,472 4,662
8 9,024 100,000 100,000 100,000 3,774 4,994 6,604 3,054 4,274 5,884
9 10,420 100,000 100,000 100,000 4,179 5,719 7,837 3,549 5,089 7,207
10 11,886 100,000 100,000 100,000 4,571 6,473 9,202 4,031 5,933 8,662
11 13,425 100,000 100,000 100,000 4,982 7,292 10,747 4,532 6,842 10,297
12 15,042 100,000 100,000 100,000 5,369 8,131 12,441 5,054 7,816 12,126
13 16,739 100,000 100,000 100,000 5,729 8,991 14,303 5,549 8,811 14,123
14 18,521 100,000 100,000 100,000 6,063 9,872 16,350 6,063 9,872 16,350
15 20,392 100,000 100,000 100,000 6,367 10,773 18,602 6,367 10,773 18,602
16 22,356 100,000 100,000 100,216 6,641 11,694 21,083 6,641 11,694 21,083
17 24,419 100,000 100,000 101,325 6,875 12,628 23,809 6,875 12,628 23,809
18 26,585 100,000 100,000 102,665 7,064 13,569 26,802 7,064 13,569 26,802
19 28,859 100,000 100,000 104,266 7,201 14,515 30,087 7,201 14,515 30,087
20 31,247 100,000 100,000 106,159 7,281 15,460 33,693 7,281 15,460 33,693
25 45,102 100,000 100,000 121,336 6,602 20,007 57,835 6,602 20,007 57,835
30 62,785 100,000 100,000 150,904 3,204 23,538 96,853 3,204 23,538 96,853
35 85,353 100,000 100,000 204,781 0 23,973 160,210 0 23,973 160,210
40 142,504 100,000 100,746 293,184 0 34,517 266,241 0 34,517 266,241
45 215,445 100,000 100,000 464,388 0 28,568 442,274 0 28,568 442,274
</TABLE>
(1) Assumes annual premium payments of $900 per year until the premium
recalculation at age 70 and annual recalculated premium amounts thereafter. If
premiums are paid more frequently than annually, the above values shown would
be affected.
(2) Assumes payment of recalculated annual premium amounts of $5,751 after age
70. As indicated in note (3) below, the actual recalculated premium may be
lower or higher than this amount.
(3) Assumes payment of recalculated premiums after age 70 in annual amounts of
$8,404 at 0%, $5,751 at 6% and $0 at 12%, subject to any maximum required to
maintain the Policy's status for federal income tax purposes.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT, ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%
OR 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE
FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE
HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
64
<PAGE>
JOHN HANCOCK FLEX V-2
DEATH BENEFIT OPTION 2: VARIABLE DEATH BENEFIT ILLUSTRATION ASSUMES MAXIMUM
CHARGES
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK SUM INSURED AT ISSUE
(GUARANTEED DEATH BENEFIT): $100,000 $900 BASE POLICY PREMIUM (1)
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
----------------------------- ---------------------- ------- -----------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ---------------------- ------- -----------------------------
Year Per Year (2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- -------- --------- -------- -------- -- ------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 945 100,000 100,000 100,000 276 307 339 0 0 0
2 1,937 100,000 100,000 100,000 778 866 959 8 96 189
3 2,979 100,000 100,000 100,000 1,264 1,441 1,634 359 536 729
4 4,073 100,000 100,000 100,000 1,733 2,031 2,368 693 991 1,328
5 5,222 100,000 100,000 100,000 2,182 2,635 3,167 1,007 1,460 1,992
6 6,428 100,000 100,000 100,000 2,613 3,254 4,036 1,303 1,944 2,726
7 7,694 100,000 100,000 100,000 3,021 3,884 4,980 1,811 2,674 3,770
8 9,024 100,000 100,000 100,000 3,407 4,527 6,009 2,287 3,407 4,889
9 10,420 100,000 100,000 100,000 3,769 5,181 7,126 2,839 4,251 6,196
10 11,886 100,000 100,000 100,000 4,116 5,858 8,362 3,576 5,318 7,822
11 13,425 100,000 100,000 100,000 4,437 6,547 9,710 3,987 6,097 9,260
12 15,042 100,000 100,000 100,000 4,729 7,245 11,184 4,414 6,930 10,869
13 16,739 100,000 100,000 100,000 4,993 7,953 12,795 4,813 7,773 12,615
14 18,521 100,000 100,000 100,000 5,226 8,670 14,560 5,226 8,670 14,560
15 20,392 100,000 100,000 100,000 5,425 9,392 16,493 5,425 9,392 16,493
16 22,356 100,000 100,000 100,000 5,589 10,120 18,613 5,589 10,120 18,613
17 24,419 100,000 100,000 100,000 5,711 10,848 20,937 5,711 10,848 20,937
18 26,585 100,000 100,000 100,000 5,785 11,568 23,486 5,785 11,568 23,486
19 28,859 100,000 100,000 100,463 5,807 12,279 26,284 5,807 12,279 26,284
20 31,247 100,000 100,000 101,818 5,766 12,971 29,351 5,766 12,971 29,351
25 45,102 100,000 100,000 113,242 4,407 15,918 49,741 4,407 15,918 49,741
30 62,785 100,000 100,000 136,411 88 16,986 82,360 88 16,986 82,360
35 85,353 100,000 100,000 179,413 0 13,263 134,842 0 13,263 134,842
40 149,286 100,000 100,000 249,271 0 18,334 222,328 0 18,334 222,328
45 230,884 100,000 100,000 388,038 0 0 367,240 0 0 367,240
</TABLE>
(1) Assumes annual premium payments of $900 per year until the premium
recalculation at age 70 and annual recalculated premium amounts thereafter. If
premiums are paid more frequently than annually, the above values shown would
be affected.
(2) Assumes payment of recalculated annual premium amounts of $7,184 after age
70. As indicated in note (3) below, the actual recalculated premium may be
lower or higher than this amount.
(3) Assumes payment of recalculated premiums after age 70 in annual amounts of
$8,404 at 0%, $7,184 at 6% and $0 at 12%, subject to any maximums required to
maintain the Policy's status for federal income tax purposes.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT, ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%
OR 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE
FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE
HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
65
<PAGE>
JOHN HANCOCK FLEX V-2
DEATH BENEFIT OPTION 3: LEVEL DEATH BENEFIT WITH GREATER FUNDING ILLUSTRATION
ASSUMES CURRENT CHARGES
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK SUM INSURED AT ISSUE
(GUARANTEED DEATH BENEFIT): $100,000 $900 BASE POLICY PREMIUM (1)
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
----------------------------- ---------------------- ------- -----------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ---------------------- ------- -----------------------------
Year Per Year (2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- -------- --------- -------- -------- -- ------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 945 100,000 100,000 100,000 323 356 390 0 0 0
2 1,937 100,000 100,000 100,000 873 967 1,066 303 397 496
3 2,979 100,000 100,000 100,000 1,406 1,596 1,803 701 891 1,098
4 4,073 100,000 100,000 100,000 1,920 2,243 2,606 1,080 1,403 1,766
5 5,222 100,000 100,000 100,000 2,415 2,906 3,481 1,740 2,231 2,806
6 6,428 100,000 100,000 100,000 2,891 3,587 4,434 2,081 2,777 3,624
7 7,694 100,000 100,000 100,000 3,343 4,282 5,472 2,533 3,472 4,662
8 9,024 100,000 100,000 100,000 3,774 4,994 6,604 3,054 4,274 5,884
9 10,420 100,000 100,000 100,000 4,179 5,719 7,837 3,549 5,089 7,207
10 11,886 100,000 100,000 100,000 4,571 6,473 9,202 4,031 5,933 8,662
11 13,425 100,000 100,000 100,000 4,982 7,292 10,747 4,532 6,842 10,297
12 15,042 100,000 100,000 100,000 5,369 8,131 12,441 5,054 7,816 12,126
13 16,739 100,000 100,000 100,000 5,729 8,991 14,303 5,549 8,811 14,123
14 18,521 100,000 100,000 100,000 6,063 9,872 16,350 6,063 9,872 16,350
15 20,392 100,000 100,000 100,000 6,367 10,773 18,602 6,367 10,773 18,602
16 22,356 100,000 100,000 100,000 6,641 11,694 21,083 6,641 11,694 21,083
17 24,419 100,000 100,000 100,000 6,875 12,628 23,811 6,875 12,628 23,811
18 26,585 100,000 100,000 100,000 7,064 13,569 26,813 7,064 13,569 26,813
19 28,859 100,000 100,000 100,000 7,201 14,515 30,119 7,201 14,515 30,119
20 31,247 100,000 100,000 100,000 7,281 15,460 33,762 7,281 15,460 33,762
25 45,102 100,000 100,000 113,707 6,602 20,007 58,518 6,602 20,007 58,518
30 62,785 100,000 100,000 165,800 3,204 23,538 97,415 3,204 23,538 97,415
35 85,353 100,000 100,000 236,943 0 23,973 156,542 0 23,973 156,542
40 142,504 100,000 100,000 335,122 16,227 35,006 244,829 16,227 35,006 244,829
45 215,445 100,000 100,000 472,183 31,005 50,394 373,977 31,005 50,394 373,977
</TABLE>
(1) Assumes annual premium payments of $900 per year until the premium
recalculation at age 70 and annual recalculated premium amounts thereafter. If
premiums are paid more frequently than annually, the above values shown would
be affected.
(2) Assumes payment of recalculated annual premium amounts of $5,751 after age
70. As indicated in note (3) below, the actual recalculated premium may be
lower or higher than this amount.
(3) Assumes payment of recalculated premiums after age 70 in annual amounts of
$8,404 at 0%, $5,751 at 6% and $0 at 12%, subject to any maximums required to
maintain the Policy's status for federal income tax purposes.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT, ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%
OR 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE
FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE
HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
66
<PAGE>
JOHN HANCOCK FLEX V-2
DEATH BENEFIT OPTION 3: LEVEL DEATH BENEFIT WITH GREATER FUNDING ILLUSTRATION
ASSUMES MAXIMUM CHARGES
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK SUM INSURED AT ISSUE
(GUARANTEED DEATH BENEFIT): $100,000 $900 BASE POLICY PREMIUM (1)
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
----------------------------- ---------------------- ------- -----------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ---------------------- ------- -----------------------------
Year Per Year (2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- -------- --------- -------- -------- -- ------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 945 100,000 100,000 100,000 276 307 339 0 0 0
2 1,937 100,000 100,000 100,000 778 866 959 8 96 189
3 2,979 100,000 100,000 100,000 1,264 1,441 1,634 359 536 729
4 4,073 100,000 100,000 100,000 1,733 2,031 2,368 693 991 1,328
5 5,222 100,000 100,000 100,000 2,182 2,635 3,167 1,007 1,460 1,992
6 6,428 100,000 100,000 100,000 2,613 3,254 4,036 1,303 1,944 2,726
7 7,694 100,000 100,000 100,000 3,021 3,884 4,980 1,811 2,674 3,770
8 9,024 100,000 100,000 100,000 3,407 4,527 6,009 2,287 3,407 4,889
9 10,420 100,000 100,000 100,000 3,769 5,181 7,126 2,839 4,251 6,196
10 11,886 100,000 100,000 100,000 4,116 5,858 8,362 3,576 5,318 7,822
11 13,425 100,000 100,000 100,000 4,437 6,547 9,710 3,987 6,097 9,260
12 15,042 100,000 100,000 100,000 4,729 7,245 11,184 4,414 6,930 10,869
13 16,739 100,000 100,000 100,000 4,993 7,953 12,795 4,813 7,773 12,615
14 18,521 100,000 100,000 100,000 5,226 8,670 14,560 5,226 8,670 14,560
15 20,392 100,000 100,000 100,000 5,425 9,392 16,493 5,425 9,392 16,493
16 22,356 100,000 100,000 100,000 5,589 10,120 18,613 5,589 10,120 18,613
17 24,419 100,000 100,000 100,000 5,711 10,848 20,937 5,711 10,848 20,937
18 26,585 100,000 100,000 100,000 5,785 11,568 23,486 5,785 11,568 23,486
19 28,859 100,000 100,000 100,000 5,807 12,279 26,284 5,807 12,279 26,284
20 31,247 100,000 100,000 100,000 5,766 12,971 29,356 5,766 12,971 29,356
25 45,102 100,000 100,000 100,000 4,407 15,918 50,141 4,407 15,918 50,141
30 62,785 100,000 100,000 141,847 88 16,986 83,341 88 16,986 83,341
35 85,353 100,000 100,000 202,116 0 13,263 133,533 0 13,263 133,533
40 149,286 100,000 100,000 283,727 6,763 26,332 207,282 6,763 26,332 207,282
45 230,884 100,000 100,000 395,986 12,058 44,092 313,628 12,058 44,092 313,628
</TABLE>
(1) Assumes annual premium payments of $900 per year until the premium
recalculation at age 70 and annual recalculated premium amounts thereafter. If
premiums are paid more frequently than annually, the above values shown would
be affected.
(2) Assumes payment of recalculated annual premium amounts of $7,184 after age
70. As indicated in note (3) below, the actual recalculated premium may be
lower or higher than this amount.
(3) Assumes payment of recalculated premiums after age 70 in annual amounts of
$8,404 at 0%, $7,184 at 6% and $0 at 12%, subject to any maximums required to
maintain the Policy's status for federal income tax purposes.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT, ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%
OR 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE
FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE
HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
67
<PAGE>
JHVLICO FLEX V-2
DEATH BENEFIT OPTION 1: --LEVEL DEATH BENEFIT ILLUSTRATION ASSUMES CURRENT
CHARGES
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK SUM INSURED AT ISSUE
(GUARANTEED DEATH BENEFIT): $100,000 $900 BASE POLICY PREMIUM (1)
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
----------------------------- ---------------------- ------- -----------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ---------------------- ------- -----------------------------
Year Per Year (2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- -------- --------- -------- -------- -- ------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 945 100,000 100,000 100,000 323 356 390 0 0 0
2 1,937 100,000 100,000 100,000 873 967 1,066 303 397 496
3 2,979 100,000 100,000 100,000 1,406 1,596 1,803 701 891 1,098
4 4,073 100,000 100,000 100,000 1,920 2,243 2,606 1,080 1,403 1,766
5 5,222 100,000 100,000 100,000 2,415 2,906 3,481 1,740 2,231 2,806
6 6,428 100,000 100,000 100,000 2,891 3,587 4,434 2,081 2,777 3,624
7 7,694 100,000 100,000 100,000 3,343 4,282 5,472 2,533 3,472 4,662
8 9,024 100,000 100,000 100,000 3,774 4,994 6,604 3,054 4,274 5,884
9 10,420 100,000 100,000 100,000 4,179 5,719 7,837 3,549 5,089 7,207
10 11,886 100,000 100,000 100,000 4,571 6,473 9,202 4,031 5,933 8,662
11 13,425 100,000 100,000 100,000 4,982 7,292 10,747 4,532 6,842 10,297
12 15,042 100,000 100,000 100,000 5,369 8,131 12,441 5,054 7,816 12,126
13 16,739 100,000 100,000 100,000 5,729 8,991 14,303 5,549 8,811 14,123
14 18,521 100,000 100,000 100,000 6,063 9,872 16,350 6,063 9,872 16,350
15 20,392 100,000 100,000 100,000 6,367 10,773 18,602 6,367 10,773 18,602
16 22,356 100,000 100,000 100,000 6,641 11,694 21,083 6,641 11,694 21,083
17 24,419 100,000 100,000 100,000 6,875 12,628 23,811 6,875 12,628 23,811
18 26,585 100,000 100,000 100,000 7,064 13,569 26,813 7,064 13,569 26,813
19 28,859 100,000 100,000 100,000 7,201 14,515 30,119 7,201 14,515 30,119
20 31,247 100,000 100,000 100,000 7,281 15,460 33,762 7,281 15,460 33,762
25 45,102 100,000 100,000 100,000 6,602 20,007 58,691 6,602 20,007 58,691
30 62,785 100,000 100,000 121,542 3,204 23,538 101,285 3,204 23,538 101,285
35 85,353 100,000 100,000 197,338 0 23,973 171,598 0 23,973 171,598
40 142,504 100,000 100,000 301,256 0 35,006 286,910 0 35,006 286,910
45 215,445 100,000 100,000 502,783 0 29,472 478,841 0 29,472 478,841
</TABLE>
(1) Assumes annual premium payments of $900 per year until the premium
recalculation at age 70 and annual recalculated premium amounts thereafter. If
premiums are paid more frequently than annually, the above values shown would
be affected.
(2) Assumes payment of recalculated annual premium amounts of $5,751 after age
70. As indicated in note (3) below, the actual recalculated premium may be
lower or higher than this amount.
(3) Assumes payment of recalculated premiums after age 70 in annual amounts of
$8,404 at 0%, $5,751 at 6% and $0 at 12%, subject to any maximums required to
maintain the Policy's status for federal income tax purposes.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT, ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%
OR 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE
FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE
HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
68
<PAGE>
JHVLICO FLEX V-2
DEATH BENEFIT OPTION 1: LEVEL DEATH BENEFIT ILLUSTRATION ASSUMES MAXIMUM CHARGES
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK SUM INSURED AT ISSUE
(GUARANTEED DEATH BENEFIT): $100,000 $900 BASE POLICY PREMIUM (1)
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
------------------------------ --------------------- -------- -----------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ------------------------------ --------------------- -------- -----------------------------
Year Per Year (2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- --------- --------- -------- -------- - -------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 945 100,000 100,000 100,000 276 307 339 0 0 0
2 1,937 100,000 100,000 100,000 778 866 959 8 96 189
3 2,979 100,000 100,000 100,000 1,264 1,441 1,634 359 536 729
4 4,073 100,000 100,000 100,000 1,733 2,031 2,368 693 991 1,328
5 5,222 100,000 100,000 100,000 2,182 2,635 3,167 1,007 1,460 1,992
6 6,428 100,000 100,000 100,000 2,613 3,254 4,036 1,303 1,944 2,726
7 7,694 100,000 100,000 100,000 3,021 3,884 4,980 1,811 2,674 3,770
8 9,024 100,000 100,000 100,000 3,407 4,527 6,009 2,287 3,407 4,889
9 10,420 100,000 100,000 100,000 3,769 5,181 7,126 2,839 4,251 6,196
10 11,886 100,000 100,000 100,000 4,107 5,846 8,344 3,567 5,306 7,804
11 13,425 100,000 100,000 100,000 4,418 6,520 9,671 3,968 6,070 9,221
12 15,042 100,000 100,000 100,000 4,700 7,200 11,114 4,385 6,885 10,799
13 16,739 100,000 100,000 100,000 4,952 7,887 12,688 4,772 7,707 12,508
14 18,521 100,000 100,000 100,000 5,172 8,579 14,406 5,172 8,579 14,406
15 20,392 100,000 100,000 100,000 5,358 9,273 16,280 5,358 9,273 16,280
16 22,356 100,000 100,000 100,000 5,507 9,968 18,327 5,507 9,968 18,327
17 24,419 100,000 100,000 100,000 5,613 10,657 20,563 5,613 10,657 20,563
18 26,585 100,000 100,000 100,000 5,671 11,335 23,003 5,671 11,335 23,003
19 28,859 100,000 100,000 100,000 5,675 11,997 25,670 5,675 11,997 25,670
20 31,247 100,000 100,000 100,000 5,617 12,633 28,584 5,617 12,633 28,584
25 45,102 100,000 100,000 100,000 4,168 15,192 47,965 4,168 15,192 47,965
30 62,785 100,000 100,000 100,000 0 15,626 79,940 0 15,626 79,940
35 85,353 100,000 100,000 153,083 0 10,932 133,116 0 10,932 133,116
40 150,406 100,000 100,000 229,191 0 14,560 218,277 0 14,560 218,277
45 233,433 100,000 100,000 375,346 0 0 357,472 0 0 357,472
</TABLE>
(1) Assumes annual premium payments of $900 per year until the premium
recalculation at age 70 and annual recalculated premium amounts thereafter. If
premiums are paid more frequently than annually, the above values shown would
be affected.
(2) Assumes payment of recalculated annual premium amounts of $7,184 after age
70. As indicated in note (3) below, the actual recalculated premium may be
lower or higher than this amount.
(3) Assumes payment of recalculated premiums after age 70 in annual amounts of
$8,404 at 0%, $7,184 at 6% and $0 at 12%, subject to any maximums required to
maintain the Policy's status for federal income tax purposes.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT, ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%
OR 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE
FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE
HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
69
<PAGE>
JHVLICO FLEX V-2
DEATH BENEFIT OPTION 2: VARIABLE DEATH BENEFIT ILLUSTRATION ASSUMES CURRENT
CHARGES
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK SUM INSURED AT ISSUE
(GUARANTEED DEATH BENEFIT): $100,000 $900 BASE POLICY PREMIUM (1)
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
----------------------------- ---------------------- ------- -----------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ---------------------- ------- -----------------------------
Year Per Year (2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- -------- --------- -------- -------- -- ------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 945 100,000 100,000 100,000 323 356 390 0 0 0
2 1,937 100,000 100,000 100,000 873 967 1,066 303 397 496
3 2,979 100,000 100,000 100,000 1,406 1,596 1,803 701 891 1,098
4 4,073 100,000 100,000 100,000 1,920 2,243 2,606 1,080 1,403 1,766
5 5,222 100,000 100,000 100,000 2,415 2,906 3,481 1,740 2,231 2,806
6 6,428 100,000 100,000 100,000 2,891 3,587 4,434 2,081 2,777 3,624
7 7,694 100,000 100,000 100,000 3,343 4,282 5,472 2,533 3,472 4,662
8 9,024 100,000 100,000 100,000 3,774 4,994 6,604 3,054 4,274 5,884
9 10,420 100,000 100,000 100,000 4,179 5,719 7,837 3,549 5,089 7,207
10 11,886 100,000 100,000 100,000 4,571 6,473 9,202 4,031 5,933 8,662
11 13,425 100,000 100,000 100,000 4,982 7,292 10,747 4,532 6,842 10,297
12 15,042 100,000 100,000 100,000 5,369 8,131 12,441 5,054 7,816 12,126
13 16,739 100,000 100,000 100,000 5,729 8,991 14,303 5,549 8,811 14,123
14 18,521 100,000 100,000 100,000 6,063 9,872 16,350 6,063 9,872 16,350
15 20,392 100,000 100,000 100,000 6,367 10,773 18,602 6,367 10,773 18,602
16 22,356 100,000 100,000 100,216 6,641 11,694 21,083 6,641 11,694 21,083
17 24,419 100,000 100,000 101,325 6,875 12,628 23,809 6,875 12,628 23,809
18 26,585 100,000 100,000 102,665 7,064 13,569 26,802 7,064 13,569 26,802
19 28,859 100,000 100,000 104,266 7,201 14,515 30,087 7,201 14,515 30,087
20 31,247 100,000 100,000 106,159 7,281 15,460 33,693 7,281 15,460 33,693
25 45,102 100,000 100,000 121,336 6,602 20,007 57,835 6,602 20,007 57,835
30 62,785 100,000 100,000 150,904 3,204 23,538 96,853 3,204 23,538 96,853
35 85,353 100,000 100,000 204,781 0 23,973 160,210 0 23,973 160,210
40 142,504 100,000 100,746 293,184 0 34,517 266,241 0 34,517 266,241
45 215,445 100,000 100,000 464,388 0 28,568 442,274 0 28,568 442,274
</TABLE>
(1) Assumes annual premium payments of $900 per year until the premium
recalculation at age 70 and annual recalculated premium amounts thereafter. If
premiums are paid more frequently than annually, the above values shown would
be affected.
(2) Assumes payment of recalculated annual premium amounts of $5,751 after age
70. As indicated in note (3) below, the actual recalculated premium may be
lower or higher than this amount.
(3) Assumes payment of recalculated premiums after age 70 in annual amounts of
$8,404 at 0%, $5,751 at 6% and $0 at 12%, subject to any maximum required to
maintain the Policy's status for federal income tax purposes.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT, ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%
OR 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE
FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE
HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
70
<PAGE>
JHVLICO FLEX V-2
DEATH BENEFIT OPTION 2: VARIABLE DEATH BENEFIT ILLUSTRATION ASSUMES MAXIMUM
CHARGES
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK SUM INSURED AT ISSUE
(GUARANTEED DEATH BENEFIT): $100,000 $900 BASE POLICY PREMIUM (1)
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
----------------------------- ---------------------- ------- -----------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ---------------------- ------- -----------------------------
Year Per Year (2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- -------- --------- -------- -------- -- ------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 945 100,000 100,000 100,000 276 307 339 0 0 0
2 1,937 100,000 100,000 100,000 778 866 959 8 96 189
3 2,979 100,000 100,000 100,000 1,264 1,441 1,634 359 536 729
4 4,073 100,000 100,000 100,000 1,733 2,031 2,368 693 991 1,328
5 5,222 100,000 100,000 100,000 2,182 2,635 3,167 1,007 1,460 1,992
6 6,428 100,000 100,000 100,000 2,613 3,254 4,036 1,303 1,944 2,726
7 7,694 100,000 100,000 100,000 3,021 3,884 4,980 1,811 2,674 3,770
8 9,024 100,000 100,000 100,000 3,407 4,527 6,009 2,287 3,407 4,889
9 10,420 100,000 100,000 100,000 3,769 5,181 7,126 2,839 4,251 6,196
10 11,886 100,000 100,000 100,000 4,107 5,846 8,344 3,567 5,306 7,804
11 13,425 100,000 100,000 100,000 4,418 6,520 9,671 3,968 6,070 9,221
12 15,042 100,000 100,000 100,000 4,700 7,200 11,114 4,385 6,885 10,799
13 16,739 100,000 100,000 100,000 4,952 7,887 12,688 4,772 7,707 12,508
14 18,521 100,000 100,000 100,000 5,172 8,579 14,406 5,172 8,579 14,406
15 20,392 100,000 100,000 100,000 5,358 9,273 16,280 5,358 9,273 16,280
16 22,356 100,000 100,000 100,000 5,507 9,968 18,327 5,507 9,968 18,327
17 24,419 100,000 100,000 100,000 5,613 10,657 20,563 5,613 10,657 20,563
18 26,585 100,000 100,000 100,000 5,671 11,335 23,003 5,671 11,335 23,003
19 28,859 100,000 100,000 100,000 5,675 11,997 25,670 5,675 11,997 25,670
20 31,247 100,000 100,000 101,049 5,617 12,633 28,582 5,617 12,633 28,582
25 45,102 100,000 100,000 111,157 4,168 15,192 47,656 4,168 15,192 47,656
30 62,785 100,000 100,000 131,408 0 15,626 77,357 0 15,626 77,357
35 85,353 100,000 100,000 168,465 0 10,932 123,894 0 10,932 123,894
40 150,406 100,000 100,000 226,803 0 14,403 199,860 0 14,403 199,860
45 233,433 100,000 100,000 343,701 0 0 322,902 0 0 322,902
</TABLE>
(1) Assumes annual premium payments of $900 per year until the premium
recalculation at age 70 and annual recalculated premium amounts thereafter. If
premiums are paid more frequently than annually, the above values shown would
be affected.
(2) Assumes payment of recalculated annual premium amounts of $7,184 after age
70. As indicated in note (3) below, the actual recalculated premium may be
lower or higher than this amount.
(3) Assumes payment of recalculated premiums after age 70 in annual amounts of
$8,404 at 0%, $7,184 at 6% and $0 at 12%, subject to any maximums required to
maintain the Policy's status for federal income tax purposes.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT, ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%
OR 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE
FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE
HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
71
<PAGE>
JHVLICO FLEX V-2
DEATH BENEFIT OPTION 3: LEVEL DEATH BENEFIT WITH GREATER FUNDING ILLUSTRATION
ASSUMES CURRENT CHARGES
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK SUM INSURED AT ISSUE
(GUARANTEED DEATH BENEFIT): $100,000 $900 BASE POLICY PREMIUM (1)
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
----------------------------- ---------------------- ------- -----------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ---------------------- ------- -----------------------------
Year Per Year (2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- -------- --------- -------- -------- -- ------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 945 100,000 100,000 100,000 323 356 390 0 0 0
2 1,937 100,000 100,000 100,000 873 967 1,066 303 397 496
3 2,979 100,000 100,000 100,000 1,406 1,596 1,803 701 891 1,098
4 4,073 100,000 100,000 100,000 1,920 2,243 2,606 1,080 1,403 1,766
5 5,222 100,000 100,000 100,000 2,415 2,906 3,481 1,740 2,231 2,806
6 6,428 100,000 100,000 100,000 2,891 3,587 4,434 2,081 2,777 3,624
7 7,694 100,000 100,000 100,000 3,343 4,282 5,472 2,533 3,472 4,662
8 9,024 100,000 100,000 100,000 3,774 4,994 6,604 3,054 4,274 5,884
9 10,420 100,000 100,000 100,000 4,179 5,719 7,837 3,549 5,089 7,207
10 11,886 100,000 100,000 100,000 4,571 6,473 9,202 4,031 5,933 8,662
11 13,425 100,000 100,000 100,000 4,982 7,292 10,747 4,532 6,842 10,297
12 15,042 100,000 100,000 100,000 5,369 8,131 12,441 5,054 7,816 12,126
13 16,739 100,000 100,000 100,000 5,729 8,991 14,303 5,549 8,811 14,123
14 18,521 100,000 100,000 100,000 6,063 9,872 16,350 6,063 9,872 16,350
15 20,392 100,000 100,000 100,000 6,367 10,773 18,602 6,367 10,773 18,602
16 22,356 100,000 100,000 100,000 6,641 11,694 21,083 6,641 11,694 21,083
17 24,419 100,000 100,000 100,000 6,875 12,628 23,811 6,875 12,628 23,811
18 26,585 100,000 100,000 100,000 7,064 13,569 26,813 7,064 13,569 26,813
19 28,859 100,000 100,000 100,000 7,201 14,515 30,119 7,201 14,515 30,119
20 31,247 100,000 100,000 100,000 7,281 15,460 33,762 7,281 15,460 33,762
25 45,102 100,000 100,000 113,707 6,602 20,007 58,518 6,602 20,007 58,518
30 62,785 100,000 100,000 165,800 3,204 23,538 97,415 3,204 23,538 97,415
35 85,353 100,000 100,000 236,943 0 23,973 156,542 0 23,973 156,542
40 142,504 100,000 100,000 335,122 16,227 35,006 244,829 16,227 35,006 244,829
45 215,445 100,000 100,000 472,183 31,005 50,394 373,977 31,005 50,394 373,977
</TABLE>
(1) Assumes annual premium payments of $900 per year until the premium
recalculation at age 70 and annual recalculated premium amounts thereafter. If
premiums are paid more frequently than annually, the above values shown would
be affected.
(2) Assumes payment of recalculated annual premium amounts of $5,751 after age
70. As indicated in note (3) below, the actual recalculated premium may be
lower or higher than this amount.
(3) Assumes payment of recalculated premiums after age 70 in annual amounts of
$8,404 at 0%, $5,751 at 6% and $0 at 12%, subject to any maximums required to
maintain the Policy's status for federal income tax purposes.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT, ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%
OR 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE
FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE
HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
72
<PAGE>
JHVLICO FLEX V-2
DEATH BENEFIT OPTION 3: LEVEL DEATH BENEFIT WITH GREATER FUNDING ILLUSTRATION
ASSUMES MAXIMUM CHARGES
MALE, ISSUE AGE 35, STANDARD NONSMOKER UNDERWRITING RISK SUM INSURED AT ISSUE
(GUARANTEED DEATH BENEFIT): $100,000 $900 BASE POLICY PREMIUM (1)
<TABLE>
<CAPTION>
Death Benefit Account Value Surrender Value
----------------------------- ---------------------- ------- -----------------------------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ---------------------- ------- -----------------------------
Year Per Year (2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- -------- --------- -------- -------- -- ------- -------- -------- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 945 100,000 100,000 100,000 276 307 339 0 0 0
2 1,937 100,000 100,000 100,000 778 866 959 8 96 189
3 2,979 100,000 100,000 100,000 1,264 1,441 1,634 359 536 729
4 4,073 100,000 100,000 100,000 1,733 2,031 2,368 693 991 1,328
5 5,222 100,000 100,000 100,000 2,182 2,635 3,167 1,007 1,460 1,992
6 6,428 100,000 100,000 100,000 2,613 3,254 4,036 1,303 1,944 2,726
7 7,694 100,000 100,000 100,000 3,021 3,884 4,980 1,811 2,674 3,770
8 9,024 100,000 100,000 100,000 3,407 4,527 6,009 2,287 3,407 4,889
9 10,420 100,000 100,000 100,000 3,769 5,181 7,126 2,839 4,251 6,196
10 11,886 100,000 100,000 100,000 4,107 5,846 8,344 3,567 5,306 7,804
11 13,425 100,000 100,000 100,000 4,418 6,520 9,671 3,968 6,070 9,221
12 15,042 100,000 100,000 100,000 4,700 7,200 11,114 4,385 6,885 10,799
13 16,739 100,000 100,000 100,000 4,952 7,887 12,688 4,772 7,707 12,508
14 18,521 100,000 100,000 100,000 5,172 8,579 14,406 5,172 8,579 14,406
15 20,392 100,000 100,000 100,000 5,358 9,273 16,280 5,358 9,273 16,280
16 22,356 100,000 100,000 100,000 5,507 9,968 18,327 5,507 9,968 18,327
17 24,419 100,000 100,000 100,000 5,613 10,657 20,563 5,613 10,657 20,563
18 26,585 100,000 100,000 100,000 5,671 11,335 23,003 5,671 11,335 23,003
19 28,859 100,000 100,000 100,000 5,675 11,997 25,670 5,675 11,997 25,670
20 31,247 100,000 100,000 100,000 5,617 12,633 28,584 5,617 12,633 28,584
25 45,102 100,000 100,000 100,000 4,168 15,192 47,965 4,168 15,192 47,965
30 62,785 100,000 100,000 133,466 0 15,626 78,417 0 15,626 78,417
35 85,353 100,000 100,000 186,862 0 10,932 123,455 0 10,932 123,455
40 150,406 100,000 100,000 257,599 6,442 23,377 188,193 6,442 23,377 188,193
45 233,433 100,000 100,000 352,995 11,276 39,390 279,578 11,276 39,390 279,578
</TABLE>
(1) Assumes annual premium payments of $900 per year until the premium
recalculation at age 70 and annual recalculated premium amounts thereafter. If
premiums are paid more frequently than annually, the above values shown would
be affected.
(2) Assumes payment of recalculated annual premium amounts of $7,184 after age
70. As indicated in note (3) below, the actual recalculated premium may be
lower or higher than this amount.
(3) Assumes payment of recalculated premiums after age 70 in annual amounts of
$8,404 at 0%, $7,184 at 6% and $0 at 12%, subject to any maximums required to
maintain the Policy's status for federal income tax purposes.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT, ACCOUNT VALUE AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT
FROM THOSE SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6%
OR 12% OVER A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE
FOR INDIVIDUAL POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE
HYPOTHETICAL INVESTMENT RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED
OVER ANY PERIOD OF TIME.
73
<PAGE>
[THIS PAGE IS INTENTIONALLY LEFT BLANK.]
74
<PAGE>
FLEX-V1
REVISED ILLUSTRATION OF DEATH BENEFITS, ACCOUNT VALUES, SURRENDER VALUES AND
ACCUMULATED PREMIUMS
The following tables on pages 76 TO 83 replace the illustration in the John
Hancock Life Insurance Company ("JOHN HANCOCK") Flex V-2 Product Prospectus.
The tables on pages 84 TO 91 replace the illustration in the John Hancock
Variable Life Insurance Company ("JHVLICO") Flex V-2 Product Prospectus.
The assumptions used for the revised illustration are generally the same as
those described in the Flex V-1 Product Prospectus. With respect to fees and
expenses deducted from Trust assets, however, the amounts shown in all tables
reflect (1) investment management fees equivalent to an effective annual rate of
.66%, and (2) an assumed average asset charge for all other Trust-level
operating expenses equivalent to an effective annual rate of .11%. These rates
are the arithmetic average for all funds that are available as investment
options. In other words, they are based on the hypothetical assumption that
policy account values are allocated equally among the variable investment
options.
Tables are provided for each of the three death benefit options. The amounts
shown are for the end of each policy year and assume that all of the account
value is invested in funds that achieve investment returns at constant annual
rates of 0%, 6% and 12% (i.e., before any fees or expenses deducted from Trust
assets). After deduction of the average Trust-level fees and expenses (as
described above) the corresponding net annual rates of return would be -.77%,
5.18% and 11.14%. Investment return reflects investment income and all realized
and unrealized capital gains and losses.
The actual rates associated with any policy will vary depending upon the
actual allocation of policy values among the investment options. The charge
shown above for all other Trust-level operating expenses reflects reimbursements
to certain funds as described in the footnotes to the Fund expense table. We
currently expect those reimbursement arrangements to continue indefinitely, but
that is not guaranteed.
The second column of each table shows the amount you would have at the end of
each policy year if an amount equal to the assumed Required Premiums were
invested to earn interest, after taxes, at 5% compounded annually. This is not a
policy value. It is included for comparison purposes only.
Because your circumstances will no doubt differ from those in the
illustrations that follow, values under your policy will differ, in most cases
substantially. Upon request, we will furnish you with a comparable illustration
reflecting your proposed insured person's issue age, sex and underwriting risk
classification, and the face amount and annual Required Premium amount
requested.
75
<PAGE>
PLAN: JOHN HANCOCK FLEX V-1 (SCHEDULED PREMIUM VARIABLE WHOLE LIFE) MALE, ISSUE
AGE 25, STANDARD NON-SMOKER UNDERWRITING RISK SUM INSURED AT ISSUE
(GUARANTEED DEATH BENEFIT) $100,000 PREMIUM SCHEDULE--LEVEL $1,113 BASIC
PREMIUM (1) USING CURRENT CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
----------------------------- ---------------------- -------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of Annual Investment Return of
Policy At 5% Interest ----------------------------- ---------------------- -------
Year Per Year(2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- -------- --------- -------- -------- -- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 1,169 100,000 100,000 100,000 364 414 464
2 2,396 100,000 100,000 100,000 1,010 1,154 1,304
3 3,684 100,000 100,000 100,000 1,651 1,934 2,240
4 5,037 100,000 100,000 100,000 2,285 2,753 3,280
5 6,458 100,000 100,000 100,000 2,910 3,613 4,438
6 7,949 100,000 100,000 100,000 3,558 4,551 5,763
7 9,515 100,000 100,000 100,000 4,265 5,604 7,304
8 11,160 100,000 100,000 100,000 5,022 6,766 9,067
9 12,886 100,000 100,000 100,000 5,834 8,042 11,075
10 14,699 100,000 100,000 100,000 6,630 9,366 13,276
11 16,603 100,000 100,000 100,000 7,408 10,735 15,687
12 18,602 100,000 100,000 100,000 8,168 12,153 18,331
13 20,700 100,000 100,000 100,000 8,773 13,485 21,099
14 22,904 100,000 100,000 100,000 9,356 14,865 24,148
15 25,218 100,000 100,000 100,000 9,914 16,294 27,510
16 27,647 100,000 100,000 101,910 10,446 17,775 31,214
17 30,198 100,000 100,000 111,532 10,950 19,305 35,269
18 32,877 100,000 100,000 121,644 11,424 20,888 39,706
19 35,689 100,000 100,000 132,291 11,867 22,524 44,559
20 38,643 100,000 100,000 143,502 12,278 24,217 49,864
25 55,776 100,000 100,000 209,494 13,796 33,601 84,720
30 77,644 100,000 100,000 296,548 14,137 44,736 138,496
35 105,553 100,000 108,035 412,423 12,573 57,650 220,077
40 141,173 100,000 119,415 567,541 7,999 72,006 342,222
45 186,634 100,000 129,968 774,964 0 87,344 520,809
50 244,655 100,000 139,909 1,053,024 0 103,284 777,369
55 318,706 100,000 149,431 1,426,430 0 118,974 1,135,692
</TABLE>
---------
(1) If premiums are paid more frequently than annually the payments would be
$556.50 semiannually, $278.25 quarterly, or $92.75 on a special monthly basis.
The death benefits and surrender values shown would be affected by the more
frequent premium payments.
(2) The premiums accumulated at 5% interest in Column 2 are those payable if the
gross investment return is 6%.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
76
<PAGE>
PLAN: JOHN HANCOCK FLEX V-1 (SCHEDULED PREMIUM VARIABLE WHOLE LIFE) MALE, ISSUE
AGE 25, STANDARD NON-SMOKER UNDERWRITING RISK SUM INSURED AT ISSUE
(GUARANTEED DEATH BENEFIT) $100,000 PREMIUM SCHEDULE AT ISSUE--MODIFIED $708
INITIAL BASIC PREMIUM AT ISSUE (1) USING CURRENT CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
----------------------------- ---------------------- -------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of Annual Investment Return of
Policy At 5% Interest ----------------------------- ---------------------- -------
Year Per Year(2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- -------- --------- -------- -------- -- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 743 100,000 100,000 100,000 0 22 50
2 1,524 100,000 100,000 100,000 275 351 431
3 2,344 100,000 100,000 100,000 554 700 859
4 3,204 100,000 100,000 100,000 831 1,068 1,338
5 4,108 100,000 100,000 100,000 1,103 1,456 1,874
6 5,057 100,000 100,000 100,000 1,403 1,901 2,511
7 6,053 100,000 100,000 100,000 1,765 2,436 3,290
8 7,099 100,000 100,000 100,000 2,182 3,055 4,211
9 8,197 100,000 100,000 100,000 2,657 3,763 5,286
10 9,350 100,000 100,000 100,000 3,121 4,490 6,452
11 10,561 100,000 100,000 100,000 3,568 5,234 7,718
12 11,833 100,000 100,000 100,000 4,003 5,996 9,094
13 13,168 100,000 100,000 100,000 4,285 6,640 10,455
14 14,570 100,000 100,000 100,000 4,547 7,298 11,946
15 16,042 100,000 100,000 100,000 4,787 7,969 13,578
16 17,587 100,000 100,000 100,000 5,005 8,652 15,366
17 19,210 100,000 100,000 100,000 5,195 9,343 17,325
18 20,914 100,000 100,000 100,000 5,357 10,043 19,471
19 22,703 100,000 100,000 100,000 5,490 10,750 21,826
20 24,581 100,000 100,000 100,000 5,591 11,462 24,411
25 35,480 100,000 100,000 103,312 5,560 15,062 41,779
30 49,391 100,000 100,000 147,727 4,296 18,440 68,993
35 67,144 100,000 100,000 206,682 932 20,803 110,289
40 89,803 100,000 100,000 285,469 0 20,877 172,135
45 118,721 100,000 100,000 390,718 0 15,451 262,579
50 181,776 100,000 100,000 528,397 12,596 24,214 390,076
55 281,934 100,000 100,000 711,379 26,721 48,846 566,384
</TABLE>
---------
(1) If premiums are paid more frequently than annually the payments would be
$354.00 semiannually, $177.00 quarterly, or $59.00 on a special monthly basis.
The death benefits and surrender values shown would be affected by the more
frequent premium payments. The basic premium (annual) after a recalculation at
age 72 will be as follows: $9,973.00 for a hypothetical gross investment
return of 0%, $8,658 for a gross return of 6%, and $0 for a gross return of
12%.
(2) The premiums accumulated at 5% interest in Column 2 are those payable if the
gross investment return is 6%.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
77
<PAGE>
PLAN: JOHN HANCOCK FLEX V-1 (SCHEDULED PREMIUM VARIABLE WHOLE LIFE) MALE, ISSUE
AGE 40, PREFERRED UNDERWRITING RISK SUM INSURED AT ISSUE (GUARANTEED DEATH
BENEFIT) $100,000 PREMIUM SCHEDULE AT ISSUE--MODIFIED $1,305 INITIAL BASIC
PREMIUM AT ISSUE (1) USING CURRENT CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
----------------------------- ---------------------- -------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of Annual Investment Return of
Policy At 5% Interest ----------------------------- ---------------------- -------
Year Per Year(2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- -------- --------- -------- -------- -- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 1,370 100,000 100,000 100,000 460 521 583
2 2,809 100,000 100,000 100,000 1,184 1,360 1,544
3 4,320 100,000 100,000 100,000 1,884 2,232 2,608
4 5,906 100,000 100,000 100,000 2,561 3,136 3,785
5 7,571 100,000 100,000 100,000 3,216 4,079 5,091
6 9,320 100,000 100,000 100,000 3,901 5,115 6,597
7 11,157 100,000 100,000 100,000 4,693 6,323 8,396
8 13,085 100,000 100,000 100,000 5,569 7,682 10,479
9 15,109 100,000 100,000 100,000 6,541 9,206 12,880
10 17,235 100,000 100,000 100,000 7,469 10,756 15,478
11 19,467 100,000 100,000 100,000 8,352 12,331 18,294
12 21,810 100,000 100,000 100,000 9,204 13,949 21,368
13 24,271 100,000 100,000 100,000 9,766 15,352 24,470
14 26,855 100,000 100,000 100,000 10,286 16,789 27,880
15 29,568 100,000 100,000 100,000 10,752 18,254 31,627
16 32,417 100,000 100,000 100,000 11,167 19,748 35,750
17 35,408 100,000 100,000 100,000 11,518 21,265 40,289
18 38,548 100,000 100,000 100,000 11,807 22,806 45,297
19 41,846 100,000 100,000 100,000 12,021 24,366 50,826
20 45,309 100,000 100,000 106,634 12,163 25,947 56,902
25 65,398 100,000 100,000 160,357 11,563 34,136 96,694
30 91,038 100,000 100,000 233,694 7,048 41,974 157,052
35 133,056 100,000 100,000 330,155 20,358 58,314 243,729
40 193,680 100,000 108,193 464,660 45,514 86,141 369,952
</TABLE>
---------
(1) If premiums are paid more frequently than annually the payments would be
$652.50 semiannually, $326.25 quarterly, or $108.75 on a special monthly
basis. The death benefits and surrender values shown would be affected by the
more frequent premium payments. The basic premium (annual) after a
recalculation at age 72 will be as follows: $9,488 for a hypothetical gross
investment return of 0%, $4,148 for a gross return of 6%, and $0 for a gross
return of 12%.
(2) The premiums accumulated at 5% interest in Column 2 are those payable if the
gross investment return is 6%.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
78
<PAGE>
PLAN: JOHN HANCOCK FLEX V-1 (SCHEDULED PREMIUM VARIABLE WHOLE LIFE) MALE, ISSUE
AGE 40, PREFERRED UNDERWRITING RISK SUM INSURED AT ISSUE (GUARANTEED DEATH
BENEFIT) $100,000 PREMIUM SCHEDULE--LEVEL $1,954 BASIC PREMIUM (1) USING
CURRENT CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
----------------------------- ---------------------- -------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of Annual Investment Return of
Policy At 5% Interest ----------------------------- ---------------------- -------
Year Per Year(2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- -------- --------- -------- -------- -- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,052 100,000 100,000 100,000 1,053 1,150 1,247
2 4,206 100,000 100,000 100,000 2,363 2,647 2,944
3 6,468 100,000 100,000 100,000 3,643 4,209 4,822
4 8,843 100,000 100,000 100,000 4,893 5,837 6,900
5 11,337 100,000 100,000 100,000 6,114 7,537 9,205
6 13,955 100,000 100,000 100,000 7,360 9,369 11,818
7 16,705 100,000 100,000 100,000 8,707 11,412 14,843
8 19,592 100,000 100,000 100,000 10,133 13,647 18,287
9 22,623 100,000 100,000 100,000 11,652 16,093 22,198
10 25,806 100,000 100,000 100,000 13,122 18,611 26,474
11 29,148 100,000 100,000 100,000 14,544 21,208 31,156
12 32,657 100,000 100,000 100,000 15,932 23,899 36,304
13 36,342 100,000 100,000 100,000 17,028 26,434 41,713
14 40,211 100,000 100,000 104,978 18,080 29,066 47,676
15 44,273 100,000 100,000 116,060 19,079 31,793 54,203
16 48,538 100,000 100,000 127,793 20,026 34,624 61,348
17 53,017 100,000 100,000 140,217 20,913 37,557 69,158
18 57,719 100,000 100,000 153,386 21,740 40,602 77,695
19 62,657 100,000 100,000 167,337 22,499 43,762 87,019
20 67,841 100,000 100,000 182,157 23,191 47,048 97,202
25 97,922 100,000 108,623 271,781 25,501 65,499 163,881
30 136,313 100,000 128,684 394,313 24,582 86,481 264,995
35 185,310 100,000 149,287 566,051 19,076 110,208 417,873
40 247,845 100,000 171,543 811,796 4,562 136,579 646,334
</TABLE>
---------
(1) If premiums are paid more frequently than annually the payments would be
$977.00 semiannually, $488.50 quarterly, or $162.83 on a special monthly
basis. The death benefits and surrender values shown would be affected by the
more frequent premium payments.
(2) The premiums accumulated at 5% interest in Column 2 are those payable if the
gross investment return is 6%.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
79
<PAGE>
PLAN: JOHN HANCOCK FLEX V-1 (SCHEDULED PREMIUM VARIABLE WHOLE LIFE) MALE, ISSUE
AGE 25, STANDARD NON-SMOKER UNDERWRITING RISK SUM INSURED AT ISSUE
(GUARANTEED DEATH BENEFIT) $100,000 PREMIUM SCHEDULE--LEVEL $1,113 BASIC
PREMIUM (1) USING MAXIMUM CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
----------------------------- ---------------------- -------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of Annual Investment Return of
Policy At 5% Interest ----------------------------- ---------------------- -------
Year Per Year(2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- -------- --------- -------- -------- -- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 1,169 100,000 100,000 100,000 340 389 439
2 2,396 100,000 100,000 100,000 963 1,104 1,251
3 3,684 100,000 100,000 100,000 1,581 1,856 2,156
4 5,037 100,000 100,000 100,000 2,192 2,647 3,161
5 6,458 100,000 100,000 100,000 2,793 3,477 4,281
6 7,949 100,000 100,000 100,000 3,420 4,385 5,564
7 9,515 100,000 100,000 100,000 4,104 5,405 7,058
8 11,160 100,000 100,000 100,000 4,839 6,533 8,770
9 12,886 100,000 100,000 100,000 5,629 7,774 10,721
10 14,699 100,000 100,000 100,000 6,404 9,060 12,859
11 16,603 100,000 100,000 100,000 7,160 10,389 15,199
12 18,602 100,000 100,000 100,000 7,898 11,765 17,765
13 20,700 100,000 100,000 100,000 8,480 13,051 20,443
14 22,904 100,000 100,000 100,000 9,038 14,383 23,394
15 25,218 100,000 100,000 100,000 9,573 15,761 26,647
16 27,647 100,000 100,000 100,000 10,080 17,185 30,231
17 30,198 100,000 100,000 108,029 10,558 18,657 34,162
18 32,877 100,000 100,000 117,831 11,007 20,179 38,462
19 35,689 100,000 100,000 128,146 11,424 21,750 43,163
20 38,643 100,000 100,000 139,011 11,810 23,374 48,303
25 55,776 100,000 100,000 202,893 13,191 32,348 82,050
30 77,644 100,000 100,000 287,031 13,370 42,919 134,052
35 105,553 100,000 103,540 398,833 11,597 55,251 212,824
40 141,173 100,000 114,434 548,172 6,710 69,002 330,543
45 186,634 100,000 124,620 748,276 0 83,750 502,874
50 244,655 100,000 134,261 1,016,841 0 99,115 750,658
55 318,706 100,000 143,495 1,377,491 0 114,247 1,096,728
</TABLE>
---------
(1) If premiums are paid more frequently than annually the payments would be
$556.50 semiannually, $278.25 quarterly, or $92.75 on a special monthly basis.
The death benefits and surrender values shown would be affected by the more
frequent premium payments.
(2) The premiums accumulated at 5% interest in Column 2 are those payable if the
gross investment return is 6%.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
80
<PAGE>
PLAN: JOHN HANCOCK FLEX V-1 (SCHEDULED PREMIUM VARIABLE WHOLE LIFE) MALE, ISSUE
AGE 25, STANDARD NON-SMOKER UNDERWRITING RISK SUM INSURED AT ISSUE
(GUARANTEED DEATH BENEFIT) $100,000 PREMIUM SCHEDULE AT ISSUE--MODIFIED $708
INITIAL BASIC PREMIUM AT ISSUE (1) USING MAXIMUM CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
----------------------------- ---------------------- -------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of Annual Investment Return of
Policy At 5% Interest ----------------------------- ---------------------- -------
Year Per Year(2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- -------- --------- -------- -------- -- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 743 100,000 100,000 100,000 0 0 24
2 1,524 100,000 100,000 100,000 227 301 378
3 2,344 100,000 100,000 100,000 484 623 775
4 3,204 100,000 100,000 100,000 738 963 1,219
5 4,108 100,000 100,000 100,000 987 1,321 1,717
6 5,057 100,000 100,000 100,000 1,264 1,734 2,312
7 6,053 100,000 100,000 100,000 1,604 2,237 3,044
8 7,099 100,000 100,000 100,000 1,999 2,822 3,914
9 8,197 100,000 100,000 100,000 2,453 3,494 4,931
10 9,350 100,000 100,000 100,000 2,894 4,184 6,035
11 10,561 100,000 100,000 100,000 3,321 4,889 7,230
12 11,833 100,000 100,000 100,000 3,733 5,609 8,528
13 13,168 100,000 100,000 100,000 3,991 6,206 9,799
14 14,570 100,000 100,000 100,000 4,230 6,815 11,191
15 16,042 100,000 100,000 100,000 4,446 7,434 12,713
16 17,587 100,000 100,000 100,000 4,637 8,061 14,377
17 19,210 100,000 100,000 100,000 4,802 8,693 16,197
18 20,914 100,000 100,000 100,000 4,939 9,331 18,191
19 22,703 100,000 100,000 100,000 5,045 9,971 20,375
20 24,581 100,000 100,000 100,000 5,121 10,615 22,771
25 35,480 100,000 100,000 100,000 4,950 13,794 38,823
30 49,391 100,000 100,000 137,384 3,518 16,586 64,162
35 67,144 100,000 100,000 192,206 0 18,095 102,564
40 89,803 100,000 100,000 265,292 0 16,840 159,969
45 118,721 100,000 100,000 363,109 0 9,339 244,025
50 184,937 100,000 100,000 490,744 12,519 17,531 362,279
55 291,510 100,000 100,000 660,458 26,469 42,807 525,842
</TABLE>
---------
(1) If premiums are paid more frequently than annually the payments would be
$354.00 semiannually, $177.00 quarterly, or $59.00 on a special monthly basis.
The death benefits and surrender values shown would be affected by the more
frequent premium payments. The basic premium (annual) after a recalculation at
age 72 will be as follows: $9,973 for a hypothetical gross investment return
of 0%, $9,608 for a gross return of 6%, and $0 for a gross return of 12%.
(2) The premiums accumulated at 5% interest in Column 2 are those payable if the
gross investment return is 6%.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
81
<PAGE>
PLAN: JOHN HANCOCK FLEX V-1 (SCHEDULED PREMIUM VARIABLE WHOLE LIFE) MALE, ISSUE
AGE 40, PREFERRED UNDERWRITING RISK SUM INSURED AT ISSUE (GUARANTEED DEATH
BENEFIT) $100,000 PREMIUM SCHEDULE--LEVEL $1,954 BASIC PREMIUM (1) USING
MAXIMUM CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
----------------------------- ---------------------- -------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of Annual Investment Return of
Policy At 5% Interest ----------------------------- ---------------------- -------
Year Per Year(2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- -------- --------- -------- -------- -- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,052 100,000 100,000 100,000 896 988 1,080
2 4,206 100,000 100,000 100,000 2,040 2,305 2,582
3 6,468 100,000 100,000 100,000 3,145 3,667 4,232
4 8,843 100,000 100,000 100,000 4,209 5,071 6,045
5 11,337 100,000 100,000 100,000 5,231 6,523 8,043
6 13,955 100,000 100,000 100,000 6,273 8,090 10,312
7 16,705 100,000 100,000 100,000 7,402 9,838 12,941
8 19,592 100,000 100,000 100,000 8,602 11,756 15,941
9 22,623 100,000 100,000 100,000 9,887 13,860 19,354
10 25,806 100,000 100,000 100,000 11,122 16,019 23,081
11 29,148 100,000 100,000 100,000 12,306 18,235 27,157
12 32,657 100,000 100,000 100,000 13,432 20,507 31,618
13 36,342 100,000 100,000 100,000 14,249 22,585 36,261
14 40,211 100,000 100,000 100,000 14,997 24,716 41,383
15 44,273 100,000 100,000 100,709 15,670 26,900 47,034
16 48,538 100,000 100,000 110,814 16,265 29,138 53,197
17 53,017 100,000 100,000 121,436 16,775 31,431 59,895
18 57,719 100,000 100,000 132,615 17,199 33,786 67,174
19 62,657 100,000 100,000 144,381 17,532 36,206 75,081
20 67,841 100,000 100,000 156,791 17,768 38,695 83,667
25 97,922 100,000 100,000 229,885 17,034 52,259 138,619
30 136,313 100,000 101,534 326,360 11,354 68,236 219,328
35 185,310 100,000 116,276 454,680 0 85,838 335,656
40 247,845 100,000 130,272 626,113 0 103,720 498,498
</TABLE>
---------
(1) If premiums are paid more frequently than annually the payments would be
$977.00 semiannually, $488.50 quarterly, or $162.83 on a special monthly
basis. The death benefits and surrender values shown would be affected by the
more frequent premium payments.
(2) The premium accumulated at 5% interest in Column 2 are those payable is the
gross investment return is 6%.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
82
<PAGE>
PLAN: JOHN HANCOCK FLEX V-1 (SCHEDULED PREMIUM VARIABLE WHOLE LIFE) MALE, ISSUE
AGE 40, PREFERRED UNDERWRITING RISK SUM INSURED AT ISSUE (GUARANTEED DEATH
BENEFIT) $100,000 PREMIUM SCHEDULE AT ISSUE--MODIFIED $1,305 INITIAL BASIC
PREMIUM AT ISSUE (1) USING MAXIMUM CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
----------------------------- ---------------------- -------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of Annual Investment Return of
Policy At 5% Interest ----------------------------- ---------------------- -------
Year Per Year(2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- -------- --------- -------- -------- -- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 1,370 100,000 100,000 100,000 302 358 415
2 2,809 100,000 100,000 100,000 859 1,015 1,179
3 4,320 100,000 100,000 100,000 1,381 1,683 2,012
4 5,906 100,000 100,000 100,000 1,868 2,359 2,916
5 7,571 100,000 100,000 100,000 2,318 3,046 3,906
6 9,320 100,000 100,000 100,000 2,792 3,807 5,055
7 11,157 100,000 100,000 100,000 3,357 4,708 6,439
8 13,085 100,000 100,000 100,000 3,996 5,733 8,053
9 15,109 100,000 100,000 100,000 4,721 6,895 9,923
10 17,235 100,000 100,000 100,000 5,400 8,060 11,930
11 19,467 100,000 100,000 100,000 6,028 9,226 14,088
12 21,810 100,000 100,000 100,000 6,598 10,386 16,407
13 24,271 100,000 100,000 100,000 6,858 11,286 18,654
14 26,855 100,000 100,000 100,000 7,046 12,167 21,092
15 29,568 100,000 100,000 100,000 7,155 13,019 23,740
16 32,417 100,000 100,000 100,000 7,179 13,838 26,620
17 35,408 100,000 100,000 100,000 7,110 14,615 29,761
18 38,548 100,000 100,000 100,000 6,947 15,347 33,195
19 41,846 100,000 100,000 100,000 6,681 16,026 36,961
20 45,309 100,000 100,000 100,000 6,304 16,643 41,102
25 65,398 100,000 100,000 114,493 2,168 18,212 69,038
30 91,038 100,000 100,000 164,967 0 14,843 110,865
35 147,723 100,000 100,000 225,382 12,519 24,566 166,382
40 238,108 100,000 100,000 302,880 26,469 48,896 241,146
</TABLE>
---------
(1) If premiums are paid more frequently than annually the payments would be
$652.50 semiannually, $326.25 quarterly, or $108.75 on a special monthly
basis. The death benefits and surrender values shown would be affected by the
more frequent premium payments. The basic premium (annual) after a
recalculation at age 72 will be as follows: $9,973 for a hypothetical gross
investment return of 0%, $8,568 for a gross return of 6%, and $0 for a gross
return of 12%.
(2) The premiums accumulated at 5% interest in Column 2 are those payable if the
gross investment return is 6%.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
83
<PAGE>
PLAN: JHVLICO FLEX V-1 (SCHEDULED PREMIUM VARIABLE WHOLE LIFE) MALE, ISSUE AGE
25, STANDARD NON-SMOKER UNDERWRITING RISK SUM INSURED AT ISSUE (GUARANTEED
DEATH BENEFIT) $100,000 PREMIUM SCHEDULE--LEVEL $1,113 BASIC PREMIUM (1)
USING CURRENT CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
----------------------------- ---------------------- -------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ---------------------- -------
Year Per Year (2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- -------- --------- -------- -------- -- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 1,169 100,000 100,000 100,000 369 420 471
2 2,396 100,000 100,000 100,000 1,021 1,166 1,317
3 3,684 100,000 100,000 100,000 1,668 1,952 2,261
4 5,037 100,000 100,000 100,000 2,307 2,778 3,309
5 6,458 100,000 100,000 100,000 2,936 3,644 4,476
6 7,949 100,000 100,000 100,000 3,555 4,555 5,776
7 9,515 100,000 100,000 100,000 4,160 5,509 7,221
8 11,160 100,000 100,000 100,000 4,788 6,545 8,863
9 12,886 100,000 100,000 100,000 5,399 7,624 10,680
10 14,699 100,000 100,000 100,000 6,066 8,822 12,761
11 16,603 100,000 100,000 100,000 6,834 10,186 15,175
12 18,602 100,000 100,000 100,000 7,656 11,670 17,895
13 20,700 100,000 100,000 100,000 8,457 13,204 20,874
14 22,904 100,000 100,000 100,000 9,236 14,786 24,138
15 25,218 100,000 100,000 100,000 9,989 16,418 27,716
16 27,647 100,000 100,000 102,672 10,527 17,910 31,447
17 30,198 100,000 100,000 112,361 11,035 19,452 35,531
18 32,877 100,000 100,000 122,543 11,514 21,048 40,000
19 35,689 100,000 100,000 133,264 11,962 22,699 44,887
20 38,643 100,000 100,000 144,553 12,377 24,405 50,229
25 55,776 100,000 100,000 211,006 13,917 33,876 85,331
30 77,644 100,000 100,000 298,669 14,282 45,126 139,487
35 105,553 100,000 108,958 415,358 12,746 58,142 221,643
40 141,173 100,000 120,412 571,567 8,204 72,607 344,650
45 186,634 100,000 131,034 780,450 0 88,061 524,496
50 244,655 100,000 141,040 1,060,468 0 104,119 782,865
55 318,706 100,000 150,626 1,436,505 0 119,925 1,143,714
</TABLE>
---------
(1) If premiums are paid more frequently than annually the payments would be
$556.50 semiannually, $278.25 quarterly, or $92.75 on a special monthly basis.
The death benefits and surrender values shown would be affected by the more
frequent premium payments.
(2) The premiums accumulated at 5% interest in Column 2 are those payable if the
gross investment return is 6%.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
84
<PAGE>
PLAN: JHVLICO FLEX V-1 (SCHEDULED PREMIUM VARIABLE WHOLE LIFE) MALE, ISSUE AGE
25, STANDARD NON-SMOKER UNDERWRITING RISK SUM INSURED AT ISSUE (GUARANTEED
DEATH BENEFIT) $100,000 PREMIUM SCHEDULE AT ISSUE--MODIFIED $708 INITIAL
BASIC PREMIUM AT ISSUE (1) USING CURRENT CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
----------------------------- ---------------------- -------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ---------------------- -------
Year Per Year (2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- -------- --------- -------- -------- -- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 743 100,000 100,000 100,000 0 25 54
2 1,524 100,000 100,000 100,000 281 358 439
3 2,344 100,000 100,000 100,000 565 712 872
4 3,204 100,000 100,000 100,000 845 1,084 1,356
5 4,108 100,000 100,000 100,000 1,120 1,477 1,898
6 5,057 100,000 100,000 100,000 1,388 1,890 2,506
7 6,053 100,000 100,000 100,000 1,647 2,324 3,186
8 7,099 100,000 100,000 100,000 1,933 2,814 3,980
9 8,197 100,000 100,000 100,000 2,206 3,322 4,859
10 9,350 100,000 100,000 100,000 2,538 3,920 5,901
11 10,561 100,000 100,000 100,000 2,975 4,655 7,163
12 11,833 100,000 100,000 100,000 3,468 5,481 8,608
13 13,168 100,000 100,000 100,000 3,945 6,322 10,173
14 14,570 100,000 100,000 100,000 4,402 7,178 11,870
15 16,042 100,000 100,000 100,000 4,836 8,047 13,709
16 17,587 100,000 100,000 100,000 5,056 8,737 15,516
17 19,210 100,000 100,000 100,000 5,249 9,437 17,494
18 20,914 100,000 100,000 100,000 5,414 10,145 19,663
19 22,703 100,000 100,000 100,000 5,550 10,861 22,042
20 24,581 100,000 100,000 100,000 5,654 11,582 24,655
25 35,480 100,000 100,000 104,379 5,638 15,237 42,211
30 49,391 100,000 100,000 149,219 4,389 18,688 69,689
35 67,144 100,000 100,000 208,742 1,041 21,153 111,389
40 89,803 100,000 100,000 288,291 0 21,380 173,837
45 118,721 100,000 100,000 394,560 0 16,207 265,161
50 181,385 100,000 100,000 533,590 12,758 25,187 393,910
55 280,751 100,000 100,000 718,377 27,259 50,163 571,956
</TABLE>
---------
(1) If premiums are paid more frequently than annually the payments would be
$354.00 semiannually, $177.00 quarterly, or $59.00 on a special monthly basis.
The death benefits and surrender values shown would be affected by the more
frequent premium payments. The basic premium (annual) after a recalculation at
age 72 will be as follows: $9,973 for a hypothetical gross investment return
of 0%, $8,541 for a gross return of 6%, and $0 for a gross return of 12%.
(2) The premiums accumulated at 5% interest in Column 2 are those payable if the
gross investment return is 6%.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
85
<PAGE>
PLAN: JHVLICO FLEX V-1 (SCHEDULED PREMIUM VARIABLE WHOLE LIFE) MALE, ISSUE AGE
40, PREFERRED UNDERWRITING RISK SUM INSURED AT ISSUE (GUARANTEED DEATH
BENEFIT) $100,000 PREMIUM SCHEDULE--LEVEL $1,954 BASIC PREMIUM (1) USING
CURRENT CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
----------------------------- ---------------------- -------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ---------------------- -------
Year Per Year (2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- -------- --------- -------- -------- -- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,052 100,000 100,000 100,000 1,063 1,160 1,258
2 4,206 100,000 100,000 100,000 2,382 2,668 2,967
3 6,468 100,000 100,000 100,000 3,671 4,241 4,858
4 8,843 100,000 100,000 100,000 4,931 5,880 6,950
5 11,337 100,000 100,000 100,000 6,161 7,594 9,272
6 13,955 100,000 100,000 100,000 7,351 9,373 11,837
7 16,705 100,000 100,000 100,000 8,512 11,234 14,686
8 19,592 100,000 100,000 100,000 9,699 13,235 17,905
9 22,623 100,000 100,000 100,000 10,847 15,317 21,462
10 25,806 100,000 100,000 100,000 12,078 17,603 25,517
11 29,148 100,000 100,000 100,000 13,483 20,190 30,204
12 32,657 100,000 100,000 100,000 14,985 23,004 35,489
13 36,342 100,000 100,000 100,000 16,442 25,910 41,289
14 40,211 100,000 100,000 105,680 17,855 28,913 47,643
15 44,273 100,000 100,000 116,832 19,215 32,013 54,564
16 48,538 100,000 100,000 128,639 20,170 34,865 61,754
17 53,017 100,000 100,000 141,142 21,066 37,822 69,614
18 57,719 100,000 100,000 154,394 21,902 40,891 78,206
19 62,657 100,000 100,000 168,434 22,669 44,077 87,589
20 67,841 100,000 100,000 183,347 23,370 47,391 97,837
25 97,922 100,000 109,419 273,541 25,728 65,979 164,942
30 136,313 100,000 129,603 396,852 24,867 87,099 266,702
35 185,310 100,000 150,335 569,684 19,441 110,981 420,555
40 247,845 100,000 172,732 816,995 5,057 137,525 650,474
</TABLE>
---------
(1) If premiums are paid more frequently than annually the payments would be
$977.00 semiannually, $488.50 quarterly, or $162.83 on a special monthly
basis. The death benefits and surrender values shown would be affected by the
more frequent premium payments.
(2) The premiums accumulated at 5% interest in Column 2 are those payable if the
gross investment return is 6%.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
86
<PAGE>
PLAN: JHVLICO FLEX V-1 (SCHEDULED PREMIUM VARIABLE WHOLE LIFE) MALE, ISSUE AGE
40, PREFERRED UNDERWRITING RISK SUM INSURED AT ISSUE (GUARANTEED DEATH
BENEFIT) $100,000 PREMIUM SCHEDULE AT ISSUE--MODIFIED $1,305 INITIAL BASIC
PREMIUM AT ISSUE (1) USING CURRENT CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
----------------------------- ---------------------- -------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ---------------------- -------
Year Per Year (2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- -------- --------- -------- -------- -- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 1,370 100,000 100,000 100,000 466 528 590
2 2,809 100,000 100,000 100,000 1,196 1,374 1,560
3 4,320 100,000 100,000 100,000 1,903 2,253 2,632
4 5,906 100,000 100,000 100,000 2,587 3,165 3,819
5 7,571 100,000 100,000 100,000 3,248 4,116 5,136
6 9,320 100,000 100,000 100,000 3,873 5,095 6,589
7 11,157 100,000 100,000 100,000 4,476 6,118 8,205
8 13,085 100,000 100,000 100,000 5,109 7,238 10,055
9 15,109 100,000 100,000 100,000 5,709 8,394 12,094
10 17,235 100,000 100,000 100,000 6,395 9,705 14,462
11 19,467 100,000 100,000 100,000 7,258 11,266 17,272
12 21,810 100,000 100,000 100,000 8,220 13,000 20,473
13 24,271 100,000 100,000 100,000 9,140 14,767 23,952
14 26,855 100,000 100,000 100,000 10,018 16,570 27,743
15 29,568 100,000 100,000 100,000 10,843 18,401 31,873
16 32,417 100,000 100,000 100,000 11,263 19,909 36,031
17 35,408 100,000 100,000 100,000 11,620 21,442 40,609
18 38,548 100,000 100,000 100,000 11,914 22,999 45,660
19 41,846 100,000 100,000 100,000 12,135 24,576 51,237
20 45,309 100,000 100,000 107,491 12,282 26,176 57,359
25 65,398 100,000 100,000 161,618 11,714 34,479 97,454
30 91,038 100,000 100,000 235,509 7,238 42,490 158,272
35 132,791 100,000 100,000 332,717 20,650 58,901 245,620
40 192,878 100,000 108,820 468,270 45,991 86,640 372,826
</TABLE>
---------
(1) If premiums are paid more frequently than annually the payments would be
$652.50 semiannually, $326.25 quarterly, or $108.75 on a special monthly
basis. The death benefits and surrender values shown would be affected by the
more frequent premium payments. The basic premium (annual) after a
recalculation at age 72 will be as follows: $9,461 for a hypothetical gross
investment return of 0%, $4,068 for a gross return of 6%, and $0 for a gross
return of 12%.
(2) The premiums accumulated at 5% interest in Column 2 are those payable if the
gross investment return is 6%.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
87
<PAGE>
PLAN: JHVLICO FLEX V-1 (SCHEDULED PREMIUM VARIABLE WHOLE LIFE) MALE, ISSUE AGE
25, STANDARD NON-SMOKER UNDERWRITING RISK SUM INSURED AT ISSUE (GUARANTEED
DEATH BENEFIT) $100,000 PREMIUM SCHEDULE--LEVEL $1,113 BASIC PREMIUM (1)
USING MAXIMUM CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
----------------------------- ---------------------- -------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ---------------------- -------
Year Per Year (2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- -------- --------- -------- -------- -- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 1,169 100,000 100,000 100,000 345 395 445
2 2,396 100,000 100,000 100,000 974 1,116 1,264
3 3,684 100,000 100,000 100,000 1,597 1,874 2,176
4 5,037 100,000 100,000 100,000 2,213 2,672 3,190
5 6,458 100,000 100,000 100,000 2,820 3,509 4,319
6 7,949 100,000 100,000 100,000 3,416 4,389 5,577
7 9,515 100,000 100,000 100,000 3,999 5,311 6,976
8 11,160 100,000 100,000 100,000 4,605 6,312 8,566
9 12,886 100,000 100,000 100,000 5,195 7,356 10,326
10 14,699 100,000 100,000 100,000 5,840 8,516 12,344
11 16,603 100,000 100,000 100,000 6,587 9,841 14,687
12 18,602 100,000 100,000 100,000 7,387 11,283 17,329
13 20,700 100,000 100,000 100,000 8,164 12,770 20,219
14 22,904 100,000 100,000 100,000 8,919 14,303 23,384
15 25,218 100,000 100,000 100,000 9,649 15,884 26,853
16 27,647 100,000 100,000 100,000 10,160 17,321 30,465
17 30,198 100,000 100,000 108,860 10,643 18,805 34,424
18 32,877 100,000 100,000 118,733 11,097 20,339 38,756
19 35,689 100,000 100,000 129,122 11,519 21,924 43,491
20 38,643 100,000 100,000 140,065 11,909 23,563 48,669
25 55,776 100,000 100,000 204,407 13,313 32,623 82,662
30 77,644 100,000 100,000 289,154 13,516 43,309 135,043
35 105,553 100,000 104,501 401,767 11,770 55,764 214,390
40 141,173 100,000 115,469 552,192 6,916 69,627 332,967
45 186,634 100,000 125,725 753,751 0 84,493 506,553
50 244,655 100,000 135,433 1,024,271 0 99,980 756,143
55 318,706 100,000 144,730 1,387,546 0 115,231 1,104,734
</TABLE>
---------
(1) If premiums are paid more frequently than annually the payments would be
$556.50 semiannually, $278.25 quarterly, or $92.75 on a special monthly basis.
The death benefits and surrender values shown would be affected by the more
frequent premium payments.
(2) The premiums accumulated at 5% interest in Column 2 are those payable if the
gross investment return is 6%.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
88
<PAGE>
PLAN: JHVLICO FLEX V-1 (SCHEDULED PREMIUM VARIABLE WHOLE LIFE) MALE, ISSUE AGE
25, STANDARD NON-SMOKER UNDERWRITING RISK SUM INSURED AT ISSUE (GUARANTEED
DEATH BENEFIT) $100,000 PREMIUM SCHEDULE AT ISSUE--MODIFIED $708 INITIAL
BASIC PREMIUM AT ISSUE (1) USING MAXIMUM CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
----------------------------- ---------------------- -------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ---------------------- -------
Year Per Year (2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- -------- --------- -------- -------- -- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 743 100,000 100,000 100,000 0 1 28
2 1,524 100,000 100,000 100,000 234 308 386
3 2,344 100,000 100,000 100,000 494 634 788
4 3,204 100,000 100,000 100,000 751 979 1,237
5 4,108 100,000 100,000 100,000 1,004 1,341 1,741
6 5,057 100,000 100,000 100,000 1,249 1,724 2,307
7 6,053 100,000 100,000 100,000 1,486 2,125 2,941
8 7,099 100,000 100,000 100,000 1,750 2,581 3,683
9 8,197 100,000 100,000 100,000 2,001 3,053 4,504
10 9,350 100,000 100,000 100,000 2,312 3,614 5,483
11 10,561 100,000 100,000 100,000 2,727 4,310 6,675
12 11,833 100,000 100,000 100,000 3,199 5,093 8,041
13 13,168 100,000 100,000 100,000 3,651 5,888 9,517
14 14,570 100,000 100,000 100,000 4,084 6,695 11,115
15 16,042 100,000 100,000 100,000 4,494 7,513 12,844
16 17,587 100,000 100,000 100,000 4,689 8,147 14,526
17 19,210 100,000 100,000 100,000 4,856 8,787 16,367
18 20,914 100,000 100,000 100,000 4,996 9,433 18,383
19 22,703 100,000 100,000 100,000 5,105 10,082 20,591
20 24,581 100,000 100,000 100,000 5,184 10,735 23,015
25 35,480 100,000 100,000 100,000 5,028 13,969 39,260
30 49,391 100,000 100,000 138,898 3,611 16,834 64,869
35 67,144 100,000 100,000 194,294 41 18,446 103,679
40 89,803 100,000 100,000 268,148 0 17,345 161,691
45 118,721 100,000 100,000 366,995 0 10,098 246,637
50 184,543 100,000 100,000 495,997 12,681 18,526 366,158
55 290,317 100,000 100,000 667,537 27,007 44,196 531,478
</TABLE>
---------
(1) If premiums are paid more frequently than annually the payments would be
$354.00 semiannually, $177.00 quarterly, or $59.00 on a special monthly basis.
The death benefits and surrender values shown would be affected by the more
frequent premium payments. The basic premium (annual) after a recalculation at
age 72 will be as follows: $9,973 for a hypothetical gross investment return
of 0%, $9,490 for a gross return of 6%, and $0 for a gross return of 12%.
(2) The premiums accumulated at 5% interest in Column 2 are those payable if the
gross investment return is 6%.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
89
<PAGE>
PLAN: JHVLICO FLEX V-1 (SCHEDULED PREMIUM VARIABLE WHOLE LIFE) MALE, ISSUE AGE
40, PREFERRED UNDERWRITING RISK SUM INSURED AT ISSUE (GUARANTEED DEATH
BENEFIT) $100,000 PREMIUM SCHEDULE--LEVEL $1,954 BASIC PREMIUM (1) USING
MAXIMUM CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
----------------------------- ---------------------- -------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ---------------------- -------
Year Per Year (2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- -------- --------- -------- -------- -- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 2,052 100,000 100,000 100,000 906 998 1,091
2 4,206 100,000 100,000 100,000 2,060 2,326 2,605
3 6,468 100,000 100,000 100,000 3,174 3,699 4,268
4 8,843 100,000 100,000 100,000 4,247 5,115 6,096
5 11,337 100,000 100,000 100,000 5,278 6,580 8,110
6 13,955 100,000 100,000 100,000 6,265 8,094 10,332
7 16,705 100,000 100,000 100,000 7,207 9,661 12,785
8 19,592 100,000 100,000 100,000 8,168 11,345 15,560
9 22,623 100,000 100,000 100,000 9,083 13,086 18,620
10 25,806 100,000 100,000 100,000 10,079 15,013 22,127
11 29,148 100,000 100,000 100,000 11,246 17,221 26,208
12 32,657 100,000 100,000 100,000 12,486 19,614 30,808
13 36,342 100,000 100,000 100,000 13,664 22,064 35,842
14 40,211 100,000 100,000 100,000 14,774 24,568 41,360
15 44,273 100,000 100,000 101,512 15,809 27,125 47,409
16 48,538 100,000 100,000 111,689 16,413 29,387 53,617
17 53,017 100,000 100,000 122,387 16,932 31,705 60,363
18 57,719 100,000 100,000 133,645 17,366 34,086 67,696
19 62,657 100,000 100,000 145,496 17,709 36,534 75,661
20 67,841 100,000 100,000 157,995 17,954 39,053 84,309
25 97,922 100,000 100,000 231,613 17,276 52,812 139,661
30 136,313 100,000 102,727 328,785 11,669 69,037 220,957
35 185,310 100,000 117,568 458,033 0 86,792 338,132
40 247,845 100,000 131,658 630,709 0 104,823 502,157
</TABLE>
---------
(1) If premiums are paid more frequently than annually the payments would be
$977.00 semiannually, $488.50 quarterly, or $162.83 on a special monthly
basis. The death benefits and surrender values shown would be affected by the
more frequent premium payments.
(2) The premium accumulated at 5% interest in Column 2 are those payable if the
gross investment return is 6%.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
90
<PAGE>
PLAN: JHVLICO FLEX V-1 (SCHEDULED PREMIUM VARIABLE WHOLE LIFE) MALE, ISSUE AGE
40, PREFERRED UNDERWRITING RISK SUM INSURED AT ISSUE (GUARANTEED DEATH
BENEFIT) $100,000 PREMIUM SCHEDULE AT ISSUE--MODIFIED $1,305 INITIAL BASIC
PREMIUM AT ISSUE (1) USING MAXIMUM CHARGES
<TABLE>
<CAPTION>
Death Benefit Surrender Value
----------------------------- ---------------------- -------
Premiums Assuming Hypothetical Gross Assuming Hypothetical Gross
End of Accumulated Annual Investment Return of: Annual Investment Return of:
Policy At 5% Interest ----------------------------- ---------------------- -------
Year Per Year (2) 0% Gross 6% Gross 12% Gross 0% Gross 6% Gross 12% Gross
------- -------------- -------- -------- --------- -------- -------- -- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
1 1,370 100,000 100,000 100,000 308 365 422
2 2,809 100,000 100,000 100,000 871 1,029 1,194
3 4,320 100,000 100,000 100,000 1,401 1,705 2,036
4 5,906 100,000 100,000 100,000 1,893 2,388 2,950
5 7,571 100,000 100,000 100,000 2,349 3,084 3,951
6 9,320 100,000 100,000 100,000 2,765 3,788 5,047
7 11,157 100,000 100,000 100,000 3,140 4,502 6,248
8 13,085 100,000 100,000 100,000 3,537 5,289 7,629
9 15,109 100,000 100,000 100,000 3,890 6,083 9,138
10 17,235 100,000 100,000 100,000 4,326 7,011 10,916
11 19,467 100,000 100,000 100,000 4,935 8,163 13,068
12 21,810 100,000 100,000 100,000 5,615 9,439 15,514
13 24,271 100,000 100,000 100,000 6,233 10,704 18,140
14 26,855 100,000 100,000 100,000 6,780 11,951 20,960
15 29,568 100,000 100,000 100,000 7,247 13,170 23,992
16 32,417 100,000 100,000 100,000 7,277 14,004 26,910
17 35,408 100,000 100,000 100,000 7,215 14,797 30,091
18 38,548 100,000 100,000 100,000 7,058 15,547 33,572
19 41,846 100,000 100,000 100,000 6,799 16,245 37,391
20 45,309 100,000 100,000 100,000 6,428 16,882 41,591
25 65,398 100,000 100,000 115,923 2,329 18,582 69,901
30 91,038 100,000 100,000 166,958 0 15,424 112,203
35 147,419 100,000 100,000 228,092 12,681 25,357 168,383
40 237,186 100,000 100,000 306,532 27,007 50,053 244,054
</TABLE>
---------
(1) If premiums are paid more frequently than annually the payments would be
$652.50 semiannually, $326.25 quarterly, or $108.75 on a special monthly
basis. The death benefits and surrender values shown would be affected by the
more frequent premium payments. The basic premium (annual) after a
recalculation at age 72 will be as follows: $9,973 for a hypothetical gross
investment return of 0%, $8,477 for a gross return of 6%, and $0 for a gross
return of 12%.
(2) The premiums accumulated at 5% interest in Column 2 are those payable if the
gross investment return is 6%.
IT IS EMPHASIZED THAT THE HYPOTHETICAL INVESTMENT RESULTS ARE ILLUSTRATIVE ONLY
AND SHOULD NOT BE DEEMED A REPRESENTATION OF PAST OR FUTURE INVESTMENT RESULTS.
ACTUAL INVESTMENT RESULTS MAY BE MORE OR LESS THAN THOSE SHOWN AND WILL DEPEND
ON A NUMBER OF FACTORS, INCLUDING INVESTMENT ALLOCATIONS MADE BY THE OWNER. THE
DEATH BENEFIT AND SURRENDER VALUE FOR A POLICY WOULD BE DIFFERENT FROM THOSE
SHOWN IF THE ACTUAL GROSS RATES OF INVESTMENT RETURN AVERAGE 0%, 6% OR 12% OVER
A PERIOD OF YEARS, BUT ALSO FLUCTUATED ABOVE OR BELOW THE AVERAGE FOR INDIVIDUAL
POLICY YEARS. NO REPRESENTATIONS CAN BE MADE THAT THESE HYPOTHETICAL INVESTMENT
RESULTS CAN BE ACHIEVED FOR ANY ONE YEAR OR SUSTAINED OVER ANY PERIOD OF TIME.
91
<PAGE>
SUPPLEMENT DATED NOVEMBER 1, 2000
TO
VARIABLE LIFE INSURANCE
PROSPECTUSES DATED NOVEMBER 1, 2000
This Supplement is intended to be distributed with prospectuses dated November
1, 2000 for certain VARIABLE LIFE INSURANCE POLICIES ISSUED ON OR BEFORE MAY 1,
2000 by John Hancock Life Insurance Company, John Hancock Variable Life
Insurance Company, or Investors Partner Life Insurance Company. The variable
life insurance policies involved bear the title "Variable Estate Protection",
"Variable Estate Protection II", "Majestic Variable Estate Protection",
"Majestic Variable Estate Protection 98", "Medallion Variable Life", "Medallion
Executive Variable Life", "Medallion Executive Variable Life II", "Medallion
Executive Variable Life III", "Majestic Variable Universal Life", "Majestic
Variable Universal Life 98", "Variable Master Plan Plus", "Investors Partner
Variable Life", "Flex V-1" or "Flex V-2".
------------------------
GUIDE TO THIS SUPPLEMENT
------------------------
. Your policy enables you to invest in the INTERNATIONAL OPPORTUNITIES II
VARIABLE INVESTMENT OPTION. This variable investment option is subject to
all the terms and conditions of the policies and the procedures described
in the Product Prospectuses. Prior to June, 2000, this variable investment
option was known as the "Global Equity" variable investment option. We may
modify or delete this investment option in the future.
. If you select the International Opportunities II variable investment
option, we will invest your money in the corresponding fund of the John
Hancock Variable Series Trust I. The International Opportunities II Fund is
managed by T. Rowe Price International, Inc.
. Page 2 of this Supplement amends the fund expense table in each of the
Product Prospectuses that follows the question "What charges will the
Trust[s] deduct from my investment in the policy?"
. Pages 3, 4 and 5 of the Supplement amend the John Hancock Variable Series
Trust I prospectus and describe the Goal and Strategy, Subadviser, Past
Performance, Main Risks, Financial Highlights, and Expenses, Dividends and
Taxes of the International Opportunities II Fund.
1
<PAGE>
ANNUAL FUND EXPENSES
The following figures for the International Opportunities II fund are based
on historical and current fund expenses, as a percentage (rounded to two decimal
places) of the fund's average daily net assets for 1999. Shareholders of the
International Opportunities II fund have approved a new management fee schedule,
effective November 1, 2000, and the "investment management fee" percentage is
calculated as if the new fee schedule had been in effect for all of 1999. The
percentage for "other operating expenses" is based on the allocation methodology
and expense reimbursement policy adopted by the John Hancock Variable Series
Trust I on April 23, 1999, and is calculated as if that allocation methodology
and expense reimbursement policy had been in effect for all of 1999. Under the
expense reimbursement policy, John Hancock Life Insurance Company voluntarily
reimburses the International Opportunities II fund when the fund's "other fund
expenses" exceed 0.10% of the fund's average daily net assets.
<TABLE>
<CAPTION>
Investment Distribution and Other Operating Total Fund Other Operating
Management Service Expenses With Operating Expenses Absent
Fund Name Fee (12b-1) Fees Reimbursement Expenses Reimbursement
--------- ---------- ---------------- --------------- ---------- ---------------
<S> <C> <C> <C> <C> <C>
JOHN HANCOCK VARIABLE SERIES TRUST I:
International Opportunities II ....... 1.00% N/A 0.10% 1.10% 0.50%
</TABLE>
2
<PAGE>
International Opportunities II Fund
(Formerly Global Equity Fund)
GOAL AND STRATEGY
This is an international stock fund that seeks long-term growth in capital.
The Fund primarily invests in a diversified mix of common stocks of large
established and medium-sized foreign companies located throughout the world,
including developed, newly industrialized, and emerging countries.
The manager determines the distribution among countries and regions by using a
combination of fundamental research and economic analysis, emphasizing:
. prospects for relative economic growth between foreign countries;
. expected levels of inflation;
. government policies influencing business conditions; and
. outlook for currency relationships.
The manager selects stocks that have growth characteristics such as:
. leading market position or technological leadership;
. high return on invested capital;
. healthy balance sheets with relatively low debt;
. strong competitive advantage;
. strength of management; and
. earnings growth and cash flow sufficient to support growing dividends.
The Fund invests:
. in at least 3 different countries other than the U.S., and
. no more than 20% of its assets in emerging market stocks.
Although the Fund may employ foreign currency hedging techniques, the Fund nor-
mally maintains the currency exposure of the underlying equity investments.
The Fund normally invests in 150 to 250 stocks in 15 to 20 countries, with at
least 65% of its assets in securities of non-U.S. entities. The Fund normally
has 10% or less of its assets in cash and cashequivalents.
The Fund also may purchase other types of securities that are not primary
investment vehicles, for example: American Depository Receipts (ADRs), Global
Depository Receipts (GDRs), European Depository Receipts (EDRs), and certain
derivatives (investments whose value is based on indices or other securities).
In abnormal market conditions, the Fund may take temporary defensive measures--
such as holding unusually large amounts of cash and cash equivalents--that are
inconsistent with the Fund's primary investment strategy. In taking those mea-
sures, the Fund may not achieve its investment goal.
--------------------------------------------------------------------------------
SUBADVISER
T. Rowe Price International, Inc.
100 East Pratt Street
Baltimore, Maryland 21202
Managing since 1979
Managed approximately $42 billion in assets at the end of 1999
Managing Fund since June 13, 2000
FUND MANAGERS
Management by Investment Advisory Group overseen by:
David J. L. Warren
-----------------
Portfolio Manager of subadviser
Joined subadvisor in 1983
Began career in 1981
John R. Ford
-----------------
Portfolio Manager of subadviser
Joined subadvisor in 1982
Began career in 1980
James B. M. Seddon
-----------------
Portfolio Manager of subadvisor
Joined subadvisor in 1987
Began career in 1987
Mark Bickford-Smith
-----------------
Portfolio Manager of subadvisor
Joined subadvisor in 1995
Began career in 1985
PAST PERFORMANCE
The graph will show how the fund's total return varies from year to year, while
the table will show performance over time (along with a broad-based market
index for reference). This information may help provide an indication of the
fund's risks and potential rewards. All figures assume dividend reinvestment.
Past performance does not indicate future results. The performance figures
below do not reflect the deduction of fees and charges payable under the
variable contracts. Such fees and charges would cause the investment returns
under the contracts to be less than that shown below.
Year-by-year total returns -- calendar years
[GRAPH]
1999 24.19%
Best quarter: up 15.94%, fourth quarter 1999 Worst quarter: down 12.39%, third
quarter 1998
Average annual total returns -- for periods ending 12/31/99(/1/)
<TABLE>
<CAPTION>
Fund Index
<S> <C> <C>
1 year 24.19% 25.34%
Life of fund 13.48% 19.92%
</TABLE>
Index:MSCI World Index
(1)Began operations on May 1, 1998.
3
<PAGE>
MAIN RISKS
Primary
Foreign Risk: The Fund's foreign securities will pose special risks, due to
limited government regulation, lack of public information, economic, political
and social instability and foreign currency rate fluctuations. Factors such as
lack of liquidity, foreign ownership limits and restrictions on removing cur-
rency also pose special risks. All foreign securities have some degree of for-
eign risk. However, to the extent the Fund invests in emerging market coun-
tries, it will have a significantly higher degree of foreign risk than if it
invested exclusively in developed or newly-industrialized countries.
Market Risk: The value of the securities in the Fund may go down in response
to overall stock or bond market movements. Markets tend to move in cycles,
with periods of rising prices and periods of falling prices. Stocks tend to go
up and down in value more than bonds. If the Fund's investments are concen-
trated in certain sectors, the Fund's performance could be worse than the
overall market.
Manager Risk: The manager and its strategy may fail to produce the intended
results. The Fund could underperform its peers or lose money if the manager's
investment strategy does not perform as expected.
Secondary
Derivatives Risk: Certain derivative instruments (such as options, futures and
swaps) can produce disproportionate gains or losses. They are generally con-
sidered more risky than direct equity investments. Also, in a down market,
derivatives could become harder to value or sell at a fair price.
-------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS (Selected data for each share interest outstanding
throughout the period indicated)
The following financial highlights have been audited by Ernst & Young LLP.
<TABLE>
<S> <C> <C>
--------------------------------------------------------------------------------
International Opportunities II Fund (Formerly Global Equity
Fund) -- Period ended December 31; 1998** 1999
--------------------------------------------------------------------------------
Net asset value, beginning of period $ 10.00 $ 9.87
Income from investment operations:
Net investment income (loss) 0.07 0.10
Net realized and unrealized gain (loss) on investments* (0.13) 2.27
Total from investment operations (0.06) 2.37
Less distributions:
Distributions from net investment income and capital paid
in (0.07) (0.07)
Distributions from net realized gain on investments sold -- --
Distributions in excess of income, capital paid in & gains -- (0.04)
Total distributions (0.07) (0.11)
Net asset value, end of period $ 9.87 $ 12.13
Total investment return (0.55)% 24.19%
Ratios and supplemental data
Net assets, end of period (000s omitted)($) $15,281 $22,311
Ratio of expenses to average net assets (%)*** 1.15% 1.04%
Ratio of net investment income (loss) to average net assets
(%) 1.11% 0.96%
Turnover rate (%) 33.17% 49.51%
</TABLE>
* The amount shown may not accord with the change in the aggregate gains
and losses in the fund securities for the period because of the timing of
purchases and withdrawals of shares in relation to the fluctuation in
market values of the fund.
** Fund began operations May 1, 1998.
*** Expense ratio is net of expense reimbursement. Had such reimbursement not
been made the expense ratio would have been 2.47% and 1.26% for the years
ended December 31, 1998, and 1999, respectively.
4
<PAGE>
. The table entitled "FUNDS' EXPENSES" in the prospectus for the John Hancock
Variable Series Trust I dated November 1, 20000 is supplemented with the
following information:
The advisory fee paid by the International Opportunities II fund to the
adviser in 1999 was 0.90% of the fund's net assets. The International
Opportunities II fund was formerly the "Global Equity" fund.
. The section entitled "DIVIDENDS AND TAXES" in the prospectus for the John
Hancock Variable Series Trust I dated November 1, 20000 is supplemented
with the following information:
The International Opportunities II fund reinvests and declares its
dividends and distributions in the manner described in this section.
5
