JOHN HANCOCK VARIABLE LIFE ACCOUNT S
MAJESTIC VARIABLE ESTATE PROTECTION 98
SUPPLEMENT DATED DECEMBER 20, 1999
TO
PROSPECTUS DATED MAY 3, 1999
Notwithstanding any language in the prospectus to the contrary, the following
shall apply with respect to Majestic Variable Estate Protection 98 policies,
regardless of state of issue or delivery:
(a) The maximum issue age, as referenced on page 28 of the prospectus
in the provision entitled "Procedures for issuance of a policy,"
is raised from 80 to 85.
(b) The last paragraph of the provision entitled" Optional extra
death benefit" appearing on page 15 of the prospectus is changed
to read as follows:
" Any excess is the optional extra death benefit for the
remainder of that policy year. This feature may result in the
Option A death benefit being higher than the minimum insurance
amount. Although there is no special charge for this feature,
your monthly insurance charge will be based on that higher death
benefit amount. Election of this feature must be made in the
application for the policy. If you elect this feature, you must
elect the "cash value accumulation test" for purposes of
determining the minimum insurance amount (see below). You may
revoke your election of this feature at any time, but there may
be adverse tax consequences if you do."
(c) The provision entitled "The minimum insurance amount" appearing
on page 15 of the prospectus is changed to read as follows:
"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 - - the "guideline
premium and cash value corridor test" and the "cash value
accumulation test." When you elect the death benefit option,
you must also elect which test you wish to have applied. As
indicated above, the guideline premium and cash value corridor
<PAGE>
test is not available if the optional extra death benefit
feature is elected. Under the guideline premium and cash value
corridor test, 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 policy year will appear in the policy.
Under the cash value accumulation test, 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 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 policy year will appear in the
policy. Regardless of which test is applied, the appropriate
factor will be referred to in the policy as the "Required
Additional Death Benefit Factor."
As noted above, you have to elect which test will be
applied when you elect the death benefit option. The cash
value accumulation test may be preferable if you want an
increasing death benefit in later policy years and/or want to
fund the policy at the "7 pay" limit for the full 7 years (see
"Tax Considerations" beginning on page 34). The guideline
premium and cash value corridor test may be preferable if you
want the account value under the policy to increase without
increasing the death benefit as quickly as might otherwise be
required.
