John Hancock Releases Retail Variable Annuity

John Hancock launched AnnuityNote, which the company said is designed to bring ‘guaranteed income to a broader market beyond the reach of traditional variable annuities.’

AnnuityNote features one underlying diversified portfolio, a lifetime income benefit, and an all-in expense of 1.74%, according to a news release...

* Lifetime income: After a five-year hold, 5% guaranteed lifetime income is based on the higher of the total amount invested or the fifth contact anniversary value. A withdrawal during the five-year hold may reduce the future lifetime income guarantee.
* Liquidity: Investors have 100% access to their money beginning on the day of purchase with no surrender charge.
* Annual all-in expense of 1.74%. The insurance fee is 1.20% for the lifetime income guarantee and the underlying portfolio expense is 0.54%.
* Market participation. An indexing strategy provides market exposure and diversification among stocks and bonds.
* Financial strength. Guarantees are backed by the claims-paying ability of the issuer, John Hancock.

John Hancock AnnuityNote is an A-share product, with an initial sales charge of 3%. The minimum initial investment is $25,000 and subsequent payments may be made up to nine months after purchase...

Plan Adviser: John Hancock Releases Retail Variable Annuity