The principal guarantee, backed by the claims-paying ability of the contract issuer, applies when the contract is held to term. Inflation Guard also provides the ability to help protect clients’ purchasing power from the impact of inflation.
Clients will receive a fixed guaranteed interest rate during the first year of the contract. For each subsequent contract year, the interest rate a client receives is a floating rate, based on the inflation rate determined by the year-over-year change in the Consumer Price Index-Urban (CPI-U), plus a guaranteed margin that is determined at issue. The interest rate will never be less than zero (the floor), and will be subject to a cap, which is also set when the contract is issued. Interest rates will be determined by John Hancock on a weekly basis.
“We believe inflation-protected investing is a separate and distinct asset class, and have observed the need for this type of product in the marketplace,” said Mike Treske, President, John Hancock Annuities Distribution.
To find out more about Inflation Guard, visit www.jhannuities.com.