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. Marc Costantini, president of John Hancock Annuities, said the annuity has “lower costs and a much more simplified design.”

Features of the product, according to the John Hancock, include:

  • 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.

AnnuityNote is intended for investors between the ages of 55 and 75, and is available to both qualified and nonqualified accounts. Availability varies by state, and additional restrictions and limitations may apply.

More information is available at