John Hancock Launches New Variable Annuity

Published: Tue 02 Feb 2010

Wendy Blair

The creation of the Venture 4 variable annuity marks the return of John Hancock to L-Share sales.

The launch of Venture 4 also signals growth in John Hancock Annuities' variable annuity lineup. The other two products are Venture, which is a traditional B-Share offering, and AnnuityNote, which was created to provide lower-cost, simpler lifetime income.

"We are pleased to introduce Venture 4 and continue the tradition of providing products that add real client value to the retirement marketplace," said Marc Costantini, president of John Hancock Annuities. "Venture 4 can help answer the need for lifetime income backed by a financially secure company while also offering the flexibility and liquidity to help meet changing needs during retirement."

For investors and their advisors, Venture 4 also provides access to the Lifestyle Portfolios in the John Hancock Trust. The portfolios offer sophisticated asset allocation and diversification that are managed by experienced people. These portfolios offer full liquidity after four years.

Venture 4 purchases also can include the option of the withdrawal benefit known as Income Plus For Life. With this feature, a lifetime of income also carries growth potential by deferring withdrawals or locking in possible market gains by an annual step-up provision.

Any account with the Income For Life feature is subject to an annual fee of 0.9 percent (1.2 percent maximum). That fee is calculated using the adjusted benefit base and is deducted from the contract value on the account's anniversary.

With step-up, the fee may rise to the annual maximum rate. If the fee is increased and the previous benefit base is retained, the account holder may decline the step-up.

"As millions of Baby Boomers enter retirement during this new decade, financial advisors need products that meet their clients' unique needs," said Mike Treske, president of John Hancock Wood Logan. "Venture 4 complements our current platform of annuity offerings and is designed to attract those who are looking for the features typically found with traditional variable annuities, but with better liquidity features."

With variable annuities, the investment is made within a fund. The rate varies depending on the mix of stocks, bonds or mutual funds. As a result, the level of return varies.

These annuities are favored by investors who want growth potential that can exceed that of fixed annuities. Often, they like the flexibility to move to other annuities if the new ones are more suitable for their needs.