See How John Hancock’s Protection IUL Offers a Competitive Edge
I wanted to share some key insights into comparing John Hancock’s Protection IUL offerings that could help boost your sales — and deliver significantly more real-world value.
Looking beyond illustrations
Symetra’s default account for their IUL products is their Putnam Managed Volatility Index with a fixed bonus. While this account illustrates very competitively, it has not performed as illustrated and has hit the floor in its last 28 segments. Clients would have seen a 1% credit in these segments due to the non-guaranteed 1% bonus.
A real-world performance leader
As the chart below shows, Protection IUL comes out ahead when comparing performance.
- Protection IUL’s Barclays Global MA Index currently boasts a streak of 15 consecutive positive segments.
Why the difference?
A closer look reveals that the Putnam index conducts a daily assessment for expected volatility based on its current allocation. If the projection falls between 4-6%, no adjustments are made. With a target volatility of 5%, the market must get 20% more or less volatile than their target volatility for them to make an adjustment back to that 5% target. This cautious approach can lead the index to become conservative quickly during market volatility and slow to readjust to equities as volatility normalizes.
| Historical Segment Credits | ||
|---|---|---|
| Segment | Putnam Fixed Bonus | Barclays Classic |
| 22-Jan | *1% | 0.00% |
| 22-Feb | *1% | 0.00% |
| 22-Mar | *1% | 0.00% |
| 22-Apr | *1% | 0.00% |
| 22-May | *1% | 1.25% |
| 22-Jun | *1% | 11.80% |
| 22-Jul | *1% | 9.85% |
| 22-Aug | *1% | 0.74% |
| 22-Sep | *1% | 6.75% |
| 22-Oct | *1% | 7.36% |
| 22-Nov | *1% | 5.14% |
| 22-Dec | *1% | 8.45% |
| 23-Jan | *1% | 9.19% |
| 23-Feb | *1% | 7.57% |
| 23-Mar | *1% | 10.52% |
| 23-Apr | *1% | 5.85% |
| 23-May | *1% | 4.61% |
| 23-Jun | *1% | 1.01% |
| 23-Jul | *1% | 5.69% |
*Return is from their non-guaranteed fixed bonus
Competitor information is current and accurate to the best of our knowledge as of July 2024. The numbers shown in the charts above are for the specific indexed account on the specific products indicated and can be accessed via their respective website. Other indexed accounts on other Indexed UL products could have different histories.