Vitality: Overview & Having the Conversation

1. Highland VP Perspective: Transforming your Business with VitalityJeff Orr, JD, VP Highland Capital BrokerageMeredith Elliott, CLU, VP National Accts, John Hancock

2. Vitality: Overview & Having the Conversation “Vitality is a life insurance rider for clients who are willing to make healthy lifestyle choices to receive discounts and rewards, including reduced premiums on their insurance policy.” “Rewards programs are not new to the insurance industry, think about programs currently offered for health & auto insurance that provide discounts and cash back – it’s a similar concept for life insurance, tied to your overall lifestyle choices.” • Accumulate Points: Earn Vitality Points by completing simple health-related activities • Achieve a Status: Each year, your status level will be determined based on the number of points accumulated: bronze, silver, gold, platinum • Enjoy Rewards: The higher your Vitality Status the more you can earn in potential premium savings and rewards “Executing Vitality is easy for clients, if you can download an app, you can participate in Vitality.” INCREASE YOUR STATUS EARN POINTS LIVE HEALTHY GET REWARDED How the John Hancock Vitality Program Works

3. Get Vitality Rewards The higher your client’s Vitality Status the more they can save on premiums — up to 15% — and the greater their rewards PLATINUM 10,000 POINTS GOLD 7,000 POINTS SILVER 3,500 POINTS BRONZE 0 POINTS Premium savings are in comparison to the same John Hancock policy without the Vitality program. Annual premium savings will vary based upon policy type, the terms of the policy, and the level of the insured’s participation in the John Hancock Vitality program.

4. Clients can earn significant savings year after year Protection UL with Vitality Premium savings by status as compared to a Bronze status MALE, 45, PREFERRED, $1,000,000, LIFETIME COVERAGE, 10-PAY $14,931 $14,3834% SAVINGS $13,142 12% SAVINGS $12,78014% SAVINGS Premium savings and guarantee duration based on maintaining specific status in each year. Protection UL with Vitality’s premiums are based on current assumptions solve to $1 at age 121 at each of the four status levels and include a guarantee to age 81 assuming Bronze funding level, 80 assuming Silver funding level, 78 assuming Gold funding level, and 77 assuming Platinum funding level. This is a supplemental illustration. Not all benefits and values are guaranteed. The assumptions on which the non-guaranteed elements are based are subject to change by the insurer. Actual results may be more or less favorable.

5. What is a Master Class? Why HCB? • An opportunity to discuss how the program works and why its advantageous to your practice • A chance to learn how clients behave and the science behind their attraction to Vitality • Group discussions with your peers around potential objections, how to position, and how it helps grow your business • The customer perspective on participating in the program.

6. Behavioral Science: What have we learned? A new kind of life insurance that 9 out of 10 customers prefer, so,why does it work? • Personal Behaviors drive health and life outcomes. An estimated 66% of deaths are primarily driven by behavioral lifestyle choices. • The science shows that rewards and incentives can motivate people to change behavior. • The concept is already working in other segments of the insurance industry. Health and Auto industries are leading the way with incentive driven premium discounts. • Backed by Vitality’s 20 years of experience in other markets, this works for life insurance (40% adoption in US after 3 years). Vitality members in other markets have 68% fewer claims and 60% fewer policy cancellations. • It’s a win for the insured, John Hancock, and Society, and now you! Consumer survey conducted by John Hancock Insurance from 7/17/17 to 8/11/17.

7. Helping clients live longer, healthier lives At John Hancock, we believe life insurance should extend beyond financial protection to include helping people live longer, healthier lives. 3 of 33

8. Great fit for all your clients: JH Average Issue age 56 OLDER AGE/ POST-RETIREMENT (ages 65+) MIDDLE AGE/ PRE-RETIREMENT (ages 45 to 65) YOUNG CLIENTS/ FAMILY PROTECTION (ages 25 to 45)

9. What’s my motivator? Engaged clients lead to more referrals and stronger relationships 22 of 33

10. Clients are actively engaged Over $2.3 millionin rewards* Members average 9,323 steps per day* versus the average American at 5,000** Members typically average 48 activities per month* *Based on policyholder experience since inception in US, April 2015.**BusinessInsider.com, Here’s how much the average American walks every day, July 2015, accessed from: http://www.businessinsider.com/heres-howmuchthe-average-american-walks-every-day-2015-7. 13. Based on John Hancock Vitality member experience since inception in US, April 2015.

11. Ongoing engagement builds stronger relationships • Every time your client reaches a new healthy milestone, earns a reward, or looks at their Apple Watch, they’ll think of you • It’s a great opportunity to build loyalty and lifelong relationships that can lead to new cross-sell opportunities • Clients are recommending their John Hancock Vitality life insurance 2x moreoften than traditional life owners.* 25 of 33

12. What clients & producers are saying about Vitality I don’t even make Vitality an option, I tell the client we are adding a benefit that sits along side the policy. Then I outline the benefits to the client, not the policy! Life insurance in the past focused more on the death side, this form of insurance (Vitality) actually is the life side. It encourages you to be healthy and is a win-win for everybody. It’s not only an insurance company that’s protecting your financial future, but rewarding you for healthy living now. Prior to coming to this Master Class, I really thought Vitality was a gimmick. Now that I have invested the time here, I see that it’s so much more than that and really has a place in the market. Why wouldn’t you add Vitality on every eligible policy? There really is no down side.

13. How do I start selling Vitality? • Lean on your support team at HCB and JH • Tips from Jeff Orr Conversation • Banking on Bronze (Handout)