John Hancock: Changes to Indexed Account Parameters and Maximum Illustrated Rates


John Hancock is excited to announce that effective May 1, 2023, Xthey will increase the participation rates on the Barclays indexed accounts for new and inforce Protection IUL (PIUL) and Protection SIUL (PSIUL) customers. Please see below for a chart outlining the changes to these accounts.

Additionally, on May 1, 2023, the National Association of Insurance Commissioners (NAIC) will enact enhancements to Actuarial Guideline XLIX (AG49-A). By this date, all illustrations of indexed UL (IUL) products sold by John Hancock and all US insurers must comply with these new regulations. For John Hancock, this will impact the illustrated rates for the following accounts: Barclays Global MA Classic, Barclays Global MA Bonus, and the Base Capped Two Year. For additional information, refer to the details below.

Indexed Account parameters effective May 15, 2023

Account Participation rate Bonus
Barclays Global MA Classic Indexed Account (on Protection IUL 22 and Protection SIUL 22) 140% N/A
Barclays Global MA Bonus Indexed Account (on Protection IUL 22 and Protection SIUL 22) 110% 0.65%


What is AG49-A?

AG49 was regulation introduced by the NAIC in 2015 to standardize how maximum rates could be shown on IUL illustrations. AG49-A was a revision to these standards in 2020, and the May 2023 revisions will enact additional changes to bring further consistency across IUL illustrations.

What is changing with the latest revisions to AG49-A?

As of May 1, illustrations showing indexed accounts with a fixed bonus will no longer illustrate significantly better than accounts without these features. In addition, any accounts utilizing a hedging strategy different from the product’s benchmark indexed account will need to align their maximum illustrated rate with the strategy for that specific account.

Is anything changing to policy contracts?

No, these changes will not impact the policy’s actual performance or product features, which will still be administered as outlined in the contract. In addition, John Hancock will continue its support of policy features that can help policyholders adapt to changing market conditions and provide value in both up and down market cycles.

Are inforce policies affected?

The new regulation only impacts new business and inforce illustrations for policies sold on or after May 1, 2023. Therefore, inforce illustrations for policies sold before May 1, 2023 may be illustrated under the same guidelines as when they were sold. What John Hancock products does this affect? The latest revisions to AG49-A affects all our currently sold IUL products (AIUL 21 Reprice, Protection IUL 22 Reprice, Protection SIUL 22) in all states, including New York. 


Please give our sales team a cal at 1.800.792.6795 if you have any questions about these changes.