What is a variable annuity?
A variable annuity is a contract between you and an insurance company, under which the insurer agrees to make periodic payments to you, either immediately or at some future date. A variable annuity combines features of an investment product, which can provide growth potential, and inflation protection, and an insurance contract, which can give you access to certain income, death benefit and wealth protection guarantees.

With a variable annuity, you have the flexibility to tailor your investment strategy to meet your needs, even if those needs change over time.

• Start your variable annuity with a lump sum purchase or by making periodic contributions.
• Choose from a variety of diverse portfolio options offered by professional asset managers.
• Make transfers between investment portfolios inside the annuity without incurring current income taxes or costs. (Most companies reserve the right to restrict or charge for future transfers.)

Why would I want one?
In addition to flexibility, a variable annuity provides features and benefits not necessarily found in other investment vehicles. There are three distinct benefits an annuity offers that other financial vehicles may not: 1) Guaranteed Retirement Payments, 2) Guaranteed Death Benefit, 3) Tax Deferral.

• Guaranteed Retirement Payments. When you are ready to begin receiving income in retirement, variable annuities offer the option of annuitization. Annuitization can provide guaranteed payments, which may continue for the rest of your life, depending on the distribution option chosen.
• Guaranteed Death Benefit. Beneficiary protection, in the form of a guaranteed death benefit prior to annuitization. (Guarantees are subject to the claims paying ability of the issuer.)
• Tax-Deferral. Assets in a variable annuity may grow faster than those in taxable investments, since earnings on the contract aren’t taxed until distributions are taken. The taxes paid are based on your tax bracket at the time of distribution and the withdrawal method.

Another reason why people buy Annuities is that people today are living longer. And it's not unusual for retirement to last 30 or more years. A deferred variable annuity provides the option to receive guaranteed payments for life, even if you live beyond 100!

With a deferred variable annuity you don't pay taxes until withdrawals begin - at which time your investment gains are taxed like ordinary income. A deferred variable annuity may help fill the gap between what you'll need to live comfortably during retirement and what Social Security and pensions - which are becoming an increasingly inadequate source of retirement income - are likely to pay you. Charges may apply to amounts taken in excess of the withdrawal amount available without a withdrawal charge during the surrender charge period. All withdrawals reduce the death benefit and optional benefits. In addition, withdrawals of taxable amounts will be subject to ordinary income tax and, if made prior to age 59½, a 10% IRS penalty tax may apply.

Through the potential for asset appreciation, a deferred variable annuity can help offset the negative affects of inflation. Given that inflation has eroded purchasing power by 3% per year since 1926, ¹ you can expect $100,000 today to be worth only $74,000 ten years from now. Although annuities can provide growth potential if the investments experience good performance, there is a risk that your account value will decrease if your investments perform poorly.

However, optional guaranteed withdrawal benefits, available for an additional fee, can be purchased can provide regular, guaranteed income for life, while allowing you to retain control over the assets you invest in your annuity. The guarantee is backed by the claims-paying ability of the issuer, and does not apply to the investment performance or safety of the underlying portfolios.

With a deferred variable annuity, you get a guaranteed death benefit, which typically provides your beneficiaries an amount that is - at the very least - equal to the amount you originally contributed, regardless of the market value at the time of your death and prior to annuitization.

Fees and Charges
A variable annuity has different types of fees and charges. Often, these charges will include a sales charge, mortality and expense risk charge, administrative fees and underlying fund expenses, as well as additional charges for any optional riders you might elect. Your financial consultant can explain all fees that may apply. You can also find a description of the charges in the prospectus. Be sure you understand all the charges before you invest.

Contact your financial advisor or visit www.jhannuities.com for more information, including product and fund prospectuses that contain complete details on investment objectives, risks, fees, charges, and expenses as well as other information about the investment company, which should be carefully considered. Please read the prospectuses carefully prior to investing. The prospectuses contain this and other information on the product and the underlying portfolios.

This information was prepared to support the promotion and marketing of Venture Annuities. Neither John Hancock Life Insurance Company (U.S.A.), John Hancock Life Insurance Company of New York, John Hancock Distributors LLC, nor any of their representatives provide tax, accounting, or legal advice. Any tax statements contained herein were not intended or written to be used, and cannot be used, for the purpose of avoiding U.S. federal, state, or local tax penalties. Please consult your own independent advisor as to any tax, accounting, or legal statements made herein.