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What is the date of maturity and what is the significance?
This date signifies when annuity payments are scheduled to begin and the contract transitions from the accumulation phase to the payout phase. This is often referred to as the annuitization phase. |
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Is my financial representative aware of this?
If your contract is nearing its maturity date we will send a notice to your financial representative. |
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What can I do with my contract when it reaches the date of maturity?
You have three options. They are listed below:
- Annuitize your contract for a stream of payments. You will find detailed information in the “Annuitization Essentials” section located under the “Forms” tab.
- Surrender your contract for its value. Please keep in mind that such a transaction may be subject to immediate income tax consequences and possible surrender charges/fees. If you choose to surrender your contract, please complete and submit the John Hancock Withdrawal Form. The surrender value will be determined by the contract’s value, less applicable charges/fees, on the day the paperwork is received in good processing order by John Hancock.
- Defer annuitization by extending your contract’s date of maturity up to age 100, subject to the terms and conditions of your contract. By extending the date of maturity your contract will remain in the accumulation phase. Complete the Authorization to Defer Annuitization form included at the end of the letter and return it to John Hancock to extend the date of maturity.
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If I choose option 1, how much will my first annuity payment be?
Please call us at 1-800-344-1029 and we can provide you with an estimate of the annuity payment amount. The actual amount of your payment will be determined when the request to annuitize is received in good processing order by John Hancock. In order to annuitize, the monthly payment amount or the initial contract value upon annuitization must meet a minimum dollar value as stated in your contract. If your contract has not met this minimum, we will settle your contract and remit the proceeds in a single sum. |
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If I choose option 2, will there be any charges or fees if I surrender my contract?
The surrender value may be reduced by charges/fees as specified by the terms of your contract. |
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If I choose option 3, will I receive a confirmation that my date of maturity was extended?
Yes, we will send a confirmation of the new maturity date elected. |
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How do I get the necessary forms to annuitize, surrender or extend my maturity date?
All forms can be found under the “Forms” tab or you can call us at 1-800-344-1029. Customer Service Representatives are available to help you Monday through Friday from 8:00 a.m. to 6:00 p.m. EST. |
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What are the tax consequences of annuitizing or surrendering my contract?
Generally, some or all of the amounts disbursed from an annuity contract are subject to ordinary income tax and state income tax, where applicable, and are reportable via form 1099R. If your contract is an IRA, then you may be eligible for a 60-day rollover. We suggest that you check with your tax consultant for advice on any tax matter. |
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What happens to optional benefit riders at annuitization?
All optional benefit riders, with limited exceptions463, will be terminated at annuitization. If you have a guaranteed minimum withdrawal benefit (GMWB) rider, we make annuitization options available that will pay at least your guaranteed withdrawal amount. |
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If I am currently receiving a scheduled withdrawal what does this mean to me?
If you extend your date of maturity to the maximum age allowed your scheduled withdrawals will continue. If you take no action we will terminate your scheduled withdrawals. |
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What happens if I take no action?
If you do not take any action, we will annuitize your contract on its date of maturity; the following will occur:
- Upon annuitization, the annuitant will be sent the first payment within seven days following the date of maturity.
- A settlement certificate will also be sent to the annuitant. The certificate includes detailed information about the payout option and the amount of the first payment. It is important to remember that if your contract is invested in variable investment options the amount of future monthly payments will vary based on the performance of the investment options.
- The amount of future payments will not vary if your contract provides a fixed annuity.
- You will no longer have access to your contract value for withdrawals.
- Your contract will provide no death benefit other than what is provided under the annuitization option, if any.
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How do I contact John Hancock?
Customer Service Representatives are available to assist you Monday through Friday from 8 a.m. to 6 p.m. EST by calling 1-800-344-1029. |