How soon will I receive my first payment?
In most situations payments can begin 10 days after you receive your contract. Contract issuance generally takes one or two days from the time the initial application is received.
Where do I get the money to purchase an annuity?
To fund your immediate fixed annuity, you may use money from many sources. Oftentimes, money from retirement vehicles such as Individual Retirement Accounts (IRAs) and 401(k) plans are used to fund annuities. However, savings, inheritance, the sale of a business and life insurance proceeds are certainly fund sources to consider. Remember, your annuity may be funded through a combination of resources.
Is my income taxable?
To determine if your monthly income will be taxable or not, it is helpful to categorize your savings into two groups:
"Qualified" savings - money that has not yet been taxed, such as IRAs and 401(k)s.
"Non-qualified" savings - money that has already been taxed, such as mutual funds and individual investments.
If you purchase your annuity with assets from qualified sources, you can use these assets to fund your fixed annuity without triggering any taxes or penalties, even if you are under age 59 ½. When you receive your monthly income, ordinary income taxes typically will be due on the full amount of each payment.
If you purchase your annuity with assets from non-qualified savings, a portion of each annuity payment will be considered a return of your original purchase payment and will not be taxed. The remainder of the payment will be fully taxable as ordinary income. Any payments received after you have recovered your original purchase payment are fully taxable.
If I am under 59 ½, will I incur tax penalties?
No, under Internal Revenue Code section 72(q)(2)(l), distributions under all immediate annuities are not subject to a premature distribution penalty tax.
Talk to your tax consultant concerning your individual situation.
Is there a minimum premium amount I must pay?
The minimum premium amount required to fund a John Hancock Immediate Fixed Annuity is $50,000.
Do I have the right to cancel?
For most states, there is a 10 day right to cancel. For details on your particular state of residence, Click Here.
Can I switch from an annuity to a lump sum?
No, the decision to annuitize is irrevocable. However, you may certainly elect an optional plan which combines payments with scheduled lump sum payments. Once annuity payments begin, they can not be switched to another method of payment.
If I rollover my 401(k) plan or Individual Retirement Account (IRA) money, must I roll over the entire amount?
No, you do not have to rollover your entire 401(k) plan or IRA to purchase an Immediate Fixed Annuity. The decision is yours. All or a part of your 401(k) plan or IRA funds may be used.
What forms do I need to complete?
In order to make the process as simple as possible, we have reduced the need to complete long and tedious forms.
You will have to complete the initial application for an immediate fixed annuity. This form requires standard information such as name, sex, date of birth and address. Similar information regarding your Joint Annuitant, if applicable, will be required. This form also requires you to elect your optional form of annuity.
Depending upon your funding sources and benefit choices and needs, you may also have to complete forms such as a Beneficiary Designation Form, Electronic Direct Deposit Form and/or a Federal Tax Withholding Form.
What happens if the market has a downturn?
Immediate fixed annuities offer a safe haven from the volatile world of market traded investments. You will not have to worry about losing your hard earned retirement dollars to unexpected market downturns. You'll have income you can depend on. When you purchase an immediate fixed annuity, we bear the investment risk. Your scheduled income payments and/or lump sum payments are guaranteed*.
How often can I receive payments?
Monthly, quarterly or annual payments are available. You can choose the method which best suits your fixed obligations. In addition, any of these options may be combined with scheduled lump sum payments to accommodate the occasional need or desire to purchase a car, go on vacation, etc.
What happens when I die?
A variety of optional forms of annuity are available which will continue payments to a spouse or other survivor when you die. Go to our section on Optional Forms of Annuity for detailed information about each of your choices.
What happens if I do not receive my payments?
In the event that a check is reported lost or stolen, an immediate and automatic 'stop payment' is placed on that check. A new check will be issued within 48 hours.
Can my payment be deposited directly into my bank account?
Customers have the option of Electronic Funds Transfer (EFT) for annuity payments; this feature enables the annuity check to be deposited directly into either a checking or savings account. EFT is not available for deposits to banks in foreign countries.
John Hancock sends individual notifications of each electronic direct deposit.
Who can I call with questions?
You may contact one of our experienced specialists at 1-866-ASKJHGA (275-5442). Or if you prefer, you may write or email:
Annuity Division T24
Guaranteed & Structured Financial Products
John Hancock Life Insurance Company
Post Office Box 111
John Hancock Place
Boston, Ma 02117
*Guarantees are based on the claims paying ability of John Hancock.
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