When you annuitize you are converting your contract value into an income stream. You can elect an income stream for a fixed number of years or an income stream that pays over your lifetime. You may also elect a lifetime annuity with payments guaranteed for a certain number of years.

For non-qualified contracts, a portion of your annuity check will have an exclusion ratio. This means each check represents a portion of principal (non-taxable) and a portion of earnings (taxable), which may be advantageous to you from an income tax perspective.

Before proceeding with annuitization, speak to your financial representative. Once annuity payments begin your income stream is dictated by the annuity option you have selected and you will no longer have access to your contract value. Also, any optional benefits you may have had, including death benefits, will end.

John Hancock Life Insurance Company (U.S.A.), 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.