Hancock Financial launches simplified variable annuity

John Hancock Financial Services today released a variable annuity called the John Hancock AnnuityNote. The product is a simplified A-share variable annuity with just one underlying diversified portfolio: a lifetime income benefit and a total annual fee of 1.74%, the Boston-based firm said in a statement. Of the fee, 1.20% covers the cost of the guarantee and 0.54% covers the expenses of the portfolio. As an A-share product, the annuity owner pays fees up front rather than having to pay a surrender charge. Following a five-year holding period, Hancock will calculate a guaranteed lifetime income of 5%, based on either the total amount invested or the contract’s value on the fifth anniversary, whichever is higher. The product is targeted toward investors between 55 and 75, and it requires a minimum initial investment of $25,000.