The Manulife Heirloom (I) is a Universal Life. This policy is issued from the Manulife insurer in Singapore. You are reading this article because your relationship manger, a Manulife agent or an independent financial adviser proposed to you this product. This article provides a brief outline of the product specifications of the Manulife Heirloom. If you require more information on Universal Life, there is an additional resource for your reading at the end of this article.
Key features of Manulife Heirloom
The Manulife Heirloom is an insurance policy that offers protection covering death. It also has cash value.
The minimum crediting interest rate is 2%. But for the first year, the minimum crediting rate is the current crediting rate which is 4% (at this time in writing).
The Manulife Heirloom has an Early Lapse Protection. During the first 5 years, the policy will not lapse provided certain condition are met. The Early Lapse Protection is included in the policy and cannot be remove.
The Manulife Heirloom has an ‘Age 100 Advantage’. This means at age 100, the policy value increases with crediting interest and the coverage continues. There is no further cost of insurance and face amount charges after 100.
What is unique is its Quit Smoking Incentive. Under this scheme, Preferred and Standard Smokers’ policy charges will be based on non-smoker rate for first three years. By end of 3 years, if the life assured provides evidence of having quit smoking for 12 consecutive months, the policy will be reclassified as Standard Non-Smoker. Future policy values will continue to reflect Standard Non-Smoker.
Another interesting feature that Manulife Heirloom has is the Cash value Enhancement (CVE). When the CVE is used, surrender charges during the initial first 5 years will be waived based on a waiver factor table.
Charges in the Manulife Heirloom
There are four types of charges.
Premium charge: each time a premium is paid, there is a premium charge between 6% to 6.2% of the premium.
Cost of insurance: The cost of insurance is charged based on gender, attained age, underwriting class, etc. The cost of insurance is based on a per USD 1,000 sum assured at risk. The charge increases in an escalating fashion. However, if the cash value and death benefit is the same, there is no cost of insurance since the sum at risk is zero.
Face Amount charge: This is applicable for the first 10 years. It is charge based on per USD 1,000 of face amount and is deducted monthly.
Surrender Charge: This is the penalty for Full Surrender and withdrawals. The initial surrender charge is a whopping 180% and decreases till zero after 15 years.
If you are unfamiliar with Universal Life, read the following article: Tips in selecting a Universal Life .
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