Introduction
In today's dynamic financial landscape, investment-linked plans (ILPs) have emerged as powerful tools for individuals seeking to combine insurance protection with investment opportunities. The Manulife InvestReady Wealth (II) stands out as a versatile solution designed to meet diverse financial goals. This innovative product offers a unique blend of life coverage and investment potential, allowing policyholders to tailor their insurance and investment strategy according to their specific needs and risk appetite. With its flexible features and diverse fund options, Manulife InvestReady Wealth (II) aims to provide a comprehensive approach to wealth accumulation and protection.
How ILPs Work
Investment-linked plans (ILPs) combine life insurance coverage with investment opportunities, offering a unique approach to financial planning. With ILPs, a portion of your premium goes towards life insurance protection, while the remainder is invested in a variety of funds chosen by you. The Manulife InvestReady Wealth (II) allocates 100% of your regular basic premium to purchase units in selected funds, maximizing your investment potential. You have the flexibility to choose from over 100 funds, ranging from conservative to aggressive risk profiles, allowing you to build a portfolio that aligns with your financial goals and risk tolerance. The value of your policy fluctuates based on the performance of your chosen funds, giving you the potential for higher returns compared to traditional life insurance policies.
Insurance Coverage
Manulife InvestReady Wealth (II) offers comprehensive insurance coverage to protect you and your loved ones. The policy provides financial security through death and terminal illness benefits, ensuring peace of mind for you and your family.
Death Benefit
Financial Protection. In the event of the life insured's death, beneficiaries receive the higher of 101% of total premiums paid (including top-ups, less withdrawals) or the current account value. This ensures your loved ones are financially protected.
Terminal Illness Benefit
Advanced Payout. If diagnosed with a terminal illness, you receive an advanced payout of the death benefit. The maximum payout for terminal illness across all Manulife policies is capped at $2,000,000, with $1,000,000 specifically for terminal illness benefits.
Insurance Rider Options
Manulife InvestReady Wealth (II) offers optional rider benefits to enhance your protection. These riders provide additional coverage for critical illnesses, cancer, and other specific conditions, allowing you to customize your policy to meet your unique needs.
Critical Illness Waiver
Premium Protection. This rider waives future premiums if you're diagnosed with a covered critical illness, ensuring your policy and investments continue even if you're unable to pay premiums.
Cancer Waiver
Cancer-Specific Coverage. If diagnosed with cancer, this rider waives your future premiums, allowing your policy to remain in force and your investments to continue growing.
Payor Benefit
Family Protection. This rider ensures premiums are paid if the policy's payor (e.g., a parent) becomes critically ill, disabled, or passes away, safeguarding the policy for the insured (e.g., a child).
Investment Component
The Manulife InvestReady Wealth (II) offers a robust investment component, allowing policyholders to potentially grow their wealth over time. With access to a wide range of funds and the flexibility to adjust your investment strategy, this plan provides opportunities for long-term financial growth.
Diverse Fund Options
Extensive Choices. Choose from over 100 funds, including equity, balanced, and fixed income options. This variety allows you to build a diversified portfolio tailored to your risk tolerance and financial goals.
Professional Management
Expert Oversight. Funds are managed by experienced professionals who employ various investment strategies to optimize returns while managing risk. This ensures your investments benefit from expert financial knowledge.
Fund Switching
Flexible Adjustments. Enjoy unlimited free fund switches, allowing you to adapt your investment strategy as market conditions or personal circumstances change. The minimum switch amount is $500.
Historical Performance
Potential Growth. While past performance doesn't guarantee future results, some funds have shown strong historical returns. For example, the BGF World Technology Fund had a 5-year historical average return of 30.77% as of January 2021.
Fees and Charges
Understanding the fees associated with Manulife InvestReady Wealth (II) is crucial for making an informed decision. While these charges impact your overall returns, they also support the various benefits and services provided by the policy.
Premium Allocation
Full Investment. 100% of your regular basic premium is allocated to purchase fund units, maximizing your investment potential from the start.
Administrative Charges
Ongoing Management. A monthly charge of 0.7% per annum of the account value is deducted throughout the policy term. An additional 1.8% per annum is charged for the first 10 policy years.
Fund Management
Investment Expertise. Fund management charges vary by fund and are detailed in each fund's prospectus. These fees cover the costs of professional fund management.
Surrender Charges
Early Withdrawal Fees. Surrender charges apply if you fully withdraw your funds during the Minimum Investment Period (MIP). The charge decreases over time, encouraging long-term investment.
Flexibility and Customization
Manulife InvestReady Wealth (II) offers various features that allow you to customize your policy and adapt it to changing financial circumstances. These flexible options ensure that your policy can evolve with your needs over time.
Premium Top-ups
Boost Investments. Make additional investments with a minimum top-up of S$2,500. Currently, there's no top-up charge, allowing you to maximize your investment when you have extra funds available.
Partial Withdrawals
Access Funds. You can make partial withdrawals from your account value, subject to certain limits and charges during the MIP. This provides financial flexibility when needed.
Premium Holiday
Payment Pause. After the minimum payment period, you have the flexibility to stop premium payments temporarily while keeping your policy in force, useful during financial constraints.
Adjustable Coverage
Tailored Protection. You can adjust your insurance coverage over time, allowing you to increase or decrease protection based on your changing life circumstances and financial needs.
Conclusion
Manulife InvestReady Wealth (II) offers a versatile solution for individuals seeking a balance between insurance protection and investment growth. This product is particularly well-suited for young professionals looking to start their wealth accumulation journey, families seeking flexible protection and investment options, and individuals nearing retirement who want to maximize their savings potential while maintaining life coverage. The plan's flexibility and diverse fund options make it adaptable to various financial goals and risk appetites.
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