Introduction
Whole life insurance provides lifelong protection and a savings component, making it a versatile financial tool. Manulife's LifeReady Plus (II) is a comprehensive whole life policy designed to meet evolving needs. It offers customizable coverage, the potential for cash value growth, and unique features like health-based premium discounts. With options to enhance protection and supplement retirement income, LifeReady Plus (II) aims to provide financial security at every life stage.
Coverage and Benefits
Manulife LifeReady Plus (II) offers a range of coverage options and benefits to protect you and your loved ones. From basic death coverage to additional riders for critical illness, this policy can be tailored to suit your specific needs. Let's explore the key coverage components and benefits of this comprehensive whole life plan.
Death Benefit
Provides a lump sum payout upon death. The benefit includes the basic sum assured (minimum $25,000), accumulated reversionary bonuses, and claim bonus, less any owed amounts.
Guaranteed Cash Value
Accumulates over time, providing a surrender value. At year 20, the guaranteed surrender value for a $100,000 policy is $17,600.
Non-Guaranteed Bonuses
Potential for additional returns through reversionary, surrender, claim, and maturity bonuses. At 4.25% illustrated rate, the reversionary bonus is $7.65 per $1,000 sum insured annually.
Terminal Illness Benefit
Accelerates death benefit payout upon diagnosis. Maximum payout is $2,000,000 across all policies, with terminal illness claims capped at $1,000,000.
TPD Benefit
Provides coverage for total and permanent disability. Maximum payout is $5,000,000 across all policies, with specific definitions based on age.
Critical Illness Coverage
Optional riders available for comprehensive CI protection. Early Critical Care Rider (III) covers 125 conditions across various stages, while Critical Care Rider (III) covers 57 severe and extended advanced-stage CIs.
Investment and Savings Components
LifeReady Plus (II) combines protection with potential for long-term savings growth through its participating fund. Understanding the investment strategy, historical performance, and projected returns can help you gauge the policy's savings potential. Here's an overview of the key investment and savings aspects of the plan:
Investment Strategy
Participates in Manulife's par fund. The fund aims for stable long-term returns through a diversified portfolio of assets.
Historical Performance
Recent par fund performance has been strong. Returns were 11.9% in 2019 and 8.6% in 2020, with a 3-year geometric average among the highest in the industry.
Projected Growth
Non-guaranteed illustrated returns at 4.25% p.a. For a $100,000 policy, projected total surrender value at year 30 is $80,190.
Riders
Manulife LifeReady Plus (II) offers a range of optional riders to enhance your coverage and tailor the policy to your specific needs. These riders provide additional protection for critical illnesses and premium waivers under certain circumstances. Let's explore the key riders available with this plan:
Early Critical Care Rider
Covers 125 critical illnesses across various stages. Includes 10 special benefit conditions and a Recovery Plus Benefit for ICU stays.
Critical Care Rider
Protects against 37 severe-stage and 20 extended advanced-stage CIs. Offers 100% payout of rider sum insured for most conditions.
CI Premium Waiver
Waives future premiums upon CI diagnosis. Early Critical Care Waiver covers early to extended stages, while Critical Care Waiver covers advanced and extended CIs.
Payor Benefit Riders
Waives premiums in case of payor's death, TI, or TPD. Payor Benefit Plus also covers advanced or extended CI diagnosis.
Policy Loan and Surrender Options
LifeReady Plus (II) offers flexibility through policy loans and surrender options. These features allow you to access the cash value of your policy if needed, providing financial liquidity. Understanding these options can help you make informed decisions about your policy's value over time. Here's what you need to know about policy loans and surrenders:
Policy Loan Terms
Allows borrowing against cash value. Specific interest rates and terms are not provided in the given information.
Surrender Value Calculation
Includes guaranteed and non-guaranteed components. At year 30, projected surrender value is $37,043 (3% illustration) or $80,190 (4.25% illustration) for a $100,000 policy.
Competitive Returns
LifeReady Plus (II) offers one of the highest non-guaranteed benefits based on illustrations. It's considered the most value for money among comparable plans.
Claims and Customer Service
Manulife Singapore provides comprehensive support for policyholders of LifeReady Plus (II). To file a claim, you can contact Manulife's customer service at +65 6833 8188 or visit their website at manulife.com.sg/LifeReadyPlus. The claims process typically requires submitting relevant documentation, which may include medical reports for health-related claims. For general inquiries or assistance, you can reach out to Manulife's customer service team via phone or visit any DBS/POSB branch. It's recommended to consult with a Manulife Financial Consultant or Appointed Distributor for personalized guidance on your policy.
Conclusion
Manulife LifeReady Plus (II) is well-suited for individuals seeking comprehensive whole life coverage with flexibility. It's particularly beneficial for those planning for retirement, as the financial flexibility option allows for supplemental income later in life. The plan also caters to health-conscious individuals who can benefit from premium discounts through the Health Advantage Benefit. Young professionals looking to secure their financial future while maintaining adaptability for life changes may find this plan attractive due to its upgrade options at key life stages.
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