2012 News Releases

Singapore - Manulife Singapore has launched a new, flexible premium Universal Life plan for High Net Worth Individuals (HNWIs). A cornerstone of estate planning, Heirloom helps to preserve customers’ estates while providing them with a financial solution to enhance their legacy and protect their wealth.

The number of HNWIs in Asia has been increasing significantly. Last year, for the first time in modern history, Asia had more millionaires than Europe.1 In Singapore, the number of HNWIs is expected to double from 64,000 to 129,000 by 2015. Asset values are also projected to double from US$312 billion to US$616 billion over the same period.2 In addition to the growth of local HNWIs, high net worth foreigners are choosing to use Singapore as the centre for their wealth management, estate and succession planning is becoming increasingly relevant.

“The increase of HNWIs in Singapore yields opportunities for wealth management and protection solutions. Following the positive response from our first such High Net Worth product in 2010, Manulife Singapore has introduced Heirloom, which is targeted at HNWIs whose top financial priorities include security of wealth preservation, legacy enhancement and timely liquidity for wealth distribution,” said Ms Annette King, President and Chief Executive Officer, Manulife Singapore.

Heirloom is a universal life policy with flexible premium payments that helps protect and grow HNWIs’ assets. Beyond death benefit protection, it provides cash value accumulation potential to help HNWIs meet their wealth transfer and estate planning needs. HNWIs will have the ability to customise their premium payments by choosing when to make a premium payment and how much to pay (within certain limits), and also the ability to choose the death benefit option that best suits their needs. Besides these benefits and flexibilities, the universal life policy provides six underwriting risk classes, ranging from super-preferred non-smoker class to standard smoker class, so that HNWIs can benefit from lower policy charges should they qualify for preferential risk classes.

“Manulife Financial has a strong presence in the wealth management space. Globally Manulife has been investing money for clients for 125 years. Heirloom is a key product of Manulife Singapore’s strategy to develop its wealth management platform and provide trustworthy financial solutions to protect the value of our clients’ asset portfolio. We believe this is an opportune time to launch Heirloom to capture the growing HNW market in Singapore,” said Ms King.

Heirloom’s key features:

Strong Cash Value Accumulation with Crediting Rates
The current crediting rate is at 4.1 percent per annum. With a minimum guaranteed interest crediting rate of 2.5 percent per annum, customers’ policy values are further protected in a low interest rate environment.

Short Period for Face Amount Charges
Face Amount charges are payable only in the first 10 policy years, thereafter customers benefit from having more of their premium payments invested for cash value accumulation.

Quit Smoking Incentive (QSI)
Manulife Singapore is the first insurer to introduce this feature, which is unique to universal life policies underwritten in Singapore. QSI aims to promote a healthier lifestyle. This feature provides smokers with Standard Non-Smoker policy charges for the first three years. With satisfactory evidence that the policyholder has quit smoking for at least 12 consecutive months by the end of this period, the client’s risk class and policy charges will be permanently changed to those of a standard non-smoker.

Manulife Singapore’s other products serving the HNW market include:  

• Solitaire, a S$ single premium whole life plan aimed at helping the mass affluent in creating their legacies. Featuring a multiplier factor applicable to the face amount, Solitaire offers coverage of up to 200% of the chosen face amount.
• mEase, a critical illness plan that covers 30 critical illnesses, including major cancers, with a coverage of up to S$2 million,3 the highest amount payable in the industry for similar coverage. mEase allows you to enjoy a lifestyle without compromise while protecting your income at the same time.
• ManuTerm, a term plan that comes with Preferred Premium rates where non-smoking customers in excellent health can enjoy Preferred Premium rates for the insured sum of S$1 million and above.
• Manulife Income Series – Singapore Fund, a recent wealth management solution launched in April, is the first fund for an investment-linked plan (ILP) in the Singapore market to provide a regular monthly income catering to retirement needs and other financial objectives.

Manulife Singapore has a dedicated concierge service to cater specifically for the HNW market. Heirloom is distributed by selected International Brokers, Bank Partners and Manulife Financial Planners.

About Manulife Financial
Manulife Financial is a leading Canada-based financial services group with principal operations in Asia, Canada and the United States. In 2012, we celebrate 125 years of providing clients strong, reliable, trustworthy and forward-thinking solutions for their most significant financial decisions. Our international network of employees, agents and distribution partners offers financial protection and wealth management products and services to millions of clients. We also provide asset management services to institutional customers. Funds under management by Manulife Financial and its subsidiaries were C$512 billion (US$512 billion) as at March 31, 2012. The Company operates as Manulife Financial in Canada and Asia and primarily as John Hancock in the United States.

Manulife Financial Corporation trades as ‘MFC’ on the TSX, NYSE and PSE, and under ‘945’ on the SEHK. Manulife Financial can be found on the Internet at manulife.com.  

[2] Source: Julius Baer Wealth Report