2010 News Releases

Tokyo – Manulife Life Insurance Company (“Manulife Japan”; President & CEO: Craig Bromley) on July 26 will commence sales of “Ashita-no-Nenkin” (product name: New Variable Individual Annuity Insurance Type V) through the Bank of Tokyo-Mitsubishi UFJ, Limited (“BTMU”; President: Katsunori Nagayasu).

Ashita-no-Nenkin is an investment-type annuity insurance product designed to meet the needs of customers who wish to begin accumulating funds to prepare for retirement. It provides features that are easy to understand, including a minimum guarantee of the total amount that customers may receive. The design of this new product underscores Manulife’s reputation as a strong, reliable, trustworthy, and forward-thinking company which provides products that meet real customer needs. 

Product Features

1.  Ashita-no-Nenkin allows customers the flexibility to select either a “Step-Down Life Annuity” or a “Fixed Term Annuity” based on their plans for retirement. Both annuity types invest funds in a Separate Account not only during the deferral period ¹ but also throughout the annuitization period. 

The Step-Down Life Annuity provides the following features.

• Annuity payouts commence after the end of the prescribed deferral period and continue throughout life. 
• A higher annuity amount will be paid during the step-down period (4.0% of the annuity payout base amount²) than after the step-down period ³.
  
• The total annuity amount received by customers at the end of the step-down period will be guaranteed at a minimum equivalent to 100% of the annuity payout base amount, regardless of investment performance.

The Fixed Term Annuity provides the following features.

• Annuities will be paid over a period of 20 years following the end of the prescribed deferral period.
• The total annuity amount received by customers as of the end of the annuitization period will be guaranteed at a minimum equivalent to 100% of the annuity payout base amount (when the deferral period is either one or two years), 102% of the annuity payout base amount (when the deferral period is either three or four years) or 105% of the annuity payout base amount (when the deferral period is five years or more), regardless of investment performance.

2.  Customers may receive an annuity beginning as early as one year from the policy date. Customers may choose the length of the deferral period to be from 1 to 15 years (in units of one year) at the time of policy signing.

3.  Ashita-no-Nenkin provides a minimum guarantee of the total amount received by customers. The death benefit is guaranteed at a minimum equivalent to 100% of the basic benefit amount ⁴. The total amount of the lump sum death benefit and annuity provided until the passing of the insured is guaranteed at a minimum equal to 100% of the total guaranteed payment amount⁵.

About Manulife Japan

Manulife Life Insurance Company (“Manulife Japan”) is a member of the Manulife Financial Group.

Manulife Financial is a leading Canadian-based financial services group operating in 22 countries and territories worldwide. For more than 120 years, clients worldwide have looked to Manulife for 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 around the world. We provide asset management services to institutional customers worldwide as well as reinsurance solutions, specializing in life and property and casualty retrocession. Funds under management by Manulife Financial and its subsidiaries were Cdn$446 billion (US$440 billion) as at March 31, 2010. 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 www.manulife.com. Manulife Japan can be found on the Internet at www.manulife.co.jp.

Media Contact:

Saeko Yoshioka
Communications Department
Manulife Life Insurance Company
Tel: 042-442-7180

¹ “Deferral Period” means the period from the policy effective date to the day immediately prior to the annuitization date.
²  “Annuity Payout Base Amount” means the amount used as a base for the annuity payout, and will be either the basic benefit as of the end of the day immediately preceding the annuitization date or the market value at the end of the annuitization date, whichever is greater.
³ The annuity amount applicable at the end of the step-down period will be 1.5% of the annuity payout base amount.
⁴ The “Basic Benefit Amount” means the amount used as a base for the death benefit payment, and will be equivalent to the single premium amount unless there is any policy surrender, including partial surrender.
⁵ The “Total Guaranteed Payment Amount” means the amount used for the calculation of the lump sum death benefit. The total guaranteed payment amount as at the annuitization date will be equivalent to the basic benefit amount as of the day prior to the annuitization date.