Insurance that gives clients the flexibility to grow their coverage and cash values.
In 2018, Manulife expanded the insurance offerings of one of the broadest product shelves in the Canadian marketplace. Developed in response to advisor demand, Manulife Par provides one more option for you to help solve permanent insurance needs. It’s a targeted, streamlined insurance offering that may meet the needs of your particular client.
Manulife Par is a participating whole life insurance designed to provide a client with guaranteed cash values in the early years of their policy, without compromising on long-term death benefit growth. Policyowners can see immediate growth of their policy’s cash value while remaining confident their insurance plan delivers long-term protection, all with potential tax-saving advantages.
Clients’ premiums are guaranteed, and the amount of insurance remains in effect for their lifetime. They can also earn an annual dividend, and grow their insurance coverage and cash value beyond the guaranteed amounts. But that’s just the basics. Here are some other features that make Manulife Par stand out.
Deposit option payments – Straightforward and easy to understand
Manulife Par allows for additional deposit option payments (subject to annual and lifetime limits, and the policy’s available tax room), which let clients make deposits into their policy over and above their regular premium payments. These payments buy additional permanent insurance, increasing both the death benefit and the policy’s cash value.
Manulife Par’s flexible deposit option feature gives clients the ability to increase funding, even years after the policy was issued, without having to go through underwriting again. Manulife Par comes with a default pre-approved lifetime deposit option limit that does not expire. If the default limit is too low for your client, you can request a higher pre-approved lifetime limit at time of issue without any extra medical underwriting, though financial underwriting will apply.
Clients have total flexibility around when to make deposit option payments. They can make a payment at issue or years down the road, even after they are no longer paying regular premiums. Payments can stop, be skipped or resume at any time, and their amount can be increased or decreased at any time.
Deposit option payments are available to clients who choose the paid-up insurance dividend option. If they switch from a cash dividend option to paid-up insurance in the future, the default pre-approved lifetime deposit option limit will become available to them at that time. Deposit option payments are not accepted if a client’s annual or lifetime limits have been reached, if they’ve chosen a cash dividend option, if the policy is on premium offset or if the client is rated above 250 per cent.
Unique disability benefit provision
Another feature that provides flexibility to Manulife Par policyowners is its built-in disability benefit. Should your client qualify under the disability definition outlined in their Manulife Par contract, they can access their policy’s cash value, tax free,1 which isn’t always the case with other participating insurance products in the market. This tax-efficient way to access their own money can be of real assistance if they can no longer perform their regular occupation or suffer a catastrophic disability.
Another insurance option for your clients
Manulife Par can be a great solution for those clients who have maximized their non-registered and registered savings options and are looking to diversify their portfolio by adding life insurance as a tax-advantaged asset. It could also appeal to individuals or business owners who need a death benefit and cash value that will grow over time.
Learn more about Manulife Par here.