Manulife Singapore launches universal life plan for the ultra-rich

Manulife prepares to capture Singapore's growing market of rich Singaporeans as they are expected  to double from 64,000 to 129,000 by 2015.

According to a release, 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. 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. 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.

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.