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Manulife Launches Genesis Plan with Market-first Features and Unique Offerings

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  • Total internal rates of return (TIRR) of up to 7.19%[1] at the end of the 100th policy year
  • A flexible withdrawal option giving customers a lifetime non-guaranteed income stream
  • A body and mind advance benefit for designated critical and mental illnesses
  • A currency switch option featuring seven currencies
  • A value-added service called Legacy Choice[2],[3], enabling customers to transfer their wealth to future generations

HONG KONG, April 23, 2024 /PRNewswire/ — Manulife Hong Kong today announced the launch of Genesis, a new participating life-insurance savings plan designed to help customers accelerate their long-term savings. With Genesis, customers only need to pay premiums for five years to enjoy a TIRR of up to 4.29%[1] at the end of the 10th policy year, and a TIRR of up to 7.19%[1] at the end of the 100th policy year, allowing for potential wealth transfer to the next generation. The plan also offers several first-in-market[4] or unique features, including 1) a withdrawal option that enables customers to receive a regular non-guaranteed income without cashing in their policy; 2) an advance benefit for designated critical and mental illnesses, and a value-added service that allows customers to transfer the policy at a designated date or age of the successive policyowner[2],[3].

When Hongkongers are asked about their level of confidence in achieving their desired financial well-being over the next decade, they express a desire to achieve a score of 85 on a scale of 1 to 100, but they estimate that they can achieve a score of 70 only, indicating a big gap of -15 points, according to Manulife’s latest Asia Care Survey[5]. Rising living and healthcare costs are cited as the top concern impacting their confidence. The survey further reveals that having adequate savings for rainy days is their most common financial goal. However, other research[6] from Manulife shows that savings insurance products rank only fourth in terms of product ownership and consideration out of ten types of financial solutions, suggesting a discrepancy between Hongkongers’ financial goals and the actions they take to achieve them.

Darren Thompson, Chief Product Officer of Manulife Hong Kong and Macau, said: "When it comes to saving for the future, many conventional savings insurance products are often perceived as long-term commitments that lack liquidity. With saving being an essential part of one’s financial planning, Manulife has developed Genesis as an innovative solution to meet short, mid and long-term financial needs. Genesis offers a flexible withdrawal option that enables customers to receive a lifetime non-guaranteed income stream, and an advance benefit that covers designated critical and mental illnesses. This makes it a great option for those who wish to have the freedom to withdraw their savings when they need it and be covered in the event of an unforeseen illness."

Genesis comes with a wide range of features and value-added services:

  • Total Internal Rate of Return (TIRR): Genesis offers a TIRR as high as 4.29%[1] at the end of the 10th policy year, 6%[1] at the end of the 20th policy year, and 7.19%[1] at the end of the 100th policy year, helping customers to potentially accelerate their long-term savings.
  • [First-in-market[4]] Easy Choice: A flexible withdrawal option that enables customers to receive a regular non-guaranteed income drawn from the terminal bonus[7], after their total premium has been paid in full and for as long as their policy is in force.
  • [First-in-market[4]] Body and Mind Advance Benefit: A one-time option for customers to realize up to 100% of the terminal bonus if the customer is diagnosed with any of the designated critical and mental illnesses[8].
  • [First-in-market[4]] Legacy Choice[2],[3]: A flexible option that allows customers to transfer their policy at a designated date or a designated age of the successive policyowner upon their death. For example, if the intended successive policyowner is currently under the age of 18, customers can pre-appoint an interim policyowner. In the event of the customer’s death, the interim policyowner will be responsible for managing the policy based on the pre-set policy administration rights until the designated date or the designated age of the successive policyowner (who must be 18 or above), at which point the interim policyowner’s administration rights will end and the ownership of the policy will be transferred.
  • Seven currencies available for switching: A currency switch option that offers customers the flexibility to change their policy currency to any of the following currencies from the 3rd policy anniversary onwards: United States Dollar (USD), Hong Kong Dollar (HKD), Renminbi (CNY), Canadian Dollar (CAD), Australian Dollar (AUD), British Pound Sterling (GBP), and Singapore Dollar (SGD). This option allows customers to capitalize on global market opportunities.
  • Incapacity Care Service[3]: A convenient option for customers to pre-appoint a family member to manage the policy when they become mentally and/or physically incapacitated.

Separately, Manulife has also announced the launch of Whole-in-One Prime 3 ("WIOP3"), an upgraded participating life insurance plan that aims to help customers achieve various protection and wealth management goals, building upon the success of its predecessor Whole-in-One Prime 2 ("WIOP2"). WIOP3 offers a range of premium payment periods, including single premium, 5 years, and 10 years. Not only does it offer potential long-term returns with a guaranteed cash value and a non-guaranteed terminal bonus[9], it provides customers opting for single premium payment with a surrender value of up to 80% of the premium on the first day of the policy term. For those who opt for the regular premium mode of 5 years and 10 years, WIOP3 offers relatively competitive non-guaranteed returns[10] and premiums. Compared with WIOP2, WIOP3 has a lower entry level starting at a notional amount of US$250,000, which makes it accessible to a wider range of customers. Additionally, the plan includes a range of other benefits and services, such as Incapacity Care Service[11], legacy planning services (like the death benefit settlement option[11] and Legacy Choice[11]), and the first-in-market[4] Body and Mind Advance Benefit. The plan also offers the flexibility to change the life insured (for corporate policyowners only), and a flexible premium prepayment option[12].

In case of unfortunate events, WIOP3 offers a death benefit consisting of 100% of the notional amount, any non-guaranteed terminal bonus, and any realized terminal bonus left with the company for interest accumulation if the life insured passes away before the Golden Anniversary[13].

Terms and conditions apply. For more details and risks about Genesis and WIOP3, please click on the provided links to access the respective product leaflet/guide.

The content of this press release does not contain the full terms of the policy(ies), and the full terms can be found in the corresponding policy document(s). Before making a purchase, customers are encouraged to read the policy provisions for the exact terms and conditions that apply to these products.

Manulife Hong Kong today announces the launch of its new Genesis plan. Darren Thompson, Chief Product Officer, and Kelton Wong, Head of Proposition and Product Development at Manulife Hong Kong and Macau, unveil the new product.
Manulife Hong Kong today announces the launch of its new Genesis plan. Darren Thompson, Chief Product Officer, and Kelton Wong, Head of Proposition and Product Development at Manulife Hong Kong and Macau, unveil the new product.

[1] These figures are not guaranteed and are based on a policy with a 5-year payment term and USD as the policy currency, assuming that throughout the policy term, (i) no Body and Mind Advance Benefit has been exercised; (ii) no policy loan is taken out; (iii) no currency switch option has been exercised; (iv) no Easy Choice or realization option has been exercised; (v) no withdrawal is made through reduction of the notional amount; and (vi) no premium holiday has been exercised, and all premiums are paid annually in full when due.

[2] This refers to the Successive Policyowner (with Legacy Choice) option, which is applicable to policies issued in Hong Kong only.

[3] This is an administrative arrangement and is not part of the product features. Applications will be accepted from the third quarter of 2024. Such applications are subject to Manulife’s prevailing administrative rules which shall be determined and modified by Manulife from time to time without prior notice. Please note that the service may not be available with the designated new plan after the currency switch option is exercised.

[4] The statement about first-in-market features is based on comparisons with other publicly available savings insurance plans and life insurance plans issued by Hong Kong’s major life insurance companies for individual customers as of April 2024.

[5] The Manulife Asia Care Survey was conducted via online self-completed questionnaires in eight markets: mainland China, Hong Kong, Japan, Indonesia, Malaysia, Philippines, Singapore, and Vietnam. A total of 8,000 people, aged 25 to 60 years old, were surveyed between January and February 2024. In Hong Kong, 1,052 respondents were interviewed, including 252 respondents who currently do not own any insurance and do not intend to buy in the next 24 months

[6] Manulife conducted an online survey in January 2024 to gather insights into Hong Kong consumers’ preference about savings insurance products. The survey sampled 301 adults aged 25 to 54 with monthly household income of HK$30,000 or above in Hong Kong.

[7] The terminal bonus is not guaranteed. Manulife will review and adjust the terminal bonus at least once a month, but Manulife may do so more often. Terminal bonus will not be payable upon the death of the life insured if the sum of the guaranteed cash value and terminal bonus is less than the aggregate sum of premium due and paid. Please refer to the "Important Information" under the product leaflet for details.

[8] Designated illnesses include apallic syndrome, cancer, coma, heart attack (myocardial infarction), stroke, major head trauma, paralysis, terminal illness, total and permanent disability, autism, bipolar disorder, mental incapacity, schizophrenia, and severe dementia.

[9] The terminal bonus is not guaranteed. Manulife will review and adjust the terminal bonus at least once a month, but Manulife may do so more often. Please refer to "The main risks affecting the non-guaranteed terminal bonus and the accumulation interest rate of realized terminal bonus" in the "Important Information" section under the product guide for details

[10] Based on comparisons with other publicly available participating life insurance plans issued by Hong Kong’s major life insurance companies for individual customers as of April 2024.

[11] This is an administrative arrangement and is not part of the product features. Applications will be accepted from the third quarter of 2024. Such applications are subject to Manulife’s prevailing administrative rules which shall be determined and modified by Manulife from time to time without prior notice.

[12] Applicable only during the premium payment period for policies which opt for regular premium payments.

[13] Golden Anniversary refers to the later of the life insured’s age 65 or the 15th policy anniversary. Upon reaching the Golden Anniversary, the death benefit is equal to the highest of the guaranteed cash value, the aggregate sum of the premiums due and paid, or the designated percentage of notional amount, which will reduce progressively each policy year starting from the Golden Anniversary, until it reaches 60.10% of the notional amount, remaining unchanged thereafter. The plan will also pay any non-guaranteed terminal bonus and any realized terminal bonus left with the company for interest accumulation.

 

About Manulife Hong Kong 
Manulife Hong Kong has been a trusted name for more than 125 years. Since our operations started in Asia in 1897, we have grown to become one of the top-tier providers of financial services, offering a diverse range of protection and wealth products and services to over 2.5 million customers in Hong Kong and Macau. We are committed to helping make decisions easier and lives better for our customers.

Manulife Hong Kong, through Manulife International Holdings Limited, owns Manulife (International) Limited, and Manulife Provident Funds Trust Company Limited.

About Manulife
Manulife Financial Corporation is a leading international financial services provider, helping people make their decisions easier and lives better. With our global headquarters in Toronto, Canada, we provide financial advice and insurance, operating as Manulife across Canada, Asia, and Europe, and primarily as John Hancock in the United States. Through Manulife Investment Management, the global brand for our Global Wealth and Asset Management segment, we serve individuals, institutions, and retirement plan members worldwide. At the end of 2023, we had more than 38,000 employees, over 98,000 agents, and thousands of distribution partners, serving over 35 million customers. We trade as ‘MFC’ on the Toronto, New York, and the Philippine stock exchanges, and under ‘945’ in Hong Kong.  

Not all offerings are available in all jurisdictions. For additional information, please visit manulife.com.

Source : Manulife Launches Genesis Plan with Market-first Features and Unique Offerings

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