Manulife InvestReady is an investment-linked insurance plan (ILP) offered by Manulife agents and financial advisors. There are 2 options for this plan – Protect (the standard ILP which combines protection with investment) and Wealth (focuses primarily on growing wealth). This review is about the Protect option and if you are interested in the Wealth option, do click here to read more about it.
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Manulife InvestReady (Protect) offers coverage as well as investments just like a traditional ILP. The difference though is that 100% of the premiums are invested upfront as compared to the traditional ILP where a portion of the premium goes into paying for plan charges in the first few years. Depending on your protection needs, you have the option of selecting your coverage amount of up to 50 times the annual premium.
Manulife InvestReady (Protect) only offers the “higher of insured amount or account value” option and does not offer “insured amount and account value” option. The plan also offers a TPD waiver where future premiums are waived upon Similar to the Wealth option, there are also Welcome Bonuses and Loyalty Bonuses every 5 years (note that there is no doubling of loyalty bonus feature as compared to its sister product).
As with any product, it is essential to be aware of the charges of Manulife InvestReady (Protect). The main charges include insurance charges and an additional sum insured charge. There are also partial withdrawal charges, surrender charges, and premium shortfall charges. The minimum premium amount for Manulife InvestReady (Protect) starts from S$300/month or $3,600/year. The maximum entry age is up to age 65. Currently, this plan is only available in SGD, and it matures at age 99.
Pros of Manulife InvestReady (Protect)
- Offers combination of protection and investment with 100% premium allocation from the start
- Welcome bonus of up to 20%
- Loyalty bonuses every 5 years
- Automatic fund rebalancing option available
Cons of Manulife InvestReady (Protect)
- Maximum sum assured per $ of premium is lower than other plans in the market
- Premium holiday is limited to a maximum of 3 years depending on your plan specifications and can only be taken after 5 years
- There is partial withdrawal charge and/or premium holiday charge in the early years which limits access to your monies
- Click here to find out the full list of cons
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Besides Manulife InvestReady – Protect, you may want to read up the sister version of Manulife InvestReady – Wealth here.