Manulife Ready Income is a regular premium endowment plan offered by Manulife agents, financial advisers and some bankers. It belongs to a category of endowment plans that allow you to save and grow your money up to 99 years old while contributing for only a limited number of years. There are four options for limited premium terms, and they are 5, 10, 15 and 20 years.
Manulife Ready Income allows you to enjoy a lifetime of benefits while saving for a limited period only. The plan provides yearly cash payouts starting from as early as the end of the 2nd year all the way until age 99. The cash benefits comprise both guaranteed and non-guaranteed portions. You can choose to receive the cash payouts or to reinvest in the plan at the prevailing rate and withdraw only when needed.
Image is taken from manulife.com.sg
This plan can also be used as an inter-generational tool to provide a stream of income and to transfer wealth to the next generation(s).
Pros of Manulife Ready Income
- Flexibility to access cash through cash payouts from as early as end of 2nd year
- Guaranteed cash payouts start from end of 2nd year, which is the earliest in the market
- Interest rate on cash payouts usually higher than bank deposit rates
Cons of Manulife Ready Income
- Initial cash payouts are relatively small and only step up after the 10th year.
- Reinvestment rate is not guaranteed and is lower than some of the other plans in the market
- Cash payouts are level and do not increase with time
To find out how Manulife Ready Income compares with other plans in the market
To understand if Manulife Ready Income is suitable for your needs
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Before you commit to a Pruflexicash plan, be sure to read one of our most read article on “8 Things to consider when you buy an endowment (savings) plan”