About Manulife RetireReady Plus II
Manulife RetireReady Plus II is distributed by Manulife Financial Advisers, DBS relationship managers and financial advisors representatives. It has many policy features that are useful for retirement planning. It is a participating endowment plan that is designed to provide retirement income benefit.
The retirement income benefit is paid out monthly from the selected retirement age and contains 3 components
- Guaranteed monthly income (GMI)
- Non-guaranteed cash bonus.
- Additional monthly income (AMI)
The AMI is converted from the accumulated annual bonus. If the policyholder does not wish to covert the accumulated annual bonus to AMI, the policyholder will receive the accumulated annual bonus from Manulife RetireReady Plus II in one lump sum at retirement age. This will appeal to retirees who wish to receive a small lump sum at the start of their retirement age.
The above image is taken from manulife.com.sg
Premium Term
Manulife RetireReady Plus II offers 5 premium payment options and they are
- 20 years
- 15 years
- 10 years
- 5 years
- Single payment (cash & SRS)
Retirement Age
There are 5 retirement age options offered by Manulife RetireReady Plus II and they are
- Age 50
- Age 55
- Age 60
- Age 65
- Age 70
Income Payout Period
Manulife RetireReady Plus II has 5 income payout period options and they are
- Lifetime monthly payout
- Monthly payout over 20 years (popular among our clients)
- Monthly payout over 15 years
- Monthly payout over 10 years (popular for SRS single premium plans)
- Monthly payout over 5 years (Not applicable to policies with a single premium and 5 years premium payment term)
Waiver of premium
Manulife RetireReady Plus II’s premium will be waived if the insured suffers from Total Permanent Disability (TPD) before turning age 70. Activation of this benefit will not reduce the retirement income benefit. Hence, the policyholder does not have to worry about paying the premium in the event of TPD.
Loss of independence (LOI) income benefit
Manulife RetireReady Plus II will pay the Additional Guaranteed Monthly Income (GMI) after a deferment period of 90 days if the insured meets the LOI definition. To illustrate:
- Additional 50% of the GMI will be paid out if the insured is unable to perform any 2 of the 6 ADLs despite the aid of special equipment and always requires the physical assistance of another person to perform the ADLs (maximum cap of $2,000/month)
- Additional 100% of the GMI will be paid out if the insured is unable to perform at least 3 of the 6 ADLs despite the aid of special equipment and always requires the physical assistance of another person to perform the ADLs (maximum cap of $4,000/month)
Retrenchment payout benefit
If the insured is retrenched and remains unemployed for 30 consecutive days and falls within the conditions of the policy, Manulife RetireReady Plus II will pay a one-time lump sum to the insured.
The lump-sum amount will be 40% of the annual premium if the premium term is more than 5 years. This will help to ease the financial burden at the time of retrenchment.
Premium freeze option
Manulife RetireReady Plus II allows the policyholder to stop paying the premium for one year from the third policy year and keep the policy in force without paying the premium. Upon Manulife’s approval, the premium payment term and the maturity date will be deferred by 1 year.
This option can be exercised twice if the policy payment term is more than 5 years. If the policy payment term is 5 years, this option can only be applied once.
This helps to protect the policy from terminating due to non-payment of the insurance premium, especially in times of financial difficulties
Pros of Manulife RetireReady Plus II
- RetireReady Plus II is a feature pack retirement plan that assists an individual to better prepare for his/her retirement
- It offers one of the higher guaranteed yield to maturity among other insurers’ retirement plan
- It provides an option of lifetime monthly retirement income
Cons of Manulife RetireReady Plus II
- In some case, the total illustrated yield (guaranteed + projected) at maturity is lower than similar retirement plan offered by other insurers.
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