Creating a legacy for loved ones in an unpredictable market

Income investing and providing a legacy for loved ones can be daunting, especially during a time of rapid technological change and market volatility.

Even the usually sedate investment-grade bond market has been volatile - as inflation jumps to multi-decade highs and central banks unwind the easy monetary policies that have been in place for over a decade.

Amid all this uncertainty, investors may want to balance their portfolio and consider allocating part of their funds to insurance products that generate a stream of monthly income over their lifetime. Some of these products will also pay a lump sum should they be diagnosed with terminal illness or if they pass on.

In addition, there are policies that can be transferred¹ to a younger family member who is at least 18 years old, providing him/ her with financial security in the form of a regular income stream.

While most people are familiar with the benefits of health and life insurance, many have yet to integrate insurance with the rest of their investment portfolio for greater diversification and increased protection in volatile markets.

Diverse benefits of insurance

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According to a regional survey in 2021, High-Net-Worth Individuals (HNWIs) in Singapore have become increasingly concerned about market volatility and are seeking advice from banks on managing their portfolios.

For HNWIs in particular, the benefits of insurance extend beyond portfolio diversification to areas such as legacy planning and estate liquidity.

Legacy planning involves a person deciding how his assets will be divided and managed after he has passed on, while making a positive impact with the wealth he has accumulated.

Estate liquidity allows policyowners to ensure an equitable division of assets between their beneficiaries without needing to sell off business assets or real estate.

For example, a HNWI may have two properties of different values that he wishes to pass on to his two children. Using the potential payout from his life insurance policies, he can bequeath a larger sum of policy value to the beneficiary who inherits the less valuable property, equalising their inheritance.

Putting a legacy plan in place

One insurance policy that effectively meets the needs of HNWIs who want a monthly income² for their daily use while providing a sum of money to their loved ones when the policy matures or when they pass on, is Signature Lifetime Rewards.

Signature Lifetime Rewards provides a monthly income² from as early as the end of the 1³th policy month up to age 120, as well as cover against death3 and terminal illness3. Unlike traditional annuity products which provide policyowners with a monthly income stream but little else, Signature Lifetime Rewards is also designed with an unique Change of Life Insured⁴ option feature. This option allows policyowners to change the life insured of the policy to a loved one.

As Signature Lifetime Rewards pays monthly income² for a period of up to 120 years depending on the entry age of the original life insured, with its Change of Life Insured⁴ option feature, it can potentially benefit four generations so long as the policy is in force.

More importantly, policyowners only need to make a single premium payment without the hassle of health checks to enjoy the benefits offered under the plan.

Manulife helps protect your loved ones' future

With a wealth of global financial experience, Manulife provides insurance, retirement and wealth management solutions to meet the needs of customers at various stages of their lives. The leading international financial services group has been operating in 13 countries across Asia for over 120 years. As of December 2021, Manulife has C$1.4 trillion (approx. S$1.48 trillion) in assets under management, with more than 33 million customers worldwide. Legacy planning, which involves balancing different requirements such as achieving healthy returns on investments (e.g.: stocks, bonds and real estate), managing risks and generating income while creating a legacy for future generations, can be a complex exercise.

Signature Lifetime Rewards helps address many of these issues by allowing policyowners to receive monthly income² while covering for death³ and terminal illness3.

For you who have achieved so much over the years, it is time to preserve the legacy for your future generation.

Footnotes: ¹ Transfer of policy ownership via assignment is allowed anytime while the policy is in force. The assignee must be at least 18 years old.

² Based on an illustrated investment rate of return of 4.25% p.a., each monthly income payable from the end of policy month 13 to end of policy month 36 is 1.8012% p.a. of the sum insured divided by 12, and each monthly income payable from the end of policy month 37 onwards is 3.5508% p.a. of the sum insured divided 12. Based on an illustrated investment rate of return of 3.00% p.a., each monthly income payable from the end of policy month 13 to end of policy month 36 is 1.4016% p.a. of the sum insured divided 12, and each monthly income payable from the end of policy month 37 onwards is 2.4012% p.a. of the sum insured divided 12.

³ Please refer to product summary for more information.

⁴ After two policy years, the policyowner may request to change life insured up to two times during the term of the policy for individual policy and unlimited number of times for corporate policy. Subject to insurable interest and other terms and conditions. Please refer to product summary for more information.

Important Notes: Signature Lifetime Rewards is underwritten by Manulife (Singapore) Pte. Ltd. (Reg. No. 198002116D). This advertisement has not been reviewed by the Monetary Authority of Singapore. Buying a life insurance policy is a long-term commitment. There may be high costs involved if you terminate the policy early, and your policy's surrender value (if any) may be zero or less than the total premiums paid. This material is for your information only and does not consider your specific investment objectives, financial situation or needs. It is not a contract of insurance and is not intended as an offer or recommendation to purchase the plan. You can find the full terms and conditions, details, and exclusions for the mentioned insurance product in the policy contract. This policy is protected under the Policy Owners' Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact us or visit the LIA or SDIC websites (www.lia.org.sg or www.sdic.org.sg). We recommend that you seek advice from a Manulife Financial Consultant or our Appointed Distributors, or visit any DBS/POSB Branch, before making a commitment to purchase a policy.

Information is correct as at April 11, 2022.