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- Manulife's whole life insurance policies build immediate cash value, accessible through policy loans of up to 90%. However, unpaid loans can affect policy performance
- Coverage starts at $100,000 (for 10-year, 20-year, or pay-to-age-90 durations) and $500,000 (pay-to-age-100). Payment options include 10, 20, or lifetime durations, and plans are available for individuals up to 80 years old
- Manulife offers two dividend options—paid-up insurance and cash. Dividends are distributed through a scale that depends on the performance of the participating account
- The Manulife Par with Vitality Plus™ plan includes access to Manulife’s rewards program. Both plans offer riders for child protection, term insurance, guaranteed insurability, and total disability waiver
- Participating account premiums are diversified across bonds, equities, real estate, and more, ensuring long-term growth. Factors such as mortality rates, policy cancellations, and investment returns influence account performance
- What are the key features of Manulife whole life insurance?
- What are the different Manulife whole life plans I can choose from?
- What factors affect the performance of Manulife’s participating account?
- What dividend options does Manulife offer?
- What are the pros and cons of Manulife’s whole life insurance?
- How to apply for Manulife whole life insurance?
- Frequently asked questions
A whole life insurance policy is a valuable and reliable tool for lifelong financial protection. This blog explores how Manulife’s whole life insurance can secure your family’s future while building a cash value that can be accessed as a living benefit.
Learn about the key benefits of Manulife’s whole life insurance policy, and discover how it can play a role in your long-term financial planning.
What are the key features of Manulife whole life insurance?
Manulife’s whole life insurance plans start building cash value from the early years of the policy. The maximum issue age for Manulife whole life insurance is 80 years and they offer two dividend options: paid-up insurance and cash.
Insured individuals can avail of policy loans up to 90% of the total cash value. However, non-repayment of these loans can lead to a deterioration in the policy’s overall value. With Manulife whole life insurance, policy holders can get additional riders including child protection, guaranteed insurability, term insurance, and total disability waiver.
Key features of whole life insurance from Manulife
| Category | Details |
| Cash value accumulation | Immediate |
| Premium payment frequency | Monthly and annual |
| Maximum issue age | 18-80 years |
| Coverage amount range | Coverage starts at $100,000 for 10 year, 20 year and pay to age 90 premium durations, and $500,000 for pay to age 100 |
| Coverage options | Single life or joint-last-to-die coverage options |
| Dividend options | Paid-up insurance and cash |
| Policy loan availability | Yes, up to 90% of the total cash value |
| Additional riders | Child protection
Guaranteed insurability Term insurance Total disability waiver |
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What are the different Manulife whole life plans I can choose from?
Manulife offers two participating whole life insurance plans—Manulife Par with Vitality Plus™ and Manulife Par. Both policies offer immediate cash value growth and guaranteed access to cash value in the early years. For 10-pay, 20-pay, and pay to age 90 plans, the coverage starts at $100,000. For pay to age 100, the coverage starts at $500,000.
Manulife Par with Vitality Plus™ gives the insured individual access to the maximum-value benefits of Manulife Vitality—the company’s flagship rewards program. Manulife Par with Vitality Plus™ offers only single life coverage while Manulife Par offers single life and joint-last-to-die coverage options.
| Feature | Manulife Par | Manulife Par with Vitality Plus |
| Coverage amount | Starts at $100,000 for 10-year, 20-year, and pay-to-age-90 durations; $500,000 for pay-to-age-100 | Starts at $100,000 for 10-year, 20-year, and pay-to-age-90 durations; $500,000 for pay-to-age-100 |
| Policy fees | No policy fees | No policy fees |
| Payment duration options | 10 years, 20 years, to age 90, or to age 100 | 10 years, 20 years, to age 90, or to age 100 |
| Coverage options | Single life or Joint last-to-die | Single life only |
| Eligibility for Vitality benefits | Access to Manulife Vitality Go™ benefits at no added cost | Access to maximum-value Manulife Vitality benefits |
| Upgrade option | Upgrade to Manulife Par with Vitality Plus before the 3rd anniversary (no underwriting required) | Not applicable |
| Issue age | 18-80 years | 18-80 years |
| Monthly Vitality® charge | Not applicable | – $15 for pay 10 years
– $10 for pay 20 years – $6 for pay to age 90 – $4 for pay to age 100 |
| Optional add-ons | – Add term life insurance
– Skip payments if disabled (conditions apply) – Guarantee future eligibility for life insurance – Protect children and guarantee their future life insurance coverage |
– Add term life insurance
– Skip payments if disabled (conditions apply) – Guarantee future eligibility for life insurance – Protect children and guarantee their future life insurance coverage |
Source: Manulife.ca
What factors affect the performance of Manulife’s participating account?
Factors that influence the performance of Manulife’s participating account are mortality rates, policy cancellations, expenses and taxes, and investment returns. While a participating account is managed to ensure there is always enough money to pay death benefits and cash values, these factors do influence the account’s cash flow and performance.
Let’s understand the factors influencing the participating account:
Mortality rates: The death benefits of whole life policies are paid from the participating account. Insurers typically plan for the number of death benefits that they may have to pay in a given year. They make this assumption based on Canada’s overall life expectancy. Higher death benefits than expected will deplete the participating account’s funds faster, lower death benefits will have the opposite effect. This is why mortality rates are a crucial factor in determining how a participating account performs fiscally.
Policy cancellations: Based on past consumer behaviour, Manulife makes pricing assumptions of the number of policies that will be cancelled every year. If the cancellation numbers are lower, the participating account may be adversely affected, and vice versa.
Expenses and taxes: Underwriting costs, issuing contracts, making policy changes, and other administrative and operating expenses play a role in the participating policy’s performance. Manulife allocates resources towards these expenses in a manner that is fair and reasonable to the policy holders. If the operating charges are less than the company’s estimates, the participating account’s performance will be positive. If not, the performance may be affected negatively.
Investment returns: The expected returns on an investment play a key role in determining the profitability of a participating account. If the actual returns on an investment exceed Manulife’s pre-determined numbers, it positively affects the participating account. The latter is true if the returns are lower than anticipated.
Factors that influence Manulife’s participating accounts
| Factor | Predictability | Stability | Impact on Performance |
| Mortality | High | High | Low |
| Cancellations | Medium | Medium | Medium |
| Expenses & Taxes | High | High | Low |
| Investment Returns | Medium | Medium | High |
Source: Manulife Participating Insurance Insight, 2023
Where does Manulife invest the participating account’s premiums?
Manulife invests the participating account’s funds in public bonds, real estate, public and private equities, mortgages, and private debt. This diverse investment portfolio ensures maximum returns and has historically proven to provide long-term growth to policy owners. It also helps Manulife navigate short-term market volatilities.
What dividend options does Manulife offer?
Manulife offers two dividend options: paid-up insurance and cash. If you choose the paid-up insurance option, your annual dividends are used to automatically buy additional, fully paid-up insurance. This means that once your dividends have been used to purchase additional coverage, you do not need to make any further premium payments for the paid-up insurance.
If you choose the cash option as your dividend strategy, the annual dividends you receive are paid directly to you. In this case, there may be some tax liability.
How are Manulife’s whole life insurance dividends distributed?
Dividends are allocated to Manulife Par policyholders using a dividend scale. A dividend scale is a formula used by all insurance companies to fairly and equitably distribute the dividends among all the policy owners. The dividend scale is not guaranteed and usually increases or decreases based on the participating account’s performance.
Manulife’s dividend scale for the past three years has been:
- 2022: 6.10%
- 2023: 6.35%
- 2024: 6.35%
What are the pros and cons of Manulife’s whole life insurance?
Manulife’s participating whole life policies offer a range of benefits such as immediate cash value growth, the option to choose the frequency and duration of premiums, and access to riders. Manulife also offers deposit option payments where the insured individuals can make direct premium payments and increase their protection.
The downside with Manulife’s whole life insurance is that they do not offer non-participating plans and some policy owners may find the dividend and returns structure complex.
Pros and cons of Manulife whole life insurance
| Pros | Cons |
| Immediate cash value growth and guaranteed cash value in the early years | Manulife does not offer non-participating whole life insurance plans |
| Deposit option payments are available where policy owners can make additional premium payments to increase protection | They offer only two dividend options while other insurers typically offer up to four |
| Option to choose the frequency and duration of premium payments | The company does not offer join-first-to-die coverage |
| Variety of riders offered by Manulife for different life events and needs | |
| Access to Manulife Vitality, a rewards and discounts program |
How to apply for Manulife whole life insurance?
To apply for a Manulife whole life insurance plan you would need to choose the plan type (Manulife Par or Manulife Par with Vitality PlusTM), choose your coverage options, fill in an application form, and submit.
For the best Manulife whole life quotes, speak to our experts at PolicyAdvisor. Our licensed advisors will help choose a plan and coverage options that best suit your needs and budget. We will also support you with the application, making the entire process seamless and easy for you!
Frequently asked questions
Is Manulife whole life insurance worth it?
Yes, Manulife’s whole life insurance helps build cash value and provide long-term protection at affordable rates. Their policies are designed to help build wealth with dividend options that can be used to either buy more insurance or policy owners can withdraw as cash. Manulife also offers exclusive benefits with their Vitality program, making their whole life insurance plans an ideal option for those looking for complete protection.
Can you borrow against the cash value?
Yes, you can request for a cash loan which is typically subject to Manulife’s administrative policies. The maximum amount you may borrow is 90% of the total available cash value minus any policy loans that you may have already taken. In some situations, Manulife may ask you to complete a loan agreement.
What happens if I stop paying premiums?
If you stop paying your premiums, Manulife gives you a 31 day grace period to pay the pending premiums. In case you do not do that your policy will lapse. You will lose your coverage and your cash value may be used to pay off your policy loans and other charges.
Does Manulife offer participating policies with dividends?
Yes, Manulife Par and Manulife Par with Vitality PlusTM, both offer participating whole life policies with dividends. Dividends can either be used to buy more insurance or they can be withdrawn as cash. In case policy owners choose to withdraw the dividends, there may be some tax implications.
Manulife’s whole life insurance policies provide lifelong financial protection, immediate cash value, and flexible payment options. The policies include features like dividend options, the ability to take loans against cash value, and optional riders tailored to specific needs. The two main plans—Manulife Par and Manulife Par with Vitality Plus™—offer varying benefits, including access to a rewards program in the latter.
