Performax Gold - Qualified Financial Services

Your whole life can be Gold.
P E R F O R M A X G O L D
Introducing Performax Gold. Non­participating whole life insurance that’s far from ordinary. The ordinary part of whole life • Combine single and joint coverages in one policy • Two cost options (pay to 100 or 15 pay option) • Increase or decrease coverage – or even add new coverage • Deposit Option • Paid­up Insurance • Term Option • Competitive cash values and death benefits The far from ordinary Performax Gold offers incredible flexibility not typically associated with whole life: • Performance Credit – yearly credit based on your policy’s values and the Performax Gold Investment Fund. The Fund is based on Manulife’s participating fund. Use the Credit to purchase Paid­up insurance, Term Option insurance or invest it in the Accumulation Account • Policy fee charged for only 15 years • Switch from the 15 pay option to the pay to age 100 option at original age and original rates • Have up to 20 coverages on one policy – with one policy fee The “you’re going to jump for joy” extraordinary •
•
New illustration system linked to concepts Term rider rates linked to Family Term/Business Term • Rated Deposit Option •
Healthstyles underwriting • New statement based on our award­
winning life statement Why Gold? Why now?
Quite simply – it’s time. We launched Performax in 1984 and have changed the product very little since then. But the outside world has changed a lot. People have different expectations, the market is different and competing products have changed. We think your transition to selling this new product should be seamless. And, after you read this brochure and the Q&A on Repsource, we believe you’ll think so too. We’ve wanted to update Performax – you’ve asked for many changes over the years, but the system it’s on is about as antiquated as they come (think large, temperature controlled room to house the system!). And the illustrations! Performax is DOS based – a dinosaur in today’s technical environment. You can’t teach an old dog new tricks Performax Gold is on a new administration system, the same one as most of our other currently sold products. Doing this allowed us to make the changes you’ve asked for – including more than one coverage per policy and rated Deposit Option. And the new system means new opportunities. We will be able to combine products in unique ways in the future – meaning that as the world changes around us, Performax Gold can change too. But it’s important you know that in many ways Performax Gold is the same Performax you’ve loved for years. Wherever we could, we’ve left what you’ve liked about it and added what you’ve been asking for. Performax has been around since 1984 – in the insurance world, it is as old as the hills. Its illustration and administration systems are dinosaurs and you’ve been asking us to make changes for years. If we made these changes and continued to sell Performax as a participating policy, the par fund would have to pay for the upgrades. The cost to make these improvements is significant and, had they been paid for by the par fund, may not have created value for all policyholders. When we started thinking about a new whole life product, we knew one thing couldn’t change: our dedication to providing you and your clients with a competitive and innovative product. Many of you – and your clients – are Manulife shareholders and one thing you can count on is our commitment to providing investors with attractive returns on their investments. And finally, we are very proud of our strength and stability and its one of the key reasons you and your clients put your trust in us. Performax Gold. A win­win solution With Performax Gold, we’ve been able to do what other companies have not: give clients a non­participating whole life policy that provides attractive features, guarantees, competitive values and improved policy administration. Performax Gold satisfies our commitment to advisors by providing a product that offers significant long term values, ‘hands off’ investment management, stable returns with an improved illustration system and better policy support and administration. We know you’ll have questions about Performax Gold and in particular how it compares to the Performax you’re used to. We’ve created a detailed Q&A that answers your questions. You can find the Q&A on the public section of Repsource. Choose insurance and then Performax Gold. Performax Gold. Whole life insurance that’s
far from ordinary. Performax Gold offers your clients permanent lifetime protection with guaranteed cash values and the opportunity to add more Paid­up Insurance. This and other unique product features help your clients increase their plan’s values and maximize their wealth on a tax­
deferred basis. This new product shares more than just a name with our previous version. As you learn about how Performax Gold works, you’ll recognize many of the features and benefits, including Paid­up Insurance, Term Option and Deposit Option. And what makes Performax Gold far from ordinary are the new features: rated Deposit Option, Accumulation Account, Performance Credit. Performax Gold. Features and benefits.
Here’s an explanation of the familiar and the new. For a more detailed report on how this product works, look at An Advisor’s Guide to Performax Gold. It’s available on Repsource and in print through your usual supply source. Insurance coverage Each Performax Gold policy must include Insurance coverage which provides coverage on the life (or joint lives) insured and is guaranteed for life, as long there is enough value in the policy to cover the policy costs. The extraordinary: Clients can add or increase their Insurance coverage (subject to underwriting approval) and have more than one Insurance coverage on a policy. Each Insurance coverage can insure a different person (or group of people for joint coverage). Term Option Term Option is an additional amount of Insurance coverage supported by the annual Performance Credit. This coverage is made up of a mix of Yearly Term Insurance and Paid­up Insurance plus Deposit Option Insurance (if applicable). Clients do not need to make additional payments to have Term Option; it is paid for by the Performance Credit. The extraordinary: Manulife guarantees Term Option coverage for 10 years or for life, depending on the amount of Term Option selected. (The guarantee applies as long as the insurance rating is within specified limits.) And more good news! Term Option rates are the same as the previous Performax. Accumulation Account Deposit Option Deposit Option is a flexible and attractive feature of Performax Gold. It allows clients to make additional payments into their plan on a tax­deferred basis to build up policy values faster. Deposit Option payments purchase additional insurance called Deposit Option Insurance. Deposit Option Insurance doesn’t require any further payments and has a cash value which itself receives an annual Performance Credit. The extraordinary: With Performax Gold, clients who are rated can choose Deposit Option. The Accumulation Account is an investment account within the Performax Gold policy. Clients can apply their Performance Credit to this account and they can also make additional payments into this account. Money in this account grows on a tax­deferred basis. The interest earned in this account is linked to the yield of the Performax Gold Investment Fund. If the growth in this account or in the policy itself affects the policy’s exempt status, money will be transferred to an external Side Account. The extraordinary: Values in the Accumulation Account can fund insurance and rider costs. Performax Gold Investment Fund The Performax Gold Investment Fund is a diversified portfolio of assets managed by Manulife’s investment professionals. Its asset mix is the same as the current participating account. The Fund's yield is determined by the performance of the assets in the portfolio. The yield is smoothed to reduce volatility which, in turn, helps reduce the volatility of the Performance Credit. The extraordinary: To give you comfort in the fund’s performance, until November 2012, we guarantee that we’ll calculate the Performance Credit using the greater of the fund’s annual smoothed yield or the yield of the current participating account. value. Insurance, Paid­up Insurance and Deposit Option Insurance coverages all earn a Performance Credit (if they’re in effect on the policy anniversary). The amount of the Performance Credit varies by the amount and coverage type and by the performance of the Performax Gold Investment Fund. The extraordinary: Performax Gold offers completely hands­off management for you and your clients. Performance Credit Option Just like Performax, with Performax Gold, your clients can choose how they want to apply the Performance Credit to their policy: Performance Credit • Paid­up Insurance Performax Gold is non­participating and it does not receive dividends. However, because its inner workings are in many ways similar to the previous Performax, the policy will automatically earn a Performance Credit. The Performance Credit is an amount the policy earns on each anniversary that helps increase the policy’s cash • Term Option • Accumulation Account The extraordinary: Clients can choose a different option for each Insurance coverage. Coverage Group Paid­up Insurance While each policy must contain a certain amount of Insurance coverage, clients can add supplementary coverages to form a Coverage Group. Each Coverage Group can include Paid­up Insurance, Deposit Option Insurance and Term Option coverage. All of these supplementary coverages are designed to maximize cash value and/or the amount of insurance. Paid­up Insurance is additional insurance on the policy. Clients can add Paid­up Insurance by choosing this as their Performance Credit Option. The extraordinary: Performax Gold offers incredible flexibility. You can add a parent, child or business partner – all to the same policy. The extraordinary: This additional insurance has a cash value which itself receives a Performance Credit. Product details at a glance.
Insurance costs
• Determined at coverage issue and based on insured’s age at time of issue •
Costs do not change for the duration of the coverage •
Two cost options: pay to 100 or 15­pay (after 15 years, the insurance cost is $0) – and you can switch from 15 pay to pay to 100 at original age and original rates •
Payment Offset Program. While not guaranteed, clients can use policy values to pay their insurance costs •
Single life •
Joint first­to­die (maximum five lives) •
Joint last­to­die, costs to last death (maximum five lives) •
Joint last­to­die, costs to first death (maximum five lives) Coverage amount limits
•
Minimum face amount of $25,000 Policy fees •
Policy fee is part of total policy costs, but will only be charged for 15 years, no matter which cost option is chosen Load on Additional Payments
•
Load on Additional Payments of 7% ­ guaranteed Riders •
Term Insurance Rider – costs linked to our Family/Business Term rates and the rider is available on someone not insured on the Base coverage •
Total Disability Waiver Rider •
Accidental Death Benefit Rider •
Guaranteed Insurability Option Rider – Regular and Special •
Business Value Protector Rider •
Child Protection Rider Coverage types Performax Gold. For the right client,
it’s the right choice. Performax Gold is the right choice for your clients who are looking for the guarantees and hands­off management associated with whole life insurance. Through its design, it’s a great choice for your clients who are over 40 and who are considering their estate planning needs. These clients have access to high stable cash flows and are looking for later duration values. If you’re familiar with selling Performax, you can rest assured that Performax Gold offers the same estate
planning opportunities offered before. The clients you considered for Performax in the past are the same clients you should consider for Performax Gold. And the good news is that with the added benefit of rated Deposit Option and guaranteed 15 pay option, Performax Gold is the right solution for many more clients. Performax Gold in action.
Performax Gold offers your clients what they need: competitively priced whole life insurance with the flexibility to change their policy as their needs change. And Performax Gold also offers competitive cash values that make it a natural for wealth accumulation and estate planning. Here’s a look at a variety of age levels and amounts of insurance. You can see how Performax Gold is priced competitively and offers competitive cash values. Policy
Period
Age at
Yr End
Performax
Par CV @
Current ­1%
Year 1
46
1,815
Year 5
50
14,736
Year 10
55
138,967
Year 15
60
281,748
Year 20
65
468,547
Year 25
70
708,498
Year 30
75
1,004,943
Year 35
80
1,362,514
Year 40
85
1,784,005
Year 45
90
2,282,786
Year 50
95
2,930,862
Performax
Gold CV @
Current ­1%
244
8,146
73,022
236,115
518,771
799,237
1,146,900
1,565,709
2,059,903
2,637,842
3,329,156
Competitor
Participating
Whole Life CV
@ Current
Competitor
Participating
Whole Life CV
@ Current ­1%
Pmax Gold CV
as a percentage
of competitor's
(Current)
Pmax Gold CV
as a percentage
of competitor's
(Current ­1%)
260
260
94%
94%
4,405
3,615
185%
225%
56,773
50,047
129%
146%
197,553
175,977
120%
134%
498,191
448,439
104%
116%
776,244
679,054
103%
118%
1,121,108
951,255
102%
121%
1,544,586
1,269,677
101%
123%
2,049,137
1,629,814
101%
126%
2,647,237
2,035,716
100%
130%
3,365,267
2,501,389
99%
133%
Male, NS, Age 45, Pay to 100, All basic, $500,000 face Performax Par Minimum premium: $15,285 Performax Gold Minimum premium: $15,209 Competitor Participating Whole Life illustrated on an equal premium basis to Performax Gold At the time of printing, the illustration system was not yet available. The actual Performax Gold numbers may vary slightly. Performax
Par DB @
Current ­1%
Policy
Period
Age at
Yr End
Year 1
56
508,857
Year 5
60
550,187
Year 10
65
662,636
Year 15
70
859,917
Year 20
75
1,112,251
Year 25
80
1,400,905
Year 30
85
1,727,492
Year 35
90
2,094,552
Year 40
95
2,505,520
Performax
Gold DB @
Current ­1%
503,378
546,908
656,573
855,337
1,158,433
1,495,604
1,877,497
2,315,417
2,818,789
Competitor
Participating
Whole Life DB
@ Current
Competitor
Participating
Whole Life DB
@ Current ­1%
Pmax Gold DB
as a percentage
of competitor's
(Current)
Pmax Gold DB
as a percentage
of competitor's
(Current ­1%)
90%
90%
556,694
556,694
568,430
565,819
96%
97%
635,262
616,604
103%
106%
829,595
778,790
103%
110%
1,127,415
1,027,284
103%
113%
1,461,253
1,291,495
102%
116%
1,841,629
1,577,773
102%
119%
2,280,177
1,892,222
102%
122%
2,786,913
2,238,144
101%
126%
Male, NS, Age 55, Pay to 100, All basic, $500,000 face
Performax Par Minimum premium: $22,370
Performax Gold Minimum premium: $22,258
Competitor's Participating Whole Life illustrated on an equal premium basis to Performax Gold
At the time of printing, the illustration system was not yet available. The actual Performax Gold numbers may vary slightly.
Performax
Par CV @
Current ­1%
Policy
Period
Age at
Yr End
Year 1
56
Year 5
60
25,415
Year 10
65
190,215
Year 15
70
376,276
Year 20
75
606,518
Year 25
80
889,430
Year 30
85
1,225,769
Year 35
90
1,626,265
Year 40
95
2,145,127
2,585
Performax
Gold CV @
Current ­1%
1,159
18,847
122,480
339,059
690,396
1,031,462
1,435,952
1,911,068
2,480,142
Competitor
Participating
Whole Life CV
@ Current
261
Competitor
Participating
Whole Life CV
@ Current ­1%
Pmax Gold CV
as a percentage
of competitor's
(Current)
Pmax Gold CV
as a percentage
of competitor's
(Current ­1%)
261
444%
444%
5,274
4,167
357%
452%
75,457
66,203
162%
185%
263,525
234,414
129%
145%
648,865
583,780
106%
118%
990,672
867,767
104%
119%
1,399,843
1,191,397
103%
121%
1,887,387
1,558,789
101%
123%
2,476,517
1,983,722
100%
125%
Male, NS, Age 55, Pay to 100, All basic, $500,000 face Performax Par Minimum premium: $22,370 Performax Gold Minimum premium: $22,258 Competitor's Participating Whole Life illustrated on an equal premium basis to Performax Gold At the time of printing, the illustration system was not yet available. The actual Performax Gold numbers may vary slightly. Illustrating Performax Gold.
We know. You don’t have to tell us. It’s about time we changed the illustration system (some of the people who work on the current system were toddlers when it was developed – now that’s a sure signal it’s time for an update!). The great news is that Performax Gold is on the same industry­leading illustration platform as our other products and it is linked to some of our great concepts. And we’ve kicked it up a notch – we’ve improved some functions and details. We’ve created an illustration guide (Your guide to the Performax Gold software) that’s available on Repsource. A note about the old Performax and
illustrations. We are closing the old Performax to new sales effective December 28, 2007. You can find full details in the transition rules which are available on Repsource. On December 29, 2007, we will remove the Performax launch page from Diamond View. Make sure you print out or save any of your illustrations. If, for some reason, you do need an illustration, you will need to contact our Special Quotes area. With the introduction of a Side Account to Performax Gold, the Preferred Prepayment Option is no longer applicable and we are removing this feature from the illustration software. Tools to help you sell Performax Gold.
We’ve created a lot of material to help you understand Performax Gold, its place in the market and how it compares to other products. The following are available on the public side of Repsource. Simply choose Insurance and then Performax Gold. The following tools are available on Repsource and in print from your usual supply source: • Understanding Performax Gold. A series of audio tracks on a variety of topics, including Par vs. Non Par and Product Features. • Advisor’s Guide to Performax Gold. (MK2092) • Understanding Performax Gold (MK2093) (detailed client guide intended for post­sale to explain the contract) • Live your whole life (MK2094) (pocket size client brochure) • Powerpoint presentations that you can use with your clients to explain Performax Gold. All of the above material is available in Chinese. If you’re ordering from supply, simply use the MK number listed above and change the E/F to Z. More questions? More answers. If you have more questions about Performax Gold, we’ve created a detailed Q&A. It’s available on Repsource in English, French and Chinese. We have also created a more detailed look at the product. For advisors, you can choose the Advisor’s Guide to Performax (MK2092) and for clients, there is a detailed guide (MK2093). Both of these are available on Repsource and from your usual supply source in English, French and Chinese. Finally, if you have more questions or would like to provide feedback, we’d like to hear
from you. Contact your regional Manulife representative or send us an email:
individualinsurance@manulife.com. 25%
Performax Gold is sold by, and is a registered trademark of, Manulife Financial (The Manufacturers Life Insurance Company). This document is protected by copyright. Reproduction is prohibited without Manulife’s written permission. Manulife Financial and the block design are registered service marks and trademarks of The Manufacturers Life Insurance Company and are used by it and its affiliates including Manulife Financial Corporation. (10/2007)