Whole Life


Original line of business: Manulife

Updated on: Dec 11, 2018

Product snapshot

The Investor policy is an endowment contract providing variable cash, death and maturity values. These plans were issued as registered or non-registered. Part of each premium paid is used to provide for life insurance protection, expenses and premium taxes. The balance of the premium, called the fund investment, is paid into one of the Investor's five funds.

Basic product information

Sample contract: N/A

Dividend options: N/A

Bonus: N/A

Dividend options




Premium paying period

  • Outlined in policy contract 
  • Premiums paid into the investor is split into 3 parts:
    • Policy factor - upon paying a premium, a policy factor is deducted. This factor is embedded in the premium
    • Insurance benefit, guarantees and expense portion - this includes the cost of any riders, substandard extras and the insurance and expense charges
    • Fund investment portion (FIP) - this money is used to purchase units in one of four funds  

Policy fees

While funds are being held in the investor, two fees continue to be deducted from the entire fund

  • Investment management fee
  • Annuity rate guarantee, maturity guarantee and administration charge  

Deposit load


Values, loans & withdrawals

Non forfeiture option: Yes

Loans: Yes

Withdrawals: Yes

Non-forfeiture option

  •  31-day grace period 


  • A loan cannot be taken if the policy has gone paid up or if the policy is registered
  • If the policy is not registered, the policy owner can borrow up to 80% of the cash value
  • Loans are expressed as a number of fund units rather than a dollar value,  therefore; the owner must repay the number of units regardless of the value of each unit at the time of repayment. There is no interest charged for a loan, however, a service charge of 1% per year is charged against the borrowed units   


A withdrawal is available only if the policy owner has made additional deposits (dump-ins) and only the value of the additional deposits may be withdrawn (registered or non-registered policies) 

Cash value

  • The policy does not have guaranteed cash values
  • The policy's cash value is made up of the value in the client's chosen fund and dump-ins (which are optional deposits)  

Reduced paid up

  • The insurance portion of the plan is cancelled but the existing investment continues (therefore the new death benefit will be the investment portion only)
  • The owner can continue to make deposits which will be used to purchase more units in their chosen fund  

Riders & benefits

Premium offset/holiday: N/A

Premium offset/holiday

Please note that premium offset is not available on this policy

Death benefit

The death benefit on an investor policy is equal to:

  • Face amount plus growth on the investment (if any, which is found only on the annual statement) plus
  • Additional deposits (dump-ins, if any)
  • Minus any outstanding loans or premiums
  • If there is a registered portion it is taxable at death, the basic death benefit is not taxable
  • If the spouse is the beneficiary, they have the option to roll the registered portion tax free into another registered plan
  • If the spouse does not roll the registered portion, the spouse is taxed
  • If the beneficiary is any other individual, including the children of the insured, the estate is taxed for the registered portion

For registered investors that have gone automatic paid up, if the insured person dies before the policy matures, we will pay the beneficiary the funds value 

Reinstatement period

If a registered investor has gone automatic paid up, the owner can apply to reinstate the coverage within two years by following regular reinstatement procedures