Universal Life

Limited Pay UL

Original line of business: Manulife

Updated on: Dec 19, 2018

The Limited Pay UL product is a universal life plan with level cost of insurance for 10, 15 or 20 years. This product would be for people who want to finish paying for their life insurance protection within a certain time period.

Product administration guide: N/A

Sample contract: N/A

Dividend options: N/A

Bonus: No 

Dividend options



There are no bonus options available on this plan 

Premium paying period

Premiums are payable for the duration of the selected cost type. Once the COI charges have ended, making additional deposits are optional, subject to the maximum deposit room available

Policy fees

  • $5 per month charged on each monthly processing day
  • The policy fee is guaranteed never to increase
  • Charged only for the first 10 policy years
  • On the 10th policy anniversary and all subsequent monthly
  • Processing days, the policy fee will be equal to zero
  • There is no life fee on this product

Deposit load

Currently 2% and guaranteed not to change

Non forfeiture option: N/A

Loans: No

Withdrawals: Yes

Non-forfeiture option



  • Policy loans are not permitted
  • The policy may be collaterally assigned to secure a loan from Manulife bank. A loan application may be obtained from Manulife bank


  • If a policy has sufficient value, withdrawals can be made from the investment accounts at any time
  • There is currently no withdrawal fee
  • Market value adjustments may apply to withdrawals from the average GIA account or the guaranteed investment account. Any MVA amount will be added to the amount of the requested withdrawal
  • Money withdrawn from the policy may be taxable
  • The minimum withdrawal amount is $100
  • If a withdrawal is requested and an account is not specified, or the balance of the specified account does not provide the amount required, the withdrawal will be made from the accounts according to the fund withdrawal order

Cash value

  • The guaranteed cash value (GCV) is the guaranteed portion of the cancellation cash value of the policy
  • The GCV of a limited pay ul policy starts on the 5th coverage anniversary
  • The GCV is the sum of the GCVs for all insurance coverages on the policy
  • Each coverage will have its own GCV rate
  • Guaranteed values are indicated in the contract
  • If the policy's account value becomes negative, the GCV would be used to keep the policy in effect

The cancellation value for a limited pay ul policy is calculated as follows:

  • Account value + guaranteed cash value – market value adjustments = cancellation cash value

Reduced paid up


Premium offset/holiday


Death benefit

  • Face plus account value
  • Provides a death benefit for each insurance coverage which equals the face amount (or the GCV, whichever is greater) plus the allocated amount of account value. With face plus, the death benefit increases as the account value grows

How is the allocation of account value determined? 

  • With face plus, the account value is allocated using a formula which approximates the value that each life insured would have if separate policies had been purchased
  • This method of allocating the account value determines the death benefit only. The cash value is owned and payable to the owner upon surrender

Reinstatement period

You may apply to reinstate your policy at any time within two years after the start of the grace period