Whole Life


Original line of business: Manulife

Updated on: Dec 11, 2018

The Performax Plan is a participating product that on each policy anniversary, a policy in effect may be credited with a dividend as determined by Manulife. An illustration can be run to verify if the current policy values arising from dividends and any deposit option payments along with future dividends, will be able to pay for their future premiums.

Product administration guide: N/A

Sample contract: N/A

Dividend options: Yes

Bonus: N/A

Dividend options


  • Cheque sent to client at anniversary

Accumulation (or dividends on deposit):

  • Dividends accumulate in the policy and earn interest 

Premium reduction:

  • Dividends are applied to the premium first and the client is billed for the balance. Billing mode must be annual. Dividends over and above the premium will be left to accumulate in the policy or sent to the client

Paid up insurance:

  • Additional whole life insurance paid by the dividends, paid for only once:
    • Also earns dividends 
    • Has cash value

Term option, enhancement or special 12: 

  • Additional insurance coverage paid by the dividends 
  • Composed of a mix yearly term insurance (YTI) and paid up insurance (PUI or PUA) 
  • YTI is term insurance which must be paid for every year. The cost increases as the insured gets older 
  • The YTI decreases as the PUA coverage increases until crossover is reached 
  • Term option may have a guarantee period. See details in guarantee section 
  • If the dividend is not enough to cover the cost for the YRT coverage, the client will have 30 days from the anniversary to pay an additional amount to continue the coverage for that year. Please obtain quote from policy change for required amount

Crossover is the point at which the enhancement is entirely paid up insurance. The dividends will continue to purchase PUAs and the death benefit increases beyond the original amount. Crossover is never guaranteed



Premium paying period

Premiums on the base performax policy are payable up to and including the policy anniversary nearest: 

  • The life insured’s 98th birthday, for single life policies, and 
  • The attained joint age 98 for joint life performax policies 
  • For joint second-to-die, premiums payable to first death, premiums are waived after the first death 

This date of this policy anniversary is specified on page 3 of the policy contract. (if there is no mention of this date on page 3, please review provision pages and administrative guide for information.) 
The policy remains in effect after that date, subject to the terms of the policy 

Deposit option 

Effective January 2017 legislative tax changes, addition or increase in deposit option payments with medical underwriting is no longer permitted. If the client misses 5 consecutive years and does not make deposit option payments, they cannot re-establish deposit option payments 

Policy fees

  • $25 annually, 
  • $14 semi-annually, 
  • $7.50 quarterly, or 
  • $3.50 monthly by pre-authorized cheque (PAC)

Deposit load

A 7% load is deducted from all deposit option payments. The remaining deposit option payment is called the net deposit option payment

Non forfeiture option: Yes

Loans: Yes

Withdrawals: Yes

Non-forfeiture option

Automatic premium loan (APL) 


  • Loans are available up to a maximum amount 
  • Interest will be charged 
  • Will not cancel guarantees 
  • If the client is making dump in deposits they will need to cease making these deposits until the loan is repaid in full all additional payments will be applied to outstanding loan  


The following types of policy values may be withdrawn from the policy: 

  • Cash value of paid up insurance (will also cause a reduction in the paid up insurance value) 
  • Cash value of any dividends on accumulation, and 
  • Unapplied deposit option payments

Cash value

  • This policy has guaranteed cash values 
  • Refer to the contract for the dates that they begin 
  • There are no partial annual premium refunds on surrender

Reduced paid up

  • Verify the contract for reduced paid up values  
  • The policy continues to earn dividends 

Some contracts indicate the policy can contractually go reduced paid up prior to the 20th policy anniversary, however, policies cannot go reduced paid up prior to the 20th anniversary as it will fail the tax-exempt test and the policy will become non-exempt 

Premium offset/holiday: Yes

Premium offset/holiday

  • Premium offset is available
  • Request an illustration for a projected premium offset date
  • The policy owner may request to take a premium holiday; i.e. use the    policy values arising from dividends within their policy and future dividends to pay for their future premiums for a short and specific period of time
  • It is expected that out-of-pocket premium payments will be resumed at the end of the specified time
  • Please see product guide under premium holiday for further details

Death benefit

We will pay out the face amount, unapplied deposits (if applicable), depending on the dividend option selected: dividends and/or paid up insurance (if applicable) and/or enhancement amount (if applicable), minus any loans (if applicable) 

Reinstatement period

2 years


The yearly term insurance (YRT) can be converted up to the insured's age 65 

Note: For policies dated 1990 or before, check the provision pages. If there is a multiplier dividend option, then conversion of the YRT is not allowed