Insurance planning with retirees - The Manulife UL advantage

You are working separately with two different couples. As part of the planning process you have determined that each requires $1 million of low cost permanent joint last-to-die life insurance protection. You have discussed different funding options available and have determined in both situations that cashflow and risk is an issue. As a result, you have decided to show each couple a low risk, pay for life Universal Life insurance solution.

You think to yourself, “What product should I use and how should I structure the solution?” Consider the following:

Couple #1 – Male 65 HS3 Female 65 HS3

Pre-tax yield required to match the NEV of the life insurance solution at life expectancy = 8.23%.

Couple #2 – Male 75 HS3 & Female 75 HS3

Pre-tax yield required to match the NEV of the life insurance solution at life expectancy = 10.57%.

Conclusion

In today’s low interest rate environment low risk, low cost life insurance solutions may often be overlooked. As you have seen Manulife UL provides significant economic value today and in the future. Clearly, when a low cost, low risk, minimum pay life joint last-to-die insurance need is uncovered, a Manulife UL, Level CIS solution should be considered.

Date: July 2018