Manulife UL and the Estate Bond Concept - A winning combination
Many affluent clients want to benefit the next generation or their favorite charity when they die. The Estate Bond concept can help clients understand how life insurance proceeds can be used to achieve this goal.
Manulife UL has the flexibility to support different Estate Bond situations and can provide excellent value with guaranteed insurance solutions.
Consider the following:
Betty would like to leave $500,000 to her local hospital when she dies. Solution: Manulife UL – Level Client Investment Select
Client information: Female, 60, Healthstyle 3
Assumed Manulife UL interest rate: 0.00%
Level minimum pay life annual premium: $9,611 Assumed life expectancy: Age 88 (Year 28)
Internal rate of return at life expectancy: 4.01%
Equivalent before tax rate of return (assuming a 45% personal tax rate): 7.29%
Bob and Joanne have four children and have decided to set aside $50,000 a year for the next 10 years. They are conservative in nature but hope this planning will provide their children with a significant gift after they die.
Solution: Manulife UL – Joint last-to-die - Level Client Investment Select – Level COI for 10 years Client information: Male 68 Healthstyle 3 & Female, 66, Healthstyle 3
Assumed Manulife UL interest rate: 0.00% Initial death benefit: $1,132,678
Death benefit at life expectancy: $1,132,681 Assumed life expectancy: Year 24
Internal rate of return at life expectancy: 4.25%
Equivalent before tax rate of return (assuming a 45% personal tax rate): 7.73%
Premium flexibility is often very important to your Estate Bond client. Whether they want to pay premiums for life or quick pay, Manulife UL provides excellent guaranteed solutions.
Date: September 2014