Manulife participating dividends

What is the dividend scale?

The premiums you and other clients pay for policies are put into an account called the participating account. Manulife invests the money in this account and uses it to pay for things like operating expenses, death benefits and dividends. Our responsibility to you, as a policy owner, is to make sure there is always enough money in the participating account to cover your current – and long-term – needs. To do this, we carefully monitor the participating account and adjust dividends (by changing the dividend scale) to reflect changes in the factors that affect the account, such as investment returns, operating expenses and payment of death benefits.

As you know, dividends and the dividend scale are not guaranteed. They are sensitive to changes in any of the factors that affect the participating account, but especially to changes in investment returns.

Important information about the dividend scale

Effective September 1, 2021, the dividend scale will stay the same for many participating policies and will decrease for some participating policies. It’s important to read the following information carefully because a decrease may affect the long-term values in your policy.

If you received a letter or your policy statement said your dividends are decreasing, the information in the Client Flyer link below applies to your participating policy. Additional information is also available if you have made special dividend or payment arrangements. Some examples may include:

  • Using dividends to pay premiums on the same policy (for example Premium Offset)
  • Dividends are used to pay the premiums on another policy
  • Policy receives cash equivalent of dividends from another policy to pay the premium
  • Dividends are applied to reduce an outstanding loan (principal or interest)

Where can I get more information about my participating policy?

Please refer to the Client Flyer for more information about this year’s dividend scale change. For information on the impact that a dividend scale decrease may have on participating policies, refer to this flyer. If you have questions about dividends or special payment arrangements on your participating policy, please contact your advisor or contact us at 1-888-841-6633. If you don’t have an advisor and would like to talk to one, you can use the Find an Advisor tool.