Manulife LifeReady Plus II is a whole life insurance policy offering flexible premium terms, critical illness coverage, and strong participating fund performance. Ideal for comprehensive long-term protection, but higher premiums and stringent TPD coverage may not suit everyone.
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While offering extensive benefits, the overall price is higher compared to some other options in the market.
The policy has solid growth prospects with a robust participating fund that has historically performed well.
Manulife LifeReady Plus II offers comprehensive features including critical illness coverage, multiplier options, and various riders for enhanced protection.
- Offers substantial coverage options and flexibility, making it a good value for the comprehensive protection it provides.
- The fund has shown strong performance, indicating good management and potential for favorable returns.
- Extensive coverage including critical illness, TPD, and options for multiplier effects up to 5X the base sum assured.
- It is one of the more expensive options available, which might not be feasible for everyone's budget.
- The strict definitions used for TPD may restrict accessibility to benefits for some policyholders.
VERDICT:
Manulife LifeReady Plus II stands out for its comprehensive coverage options and robust participating fund performance, making it an excellent choice for those seeking extensive protection and potential growth of their premiums.
However, its higher price tag and the stringent conditions for TPD coverage may not align with everyone’s needs or financial circumstances.
This policy is ideal for individuals looking for a feature-rich insurance solution and who are comfortable with a higher investment for more substantial benefits.
Overall, it provides strong value for money, considering the extensive protection and potential returns on the participating fund.
What we like about the Manulife LifeReady Plus II
Multiplier Options
One of the standout features of the Manulife LifeReady Plus II policy is its flexible multiplier options.
This allows you to enhance your basic coverage by up to 5 times, offering solid protection at a crucial stage of life when it’s most needed.
- You can choose a multiplier factor ranging from 1X to 5X.
- The coverage can be maintained up to age 70 or 80, depending on your choice.
- Having this flexibility is great because it gives you control over how much coverage you want, particularly when you’re young and may have dependents or a mortgage to worry about.
- It also includes a Retrenchment Benefit, which waives future premiums for six months if you or your spouse lose your job and remain unemployed for 30 days.
This feature gives me peace of mind, knowing that I can upsize my coverage when I need it the most, yet have the option to reduce it later on as my responsibilities lessen.
Participating Fund Performance
A strong Participating Fund is crucial for any policy that aims to give policyholders a mix of guaranteed and non-guaranteed returns.
I like the Manulife LifeReady Plus II because its participating fund has demonstrated solid performance over the years.
- The fund achieved a return of 8.6% in 2020, which is pretty respectable.
- Over the past few years, the investment returns were 11.9% in 2019 and -1.2% in 2018.
- Even though the expense ratio is on the higher side, averaging around 1.9%, the returns have still been solid enough to generate decent profits for participating policyholders.
While I know there’s always a level of risk involved in these funds, I appreciate the track record that gives me some confidence that my premiums are being invested wisely.
The reversionary bonuses also help in increasing the overall cash value and death benefit over time.
Critical Illness Coverage + Conditions
The Critical Illness Coverage offered under the LifeReady Plus II is comprehensive, which is a significant plus point for me.
When it comes to protecting against major health events, this policy ticks a lot of boxes.
- It covers a wide range of 125 critical illnesses across different stages—early, intermediate, advanced, and extended stages.
- The Early Critical Care Rider (III) is designed to offer enhanced protection with a payout for ICU stays (20% of the sum insured or $25,000, whichever is lower, for ICU stays over 4 days).
- Additionally, the Critical Care Rider (III) provides coverage for 37 severe-stage illnesses and 20 extended advanced-stage conditions.
I find it reassuring that this policy offers not only extensive coverage but also early-stage protection, which is a critical feature in safeguarding financial stability during unexpected health issues.
The ICU benefit is also a nice touch, providing an extra layer of security for longer hospitalisations.
Retrenchment Benefit
The Retrenchment Benefit offered under the Manulife LifeReady Plus II policy is a thoughtful addition, especially in today’s uncertain economic climate.
It provides financial relief if you or your spouse lose your job and remain unemployed for a period of time.
- If you or your spouse is retrenched and unemployed for 30 days, the policy waives six months of future premiums.
- This ensures that your life coverage remains intact during difficult times, giving you one less thing to worry about while you find your footing again.
I like this feature because it offers a safety net during times of financial stress.
Life doesn’t always go as planned, and having your premiums waived for a significant period can provide some breathing space, especially if you’re already facing a loss of income.
Guaranteed Insurability Option
The Guaranteed Insurability Option is another aspect of the LifeReady Plus II policy that stands out to me.
It allows you to upgrade your coverage without needing to undergo medical underwriting at certain key life events, which is incredibly useful.
- You can opt for increased coverage when you hit major life milestones like marriage, childbirth, or even when you buy a new property.
- No need for additional medical check-ups, which is a huge plus, especially as health conditions may change over time, potentially making it harder to qualify for more coverage later.
This is a valuable feature for anyone looking to plan ahead and stay financially secure as life circumstances evolve.
It’s also particularly beneficial for individuals who may develop health issues later, but still need to increase their coverage as their responsibilities grow.
Financial Flexibility Option
The Financial Flexibility Option offered by the LifeReady Plus II policy is all about providing control over your policy’s cash value, which is something I highly appreciate.
- At age 70 or 80, you can choose to convert your policy’s cash value into annual payouts for a period of 10 years.
- This effectively turns your policy into a supplementary income stream during retirement, giving you the flexibility to use the accumulated cash when you need it most.
I like this feature because it recognises that our financial needs change as we age.
Instead of being tied down to a fixed benefit, having the option to draw from the policy’s cash value over a decade can be a useful way to supplement retirement income or cover unexpected expenses.
It’s a smart way to maximise the value of your policy beyond its basic life coverage.
What we think the Manulife LifeReady Plus II could do better
Coverage for Total & Permanent Disability (TPD)
The Coverage for Total & Permanent Disability (TPD) in the Manulife LifeReady Plus II policy has some aspects that are less appealing, particularly regarding its stringent definitions and limitations.
- The policy defines TPD more strictly for older policyholders, particularly those aged 65 to 70, where the inability to perform three out of six Activities of Daily Living (ADLs) qualifies as TPD.
- This definition can be restrictive as it requires a more severe level of disability before the policyholder can benefit from the TPD cover, potentially leaving those who are moderately but significantly disabled without coverage.
I find this feature limiting because it may not provide the needed protection at a critical time, especially for older adults who are more susceptible to disabilities but might not meet the strict criteria set by the policy.
Not the Cheapest Option
While the Manulife LifeReady Plus II offers a range of benefits, it’s important to note that it is not the cheapest option available in the market.
- The premiums are relatively higher compared to some other whole life insurance products, which can be a significant consideration, especially for those managing a tight budget.
- The policy’s higher cost could be attributed to the extensive features and benefits it offers, which, while comprehensive, might make it less accessible to individuals looking for basic coverage or those with limited financial resources.
I’m not keen on this because, while the policy does offer a lot of benefits, the higher cost might not justify the investment for everyone, particularly for those who are price sensitive or are looking for more economical insurance solutions.
The higher premium might not fit everyone’s financial plan, especially for those prioritizing affordability in their insurance coverage.
Better alternatives to the Manulife LifeReady Plus II
NTUC Income Star Secure Pro
The NTUC Income Star Secure Pro stands out as a solid alternative for a few key reasons:
- Comprehensive Coverage: This policy goes beyond the basics by incorporating accidental death coverage within the standard plan, a feature that’s not universally offered across other whole life policies.
- Advanced Critical Illness Protection: With the Advance Secure Accelerator rider, this policy uniquely covers future unknown diseases, providing a forward-thinking approach to health coverage that anticipates the evolving nature of medical conditions.
- Economic Relief: The policy includes a premium waiver benefit, which is exceptionally beneficial during times of economic hardship, such as retrenchment, offering financial relief by waiving premiums while also providing a 24-month lump sum payout under certain conditions.
HSBC Life’s Life Treasure II
HSBC Life’s Life Treasure II offers advantages particularly in terms of disability definitions and flexibility:
- Lenient TPD Definition: This policy provides one of the most accommodating definitions for Total & Permanent Disability (TPD), covering policyholders from ages 16 to 70 with the criteria being the inability to perform just 2 Activities of Daily Living (ADLs).
- Disability Cash Benefits: It includes a rider that offers an annual cash benefit if the policyholder suffers from TPD, enhancing financial security significantly for the insured and their family.
- Extensive Critical Illness Coverage: The policy covers a whopping 162 conditions, including advanced stage diagnoses for common illnesses, which is augmented by an additional 50% coverage, making it a standout choice for those seeking comprehensive health protection.
Singlife Whole Life
Singlife Whole Life (formerly Aviva MyWholeLifePlan IV) has features that make it a compelling alternative, particularly in terms of investment returns and flexibility:
- Superior Investment Returns: This plan offers the highest guaranteed returns among its competitors, with a projected Return on Investment (ROI) of 130.44%, which is attractive to those looking to maximize their policy’s cash value.
- Premium Flexibility: It offers diverse premium payment options, including single, 10, 15, 20, or 25 years, or until age 65, providing significant flexibility to cater to a variety of financial situations and goals.
- Guaranteed and Non-Guaranteed Benefits: Singlife’s strong investment component ensures a high guaranteed surrender value, which is complemented by robust non-guaranteed returns, appealing to policyholders looking for a balance between fixed benefits and potential earnings from their life insurance investment.
Let Us Compare Policies For You
When you’re considering whole life insurance plans, it’s crucial to understand that you’re paying extra for the participating fund performance, as opposed to term life insurance.
This fund performance is a key component of what makes your investment worthwhile over the long term.
Additionally, the multiplier option in a whole life policy is vital; it helps determine the amount of death coverage you need and for how long.
As you age, your liabilities typically decrease, but you’ll want to ensure you are sufficiently covered during your younger years when financial responsibilities are likely heavier.
If you’re using a whole life policy for Early Critical Illness (ECI) or Critical Illness (CI) coverage, knowing the number of conditions covered, their definitions, and the payout amounts is crucial.
Also, understanding the available riders can save you money in the long run.
Price is another essential factor to consider; whole life policies are generally more expensive, so you must ensure you’re spending an amount you can comfortably afford for many years, while getting as comprehensive coverage as possible.
Remember, a policy that’s ideal for one goal might not suit someone with different objectives.
This is why it’s important to understand deeply what you’re purchasing.
Our partners are trained and experienced in the industry, and they can help you navigate these complexities.
We offer a free, non-obligatory comparison session to help you compare policies, ensuring they match your current situation and future goals.
We also assist you in obtaining quotes to compare, making the process simpler and tailored just for you.