Hong Kong: Manulife launches new participating life-insurance savings plan

| 25 Apr 2024

Manulife Hong Kong has launched Genesis, a new participating life-insurance savings plan designed to help customers accelerate their long-term savings. With Genesis, customers only need to pay premiums for five years to enjoy a total internal rate of return (TIRR) of up to 4.29% at the end of the 10th policy year, and a TIRR of up to 7.19% at the end of the 100th policy year, allowing for potential wealth transfer to the next generation.

The plan also offers several first-in-market or unique features, including:

  • A withdrawal option that enables customers to receive a regular non-guaranteed income without cashing in their policy;
  • An advance benefit for designated critical and mental illnesses, and a value-added service that allows customers to transfer the policy at a designated date or age of the successive policyowner.
  • A currency switch option featuring seven currencies; and
  • A value-added service called Legacy Choice, enabling customers to transfer their wealth to future generations.

When Hongkongers are asked about their level of confidence in achieving their desired financial well-being over the next decade, they express a desire to achieve a score of 85 on a scale of 1 to 100, but they estimate that they can achieve a score of 70 only, indicating a big gap of -15 points, according to Manulife's latest Asia Care Survey.

Rising living and healthcare costs are cited as the top concern impacting their confidence.

The survey further reveals that having adequate savings for rainy days is their most common financial goal. However, other research from Manulife shows that savings insurance products rank only fourth in terms of product ownership and consideration out of ten types of financial solutions, suggesting a discrepancy between Hongkongers' financial goals and the actions they take to achieve them.

Mr Darren Thompson, Chief Product Officer of Manulife Hong Kong and Macau, said, "When it comes to saving for the future, many conventional savings insurance products are often perceived as long-term commitments that lack liquidity.”

“With saving being an essential part of one's financial planning, Manulife has developed Genesis as an innovative solution to meet short, mid and long-term financial needs. Genesis offers a flexible withdrawal option that enables customers to receive a lifetime non-guaranteed income stream, and an advance benefit that covers designated critical and mental illnesses. This makes it a great option for those who wish to have the freedom to withdraw their savings when they need it and be covered in the event of an unforeseen illness," he added, reported PR Newswire.