Term Life

Manulife eDecreasingTerm: Protecting Your Home and Loved Ones

Have you ever wondered what would happen to your family's home if something unexpected happened to you? It's a concern that many homeowners share, especially those with mortgages. That's where Manulife eDecreasingTerm comes in. This innovative insurance product is designed to give you peace of mind, ensuring that your loved ones can keep their home even if you're no longer there to provide for them. Let's dive deep into what this plan offers and how it can benefit you and your family.

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What is Manulife eDecreasingTerm?

Manulife eDecreasingTerm, also known as ManuProtect Decreasing (II) or ManuProtect Decreasing Lite (II), is a term life insurance plan specifically designed to cover your mortgage . As your mortgage balance decreases over time, so does the coverage amount of this policy. This unique feature ensures that you're only paying for the protection you need, making it a cost-effective solution for homeowners.

Key Features That Make Manulife eDecreasingTerm Stand Out

Flexible Policy Terms

Choose a policy term that matches your mortgage repayment plan. Options typically range from 5 to 30 years.

Customizable Interest Rate Options

Select from 1%, 2%, 3%, 4%, or 5% to align with your mortgage interest rate. Ensures your coverage accurately reflects your outstanding loan balance.

Guaranteed Premiums

Enjoy fixed and level premiums for the entire policy term. Helps with budgeting and financial planning.

Comprehensive Coverage

Protection against death and terminal illness. Optional add-ons for total and permanent disability and critical illness.

Joint Lives Application

Apply with your spouse or co-borrower. Enjoy a 5% premium discount for joint applications.

Easy Application Process

No health check-ups required for ManuProtect Decreasing Lite (II) for applicants aged 50 and below.

How Does Manulife eDecreasingTerm Work?

Let's break it down with a simple example:

Meet Jerry and Eve:

  • Jerry is 35 years old
  • Eve is 30 years old
  • They bought a $1 million apartment with an $800,000 mortgage
  • They choose a ManuProtect Decreasing (II) plan with:
  • Sum insured: $800,000
  • Policy term: 25 years
  • Selected interest rate: 3%
  • Daily premium: $2 (after joint lives discount)

Scenario:

At the start of Policy Year 5, Jerry is unfortunately diagnosed with a terminal illness. Here's how ManuProtect Decreasing (II) helps:

  • The policy pays out a lump sum benefit of $708,202
  • Eve can use this amount to pay off their mortgage
  • The family keeps their home, free of mortgage debt
  • The policy ceases after the payout

This example illustrates how the coverage decreases over time, aligning with the reducing mortgage balance. At the start, it covers the full $800,000, but by Year 5, it has decreased to $708,202, matching the expected outstanding loan amount.

Who Is Manulife eDecreasingTerm For?

This plan is ideal for:

  1. New homeowners with a mortgage
  1. Existing homeowners looking to refinance
  1. Couples who want joint coverage
  1. Anyone who wants to ensure their family can keep their home if something happens to them

Benefits of Choosing Manulife eDecreasingTerm

Peace of Mind

Know that your family's home is protected, even if you're not there

Cost-Effective

Pay only for the coverage you need as your mortgage balance decreases

Flexibility

Choose terms and interest rates that match your specific mortgage

Simplicity

Easy to understand and apply for, especially with the no-health-check option

Additional Protection Options

Add riders for more comprehensive coverage

Why Compare Manulife eDecreasingTerm with other Term Life Options through Whatins?

Traditional Approach

  • Limited term length options from one insurer
  • May push longer terms than needed

Whatins Advantage

  • Compare term lengths across multiple insurers
  • See how different term life insurance periods affect premiums
  • Understand renewal options across insurers
  • See competing term length justifications and determine which one is best for you

How Much Does It Cost?

The cost of Manulife eDecreasingTerm varies based on several factors:

  • Your age
  • The sum insured (typically your mortgage amount)
  • The policy term
  • The interest rate you choose
  • Whether you opt for a single or joint policy
  • Your health and lifestyle (for some applications)

In the example given, Jerry and Eve pay just $2 per day for their coverage. However, your premium may be different based on your specific circumstances.

Frequently Asked Questions

Can I change my coverage amount later?

Generally, the coverage is set at the start and decreases according to the chosen interest rate. Contact Manulife for options if your circumstances change.

What happens if I pay off my mortgage early?

The policy continues until the end of the term, providing coverage for other financial needs.

Is the payout taxable?

In Singapore, life insurance payouts are typically not taxable. However, consult a tax advisor for your specific situation.

Can I add or remove riders later?

It's best to decide on riders at the start. Contact Manulife for options to modify your policy.

What's the difference between ManuProtect Decreasing (II) and ManuProtect Decreasing Lite (II)?

The Lite version offers simplified underwriting for those 50 and under, often not requiring a health check-up.

Pros and Cons of Manulife eDecreasingTerm

Pros

  • Tailored to match your mortgage

  • Cost-effective as coverage decreases over time

  • Guaranteed premiums for easy budgeting

  • Joint application discount available

  • Optional riders for comprehensive protection

Cons

  • No cash value accumulation

  • Coverage decreases over time (though this matches the decreasing need)

  • May not be suitable if you need increasing or level coverage

Important Considerations

While Manulife eDecreasingTerm offers valuable protection, it's important to consider:

  • This is a long-term commitment
  • The policy has no cash value
  • Ensure the plan aligns with your overall financial strategy
  • Consider your future insurance needs beyond just mortgage protection

Conclusion

Manulife eDecreasingTerm offers a smart, flexible way to protect your home and loved ones. By aligning your coverage with your mortgage balance, you ensure you're not over-insured or overpaying. The peace of mind knowing your family can keep their home, even if you're not there to provide for them, is invaluable.

However, like any financial decision, it's crucial to consider your unique circumstances. While this plan offers excellent mortgage protection, it may not cover all your insurance needs. It's always wise to look at your overall financial picture and consider how this plan fits into your broader strategy.

Ready to take the next step in protecting your home and loved ones? Don't rely on just one perspective. Get expert insights tailored to your unique situation. Sign up now to receive 5 expert opinions on decreasing term life insurance. These professionals will review your specific needs and provide personalized recommendations, helping you make the most informed decision possible.

Click here to get 5 expert opinions on decreasing term life insurance

By consulting with multiple experts, you'll gain a comprehensive understanding of your options and ensure you're choosing the best coverage for your home and family. Don't leave your family's future to chance – get the expert advice you deserve today.

Remember, the best insurance is the one that gives you peace of mind and fits your specific circumstances. Whether Manulife eDecreasingTerm is right for you depends on your unique situation. By getting multiple expert opinions, you'll be well-equipped to make a decision that secures your family's future and protects the home you've worked so hard to build.

Get 5 Expert Opinions on Decreasing Term Life Insurance