Endowment

Manulife ReadyPayout Plus: Your Slice of Savings for Life's Journey

Have you ever wished for a savings plan that gives you regular payouts while still growing your money? If so, Manulife's ReadyPayout Plus might be just what you're looking for. This unique endowment plan offers a blend of guaranteed cash benefits, potential growth, and insurance protection . Let's dive deep into what ReadyPayout Plus offers and how it can help you achieve your financial goals.

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What is Manulife ReadyPayout Plus?

ReadyPayout Plus is an endowment plan designed to provide you with regular guaranteed cash benefits while also offering insurance coverage . It's like having a savings account that pays you every year, with the added benefit of life insurance protection. This plan is ideal for those who want to save for specific goals while maintaining financial flexibility.

Key Features of ReadyPayout Plus

Guaranteed Annual Payouts

Receive a guaranteed cash benefit every year. The payout increases from 2% to 10% of your sum insured over the policy term.

Flexibility in Premium and Policy Terms

Choose a premium payment term of 10, 15, or 20 years. Select a policy term of 13, 15, or 20 years.

Insurance Coverage

Protection against death and terminal illness.

Option to Accumulate

You can choose to withdraw your annual payouts or let them accumulate at a non-guaranteed interest rate of 3% per annum.

Waiver of Future Premiums

If you suffer total and permanent disability during the premium payment term, your future premiums will be waived.

No Health Check-up Required

Guaranteed acceptance with no health questions asked.

Optional Add-ons

Enhance your protection with riders for critical illness, death, or total and permanent disability.

How Does ReadyPayout Plus Work?

Total Benefits:

  • Total Guaranteed Cash Benefits: S$21,000
  • Total Maturity Benefit: S$35,375
  • Total Benefits Received: S$56,375

This means Peggy receives 132% of her total premiums paid (S$42,520)!

Bonus: If Peggy chooses to accumulate her yearly guaranteed cash benefits at the non-guaranteed interest rate of 3% per annum, she could receive an additional S$3,594.

Years 1-5

Peggy receives a guaranteed cash benefit of S$600 yearly (2% of sum insured)

Years 6-10

The guaranteed cash benefit increases to S$1,200 yearly (4% of sum insured). Peggy finishes paying her premiums at the end of Year 10.

Years 11-14

The guaranteed cash benefit increases to S$3,000 yearly (10% of sum insured)

Year 15 (Maturity)

Peggy receives a total maturity benefit of S$35,375 (Guaranteed: S$22,800, Non-guaranteed: S$12,575)

Understanding the Numbers

It's important to note that the non-guaranteed benefits are based on an illustrated investment rate of return of 4.75% per annum. If the investment rate of return is lower at 3.25% per annum:

  • Non-guaranteed maturity benefit would be: S$6,246
  • Total Maturity Benefit: S$29,046
  • Total Benefits Received: S$50,046 (117% of total premiums paid)
  • Additional amount upon accumulation of guaranteed cash benefits: S$1,705 (at a non-guaranteed interest rate of 1.5% p.a.)

Pros and Cons of ReadyPayout Plus

Pros

  • Guaranteed annual payouts that increase over time

  • Flexibility in premium payment and policy terms

  • No health check-up required for application

  • Option to accumulate payouts at a potentially attractive interest rate

  • Insurance coverage included

  • Premium waiver benefit in case of total and permanent disability

Cons

  • Long-term commitment required

  • Non-guaranteed benefits depend on investment performance

  • May not provide as high returns as some other investment options

Why Compare ManuRegular Payout Plus with other Endowment Options through Whatins?

Traditional Approach

  • Only see one company's projected returns
  • May push higher projections without context
  • Limited comparison of guaranteed amounts

Whatins Advantage

  • Compare guaranteed returns across insurers
  • See how different companies project returns
  • Get multiple views on bonus rate histories
  • Understand different payout structures

Who Is ReadyPayout Plus Suitable For?

  • Young adults starting to save for future goals

  • Parents saving for their children's education

  • Individuals looking for a regular income stream in the future

  • Those who want a savings plan with built-in life insurance

  • People who prefer guaranteed returns with some potential for higher gains

Frequently Asked Questions

Can I change my mind after purchasing the policy?

There's typically a free-look period (usually 14 days) during which you can cancel the policy for a full refund.

What happens if I need to surrender the policy early?

Early surrender may result in significant costs, and you may receive less than the total premiums paid.

Are the annual payouts taxable?

In Singapore, life insurance proceeds are generally not taxable. However, it's best to consult a tax advisor for your specific situation.

Can I increase my coverage later?

You may be able to add riders to increase your coverage. Speak with a Manulife Financial Consultant for options.

What happens if I miss a premium payment?

There's usually a grace period for premium payments. If you miss payments beyond this period, your policy may lapse.

Additional Benefits: Manulife MOVE

As a nice bonus, Manulife offers a program called Manulife MOVE. With this program, you can earn S$50 cashback every 6 months when you hit an average of 10,000 steps daily . This encourages you to stay healthy while saving money!

Important Considerations

Before deciding on ReadyPayout Plus, consider:

  1. Your long-term financial goals
  1. Your budget and ability to commit to the premium payments
  1. Your need for insurance coverage
  1. Your risk tolerance (remember, part of the benefits are non-guaranteed)
  1. Other savings and investment options available to you

Conclusion

Manulife ReadyPayout Plus offers a unique combination of guaranteed payouts, potential for growth, and insurance protection . It's designed for those who want the security of regular cash benefits along with the possibility of higher returns. However, like any financial product, it's important to carefully consider your personal circumstances and long-term goals before making a decision.

Remember, while the guaranteed benefits provide a safety net, the non-guaranteed portions depend on investment performance. It's always wise to plan for different scenarios and not rely solely on the illustrated figures.

Ready to explore if ReadyPayout Plus is right for you? Don't just take our word for it. Get personalized advice from multiple experts to ensure you're making the best decision for your financial future.

Click here to get 5 expert opinions on savings and endowment plans

By consulting with multiple financial advisors, you'll gain a comprehensive understanding of how ReadyPayout Plus fits into your overall financial strategy. Make an informed decision and take the next step towards a more secure financial future today!