LifeReady Plus (II) with Critical Illness Coverage: Product Overview

LifeReady Plus (II), offered by Manulife (Singapore) Pte. Ltd., is a regular premium participating whole life insurance plan designed to provide lifelong coverage for death, terminal illness (TI), and total and permanent disability (TPD). As a participating policy, it allows the policyholder to benefit from the performance of Manulife’s participating fund through non-guaranteed bonuses, although these returns are not guaranteed. The product offers flexibility in premium payment terms, allowing payments over 10, 15, 20, 25 years, or until age 99. A key feature is the optional Life Benefit Multiplier (III) rider, which can enhance basic coverage by factors of 2x to 5x up to a selected expiry age, though this rider itself has no cash value and does not participate in fund performance. The product also includes a Guaranteed Insurable Option on life events, offering future flexibility without additional underwriting.

How it compares

When evaluated against similar whole life products for a 35-year-old male non-smoker with a $100,000 sum assured, LifeReady Plus (II) presents distinct cost and return profiles compared to its peers.

Premium Costs LifeReady Plus (II) carries an annual premium of $5,455 for a 21-to-25-year payment term. This places it in the mid-range regarding cost. It is significantly more expensive than Complete Life Secure (100%) (With DD) by Income Insurance Limited ($2,855) and China Life Multiplier Guardian (1x Multiplier) by China Life Insurance (Singapore) Pte. Ltd. ($3,214). However, it is notably cheaper than Essential whole life cover with CI by Etiqa Insurance Pte. Ltd., which requires a premium of $9,230 for a much shorter 2-to-5-year payment term.

Surrender Values and Returns At year 20, the projected surrender value per $100,000 sum assured for LifeReady Plus (II) is $17,500. This is slightly higher than Complete Life Secure ($17,000) but substantially lower than Essential whole life cover with CI ($26,300). It is also significantly higher than China Life Multiplier Guardian ($9,170).

Regarding investment performance, the illustration rates for LifeReady Plus (II) are set at 3.00% / 4.25% p.a. The product’s Par-fund net investment return stands at 3.63% over 3 years, with data unavailable for 5 and 10-year periods. In comparison, Complete Life Secure reports a 5-year net return of 1.58% and a 10-year return of 4.04%, while China Life Multiplier Guardian shows a 5-year return of 2.36%. Essential whole life cover with CI has a negative 5-year net return of -0.40% but improves to 1.92% at 10 years.

Expenses and Features The Total Expense Ratio (TER) for LifeReady Plus (II) is 2.40% over 5 years. This is higher than Complete Life Secure’s TER of 0.94% but lower than China Life Multiplier Guardian’s 3.31% and Essential whole life cover with CI’s 2.25%. Notably, LifeReady Plus (II) includes a Sum Assured Multiplier feature and a Guaranteed Insurable Option, features not explicitly highlighted in the comparable peer data for these specific metrics.

Pros

• Strong Insurer Rating: Backed by Manulife’s high credit ratings (AA- by S&P/Fitch, A1 by Moody’s), providing confidence in long-term stability.
• Coverage Flexibility: Offers multiple premium payment terms (10 to 25 years or to age 99) and an optional Life Benefit Multiplier rider for enhanced early coverage.
• Guaranteed Insurability: Includes a Guaranteed Insurable Option on life events, allowing future top-ups without new medical underwriting.
• Competitive Mid-Range Premium: While not the cheapest, its premium is lower than some competitors offering shorter payment terms or higher initial cash values.

Cons

• Limited Return Data: Net investment return data is only available for 3 years (3.63%), with no 5-year or 10-year figures provided, making long-term performance assessment difficult compared to peers like Complete Life Secure.
• Higher Expenses than Budget Options: The TER of 2.40% is higher than Income Insurance’s Complete Life Secure (0.94%).
• Lower Early Surrender Value: Compared to Essential whole life cover with CI, the year-20 surrender value is significantly lower ($17,500 vs $26,300).
• Non-Guaranteed Returns: Like all participating policies, a portion of the benefits depends on non-guaranteed bonuses, introducing uncertainty.

Who it may suit

LifeReady Plus (II) may suit consumers seeking a balanced whole life plan from a highly-rated insurer who value the flexibility of premium payment terms and the option to multiply coverage early in the policy term. It is particularly relevant for those who prioritize the Guaranteed Insurable Option for future needs. However, budget-conscious buyers looking for the lowest premiums might prefer Income Insurance’s Complete Life Secure, while those seeking higher immediate cash accumulation over a short payment period might consider Etiqa’s Essential whole life cover with CI.

This is general information based on CompareFIRST.sg data, not financial advice. Premiums and features can change; please verify with the insurer or a MAS-licensed financial adviser before making any decision.