Singapore: Manulife's first-in-market plan offers superior flexibility and competitive returns

| 03 Apr 2025

Called Signature Indexed Income, this first-in-market innovation looks to reshape income planning with its unique combination of Indexed Universal Life (IUL) insurance and highly customisable income payout features.

Designed to provide market-linked returns, downside protection, and multi-generational wealth transfer, the plan is well-positioned to meet the evolving financial needs of affluent clients and HNWIs. 

In a study commissioned by Manulife Singapore, 73% of HNWIs expressed a desire to purchase an indexed universal life plan that offers a monthly income payout and flexible attributes.

In addition, 55% ranked income payout customisation as a top priority when selecting an insurance product.  

“With Signature Indexed Income, we are pioneering a solution for affluents and HNWIs seeking alternative income streams and portfolio diversification,” said Mr Thomas Lee, Chief Product Officer of Manulife Singapore.

The Signature Indexed Income plan offers unprecedented flexibility in premium payments and a choice of when to start receiving income payouts.

Policyholders can choose between single or planned annual premium payments of up to 10 years and begin receiving income payouts as early as the second policy year.

Additionally, policyholders can adjust their premium allocation between the Fixed Account and Index Account over the entire duration of their policy.

It also allows changes to the income payout start year if their circumstances change, tailoring the plan to meet specific financial goals and evolving lifestyle needs.

According to the same study, 57% of respondents ranked "protection against poor performance" and "monthly income payout" as their top priorities in an insurance product, reflecting the need for stability in volatile markets. 

With Signature Indexed Income, payouts are linked to the performance of the S&P 500 Index up to the cap rate, offering the potential for higher returns compared to traditional income plans. It also provides peace of mind with a 0% floor rate and Surrender Value Floor feature to offer cushion against market downturns.

The Automatic Premium Spread (APS) option allows spreading of premiums allocated into the Index Account over 12 months to earn a more stable return. This approach ensures potential for growth and security, catering to wealth planning needs of the affluents and HNWIs. 

Beyond wealth accumulation, Signature Indexed Income is designed to facilitate seamless wealth transfer. Policyholders can transfer policy ownership, change the life insured, and nominate their loved one as beneficiary to receive the death benefit. These provisions ensure that wealth is preserved and efficiently passed on to future generations, meeting the long-term goals of the affluents and HNWIs.