This insurance product called Manulife Global Indexed UL PRO targets wealthy individuals.
It offers a death benefit protection and possible investment value accumulation by fusing life insurance with investment prospects connected to key stock indices.
In this review, we’ll discuss MGIUL PRO accounts, features of the plan, and fees, among other relevant talking points.
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Manulife Global Indexed Universal Life Pro Accounts
MGIUL PRO provides five alternatives for allocation that are connected to different indices:
- S&P PRO Indexed Account: This has a buffer rate that shields against the first 20% of losses.
- S&P Performance Indexed Account: This option has a greater crediting rate.
- Nasdaq Performance Indexed Account: Tech companies are the main emphasis of this Nasdaq-100 indexed tied account.
- Blended Indexed Account: The S&P 500 and Nasdaq-100 indices are combined in this option to provide diversified exposure.
- Fixed Account: Offers daily compounding and a fixed interest rate.
Manulife Global Indexed UL Pro Features
Currently, cap rates vary from 9.25% to 12%, based on the selected index account.
Profits are augmented by guaranteed performance multipliers, such as the 15% multiplier on the S&P PRO Indexed Account.
Individuals aged 20 to 80 can purchase the coverage, which is accessible in USD, subject to certain underwriting standards and residency conditions.
Residency status, net worth, and other qualifying characteristics determine the maximum coverage, which has a minimum face value of $2 million.
From year 11, policyholders can benefit from a no-penalty withdrawal feature that lets them take out up to 5% of the policy’s value annually without lowering the face amount.
Available Riders
- Cash Value Enhancement: Boosts early cash surrender value.
- Return of Premium: Provides extra coverage in proportion to the premiums paid.
- Accelerated Benefit Rider: If you have a terminal disease, you can obtain policy funds through this rider.
- Change of Insured Rider: Makes it possible to change the insured under certain circumstances.
Other Manulife Global Indexed UL PRO Features
In order to protect policyholders from preliminary losses during bear markets, the S&P PRO Indexed Account has a guaranteed buffer of -20%.
Even if the policy’s cash surrender value hits zero, the death benefit protection feature of the life insurance plan ensures that it will still be in effect and that beneficiaries will receive the death benefit.
Typical life insurance contracts have the potential to lapse, or cease coverage, if the cash value is exhausted as a result of fees, levies, or subpar investment outcomes.
Death benefit protection guarantees that the insurance will remain in effect for as long as the necessary premiums are paid, no matter the cash value.
Manulife Global Indexed UL Policy Options
There are two choices for death benefits: Level (Option 1) and Increasing (Option 2).
Premium Option Plus enables multi-pay options and flexible premium payments.
Manulife Global Indexed UL Costs
Each premium payment has a percentage deducted for premium charges, which begin at 6% in the first year and progressively drop over time.
For the first three years, the cost of insurance price is guaranteed. After that, it may be changed but won’t go above 120% of the present rates.
Depending on the policyholder’s age, gender, smoking status, and underwriting categorization, surrender charges may be imposed if the policy is terminated early.
Is indexed universal life insurance good?
The indexed accounts that are connected to significant stock indices offer chances for cash value increase.
Premium payments are adjustable under the insurance.
It provides beneficiaries with a death benefit that guarantees their financial stability.
Offers various riders like the Cash Value Enhancement one.
Policyholders are able to take out up to 5% of the cash value of the policy each year without incurring penalties from year 11.
However, withdrawals made early could result in fees.
Citizens and/or residents of the United States, Bermuda, and Canada are not eligible for the Manulife Global Indexed UL Pro product.
Indexed accounts have cap rates that restrict maximum returns during periods of high market performance, even when they offer growth potential.
The fees related to MGIUL PRO might be high and difficult to understand.
The policy’s premium could go up over time.
The plan may expire if premium contributions are not kept up if the cash value does not increase enough amid bad market performance or excessive costs.
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