Manulife : Everything you need to know

Manulife: Everything you need to know

  • Headquarters: 500 King Street North, Waterloo, Ontario  N2J 4C6
  • Net premiums: CA$39.1 billion (2021)
  • Retained earnings: CA$23.5 billion (2021)
  • Total assets: CA$917.6 billion (2021)
  • Size (workforce): 37,000 employees, 118,000 agents
  • Underwriting expertise: Health, life, travel, and mortgage protection insurance
  • Key people: Roy Gori (president & chief executive officer), Michael Doughty (president & CEO), Manulife Canada), Steven Finch (chief actuary), James (Jim) Gallagher (general counsel), Marianne Harrison (president & CEO, John Hancock), Scott Hartz (chief investment officer), Rahim Hirji (chief risk officer), Naveed Irshad (global head of inforce management), Rahul Joshi (chief operations officer), Pamela Kimmet (chief human resources officer), Karen Leggett (chief marketing officer), Paul Lorentz (president & CEO, Global Wealth and Asset Management), Anil Wadhwani (president & CEO, Manulife Asia), Shamus Weiland (chief information officer), Philip Witherington (chief financial officer)

Pros

  • Offers term plans designed for families
  • Approval even without medical underwriting
  • Rewards program that allows clients to save on premiums and earn points
  • Provides a fully digital fulfillment process
  • Competitively priced permanent life insurance offerings

Cons

  • Has limited term options
  • Delays in underwriting process, even in non-medical applications
  • Term life insurance products are more expensive compared to those of competitors

Manulife Canada life insurance offerings

Term life insurance

Coverage plan

Features and benefits

CoverMe term life insurance

  • Beneficiaries receive a tax-free, lump-sum payout
  • Rates are guaranteed to stay the same for the full 10-year term
  • Renewable up to age 85 with no medical exam or questionnaire required
  • 30-day money-back guarantee
  • One-time cash advance to a maximum of CA$100,000 or up to 50% of coverage for policyholders with a terminal illness diagnosis and less than 12 months to live

Family Term

  • CA$100,000 to CA$20 million coverage options
  • 10 years, 20 years, to age 65, or for life term length options
  • Up to CA$1,000 coverage for family’s bereavement counselling costs
  • Cash advance if diagnosed with a terminal illness

Optional add-ons:

  • Protection in case of serious injuries or accidental death
  • Waive premium payments if disabled
  • Guarantee future eligibility for life insurance
  • Guarantee that children can get their own life insurance in the future, regardless of their health condition

Business Term

  • 10 years, 20 years, to age 65, or for life term length options
  • Up to CA$1,000 coverage for family’s bereavement counselling costs
  • Cash advance if diagnosed with a terminal illness
  • CA$100,000 to CA$20 million coverage options
  • Lower premiums when combining protection for two or more people in one policy
  • Option to boost insurance as the business grows without medical evidence or business valuations

Optional add-ons:

  • Waive premium payments if disabled
  • Guarantee future eligibility for life insurance

Family Term with Vitality

  • Beneficiaries receive a tax-free, lump-sum payout
  • CA$500,000 to CA$20 million coverage options
  • 10 or 20 years, renewable to age 80, or to age 65, or 100 term length options

Optional add-ons:

  • Protection in case of serious injuries or accidental death
  • Waive premium payments if disabled
  • Guarantee future eligibility for life insurance
  • Position children to get their own life insurance and critical illness insurance in the future

 

Permanent life insurance

 

Coverage plan

Features and benefits

Manulife Par whole life insurance

  • Coverage starts at CA$100,000
  • No policy fees
  • Guaranteed payment duration for 10 or 20 years
  • Single life or joint last-to-die coverage options

Performax Gold whole life insurance

  • Coverage amount starts at CA$25,000
  • Spread out cost of insurance to age 100 or pay them all in 15 years

Optional add-ons

  • Option to add term life insurance
  • Waive premiums payments if disabled, subject to certain conditions
  • Guarantee future eligibility for life insurance
  • Protect children and guarantee their future life insurance coverage

 

Universal life insurance

Coverage plan

Features and benefits

InnoVision

  • Coverage starts at CA$100,000
  • Choose from more than 50 investment accounts
  • Loyalty bonus or lower management fees on investment accounts reward option
  • Guaranteed insurance premiums, subject to certain conditions
  • Guaranteed minimum interest investment accounts

Optional add-ons:

  • Invest with tax advantages
  • Add term life insurance
  • Get protection in case of accidental death
  • Protect benefit from inflation
  • Skip premium payments if disabled, subject to certain conditions
  • Guarantee future eligibility for more life insurance, including as a business owner based on the growth of the business
  • Protect the policyholder’s children and guarantee that they can get life insurance in the future, regardless of their health condition

Security UL

  • Coverage starts at CA$50,000
  • Option of guaranteed minimum interest rates or linking the policy’s growth to the equity markets

Optional add-ons:

  • Add term life insurance
  • Waive payments if disabled
  • Guarantee future eligibility for more life insurance, including as a business owner based on the growth of the business
  • Protect the policyholder’s children and guarantee that they can get life insurance in the future, regardless of their health condition

Manulife UL

  • Coverage starts at CA$50,000 or CA$100,000
  • Wide range of investment account options or one investment account linked to the Performax Gold Investment Fund
  • Low management fee structure
  • Guaranteed rate enhancement on managed accounts
  • Guaranteed premium for a shorter, guaranteed period

2021 life insurance customer satisfaction rating
Better Business Bureau (BBB): B rating
InsurEye: 2.3 stars out of 5 stars

Manulife Canada health insurance offerings

Health & dental insurance

Flexcare health & dental insurance plan details

Coverage plan

Prescription drugs

Dental

Vision care

Extended health care

DrugPlus Basic

CA$5,000

Not covered

CA$250/2 years

CA$250,000 lifetime maximum

DrugPlus Enhanced

CA$10,000

Not covered

CA$250/2 years

CA$250,000 lifetime maximum

DentalPlus Basic

Not covered

Year 1: CA$575/year

Year 2: CA$750/year

CA$250/2 years

CA$250,000 lifetime maximum

DentalPlus Enhanced

Not covered

Year 1: CA$840/year

Year 2: CA$920/year

CA$250/2 years

CA$250,000 lifetime maximum

ComboPlus Starter

CA$525

CA$400

CA$150/2 years

CA$250,000 lifetime maximum

ComboPlus Basic

CA$5,000

CA$750

CA$250/2 years

CA$250,000 lifetime maximum

ComboPlus Enhanced

CA$10,000

CA$920

 CA$250/2 years

CA$250,000 lifetime maximum

FollowMe health & dental insurance plan details

Plan

Prescription drugs

Dental

Extended health care

Basic

CA$500/year

Not covered

No lifetime maximums

Enhanced

CA$1,300/year

Not covered

No lifetime maximums

EnhancedPlus

CA$1,300/year

Year 1: CA$700/year

Year 2: CA$850/year

Year 3+: CA$1,000/year

No lifetime maximums

Premiere

CA$2,600/year

Year 1: CA$800/year

Year 2: CA$1,000/year

Year 3+: CA$1,500/year

No lifetime maximums

               

 

Disability insurance

Coverage plan

Features and benefits

Proguard Series disability insurance

  • Income replacement if a disability prevents the policyholder from doing their regular occupation
  • Partial or residual benefits if the policyholder continues working in a limited capacity
  • Automatic 5% increase every year to the policy amount
  • Financial flexibility if the policyholder is severely disabled, such as loss of sight or hearing, with 25% higher benefits
  • Option to exchange the policy for a Manulife long-term care insurance policy

Optional add-ons:

  • Premium reimbursement every eight years if there are few or no claims
  • Adjustment of benefit amount according to the Consumer Price Index (CPI)
  • Option to change career while receiving disability income from your policy
  • Option to purchase additional insurance as income grows, without the need for medical evidence
  • Protection for health care professionals practicing invasive procedures

Venture Series disability insurance

  • Income replacement if a disability prevents the policyholder from doing their regular occupation
  • Automatic 3% increase every year to the policy amount
  • Option to exchange the policy for a Manulife long-term care insurance policy

Optional add-ons:

  • Premium reimbursement every eight years if there are few or no claims
  • Adjustment of monthly benefit according to the CPI
  • Option to change career while receiving disability income from your policy
  • Receive partial or residual benefits if the policyholder continues working in a limited capacity
  • Option to purchase additional insurance as income grows, without the need for medical evidence

Personal accident disability insurance

  • Monthly benefit if an accident leaves the policyholder disabled and unable to perform a regular job or day-to-day activities
  • Daily benefit if hospitalized due to accident or sickness

 

Critical illness insurance

Coverage plan

Features and benefits

Lifecheque critical illness insurance

  • Tax-free, lump-sum benefit after satisfying any applicable waiting period if diagnosed with covered critical illness
  • Partial benefit of 25% or payout up to CA$50,000 if diagnosed with covered early intervention conditions
  • Monthly care benefit if the policyholder satisfies the criteria for functional dependence and needs long-term care

Optional add-ons:

  • Get eligible premiums back if the insured surrenders their policy early, the policy expires, or they die without making a claim
  • Protect their children and provide them with the opportunity to get their own critical illness insurance when they turn 21, without medical underwriting
  • Waive premiums if totally disabled

CoverMe critical illness insurance

  • Tax-free, lump-sum benefit after being diagnosed with a covered condition and meeting any applicable waiting period requirements
  • Option to get 100% of premiums back when the insured turns 75 and did not make any claim during the life of the policy

Lifecheque Basic critical illness insurance

  • Tax-free, lump-sum benefit after being diagnosed with a covered condition and meeting any applicable waiting period requirements
  • Coverage options: CA$25,000, CA$50,000, or CA$75,000 for those aged 18 to 55; CA$25,000 or CA$50,000 those aged 56 to 60; CA$25,000 for those aged 61 to 65
  • Option to get 100% of premiums back when the insured turns 75 and did not make any claim during the life of the policy

 

About

Manulife Financial Corporation is a financial services and insurance provider based in Toronto. The company operates as Manulife across its offices in Canada, Asia, and Europe, and as John Hancock in the US. Among its insurance and annuity products are individual life insurance, individual and group long-term care insurance, and guaranteed and partially guaranteed annuity products.

The firm also has a global wealth and asset management arm, Manulife Investment Management, which serves individuals, institutions, and retirement plan members worldwide. At the end of 2020, Manulife has more than 37,000 employees and 118,000 agents, and thousands of distribution partners worldwide, serving more than 30 customers.

As of June 30, 2021, Manulife boasts about CA$1.3 trillion in assets under management and administration and has made CA$31.3 billion in payments to its clients in the past 12 months. The company trades under MFC on the Toronto, New York, and Philippine Stock Exchanges, and under 945 on the Hong Kong Stock Exchange.

History

Manulife was founded as Manufacturers Life Insurance Company Inc. by Canada’s first prime minister Sir John A. MacDonald in 1887. He also served as the company’s first president. The firm experienced immediate success, mostly because of the work done by its first managing director, J.B. Carlile, who established strong relationships with independent sales agencies in Ontario, Québec, Nova Scotia, and Manitoba. By the time the company held its first annual meeting in 1888 – almost six months after its incorporation – it had sold 915 policies worth CA$2.5 million in insurance coverage, earning the nickname “The Young Canadian Giant” from the national press.

In 1893, the company kicked off its international expansion with the establishment of a Bermuda agency. It then expanded its operations in the British West Indies, Jamaica, and Trinidad in 1894 and marked its Asian expansion in Shanghai, China in 1897. This was followed by its entry to the US and the UK markets, opening branches in Detroit and London in 1903. Manufacturers Life continued its international growth and by 1932, half of the company’s operations were run overseas. During that time, the firm has sold CA$542 million worth of insurance policies in 35 countries since its inception.

Continued growth

The company continued to grow and in 1959, its insurance coverage breached the CA$3 billion mark. Manufacturers Life reached CA$1 billion in assets in 1961 and had two consecutive years with more than CA$1 billion in new businesses in 1967 and 1968.

Long-time employee Sydney Jackson ascended to the role of president and chief executive officer in 1972, which marked a crucial turning point for the company. Under his leadership, the firm adopted a less risk-averse business approach that led to increased levels of sales and innovation. In 1984, the company acquired Dominion Life Assurance Company, the 11th largest life insurance company in Canada at that time, with CA$1.5 billion in assets. The deal made Manufacturers Life the largest life insurer in the country with assets climbing from CA$2 billion in 1972 to CA$16.4 billion in 1985. It was during this time that the company began to diversify into other financial areas.

Change to Manulife

As it worked to diversify its business, the company decided to change its name to Manulife Financial to better reflect its wider range of products and services. Manulife made a brief foray into the banking sector in 1993 by acquiring the Regional Trust Company, Cabot Trust, and Huronia Trust and combining them to form Manulife Bank of Canada. However, Manulife sold all the physical branches of its banking arm to Laurentian Bank in 1994.

In 1996, the North American Life Assurance Company amalgamated with Manulife Financial when its real estate portfolio ran into trouble. With this transaction, Manulife acquired ownership of mutual funds company, Elliot & Page Limited, and ventured into the mutual fund business, renaming the new subsidiary Manulife Financial Asset Management Limited.

Going public

Manulife’s management decided to go public in 1999 in a bid to gain better access to capital markets. During this time, the company’s existing policyholders received shares valued at CA$18 each. The transaction, which was worth CA$2.5 billion, also became the largest initial public offering in Canada. The following year, Manulife reached CA$1 billion in net income becoming the first Canadian life insurance provider to achieve the feat.

In 2004, Manulife merged with John Hancock. Apart from being the largest life insurer in the country, the deal made the company the second-largest life insurance provider in North America and the fifth largest in the world. The company continued in its expansion and in 2017, its global assets under management and administration breached CA$1 trillion for the first time.

Diversity and inclusion

In 2020, Manulife and John Hancock announced more than CA$3.5 million in investment over the next two years in initiatives that will help promote diversity, equity, and inclusion in the workplace and the communities they serve. The company also announced the establishment of leadership and recruitment goals to increase the representation of Black, Indigenous, and People of Colour (BIPOC) across its North American businesses.

It was also during this year that Manulife transitioned 98% of its global workforce to remote work as the COVID-19 pandemic raged on. And thanks to its investments in digital initiatives, the company was able to remain fully connected with its nearly 100,000 agents while supporting millions of customers.

Sustainability strategy

Manulife is actively incorporating climate change considerations into its decision making, including in the management of operations, investment decisions, and development and sale of products and services.

The four pillars of Manulife’s sustainability strategy are: reducing the impact of its operations on the physical environment and investing in initiatives supporting the transition to a lower-carbon economy; investing in the health and wellbeing of its employees and continuing to build a diverse and inclusive workplace; managing the company’s ESG risks and opportunities to benefit its customers, shareholders, and employees, and operating ethically; and creating measurable social impact by investing in the health and wellbeing of the communities it serves.

 

Manulife : In the news