Introducing a new insurance planning tool from the Tax & Estate
Planning Group: Product Compare
Are you looking for an insurance planning tool that:
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Provides a side-by-side comparison of different Manulife life insurance solutions in a way that is easy
to explain and understand
Compares different Lifecheque solutions
Supports the term conversion process by helping your clients consider alternative permanent
insurance solutions
Comparing products is easier than ever
Product Compare uses Net Present Value (NPV) and Internal Rate of Return (IRR) analysis to help your
client consider alternative insurance solutions from a cost and benefit perspective. The Product Compare
illustration:
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Compares up to four different product solutions at a time (typical requests compare three different
insurance solutions)
Allows you to select the discount rate
Includes a summary of policy benefits (cash values and death benefits)
Provides NPV and IRR analysis on one page
Comparing insurance products can be difficult, particularly since products often have qualitative differences.
For example, your client may have a need for flexibility, desire cash value or want a solution that provides
guarantees. These qualitative differences are not addressed by Product Compare but must also be
considered.
Comparisons available
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Term vs. Permanent
Permanent vs. Permanent
Quick pay vs. Pay for life
Joint vs. Single life
It is important to understand that comparisons are only as good as the assumptions used. Rate assumptions
should be reasonable when comparing different product solutions. For example, it is not reasonable to
compare an InnoVision solution assuming the minimum guaranteed rate of 1.5% to a Performax Gold
solution using a Performance Credit rate of 5.50%. While the return for one product may not equal the other,
the comparison should incorporate reasonable expectations for each product.
Requesting a Product Compare illustration
At this time Product Compare is not available on Diamond View. To request an illustration, contact your local
Manulife Representative or send an email to conceptquote@manulife.com.
Please include the following information when requesting an illustration:
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A PDF of the different Manulife product illustrations being compared
The discount rate you wish to use
The order of sequence for the product solutions
Renewal rates if we are comparing to an inforce term policy
We will provide your Product Compare illustration generally within 24 to 48 hours.
If you would like more information on Product Compare, including a sample illustration, contact your local
Manulife Representative.
Date: June 2013
The Tax & Estate Planning Group at Manulife Financial writes various publications on an ongoing basis. This team of
accountants, lawyers and insurance professionals provides specialized information about legal issues, accounting and life
insurance and their link to complex tax and estate planning solutions.
These publications are distributed on the understanding that Manulife Financial is not engaged in rendering legal, accounting
or other professional advice. If legal or other expert assistance is required, the service of a competent professional should be
sought.
This information is for Advisor use only. It is not intended for clients. This document is protected by copyright. Reproduction
is prohibited without Manulife's written permission.
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