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2007 News Releases

For Immediate Release

September 26, 2007

Manulife Japan Commences Sales of “Manulife Investment–Type Annuity (Annuity Amount Step Up Type)”

Tokyo - Manulife Life Insurance Company (“Manulife Japan”; President and CEO: Geoff Crickmay) will commence sales of a new product, “Manulife Investment-Type Annuity (Annuity Amount Step Up Type),” through Nomura Securities Co., Ltd. (“Nomura”; President and CO: Nobuyuki Koga), starting September 27, 2007. This new product will be sold through the Nomura Securities Head Office and all of Nomura’s branch offices nationwide.

The most significant feature of the “Manulife Investment-Type Annuity (Annuity Amount Step Up Type)” is a step-up function that provides increased opportunities for customers to step up (increase) the total annuity amount, allowing step up to take place every year instead of every 5 years as in previous products.

The following is an overview of the key features of the “Manulife Investment-Type Annuity (Annuity Amount Step Up Type)”:

  • Customers will have the opportunity every year to step up (increase) the minimum-guaranteed amounts for both the total annuity amount and the death benefit. Once stepped up, profits from investment in the selected investment trust fund will be locked in without any reduction in the future, unless there is a policy change such as partial surrender.
  • Both the total annuity amount and the minimum death benefit at the maturity of the asset management period will be guaranteed at a minimum equivalent to 105% of the base face amount (the single premium paid).
  • Customers may select whole life benefits instead of receiving an annuity.

By offering “Manulife Investment-Type Annuity (Annuity Amount Step Up Type)” to a large customer base through Nomura’s head office and nationwide branch office network, Manulife Japan aims to increase its share of the individual variable annuity insurance market in Japan, a market which is expected to continue to grow in the future.

Key Features of “Manulife Investment-Type Annuity (Annuity Amount Step Up Type)”

Opportunity to Step Up (Increase) Minimum-Guaranteed Amounts Each Year
Every year on the policy anniversary, depending on the asset management performance, customers will have the opportunity to step up (increase) the guaranteed step-up amounts (i.e., the minimum-guaranteed amounts for both the total annuity amount and the death benefit).*1 Once stepped up, profits from investment in the selected investment trust fund will be locked in and reflected in both the annuity and death benefit without any future reduction, unless there is a policy change such as partial surrender.

Minimum Total Proceeds Guaranteed at 105% of Base Face Amount
Even if the investment performance is unfavorable, the guaranteed step-up amounts will be guaranteed at a minimum equivalent to 105% of the base face amount at the maturity of the asset management period.*2

A Variety of Methods Available for Receiving Total Proceeds
For receiving total proceeds, customers may select the method which best suits their individual needs from a variety of available methods. If the method selected is annuity payment, customers may choose a Special Account Annuity, an Annuity Certain, or a Lump Sum Payout. Customers may also select whole life death benefits instead of receiving an annuity.

In the event that the insured has passed away during the asset management period, beneficiaries may choose to receive death benefits in a lump sum payment or may choose an annuity by adding a survivor’s annuity rider.

Special Account Annuity
At the time of contract, if the Special Account Annuity feature is selected, customers will be able to enjoy not only the benefits from the continued investment of the accumulated funds during the asset management period (for 10 years), but will also have the opportunity each year to step up the total proceeds during the annuity payout period after annuitization (for 15 years).

Annuity Certain or Lump Sum Payout
If customers prefer to lock in profits from investment and receive an annuity within a shorter time period, they may select either an annuity certain (for 5 or 10 years) or a lump sum payout upon the maturity of the asset management period (10 years).

Whole Life Death Benefit Rider, Survivor’s Annuity Rider
- Whole Life Death Rider
With this Rider, instead of receiving an annuity, customers not only carry death benefits over a lifetime, but also have the opportunity to increase the total death benefits based on step-up decisions made every year on the policy anniversary, even after policy conversion to whole life benefits. Accumulated funds will be kept invested in a Special Account even after the conversion to whole life benefits.

-Survivor’s Annuity Rider
With the addition of a survivor’s annuity rider, beneficiaries can receive an annuity instead of collecting all or part of the death benefits in a lump sum.

Asset Management
This new product provides two types of investment trust funds available for investment, namely, “Nomura Index Balance 60 VA” and the traditional “My Story-Stock 25 VA”. Customers will be able to choose either of them consistent with their investment objectives and risk tolerance levels. The “Nomura Index Balance 60 VA” is aimed at aggressive investment with an asset allocation of 60% in equities, while the “My Story-Stock 25 VA” is an investment trust aimed at attaining the stable and steady growth of assets, with an asset allocation of approximately 25% in domestic and foreign equities and approximately 75% in domestic and foreign bonds.

Commencement of “Service Notifying the Achievement of Target Investment Level”
This new service allows customers the opportunity to set up at the time of contract a target level for accumulated funds that should be 120% or more of the base face amount. The service will notify each customer by mail upon the achievement of the target level so that customers will know the actual growth of their assets.

About Manulife
Manulife Life Insurance Company (“Manulife Japan”), a member company of the Manulife Financial group, holds the highest level "AAA" financial strength rating from Standard & Poor’s, one of the world’s most reliable credit rating agencies (as of the end of August 2007).

Manulife Financial is a leading Canadian-based financial services group serving millions of customers in 19 countries and territories worldwide. Operating as Manulife Financial in Canada and Asia, and primarily through John Hancock in the United States, the Company offers clients a diverse range of financial protection products and wealth management services through its extensive network of employees, agents and distribution partners. Funds under management by Manulife Financial and its subsidiaries were Cdn$410 billion (US$386 billion) as at June 30, 2007.

Manulife Financial Corporation trades as ‘MFC’ on the TSX, NYSE and PSE, and under ‘0945’ on the SEHK.

Manulife Financial Corporation trades as ‘MFC’ on the TSX, NYSE and PSE, and under ‘0945’ on the SEHK. Manulife Financial can be found on the Internet at www.manulife.com.  Manulife Japan can be found on the Internet at www.manulife.co.jp.

*1…The step up feature will be applicable until the insured’s insurance age reaches 80.
*2…Only customers who choose either “Special Account Annuity” or “Whole Life Death Benefit Rider” will be eligible for receiving the minimum-guaranteed amount equivalent to 105% of the base face amount.

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For information related to this press release please contact:

Manulife Life Insurance Company
Saeko Yoshioka
Communications Department
Tel: 042-442-7180