25 March 2025
Manulife Singapore's Signature Indexed Income Gains Strong Traction among Affluent and HNW Customers, Offering Superior Flexibility and Competitive Returns
- The Signature Indexed Income plan provides market fluctuations protection with a floor of 0% crediting rate and a floor on surrender values.
- The plan offers payouts linked to the performance of the S&P 500 Index, offering potentially higher returns compared to traditional income plans.
- Offering lifetime income payouts with unparalleled flexibility and liquidity, the plan complements existing income offerings, providing customers with additional choice for their financial portfolios.
A first-in-market innovation, Manulife Singapore’s Signature Indexed Income is reshaping 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 study1 commissioned by Manulife Singapore, 73% of HNWIs expressed a desire to purchase an indexed universal life plan that offers a monthly income payout2 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 Thomas Lee, Chief Product Officer of Manulife Singapore. "Since its introduction, we’ve observed strong interest from high-net-worth customers, and we expect this momentum to continue – demonstrating that we’ve created a solution that meets their evolving needs."
Unmatched flexibility for evolving lifestyle needs
The Signature Indexed Income plan offers unprecedented flexibility in premium payments3 and choice of when to start4 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 Account5 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.
Competitive returns with market-linked growth
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 Floor6 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 return7. This approach ensures potential for growth and security, catering to wealth planning needs of the Affluents and HNWIs.
Legacy planning for multi-generational wealth
Beyond wealth accumulation, Signature Indexed Income is designed to facilitate seamless wealth transfer. Policyholders can transfer policy ownership8, change the life insured9, 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.
"Signature Indexed Income addresses the legacy planning need by helping our clients maximise their wealth potential and ensure a smooth transition to the next generation. The product will also appeal to those who seek a balanced approach, offering growth potential, income generation, and protection," said Rena Lim, Head of High Net Worth and Financial Advisory at Manulife Singapore.
Additional benefits include:
- Hassle-free application: Guaranteed acceptance with no health questions asked.
- Whole life coverage: Assurance for loved ones with death and terminal illness coverage10.
With its strong market adoption and innovative structure, Signature Indexed Income is redefining income planning and wealth management for the Affluent and HNW segment in Singapore.
Find out more about Manulife Signature Indexed Income: https://www.manulife.com.sg/en/solutions/signature/signature/signature-income.html
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1 The data was collected via a commissioned survey conducted on behalf of Manulife Singapore in June 2024, among 130 affluent and HNW respondents in Singapore. 77% of the survey respondents are affluent individuals with Assets Under Management (AUM) ranging between SGD 150,000 and SGD 1,500,000 (“Affluents”). Additionally, 23% of the respondents are High Net Worth Individuals (HNWIs) with AUM ranging from SGD 1,500,000 to SGD 6,700,000 (equivalent to USD 1-5 million).
2 Actual monthly income payout will depend on the actual amount, timing and frequency of premium payments, Income Start Year, Net Premium Allocation, actual crediting interest, actual policy value growth, actual charges, selected Automatic Premium Spread option and any policy transactions performed. Payment of monthly income is not guaranteed, and the actual monthly income may vary from any illustrations provided from us to you.
3 You may pay premiums of any amount at any time up to age 100, within the maximum limits we set. If you have enough cash value in the policy, you may skip a premium payment or stop paying premiums entirely. You may need to pay extra premiums if the actual interest credited is lower than illustrated, if you take a loan, if you make a withdrawal, and/or if the actual policy charges and fees increase. The actual amount and frequency of premium payments will affect the policy value and, potentially, the monthly income and the death benefit, as well as how long the policy is kept in force.
4 Available income start year options depend on selected planned premium term. Income Start Year can be changed any time after policy inception up to 11 policy months before prevailing Income Start Year.
5 Fixed Account: Minimum crediting rate of 2% p.a.
Indexed Account: Crediting rate is based on the underlying index. Subject to floor and cap rates by Manulife
6 Surrender Value Floor will be payable if it is higher than the policy value less Surrender Charge less Unvested Policy Value Booster. The Surrender Value Floor only applies upon full surrender of the policy.
Surrender Value Floor is determined as the higher of:
(i) Zero; or
(ii) Total Premium Paid, less a percentage of Face Amount, less any reductions due to withdrawals and less any reductions due to terminal illness claim. The percentage of Face Amount in (ii) is 20% for the first 10 Policy Years, and will proportionately increase monthly to 40% by the end of Policy Year 30 and remain at 40% till the maturity or termination of the policy.
7 Crediting rate for Index Account is calculated based on the 1-year point-to-point performance of the underlying index, excluding dividends, subject to floor and cap rates by Manulife.
8 Transfer of policy ownership via assignment is allowed anytime while the policy is in force. The assignee must be at least 18 years old.
9 Policy owner may request to change the life insured after 2 years from the policy issue date. Acceptance of the new life insured is at Manulife’s sole and absolute discretion and will depend upon the insurability of this new life insured, as well as other terms and conditions as Manulife shall determine from time to time.
10 Death Benefit is the higher of: (a) 105% of total premiums paid, less any reductions due to withdrawals, less any reductions due to terminal illness claims, less monthly income paid; or
(b) policy value; or (c) Surrender Value Floor (SVF); less policy debt (if any).
In addition to the death benefit paid, if you have left any monthly income to accumulate with us in the Income Accumulation Account, it will also be paid out together with interest earned (if any).
Terminal illness coverage is up to age 99.
About Manulife Singapore
Serving Singapore since 1899, Manulife Singapore has progressed significantly to become a leading life insurer that provides a broad range of insurance, retirement and wealth management solutions to meet the financial needs of our customers across their various life stages. Manulife Singapore’s insurance, retirement and wealth management solutions are distributed through our own affiliated financial adviser representatives and our specialist partners, including banks and other financial advisory firms. For more information on Manulife Singapore, please visit manulife.com.sg
Media contact
Belinda Wong
Belinda_SJ_Wong@manulife.com
Zaim Zahari / Verona Koh
Manulife@aka-asia.com
