2005 News Releases

A single insurance product that covers both your current coverage needs and funds for your future retirement

Tokyo– Manulife Life Insurance Company (Head office: Chofu City, Tokyo, President & CEO: Geoff Crickmay; hereinafter “Manulife Japan”) will launch “ManuStep,” a universal life insurance product that has been developed to help people achieve their desired life after retirement in the future, nationwide from October 11.

“ManuStep” is a revolutionary universal life insurance product that Manulife Japan has developed using its abundant know-how and experience, with the aim of meeting the important needs which many customers have for funds needed after retirement*1. This product makes full use of the unique characteristics of universal life insurance, and its main feature is that in a single policy it provides a balanced combination of current coverage such as death and medical coverage, and it also provides funds that are necessary for life after retirement. Customers can tailor their desired policy combinations to suit their own needs.

Outline of “ManuStep” is as follows.

1. “StepFund (Variable Accumulation Rider)” and “Annuity Transfer Rider” are available as riders, and can be added to universal life insurance policies. The preparation for life after retirement and flexible coverage can be implemented at the same time.

Features of StepFund (Variable Accumulation Rider)

• With StepFund, premiums paid are managed in separate accounts. Based on the actual results of the management of these funds, the fluctuating deposits can be used as funds for life after retirement, and additionally this rider can be used to provide payments in the event of death or serious disease.
• With StepFund (Variable Accumulation Rider) as well as the death and medical riders, the customer can prepare for life after retirement and obtain flexible coverage at the same time.
• The ratios of the death and medical riders and StepFund can be freely set, so that the best balance can be achieved between whichever customer is currently required, and the preparation for life after retirement.
• Deposits are initially paid every month, but semi-annual, annual or lump-sum payment schemes are also available. The premium amounts of StepFund can also be changed, as required.
• The line-ups of StepFund are divided into three separate accounts, depending on investment styles. Customers can choose according to their needs.

Features of Annuity Transfer Rider (for survival benefit insurance)

• By adding a rider for transfer to pensions, the insured party will be able to receive all or part of reserves under StepFund as pension payments. The insured party may choose pension types and payment periods based on their needs.
• The insured party may add a rider for transfer to pensions after five years have elapsed from the conclusion date of StepFund.

2. The customer can flexibly review the latest death and medical coverage throughout its lifetime, depending on life-stage changes.

• The customer may review the face amounts, change the description of coverage, and/or add various riders after purchasing its policy, depending on life-stage changes.
• All family members can be covered under one policy. (Family members include spouses on the family register and third-degree relatives, who live with, or make their livelihood with, the insured party named in the master insurance policy.)

3. The customer can take advantages of a tax law that is unique to life insurance.

• The investment income from StepFund is not taxable until the policy is surrendered or such income is paid as a pension. Accordingly, efficient investment performance can be expected due to compound interest, and the longer the investment period, the greater the effectiveness of the investment.
• The cash surrender value of StepFund will be treated as transitory income when it is transferred to pensions, or surrendered. Since premiums for the death and medical coverage portions are considered necessary expenses when taxable income is calculated, purchasing necessary coverage together with a life insurance policy will be a major benefit for the policyholder.

4. Manulife Japan will support its customers throughout their lifetime after the issue of insurance policy.

• Flex Reports regarding policy details will be mailed to the customer (once a year) and other reports regarding the investment performance of StepFund will be mailed to the policyholder (biannually).

Geoff Crickmay, President & CEO of Manulife Japan, explains as follows. “Manulife Japan has achieved remarkable success in developing a highly advanced product, based on its abundant experience in overseas markets, in order to meet the real needs of its customers in Japan. By utilizing its know-how, Manulife Japan has developed and is starting to sell ManuStep. This is a product for people who try to prepare funds that are needed for their lives after retirement, and this business area is currently drawing people’s attention. Manulife Japan will market ManuStep through its primary distribution channel, PlanRight Advisors nationwide, and strongly believes that people will find this unique and advanced product to be beneficial to them.”

*1: According to the results of the “Survey on life after retirement and pension awareness” released by Manulife Japan today, 84.4% of the people surveyed think that their funds for life after retirement are insufficient, and 87.7% of them think that public pensions will not be sufficient for a happy life after retirement.

About Manulife
Manulife Life Insurance Company (“Manulife Japan”), a member company of the Manulife Financial group, holds a top-class "AA+" credit rating from Standard & Poor’s, one of the world’s most prestigious credit rating agencies(as of September 2005).

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$364 billion (US$297 billion) as at June 30, 2005.

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 or www.manulife.co.jp for Manulife Japan.

For more information, please contact:
Saeko Yoshioka
Telephone: 0424 42 7078