2009 News Releases

Taiwan - Manulife Taiwan launched a new USD denominated PSA product recently that offers annual survival coupons and help for customers with US dollar demands.

With NT dollar values rising, which causes the US dollar to cost less, there has been a renewed interest in US dollar denominated insurance policies. Meichee Shum, Chief Financial Officer of Manulife Taiwan notes that USD policy is a handy financial tool for customers planning to live or study abroad, traveling overseas often or planning to purchase real estate overseas.  It could also be an efficient tax-saving product for high net worth customers.

During the first 10 policy years policyholders will receive 20% of the face amount for every 3 years starting from the contract effective date, hence, the total coupons received for the first decade could be as high as 60% of face amount. 

From year 10 onward there is an annual coupon at 10% of face amount. On top of survival coupons, which are payable as long as the insured is alive, PSA also offers dividend opportunities for life.

Shum suggests customers consider carefully whether to choose a long or short term premium payment term, based on their cash on hand or the amount of free cash they expect in the near future.  For lowering the exchange risk, she recommends regular payments versus a single payment. 

Shum also cautions that USD exchange rate fluctuations may result in depreciation of asset value upon receiving the policy lump sum coupons. To mitigate that risk, consumers can receive their benefits in US dollars so coupons can be retained in USD bank saving accounts and exchanged for NTD when the rate is at a desirable level.  Alternatively, policyholders can choose regular coupons to diversify the exchange rate risk.

Manulife reminds the public that before selecting any life insurance policy, people should understand their needs and evaluate their current financial status carefully.

About Manulife Financial
Manulife Financial is a leading Canadian-based financial services group serving millions of customers in 22 countries and territories worldwide. Operating as Manulife Financial in Canada and Asia, and primarily through John Hancock in the United States, the Company offers customers 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$437 billion (US$407 billion) as at September 30, 2009.

Manulife Financial Corporation trades as 'MFC' on the TSX, NYSE and PSE, and under '945' on the SEHK. Manulife Financial can be found on the Internet at www.manulife.com.