Manulife ManuMultiCare
With the exception of iPMI plans, we normally restrict our reviews to UK life and health insurances. However, this critical illness (CI) plan is marketed by Manulife in Hong Kong and we are reviewing it because some of its design elements may be of interest to UK CI insurers.
Customers can choose to pay a flat guaranteed premium over periods of 10, 20 or 25 years or to age 65. Cover can last up to age 100.
The plan covers 65 conditions and using partial payments, more than one claim can be made (up to age 85) – even for conditions such as cancer and heart attack (traditionally on CI plans the full sum insured is paid, leaving the customer then uninsured should other CI events arise in future). Claims can total up to 300% of the initial sum insured. The plan groups conditions into two – cancer and non-cancer. Non-cancer claims can total up to 200% of the initial sum insured.
If claims reach 100% of the initial sum insured, future premiums are automatically waived. More conventional waiver of premium is also available - this was with a two month deferred period for a limited time at the end of 2014.
The plan also includes five free wellness medical check-ups on alternative years, beginning one year after the policy starts.
An annual (non-guaranteed) dividend is declared annually. This creates a reserve that can be used to help pay for future healthcare expenses or as an emergency cash fund. Starting on the 10th policy anniversary, a guaranteed cash value is available on policy surrender. The maximum amount is 90% of the policy’s face amount (sum insured).
The death benefit is the policy’s face amount, less any CI benefits paid. That could mean a zero death benefit if enough CI claims have been paid. In addition, a compassionate death benefit of 5% of the face amount is paid throughout the policy term.
Comment: This plan reminds us of a cross between a UK CI plan and a UK Holloway (income protection) plan. Although not all of its design features could (or should?) be adopted in the UK, it does illustrate that the UK way is not the only way when it comes to protection insurance.
We have always liked the concept of Holloway plans that gradually build up a fund over the policy’s life, although they are not that popular in the UK and the regulator’s rules look designed to stop them ever becoming mainstream too.
However, the idea of multiple claims (OK, some UK policies also offer that in various ways), long and short-term premium waiver and regular wellness checks all look to be ideas that UK insurers could adopt. Would they be popular? Not if sales remain dominated by price rather than value but, if protection insurance is ever to move away from being sold as a commodity product (even if buyers are not necessarily looking to buy it as a commodity) then such benefits could become popular in the UK too. The real question about any benefit is ‘What is the value to the customer and are they happy to pay a fair price to include it?’. If the answer is ‘Yes’ then such benefits arguably should migrate across to UK plans too.
Plus points: Innovative and packed with features of real value to real customers; Multiple claims allowed; Long and short term premium waiver; Benefits available to age 100 but with a much earlier premium cut-off; Up to five wellness checks; Compassionate death benefit ; Cash benefits built up over time.
Not so plus points: We have not looked at pricing but would expect UK CI plans to significantly undercut this plan; Some design elements would not work in the UK; Plans that build up a cash value are no longer popular in the UK (sometimes with good reason – but not always); Not available in the UK; UK product designers are (usually) more cautious – having learned the hard way that not all innovation is good innovation.
Website: http://www.manulife.com.
Rating (max 10): Innovation: 10. Overall: 9. Platinum
Tags: Manulife; Other