Manulife Investments, a company comprising of Canadian subsidiaries and operating divisions of Manulife Financial, has announced that it will offer an unlimited income bonus period to investors in its IncomePlus product. Other changes have also been announced.
On October 20, 2008, investors will receive a 5% bonus on their guaranteed income for each year that they do not make a withdrawal from IncomePlus, which is claimed to be Canada’s first guaranteed minimum withdrawal benefit product. Previously, income bonuses were available in each of the first 15 years when there were no withdrawals.
Along with an unlimited income bonus period announced today, other changes for IncomePlus include, lower minimum investment and lifetime income eligibility at age 65.
All the proposed enhancements to IncomePlus will not impact fees or management expense ratios. In addition, these enhancements will automatically be made available to existing contract-holders on December 31, 2008.
Roy Firth, executive vice president of Manulife Financial, said: IncomePlus is not only the first product of its type in Canada, but now is the first to offer annual income bonuses for the life of the contract. For younger investors, this means they can invest at any age and are entitled to receive a 5% income bonus for each year they do not make a withdrawal. For older investors, even if they are retired, they also are eligible to receive an income bonus for any year they do not make a withdrawal.