Legacy Planning.. Many Ways

AIA Gen3, UOB MaxiFuture II, Manulife 3G??

If you thought of living a legacy for your kids and grandchildren to remember you, there are many plans in the market (such as those mentioned) which provide lifetime income for this purpose.

The 3-Generation concept is that the parent (e.g. yourself) owns the plan while the child is the insured. Lifetime cash coupons are given back to the family from a specified time onwards. At a suitable age (e.g. when child is aged 30), the parent assigns the plan’s ownership to the child. When the child starts a family on his/her own and eventually passes on, the grandchildren as beneficiaries receive the life insurance proceeds in remembrance of the grandparent.

However, not all of us may qualify due to various health reasons. Also, in some exceptional instances, our children may have special needs where lifetime income would serve them well, yet ordinary plans would likely not accept them as insured persons.

Manulife I-GEN could be a plan for consideration, since it is on guaranteed issuance i.e. no medical underwriting is required to issue the policy.

For comparison at a glance, see the plans below based on a 35yr old Father who purchased a plan for his 1yr old Son.

Plan	UOB MaxiFuture II	AIA Gen3	Manulife 3G	Manulife I-Gen
Basic Sum Assured	100,000	100,000	100,000	100,000
Basic Death Benefit	100,000	100,000	100,000	101% of total premium paid
Premium (pa)	11,638	8,030	8,253	8,253
Premium Term	8 yrs	10 yrs	10 yrs	10 yrs
Yearly Cash Coupon (guaranteed)	2.50%	2.25%	2.00%	2.00%
Yearly Cash Coupon (non-guaranteed)	2.00%	0.80%	2.20%	2.20%
From end of policy yr	8th yr	10th yr	10th yr	10th yr
Redeposit Interest (prevailing rate)	4.00%	3.25%	3.50%	3.50%
Total cash collected by Son at age 65	252,000	121,500	226,800	226,800
Net Yield (pa)	4.17%	4.74%	4.29%	4.29%

Note: Total cash coupons collected based on 5.25% investment projection & Net Yield based on annual cash coupon paid out and surrender cash value at age 65 of Son.

Great Eastern Family3 is another similar plan for such purpose, and it’d be great to include for comparison though I do not have access to their plan data at the moment.