Low interest rates have once again forced Toronto-based Manulife Financial Corp. to hike annual premiums on its life insurance and health products by as much as 12%.
Effective June 16, Manulife will raise the level cost of insurance (COI), a locked-in annual premium a client pays for the duration of the policy, for its universal life (UL) products, which include single life and joint coverage on InnoVision, Security UL, and Limited Pay UL products.
Depending on a client’s age and health, the average COI will increase by 6.1% on InnoVision, 6.3% on Security UL, and 12% on Limited Pay UL. Larger premium rate increases will be applied to younger ages.
As for family term/business term life policies, COI rates will increase on both single life and joint last-to-die policies. A joint last-to-die policy covers two people under the same policy, and ensures that the death benefit is paid out when the second spouse or partner dies. The annual-pay discount for term-life will be reduced to 2% from 5%.
Varying again by age and health, the COI will also rise on Lifecheque, Manulife’s critical illness product. This includes rate increases on Lifecheque policies with level premiums on both 15-year and 100-year term periods.
Finally, Manulife will discontinue various premium options for Living Care, its long-term care insurance product.
It’s the third time in the past year that Manulife has hiked fees for clients on the life and health insurance product side of its business.