Manullfe Porlzons

lrequenLly Asked CuesLlons (lACs)

1. What is Manulife Horizons?
Manulife Horizons is a protection-oriented unit-linked product designed to provide you
with the life insurance coverage you need and access to your funds to address different
financial needs as they arise.

2. What advantages does the client get from Horizons?

There are many advantages that Manulife Horizons gives:
a. Higher projected Account Value growth due to removal of unit-deducting riders which
means more opportunity to grow your investments
b. Longer contract debt compared to the current RPVL product
c. Death Benefit to be chosen by the client depending on the protection need, given the
protection-oriented positioning of the product
d. Simpler design no more Face Amount multipliers because the product is FA-driven
and not premium-driven
e. Lower COI rates were used, therefore clients can enjoy more opportunity to grow their
wealth
f. Basic Premiums can still be paid even after the chosen minimum-paying period, thus
allowing the client continue investing without having to worry about the insurability issue
g. Given that premiums can be credited as basic premiums after the paying-period, the
investment component can be managed independently of life coverage as there will be
no minimum Death Benefit that will be credited, thus no additional COIs

3. What makes this product different from our existing RPVL Products?

Face Amount/Protection driven
The computation of the premium is similar to how a Traditional plan works such that the
premium is computed based on the clients age and the chosen FA. This is different from
the current RPVL product wherein the client will choose the FA multiplier for the
protection coverage while paying the same premium amount.
Recurring Top up
These are scheduled and programmed top up premiums paid together with the basic
regular premiums. These are already pre-underwritten and the client wont need to worry
about top-ups not being accepted due to underwriting issues.
Death Benefit Factor
The Death Benefit Factor is pegged higher to serve the products main purpose of
providing protection coverage. The Death Benefit will be based on the following factors:

Face Amount Factor X:
X = 150% for Regular Pay
X = 200% for the minimum 5-pay and minimum 10-pay
The Death Benefit options are:
Face Plus (DB1) = X% of Initial Face Amount +125% of all top up premiums paid
+ Account Value
Level Face (DB2) = the higher of ( X% of Initial Face Amount + 125% of Top ups
125% of Partial Withdrawals or AV)
These are different from the multiplier of the current RPVL Products.

Contract Debt
The contract debt is now longer at 5 years vs. one year only for the current RPVL
4. What are the Premium Loads for this product?

The following Premium Load will be deducted before premium allocation as a percentage of
Modal Basic Premium:

Premium Load Schedule Policy Year
Reg-Pay Min 10-Pay Min 5-Pay
1 70% 60% 40%
2 60% 45% 30%
3 40% 30% 20%
4 20% 15% 0%
5 10% 0% 0%

5. How about the Policy Fee, are we going to charge a Policy Fee for this product?

The following Policy Fees will be charged every monthiversary and will be deducted from the
Account Value. Such policy fee will be charged to each Fund in proportion to the AV of each
Fund where the policy owner maintains an Account.

Annual Policy Fee Schedule Policy
Year Reg-Pay Min 10-Pay Min 5-Pay
1 5 Php 1,400 / USD 35 Php 1,400 / USD 35 Php 1,400 / USD 35
6 10 Php 1,400 / USD 35 Php 1,000 / USD 25 Php 1,000 / USD 25
11+ Php 1,000 / USD 25 Php 1,000 / USD 25 Php 1,000 / USD 25


6. What are the withdrawal charges in case of redemptions/withdrawals?

Surrender charges based on the following schedule are applied on each partial and/or
full redemption based on the policy year where the partial / full redemption occurred:

Policy Year Surrender Charge
1 90%
2 80%
3 75%
4+ 0%

The surrender charges above apply to the base layer only, i.e., top-ups are not subject
to surrender charges. Such surrender charges are deducted from the amount withdrawn.


7. What are the available fund options for Manulife Horizons?

The following are the available fund options for the product, together with the corresponding
FMCs for each of the funds.

Peso Funds
FMC
per annum

USD Funds
FMC
per annum
Secure Fund 1.75% Secure Fund 2.00%
Diversified Value Fund 2.00% Asia Pacific Bond Fund 2.00%
Dynamic Allocation Fund 2.25% ASEAN Growth Fund 2.25%
Growth Fund 2.25%
Cash Fund 0.50%*
*The Peso Cash Fund is strictly available through fund switching only

8. Whats the difference between Recurring top ups and Lump sum top ups?

Recurring Top-ups are scheduled and programmed top ups premiums paid together
with the basic regular premiums. There is also a different underwriting treatment and
premium paying period. Regular Top ups are not accepted beyond premium paying
period. Top ups beyond paying period are considered Lump sum top ups.
Meanwhile, Lump Sum Top-ups are unscheduled top-up premiums which the client can
pay anytime depending on the clients budget and circumstances. As such, these are not
billed regularly.
Both kinds of top-ups will be treated as additional layers with additional Death Benefit
equal to 125% of each top-up premium. As the death benefit is affected when a top-up
is made, top-ups will follow the Death Benefit type of the base plan (i.e., DB1 vs. DB2).


9. How is NAAR computed for Recurring Top ups?

NAAR for recurring top-ups (RTU) is computed as follows:

For min 5-pay: 5*25% for DB2, 125% for DB1 * Modal Recurring Top-up Amount *
Payment Frequency

For min 10-pay: 10*25% for DB2, 125% for DB1 * Modal Recurring Top-up Amount *
Payment Frequency

For reg-pay:(70 - Iss Age)*25% for DB2 and 125% for DB1 *Modal Recurring Top-up
Amount *Payment Frequency


E.g. Regular-Pay Horizons with quarterly RTU = Php 5,000 for a client with an issue age
of 40 and quarterly payment mode. The NAAR for the RTU will be equal to:
(70 - 40) * 25% * Php 5,000 * 4 = Php 150,000

Min 5-pay Horizons with monthly RTU = Php 6,000 for a 30-year old client and monthly
premium mode. The NAAR for the RTU will be equal to:
5 * 25% * Php 6,000 * 12 = Php 90,000

10. What will happen if the client does not continue paying his premiums for the
recurring top ups?

The client is not compelled to pay the recurring top-ups. However, the implication is that
it makes it less likely that the client's expected Account Value projections will be
achieved if it is assumed a stream of RTUs he committed to during the application
process.

11. Can the client still pay and make up for the missed recurring top-ups given that this
has been considered in the computation of the NAAR already? This will be helpful
especially if the client is not insurable anymore and thus cant be accepted anymore
for lump sum top-ups.

The client can no longer pay for the missed recurring top-ups. However, he may still pay for
the scheduled prospective recurring top-ups. Or instead, pay Lump sum top ups.


12. What if the client paid an amount that is more than the scheduled recurring top-ups,
what will we do with the excess deposit? Do we return this to the client?

Excess premiums are left in suspense until the next billing cycle where it may be applied
towards the basic premium and/or recurring top-ups.


13. Is it counted as additional one (1) case count on top of the basic if a client makes a
total recurring top up of at least PHP75,000 but this was achieved via multiple
payments?

No. The PHP75,000 minimum requirement would cover a single transaction only. Thus,
one top-up transaction should be at least PHP75,000 to be eligible for the case count.


14. On Contract Debt, if the Account Value becomes zero and given that the client has
complied with all conditions, will it be reflected as a lapsed policy for the agent?

No, the agent should not be penalized as the policy is still in force. Moreover, the
Contract Debt presumes that all premiums are paid so this will not affect the agent.


15. What are the available paying-periods?

The available variants in terms of the paying periods are: min 5-pay, min 10-pay, and
regular-pay.

16. Do I get to enjoy Loyalty Bonus for this product?

No. There is no Loyalty Bonus for this product

17. What is the production credit (PC) of MANULIFE Horizons, its riders and top-up?
How can the agent earn 1 case count?

The basic plan and top-ups gets a 100% PC, while the riders PC is at 150%. Each Top up
of at least PhP 75,000/US$ 1,500 gets 1 case count.