OREANDA-NEWS. February 03, 2016. Manulife Life Insurance Company (hereinafter, "Manulife Japan";) will start sales of Non-par Foreign-Currency-Denominated Individual Annuity Insurance through The Bank of Tokyo-Mitsubishi UFJ, Ltd. on February 1. The product allows customers to make payments in yen but accumulate retirement assets in either US dollars (USD) or Australian dollars (AUD). It also has flexible payment options that allow customers to adjust their payments to adapt to their financial circumstances.

Product Name:  

Non-par Foreign-Currency-Denominated Individual Annuity Insurance                         (Variable Interest Crediting Rate Type) 

Pet Name:

Kodawari Kojin Nenkin (Denominated in Foreign Currency) 

Launch date:  

February 1, 2016

With people living increasingly long and active lives even after retirement, there are growing demands for retirement solutions that help supplement their public pension, retirement annuity, and lump-sum retirement allowance. The "Kodawari Kojin Nenkin (Denominated in Foreign Currency)" is a new level-premium foreign-currency-denominated annuity insurance developed to effectively meet the needs of customers who wish to prepare themselves for the future and need flexible payment and settlement options as well.

With its new slogan, "Live Today, Pave the Way for Tomorrow", Manulife Japan continues to focus on developing innovative products that help customers lead a fulfilling life now and move step by step towards an ideal future.

Special features of "Kodawari Kojin Nenkin"

1. Policyholders can pay fixed amounts in yen monthly which will be converted into its equivalent amount in the policyholder’s selected currency (either in US dollars (USD) or Australian dollars (AUD))1 and invested as policy value. 

  • Policyholders can opt to pay fixed premiums for as low as 10,000 yen per month (the minimum monthly premium). Policyholders can also expect higher returns because the policy value will be invested in the selected foreign currency (USD or AUD) whose interest rates hover at higher levels relative to the Japanese yen (based on the current prevailing interest rates and exchange rates).
  • Policyholders can diversify risks by adding foreign currencies to their post-retirement asset portfolio.

2. The interest crediting rate applicable to the policy will be renewed every month and a guaranteed minimum interest rate applies, which gives policyholders security against interest rate fluctuations.

  • During the premium payment period, the interest crediting rate applied to new deposits will be revised every month in order to respond flexibly to fluctuations of market interest rates.
  • The interest crediting rate will not fall below the minimum-guaranteed interest rate (1.5% per annum) irrespective of whether the policy currency is in USD or AUD.  

3.  Flexible premium payments enable policyholders to respond to any change in their life-stage and financial situation.

  • Policyholders can reduce, suspend payments, or resume payments of the premium amount paid in yen2, which enables them to maintain the policy without a heavy burden on the family budget.
  • Eligible policyholders can extend the premium payment period depending on changes in their individual situations at the time of the annuitization, such as the extension of their employment period3. Even after the extension of the premium payment period, they can reduce, suspend, or resume payments of the premium amount paid in yen. 

4. Income tax deductions applicable to premiums paid in yen.

  • Eligible policyholders whose basic policy satisfies the prescribed conditions can enjoy an income tax deduction called the individual annuity premium deduction4, which is applicable to the premium amount paid in yen, by adding the "Tax Qualified Individual Annuity Rider" to the relevant basic policy.

5. The policy does not require self-disclosure.

6. Health consultation and other value-added services

  • Customers have access to "Mental and Physical Health Support and Medical Relief"5, a service offered by T-PEC Corporation, a partner of Manulife Japan. This is a value added service that provides consultations on methods for resolving day-to-day illnesses or injuries and allows customers to receive a second medical opinion from some of Japan’s leading doctors.