Anyone heard of a Manulife product that can earn 5%pa?

Hi Mel,

There's nothing on the market as far as I know that guarantees 5% p.a., CPF aside.

No endowment has projected yields of 5% p.a. The best ones are 4+% and even that is projected.

So I have to conclude that whatever is on offer is probably an investment of some sort and not a policy with guarantees.

While I will let you decide if you want to meet him or not, just know that you should take high projected values with a pinch of salt, no matter how realistic or confident he is about that 5% p.a. If it is a fund that's involved, a 5% dividend with a 5% capital loss is the akin to taking back your own money. Also, take note that there might be some form of lock in period for this as well.

Hi Mel,

From your question, it raises more questions about the caller:

When the caller says it's a Manulife product that can earn 5% per annum, is he referring to an endowment policy, a whole life policy or an investment-linked policy?

For endowment and whole life policies, there are two components of cash values:

• Guaranteed

• Non-guaranteed

If the caller is referring to an endowment policy or a whole life policy, and he claimed that the product can earn 5% per annum, this 5% is "guaranteed-only" or "guaranteed + non-guaranteed" ?

An endowment policy that can earn 5% per annum may be difficult to achieve, even for a 2nd-hand one. It is best that you speak with a financial advisor you know about this matter.

Disclaimer: PolicyWoke is a 2nd-hand endowment policies broker.​​​