Investment News

IRP Loan margin now 90% for Performax Gold and Performax PAR


Manulife Bank has increased its maximum loan margin from 75% to 90% for new sale Performax Gold policies and inforce Performax PAR and Performax Gold policies. For all universal life policies, the loan margin remains
at 75%.
Why the change?
By increasing the loan margin for Performax Gold and Performax PAR policies, Manulife Bank has matched the industry standard for “IRP” leveraging programs linked to PAR and Whole Life policies.
For Universal Life (UL) policies, most competitors will offer 90% margin, but require policy funds to be invested in fixed income accounts. If the funds are in equity-linked accounts, competitors’ programs will typically only allow up to 60% margin. At Manulife Bank, there are no investment restrictions to secure the 75% margin on UL policies.
To read the full article, download the Conceptually Speaking article here.

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