Manulife’s Synergy provides comprehensive bundled coverage for life insurance, critical illness and disability insurance. There are several carriers out there who provide these hybrid type products, however, Manulife has taken a slightly different approach with Synergy. The main distinction is Synergy’s unique pool of money concept.
How the unique pool of money concept works
When you purchase Synergy you can buy anywhere from $100,000 to Manulife’s current maximum of $500,000 of Synergy face amount of insurance. The amount of insurance purchased will create a pool of money otherwise known as your amount of insurance. Whenever a benefit is paid your pool of money, or amount of insurance, will be reduced.
3-in-1
You get 3 types of coverage all in one single policy. That mean’s one application, one plan to manage, and only one premium to pay on a monthly basis. It is made affordable because it addresses 3 risks in one cost effective solution.
Disability protection – Synergy provides disability insurance to age 65 if you can’t work in your regular occupation because of illness or injury with a waiting period of 90 days.
Critical illness protection – Synergy will provide critical illness protection up to age 65 for 22 conditions. Moreover, there is an early intervention benefit that provides coverage for the early stages of some cancers and coronary angioplasty. Lastly, there’s a recovery benefit that will provide fast access to a portion of your pool of money so you can start your recovery sooner.
Life protection – Synergy comes with term insurance to age 65.
How you can access your pool of money
There are 3 ways in which you can access your pool of money:
1. Via your Disability Benefit – The disability benefit is the lesser of 0.55% of your Synergy insurance, and the available amount of insurance in your pool
2. Via your Critical Illness Benefit – The critical illness benefit for your covered condition is the lesser of 25% of your Synergy pool of money and the available amount of insurance in your pool.
3. Via your Life Insurance Benefit – The life insurance benefit is 100% of your available amount of insurance.
Putting it all together with our average Joe
Joe is a 40 year old, married, office worker when he purchases $250,000 of Synergy. 8 years later he’s injured, can’t go back to work and claims a monthly benefit on his disability insurance policy. Over the course of his time off work, Joe receives monthly disability benefits totalling $22,500. His available pool of money, or amount of insurance, is now $227,500.
Should Joe pass away before his Synergy solution expires at age 65 and he doesn’t make another claim on his Synergy solution, the death benefit is 100% of his available amount of insurance $227,500.
Is it for you?
Everyone’s situation and protection needs will be unique, that’s why it’s important to meet with a licensed advisor to discuss this suitability of this product to your situation. Remember, Synergy is an affordable solution when compared to purchasing individual coverages, but it is a combination product and thus the coverages will be shared. You’ll need to consider this among other things with your advisor.
If you have any questions about this article or would like the assistance of one of our licensed professionals, please call us at 1.416.759.5453 or email us at info@lilandinsurance.com.