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Manulife's Life Protector Plus

Manulife has a participating whole life policy called Life Protector Plus that is designed to provide high coverage at affordable premiums.

For a male non-smoker age 27, coverage of $240K can be obtained at a monthly premium of $194.

How it provides such a high coverage is with something called the Minimum Death Benefit (MDB) factor that depends on the entry age of the policy holder. Each band of entry age has a different MDB factor.

Age 0 to 30 = 2.4
Age 31 to 35 = 2.15
Age 36 to 40 = 1.90
Age 41 to 45 = 1.65
Age 46 to 50 = 1.40
Age 51 to 55 = 1.20

So the basic sum insured for a guy age 27 is actually 100K but due to the MDB factor of 2.4, his coverage is increased till $240K until he is age 65. Thereafter, the MDB factor drops to 1.0

Do note that with any surrender of reversionary bonus or coversion of policy to reduce paid up, the MDB factor will drop to 1.0

This MDB factor also applies to the Critical Care Enhancer Rider (for critcial illness) up to age 65 too.
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