ManuRetire Secure (I) Secure Your Income for Your Golden Years

ManuRetire Secure (I) Secure Your Income for Your Golden Years

Are You Prepared For Your Retirement? 1Will your CPF be enough to sustain your desired lifestyle during retirement? The CPF Minimum Sum provides for a basic standard of living in retirement. For a male member turning 55 in 2012 who has set aside the full Minimum Sum, he can get about S$1,100 a month from age 65 for as long as he lives if he joins CPF LIFE 1. As a rule of thumb, you will need to have a post retirement income of two-thirds your last drawn salary to continue a similar lifestyle during your retirement. 2Will healthcare costs be a burden in your retirement? The elderly require a higher intensity of medical care. Studies have shown that they are about 4 times more likely to be hospitalised than younger Singaporeans. They are also likely to stay longer once hospitalised 2. With rising healthcare costs, you may need to spend a higher percentage of your retirement income in your old age on healthcare than the general population. 3Will you outlive your resources? Singaporeans are living longer. On average, a 65-year-old man can expect to live to age 83 3 and a 65-year-old woman to age 87 3. 4Is inflation eroding your purchasing power? Cost of living in Singapore continues to rise with full year inflation rate in 2013 expected to be between 2% 4 and 3% 4. 5 Can your investment strategy weather an economic downturn? Severe market downturns can wipe out your hard-earned savings and negatively impact your retirement lifestyle. Source: 1 Speech by Mr. Tan Chuan-Jin, Minister of State (Manpower and National Development) at the Retirement Conference Improving Retirement Security in Singapore in April 2012. 2 Ministry of Health 2012 Committee of Supply Speech Healthcare 2020: Improving Accessibility, Quality and Affordability for Tomorrow s Challenges (Part 1 of 2), Updated on 6 March 2012. 3 Life Expectancy at Age 65, Department of Statistics Singapore. 4 Joint press release on Consumer Price Developments in August 2013 by Monetary Authority of Singapore (MAS) and Ministry of Trade and Industry (MTI) Singapore. 1

Make your Money work Smarter ManuRetire Secure (I) ( ManuRetire Secure ) offers you upside potential by providing exposure to international equity markets while limiting your risks during market downturns. Allowing you to participate in the investment market with a safety net feature, ManuRetire Secure is a smart investment choice for your retirement savings. We should not be just depending on CPF alone CPF savings should meet the retirement needs of the group below middle-income, and be an important part of retirement savings for the middle-income group Higher-income Singaporeans who expect higher expenditure in retirement may wish to save more. Speech by Mr. Tan Chuan-Jin, Minister of State (Manpower and National Development) at the Retirement Conference Improving Retirement Security in Singapore in April 2012. 2

Your Life, Your Needs, Your ManuRetire Secure Plan ManuRetire Secure helps you harness your investment potential now to ensure that you have access to guaranteed income when you retire 5. It is a single-premium investment-linked policy where you invest in the Manulife Octave SGD Tracking Fund whose performance is based on the performance of the Citi Octave SGD Index 6. Growth Potential & Security Cost of living in Singapore continues to rise. How do you preserve your wealth when inflation is eroding your purchasing power? Enjoy growth potential from exposure to international equity markets while capping your downside risk. ManuRetire Secure guarantees your investment at 80% of Manulife Octave SGD Tracking Fund s highest historical Unit Price. Hence you have a cap on losses during severe market downturns and also benefit from potential gains in a market upturn. Flexible Premium Contribution Grow your investment on your terms. ManuRetire Secure s flexible premium contribution empowers you with control over your money. Once the initial investment is made, there is no further premium contribution commitment. You can also make investment top-ups 7 as and when you want at your own pace. Liquidity for Your Needs You can access your investment anytime. Should something unexpected require you to liquidate your investment, you may make either partial 8 or full 9 surrenders 10, subject to relevant surrender charges. Putting More of Your Money to Work With just a 5% up-front premium charge 11, most of your money is invested from the onset. This means that most of your money is at work for your retirement. Lump Sum or Regular Stream of Income for your Retirement 12 You can choose to receive a lump sum or regular stream of income for your retirement over your selected Payout Period of 10, 15 or 20 years. We recognize that your needs can change as you approach retirement. ManuRetire Secure also offers you the flexibility to extend 13 your Payout Period to meet your unique personal retirement needs. Getting Started is Easy Application is hassle-free as no health checks are required. You can start enjoying the benefits of this plan with a minimum initial investment of S$15,000 and a declaration of your health status. 5 The actual amount accumulated and income payouts will depend on the performance of the Manulife Octave SGD Tracking Fund. 3 6 A proprietary Index developed and maintained by Citigroup Global Markets Limited ( CGML ), a wholly owned subsidiary of Citigroup Inc. The Index was designed by CGML to offer exposure to international equity markets performance and provide volatility and drawdown control mechanisms. These volatility and drawdown control mechanisms allow for the Index to provide an Index Floor of 80% of the highest level ever achieved by the Index since its inception. 7 Top-ups are allowed during the Savings Period except that there shall be no addition or top-up once it is less than three Policy Years before the end of the Savings Period or from age 69 onwards, whichever is earlier. The minimum Top-up Premium is S$5,000. Manulife (Singapore) Pte. Ltd. reserves the right to stop receiving Top-Up Premiums with at least thirty (30) days notice.

Reap The Returns of Market Growth While Limiting Your Exposure In A Downturn Many investors are uncomfortable with the volatility of equities and yet they need the growth potential of equities to secure their retirement. At Manulife, we understand their concerns. ManuRetire Secure features a unique guaranteed locked-in Unit Price ( Guaranteed Price ) which secures the Guaranteed Value of your investment at 80% of the highest historical Unit Price. Every time the Unit Price of Manulife Octave SGD Tracking Fund hits a new high, your Guaranteed Price increases accordingly. Your Unit Price will never be lower than the Guaranteed Price, even during a market downturn. Below is a hypothetical illustration of how ManuRetire Secure can secure your retirement income 12 and help you build your nest egg. Manulife Octave SGD Tracking Fund - Unit Price vs Guaranteed Price Unit Price Guaranteed Price secured at 80% of the highest historical Unit Price 100 80 110 88 Guaranteed Price When the Unit Price drops, the Guaranteed price will not reduce and is stable as it has been locked in at the high price in year 5. 100 88 95 88 90 88 130 When the Unit Price increases to a new high, the Guaranteed Price will increase correspondingly. 104 1 5 10 15 20 25 Duration of Manulife Octave SGD Tracking Fund (Year) Note: This illustration should not be construed as an indication of the actual performance of Manulife Octave SGD Tracking Fund. 8 You may partially surrender your units at any time, subject to the following minimum requirements: a) S$200 per surrender; and b) Minimum Account Value remaining after partial surrender is S$5,000 or higher amounts described in Policy Contract. 9 Policy will terminate upon full surrender. 10 Surrenders made in first, second and third year following the date of premium contribution (including top-ups on your investment) are subject to charges of 5%, 3% and 1% respectively and no charges thereafter. 11 A Premium Charge of 5% is deducted from the Single Premium/Top-up Premiums before they are invested into Manulife Octave SGD Tracking Fund. 12 The actual amount accumulated and income payouts will depend on the performance of the Manulife Octave SGD Tracking Fund. 13 This option to extend the Level Income Payouts beyond the originally selected Payout Period is applicable only for the Level Income Payout Option and can only be exercised once. Manulife (Singapore) Pte. Ltd. will offer the Policy Owner this option in writing 60 days prior to the end the Payout Period if the Account Value of the investment is at least equivalent to twice the Yearly Payout. 4

Build A Secure Future With The Choices You Make Today Retirement planning requires thoughtful consideration but it is comforting to know that there are choices you can make today to help secure income 14 for your golden years. Choose How Long to Invest Choose Your Payout Options ManuRetire Secure allows you to invest for your retirement for 10 years, or up to age 55, 60 or 65. For those who prefer to stay invested a little longer, the plan allows for an extension 15 of the Savings Period for another 10 years or up to age 55, 60 or 65. Whatever the time frame, our flexible options put you in control of your retirement planning and you are the one who decides. ManuRetire Secure has three flexible Payout Options 16 for you to choose from at the end of the Savings Period. You can choose the Payout Option that bests suits your individual lifestyle. You can choose either a Level or Growth Income Payout Option or take out the full value of your investment as a lump sum payout. 14 The actual amount accumulated and income payouts will depend on the performance of the Manulife Octave SGD Tracking Fund. 5 15 Extension of the Savings Period may only be exercised once. Policy Owner has to write to Manulife (Singapore) Pte. Ltd. to request for the change at least 30 days before the end of the original Savings Period and provided that such extension does not result in the Savings Period ending after the Policy Anniversary immediately following the Life Insured s 79 th birthday. 16 Policy Owner is required to choose one of the 3 Payout Options at policy inception. Before the end of the Savings Period, Policy Owner also has the flexibility to change the Payout Option chosen at policy inception. To effect the change, Policy Owner has to write to Manulife (Singapore) Pte. Ltd. to request for the change at least thirty (30) days before the commencement of the Payout Period.

Level Income Payout for 10, 15 or 20 Years The Level Income Payout is based on the Guaranteed Value of your investment at the end of your Savings Period. While you are receiving income 14, you will remain invested in Manulife Octave SGD Tracking Fund and benefit from potential future returns achieved by it. At the end of the Payout Period, the Policy terminates and any balance of your investment will be paid to you as a lump sum. You may also continue 17 to receive the same amount of Payout beyond the Payout Period until the value of your investment is fully paid out or until you have reached age 99 (whichever is earlier). In the illustration below, Mr. Tan, age 45, signs up for ManuRetire Secure with an initial single premium investment of S$100,000. He opts for a Savings Period of up to age 65 and to receive the Level Income over 20 years until age 85. * Payout of A+B at age 65 if lump sum withdrawal option is chosen. Savings Period *A+B B Payout Period D Total Projected Payout Received by Mr. Tan during the 20-Year Payout Period (A+D) S$100,000 Single Premium Paid A C Age 45 65 85 A : Projected Guaranteed Account Value B : Non-Guaranteed Account Value C : Projected Yearly Payout for 20 years D : Non-Guaranteed Account Balance at Age 85 Worst case scenario # Payout of S$76,000 at age 65 if lump sum withdrawal option is chosen. Savings Period S$100,000 Single Premium Paid # S$76,000 S$76,000 Projected Guaranteed Value Payout Period S$76,000 Total Projected Payout Received by Mr. Tan during the 20-Year Payout Period Projected Yearly Payout of S$3,800 for 20 years Age 45 65 85 In the worst case scenario of the performance of the Citi Octave SGD Index, the Projected Guaranteed Value of Mr. Tan s investment at age 65 is projected at S$76,000 (based on the guarantee of 80% of the highest historical Unit Price). This is after deduction of 5% premium charge. Note: a) Illustrations are not drawn to scale. b) The numbers shown assume that the income streams are paid-out annually and that there are no Top-Up Premiums made during the Savings Period and no surrenders. c) The Yearly Payout (C) from age 65 to 85 is a stream of level income drawn-down from the Projected Guaranteed Value (A) at age 65. The first payout will be paid at the beginning of the Payout Period. 17 Please refer to footnote 13. 6

Growth Income Payout for 10, 15, 20 Years to Cope with the Effects of Inflation This Option is similar to the Level Income Payout Option except that the income increases if there is growth in the Guaranteed Price of Manulife Octave SGD Tracking Fund. The annual payout is recalculated every year during the Payout Period, helping you to cope with the effects of inflation. In the illustration below, Mr. Tan opts for a Savings Period of up to age 65 and to receive the Growth Income Payouts over 20 years until age 85. * Payout of A+B at age 65 if lump sum withdrawal option is chosen. Payout Period *A+B B F Total Projected Payout Received by Mr. Tan during the 20-Year Payout Period (A+Sum of E+F) Savings Period E S$100,000 Single Premium Paid A C Age 45 65 85 A : Projected Guaranteed Account Value B : Non-Guaranteed Account Value C : Projected Yearly Payout for 20 years E : Non-Guaranteed Yearly Additional Growth Payout F : Non-Guaranteed Account Balance at Age 85 In the worst case scenario of the performance of the Citi Octave SGD Index, the Projected Guaranteed Value of Mr. Tan s investment at age 65 is projected at S$76,000 (based on the guarantee of 80% of the highest historical Unit Price). This is after deduction of 5% premium charge. 7 Note: a) Illustrations are not drawn to scale. b) The numbers shown assume that the income streams are paid-out annually and that there are no Top-Up Premiums made during the Savings Period and no surrenders. c) The Yearly Payout (C and E) from age 65 to 85 is a stream of growth income drawn-down from the Projected Guaranteed Value (A) at age 65. The first payout will be paid at the beginning of the Payout Period and is recalculated every year during the Payout Period.

Growth Potential How the Manulife Octave SGD Tracking Fund Works The returns of ManuRetire Secure are directly dependent on the Manulife Octave SGD Tracking Fund. It tracks the performance of the Citi Octave SGD Index which: Offers exposure across various international equity markets by measuring a diversified basket of country and regional components; Aims to capture market momentum by observing historical trends in the country and regional components; Aims to provide stability with volatility control mechanism and minimize extreme market loss with drawdown control mechanism; Embeds a drawdown control where the index level is floored at 80% of highest level ever achieved by the index (i.e. the maximum loss, from the highest ever level to the lowest level, is capped at 20% from the highest level) Index Methodology The Citi Octave SGD Index may comprise allocations to nine international equity components and two cash-like instruments. The Index dynamically rebalances its allocation to the nine international equity components and two cash-like instruments, with the aim of providing stable performance, limit losses and capture positive equity market trends. Exposure Region Index Constituents North America Canada S&P/TSX 60 Index Europe Eurozone EuroStoxx 50 Index U.K. FTSE 100 Index Asia Pacific Japan MSCI Japan Index Australia S&P/ASX 200 Index China ishares FTSE A50 China Index ETF Hong Kong Hang Seng Index Singapore MSCI Singapore Free Index South Korea MSCI Korea Index Cash-like Instruments U.S. U.S. Federal Funds Effective Rate Singapore SGD Domestic Interbank Overnight Rate Note: The above is a summary only. For further information on the Manulife Octave SGD Tracking Fund and the Citi Octave SGD Index, please see all of the terms and conditions contained in the Policy Contract, Product Highlights Sheet and Product Summary. You should read the Product Summary and the Product Highlights Sheet in full before deciding whether to purchase this policy. A copy of the Product Summary and Product Highlights Sheet may be obtained from your Manulife Representative. 8

ManuRetire Secure Facts At A Glance Basic Information Policy Type Currency Minimum Single Premium Single premium investment-linked policy where the returns are directly linked to the performance of the Manulife Octave SGD Tracking Fund. Singapore Dollar S$15,000 Flexible Premium Contribution Minimum Top Up of S$5,000 Plan Type Entry Age Coverage Cash 0-69: If Savings Period is 10 years 0-45: If Savings Period is up to age 55 0-50: If Savings Period is up to age 60 0-55: If Savings Period is up to age 65 Death only Basic Sum Insured 100% of Single Premium Plus Top-up Premiums less Withdrawals 18 Death Benefit The Death Benefit applicable until the Policy Anniversary immediately following the Life Insured s 75 th birthday or the end of the Savings Period, whichever is earlier, is the greater of the Basic Sum Insured or the Account Value. Thereafter, the Death Benefit will be the Account Value. Income Payout Mode Monthly 19 or Annual (Default payout mode is Annual) Secure Your Retirement Today A rewarding retirement requires wise investment choices today. We designed ManuRetire Secure so that you would have a secure retirement planning option. ManuRetire Secure can help provide retirement income that is predictable 20, sustainable and has the potential to increase over time. It s simply a wise choice for your golden years. Act now to plan for your secure retirement. Speak to your Manulife Representative today or call 68338188 for a non-obligatory financial needs analysis. 18 Before applying Surrender Charges. Withdrawals include Income Payouts and any Surrenders. 19 Minimum payout for monthly mode is S$200. 9 20 The actual amount accumulated and income payouts will depend on the performance of the Manulife Octave SGD Tracking Fund.

About Manulife Manulife is a leading Canadian-based financial services group operating in 22 countries and territories worldwide. For more than 120 years, clients have looked to Manulife for strong, reliable, trustworthy and forward thinking solutions for their most significant financial decisions. Our international network of employees, financial planners and distribution partners offers retirement, financial protection and wealth management products and services to millions of clients. We provide asset management services to institutional customers worldwide as well as reinsurance solutions, specialising in property and casualty retrocession. Manulife has operated in Asia since 1897, leading the way in providing financial security for millions of clients in the region through protection and wealth management products in 11 countries. Our strong and stable capital level enables us to sustain high credit ratings, finance new opportunities and most importantly maintain our commitment to our policyholders. Manulife trades as MFC on the TSX, NYSE and PSE, and under 945 on the SEHK. Manulife can be found on the Internet at www.manulife.com Important Notes: ManuRetire Secure, where mentioned in this brochure, means ManuRetire Secure (I), which is underwritten by Manulife (Singapore) Pte. Ltd. (Reg. No. 198002116D). ManuRetire Secure does not provide capital guarantee on your invested premiums. The Manulife Octave SGD Tracking Fund tracks the performance of the Citi Octave SGD Index by entering into a swap agreement with Citigroup Global Markets Limited ( CGML ), a wholly owned subsidiary of Citigroup Inc. The Manager of the Manulife Octave SGD Tracking Fund is Manulife (Singapore) Pte. Ltd. The Index Sponsor and the Swap Counterparty is CGML. The performance of the Manulife Octave SGD Tracking Fund is based on the Index. Your rights under this policy are the sole responsibility of Manulife (Singapore) Pte. Ltd. and not any other party. In the unlikely event that Manulife (Singapore) Pte. Ltd. is unable to meet its obligations to you, this policy is protected under the Policy Owners Protection Scheme which is administered by the Singapore Deposit Insurance Corporation (SDIC). Coverage for your policy is automatic and no further action is required from you. For more information on the types of benefits that are covered under the scheme as well as the limits of coverage, where applicable, please contact Manulife (Singapore) Pte. Ltd. or visit the Life Insurance Association of Singapore (LIA) or SDIC websites (www.lia.org.sg or www.sdic.org.sg). Citigroup Global Markets Limited ( CGML ), the developer of the Index is a wholly owned subsidiary of Citigroup Inc. CGML is paid a management fee for managing the Index. CGML and their affiliates are not Manulife (Singapore) Pte. Ltd. s affiliates. Citigroup Global Markets Limited ( CGML ) is the index sponsor of the Citi Octave SGD Index. The index sponsor may discontinue the calculation, publication and dissemination of an underlying constitute (or the index itself), any of which may affect the value of the index. The index sponsor shall not be liable for any errors made in good faith or omissions in calculations. This brochure is for general information only and does not have regard to your specific investment objectives, financial situation and any of your particular needs. This brochure is not a contract of Insurance and is not intended as an offer or recommendation to purchase the plan. Insurance products are not bank deposits or obligations of or guaranteed by Citigroup Inc or any of their affiliates or subsidiaries. This insurance product is not eligible for deposit insurance coverage under the Deposit Insurance Scheme. Buying a life insurance policy is a long-term commitment. An early termination of the policy usually involves high costs and the surrender value may be less than the total premiums paid. Investments are subject to investment risks including the possible loss of the principal amount invested. The value of the units may fall as well as rise. Past performance of any funds or fund managers and any prediction, projection or forecast on the economy or markets are not necessarily indicative of the future or likely performance of the funds or the fund managers. Accordingly, the information should be read and construed in light of and subject to, all terms and conditions contained in the Policy Contract, Product Highlights Sheet and Product Summary. Full details are stated in the Policy Contract. You should seek advice from a qualified adviser if in doubt. If you choose not to, you will have to take sole responsibility to ensure that this product is appropriate to your financial needs and insurance objectives. All insurance applications are subject to the insurance company s underwriting and acceptance. This marketing material is also available in Chinese. In case of discrepancy between the English and Chinese versions, the English version shall prevail. Information is correct as of 31 October 2014. 10

Manulife (Singapore) Pte. Ltd., Reg No. 198002116D A Manulife Company Main Office: Manulife Centre, 51 Bras Basah Road, #09-00, Singapore 189554 Tel: 6737 1221 Client Service Centre: #01-02C, Manulife Centre (Entrance off Waterloo Street) Tel: 6833 8188 Website: www.manulife.com.sg Retirement Microsite: www.manuliferetirement.sg facebook.com/manulife.singapore Manulife and the block design are registered service marks and trademarks of The Manufacturers Life Insurance Company and are used by it and its affiliates, including Manulife Financial Corporation.