Illustration Guide - Repsource - Manulife Financial

Assumptions
Introduction
We'll use a case study to illustrate the process for preparing and printing
Manulife one proposals. The case is broken into five components: concept,
concept report, proposal, proposal reports, and additional proposals.
Client
information
Our case study clients are as follows:
General Info: Hamilton family, married with two dependants
Address: 125 Banning Street, Waterloo, Ontario N2K 3D6
Phone: Home: 747-1110, Business: 886-3452 (Kerry)
Heads of the • Kerry, male, born Feb 23 1958
Family: • Janet, female, born Oct 11 1960
Dependants: • Jason, male, born Dec 1 1988
• Karen, female, born Jul 9 1990
Value of home: $200,000
Mortgage: • Mortgage Date: Dec 1 1994
• Interest Rate: 7%
• Payment Frequency: Monthly
• Original Principal: $150,000
• Amortization: 25 years
Other debts: • Line of credit (LOC): balance of $2,200 at 8% interest,
paying $150 per month
• Credit cards: balance of $3,800 at 18% interest, paying
$250 per month
Savings: • Maintain a minimum balance of $3,000 in chequing
account in order to have transaction fees waived
• Have a savings account of $1,500 at 1.75%
Cash flow: • Monthly income after taxes: (Kerry) $3,000
• Monthly income after taxes: (Janet) $2,700
• Monthly expenses: $2,100 not including debt payments
Issues: • Cash flow is tight.
• Savings are lower than they would like.
• They are behind on their retirement planning.
• They are somewhat concerned about rising interest rates.
Manulife one
assumptions
For the Manulife one product, we will make the following assumptions:
• Variable rate: 6.5%
• Fixed rate 5 year: 7.75%
• Main account credit rate: 4.0%
• Legal fees for property transfer: $450
• Transaction fee package: $21/month
Manulife one Illustration Guide 8 December, 2000