Now there's a product that makes some rosy long term promises - promises that are probably about as fake as the ones they made to sucker customers into their Manulife One Account.
If Manulife - by their own claims - is too financially crippled to honor their promised prime rate pricing on a few mortgages over the short term, how confident should anyone be that they can actually deliver on the lifetime promises they make with their GIF Select Income Plus?
Manulife has demonstrated total disdain for the mortgage customers and has callously breached their own mortgage promises. Does this sound like a company that would hesitate even a moment to rip off the annuity customers if they felt like it?
As I write this, their tricks team could be trying to hide evidence the same as they did on the mortgages. Manulife management is probably coming up with weasel wording to hide in contracts or coming with up with phoney baloney spin for them to use when the IncomePlus product blows up on them.
If you believe Manulife's earnings report (instead of the nonsense Manulife's management and fake ombudsman are spewing) it's clear Manulife can afford to charge prime rate, they are just opting not to and taking the difference as profit. To charge prime (as promised) would still provide over 100 bp of gross margin. The only real thing that seems to be driving Manulife is jacking up their profit.
Think about the credit squeeze that Manulife is attempting to use as justification for this betrayal. Most if not all experts say it's a short term issue. Then think about these IncomePlus annuities and their "lifetime guarantee" and how many years such a promise could conceivably have to cover.
Ask yourself - if Manulife is willing to rip off customers for such a small extra profit as the mortgage bait-and-switch scheme will get them, can they be trusted with the much larger and longer-term promises associated with those annuities?
Why am I thinking down the road customers will be looking back at claims like this one:
"5% bonus EVERY year there