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SEPARATE ACCOUNT THREE
HORIZON FROM MANULIFE FINANCIAL
ISSUED BY
THE MANUFACTURERS LIFE INSURANCE COMPANY OF AMERICA
SUPPLEMENT TO PROSPECTUS DATED MAY 1, 1995
This supplement updates certain information in the Prospectus. Please read it
and keep it with your Prospectus for future reference.
I. The Prospectus is amended to add the following provisions under the
section "INSURANCE BENEFIT" and accompanying definitions:
NO LAPSE GUARANTEE
In those states where it is permitted, on Policies issued with a face
amount of at least $250,000 (calculated as described below), the
policyowner may elect the No Lapse Guarantee. If elected, as long as
the No Lapse Guarantee Cumulative Premium Test (see below) is
satisfied during the No Lapse Guarantee Period, as described below,
Manufacturers Life of America will guarantee that the Policy will not
go into default (see OTHER GENERAL PROVISIONS - "Policy Default"),
even if a combination of Policy loans, adverse investment experience
and other factors should cause the Policy's Net Cash Surrender Value
to be insufficient to meet the monthly deductions due at the beginning
of a policy month. For purposes of determining the face amount at
issue for the No Lapse Guarantee, the face amount shall include any
amounts purchased under the supplementary insurance option.
The No Lapse Guarantee Period is the first 5 Policy Years for life
insureds with an issue age up to and including 85. It is not offered
to life insureds whose Issue Age exceeds 85.
While the No Lapse Guarantee is in effect, Manufacturers Life of
America will determine at the beginning of each policy month whether
the No Lapse Guarantee Cumulative Premium Test, described below, has
been satisfied. If it has not been satisfied, the Company will notify
the policyowner of that fact and allow a 61-day grace period in which
the policyowner may make a premium payment sufficient to keep the No
Lapse Guarantee in effect. This required payment, as described in the
notification to the policyowner, will be equal to the outstanding
premium requirement as of the date the No Lapse Guarantee was not
satisfied plus the Monthly No Lapse Guarantee Premium due for the next
two policy months. If the required payment is not received by the end
of the grace period, the No Lapse Guarantee will terminate, and the
Policy subsequently may go into default if the Policy's Net Cash
Surrender Value is insufficient to meet the monthly deductions due at
the beginning of a policy month. A death benefit option change will
also terminate the No Lapse Guarantee if it is in effect at the time
of the change as will a decrease in face amount below $250,000. The
No Lapse Guarantee cannot be reinstated after it has been terminated.
See OTHER GENERAL POLICY PROVISIONS - "Policy Default," and INSURANCE
BENEFIT - "Death Benefit Option Changes."
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NO LAPSE GUARANTEE CUMULATIVE PREMIUM TEST
The No Lapse Guarantee Cumulative Premium Test is satisfied if, as of
the beginning of the policy month, the sum of all premiums paid to
date less any partial withdrawals and less any Policy Debt is at least
equal to the sum of the Monthly No Lapse Guarantee Premiums due since
the policy date, as follows:
The Policy will satisfy the No Lapse Guarantee Cumulative Premium Test
if (a) is greater than or equal to (b), where:
(a) is the sum of all premiums paid, less any partial withdrawals
and less any Policy Debt;
and
(b) is the sum of the Monthly No Lapse Guarantee Premiums due
since the policy date.
The Monthly No Lapse Guarantee Premium is one-twelfth of the No Lapse
Guarantee Premium. The No Lapse Guarantee Premium is set forth in the
Policy. It is subject to change if the face amount of the Policy is
changed (see INSURANCE BENEFIT - "Face Amount Changes"), or if there
is any change in the supplementary benefits added to the Policy or in
the risk class of any life insured.
The following definitions are added to Appendix B:
ISSUE AGE - the age on the nearest birthday, at policy date, as shown
in the Policy.
MONTHLY NO LAPSE GUARANTEE PREMIUM - 1/12 of the No Lapse Guarantee
Premium.
NO LAPSE GUARANTEE - Manufacturers Life of America guarantees that the
Policy will not go into default even if a combination of Policy loans,
adverse investment experience and other factors should cause the
Policy's Net Cash Surrender Value to be insufficient to meet the
monthly deductions due at the beginning of a policy month.
NO LAPSE GUARANTEE CUMULATIVE PREMIUM TEST - a test that, if satisfied
in the No Lapse Guarantee Period, will maintain the No Lapse
Guarantee. To satisfy the No Lapse Guarantee Cumulative Premium Test,
the sum of premiums paid, less withdrawals, and less Policy loans must
equal or exceed the sum of No Lapse Guarantee Premiums since issue as
at the beginning of each policy month.
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NO LAPSE GUARANTEE PERIOD - is the first 5 policy years for life
insureds with an issue age up to and including 85. It is not offered
to life insureds whose Issue Age exceeds 85.
NO LAPSE GUARANTEE PREMIUM - is a measure of premium used in
determining compliance with the No Lapse Guarantee Cumulative Premium
Test. The No Lapse Guarantee premium for each policyowner is set
forth in the Policy.
II. The "DEATH BENEFIT GUARANTEE" subsection of the "INSURANCE BENEFIT"
section of the prospectus (on page 12) is amended. The Death Benefit
Guarantee will only be available where permitted by state law and if
elected by the policyowner.
The date of this Supplement is September 11, 1995.
