There must be an age ceiling on the Manulife contract. For this type of contract, one can easily calculate the assumptions made by Manulife:
1. Assuming 8% normial return (i.e. including inflation).
2. Donating $6,000 each year for 15 years will yield $170K at the end.
3. Assuming another 20 years before payout, total would grow to $790K
Payout of $500K leaves Manulife with around $300K profit. This is a fair game as all assumptions are transparent.
Not so sure about the equitable plan. Chances are buyers will pay a heavy price and it will be years later that they will start to realize ...
