Under conditions where employees in a company require life insurance a traditional group plan is most advisable. It also helps the employers retain resources with higher benefits at lower cost to the company. PNB MetLife provides this traditional employee plan which aims to offer maximum benefits in a cost-effective investment for that is advantageous both to the employer and the employee. Let us take a closer look at this particular plan. Note that PNB MetLife is a collaboration between Punjab National bank and the global insurance company MetLife so it adds to the efficiency of the whole program.
Eligibility Conditions for PNB MetLife Traditional Employee Benefit Plan:
|Minimum Entry Age||18 years (based on the last birthday)|
|Maximum Entry Age||1 yr lesser than age mentioned as ‘Normal Retirement Age’ by the respective employer’s policy rules|
|Maximum Maturity Age||Age mentioned as ‘Normal Retirement Age’ by the respective employer’s policy rules|
|Minimum Group Size||At least 10 employees or more|
|Maximum Group size||No Restrictions|
|Minimum Policy Term||Annually renewable policy|
|Minimum Contribution||Rs.1 lakh|
|Maximum Contribution||Rs.500 crore|
Policy Terms for the PNB MetLife Traditional Employee Benefit Plan:
|Single/Regular Premium||Every year (Annually renewable)|
Premium Payments Offered by PNB MetLife Traditional Employee Benefit Plan:
|Minimum Premium (Contribution)||Starting from Rs.1 lakh annually for a group size of 10 or more. (Any number of installments acceptable)|
|Maximum Premium (Contribution)||Up to Rs. 500 crore annually for a group size of 10 or more. (Any number of installments acceptable)|
|Minimum Sum Assured||Rs.1 lakh annually for a group size of 10 or more.|
|Maximum Sum Assured||Rs. 500 crore annually for a group size of 10 or more.|
|Premium Payment Mode||Premiums can be paid in any mode as decided and agreed by both parties.|
Key Features of PNB MetLife Traditional Employee Benefit Plan:
|Type of Plan||Traditional employee group plan|
|Premium Payment options||Annually renewable but no restrictions in the number of installments.|
|Mandatory Risk Cover||Rs.1000 per person|
|Increase of Risk Covers||It is possible to increase risk cover annually|
|Free Look period||Within 15 days|
|Reinstatement||A surrendered policy cannot be reinstated|
|Revival||No revival applicable after surrender or termination.|
|Surrendering Policy||If you surrender the policy, PNB MetLife is liable to pay: Before 3 years of policy renewal: Surrender Value = Fund Value - Surrender Charge. (Surrender charge calculated based on Part E and the Market Value Adjustment). On the 4th year of policy: Surrender Value = Fund value|
|Partial Surrender||Not allowed|
|Loan Against Policy||Not available for group plans|
|Benefit Statement||Receivable at every financial year stating the benefits claimed and the funds available.|
Charges for PNB MetLife Traditional Employee Benefit Plan:
|Fund Management Charges||0.40 percent per annum|
|Mortality Charges||Rs. 1.35 per insured member, per annum|
Benefits of PNB MetLife Traditional Employee Benefit Plan:
Death benefits: This will be given to the insured member’s stated nominee in the case of the death of the insured. This will also include accrued bonuses and other payouts if applicable based on the scheme rules governed by the bank and the employer. No Market value Adjustment will be conducted in such cases.
Retirement/Termination/Resignation Benefits: In the case of the insured individual’s retirement, he will be paid an amount as gratuity along with any accrued bonuses if applicable.
Interest: A guaranteed interest of at least 2% every year for every portion of the contributions paid is included in the fund.
Gratuity Contribution: The policy also holds the provision for payment towards gratuity contribution including costs of current services as well as liabilities of past service in form of instalments.
Tax Benefits: Tax benefits are applicable under the Income Tax Act, 1961, but may be subject to changes based on amendments made in the section of the Act dictating the tax benefits from life insurance.
How to File a Claim for PNB MetLife Traditional Employee Benefit Plan:
The followings steps are required to be followed to file a claim against this policy for the insured member who is a part of the group plan. The employer needs to provide a notice with details of the circumstances for the claim requirement that must be written within 30 days of the occurrence along with other documents and information as mentioned below:
- PNB MetLife Claim form completed
- The Employer’s certification for the amount payable as accrued benefit based on Scheme Rules/Trust Deed( as agreed upon by bank and employer)
- Proof of Age of the Insured Employee
- Employer’s declaration form that is completed and signed by the Employer or a trustee that has been mentioned in the Trust Deed
- For death claims: Death certificate issued by a renowned governmental authority.
- Additional documents based on the situation and PNB MetLife’s requirement.
Other Salient Features of PNB MetLife Traditional Employee Benefit Plan:
Interest Charged on PNB MetLife Traditional Employee Benefit Plan
Interest rates applicable for every quarter in a financial year will be declared in the beginning of each quarter. Once the interest is calculated the interest will made a part of the fund.
Free Look Period
The employer gets a free look period of 15 days starting from the receipt date of the Group Policy to make sure that the terms and conditions of this Group Policy are being met. If the employer has any problems or has objections on the stated terms and conditions the policy can be cancelled by providing a written notice to PNB MetLife stating the problems and the entitled refunds will be given except stamp duty charges will be deducted.
Loan Against Policy
Loans cannot be taken against this policy since this is a group plan.
GST of 18% is applicable on life insurance effective from the 1st of July, 2017