Recognized as one of the fastest growing insurance companies in the country, PNB MetLife offers a range of retirement plans for a secured future. The Retirement Savings Plan from MetLife is non-linked, traditional, individual-deferred participating insurance policy that offers financial freedom to the policyholder after his/her retirement. This is a flexible plan, which ensures vesting and death benefit.
Eligibility Criteria for MetLife Retirement Savings Plan
To purchase a plan from PNB MetLife, the organization has put down a few criteria. In order to be eligible for the same, the prospective policyholder has to fulfill the following criteria:
|Minimum age to buy the policy||30 years (age as on last birthday)|
|Maximum age to buy the policy||64 years (for policy having limited pay of 10 years) 65 years (for other tenures)|
|Minimum age at vesting||50 years|
|Maximum age at vesting||75 years|
Key Features of the MetLife Retirement Savings Plan
The Retirement Savings policy offered by PNB MetLife is an individual participating plan that comes with a number of features. A few of the attractive features have been mentioned as under:
|Type of plan||Non-linked, individual-deferred participating, traditional insurance plan that offers guaranteed benefits|
|Policy basis||Individual policy|
|Minimum sum assured||
Regular pay & Limited pay of 10 years: Rs 300,000
Single pay & Limited pay of 5 years: Rs 500,000
|Maximum sum assured||As per the company’s underwriting policy|
|Minimum term for policy||
Single Pay: 5 years
Regular Pay & Limited Pay 5 years: 10 years
Limited Pay 10 years: 11 years
|Maximum term for policy||
Single Pay: 20 years
Others: 30 years
|Term for Premium Payment||Single pay, 5 pay, 10 pay, Equal to policy term|
|Minimum annualized premium||
Regular Pay: Rs 7,044
Limited Pay of 10 years: Rs 13,128
Limited Pay of 5 years: Rs 35,990
Single Pay: Rs 262,250
Benefits of MetLife Retirement Savings Plan
Retirement Savings insurance policy offered by PNB MetLife has a number of key advantages, when compared to similar products in the market. A few of the competitive benefits of this plan are mentioned below:
- The policy is flexible where the vesting date can be deferred up to the individual’s age of 75 years.
- The death benefit offered under this policy is 105% of all the premiums, which includes death sum assured, terminal bonus, and accrued simple reversionary bonus.
- On death of the life insured, his nominee can either withdraw the lump sum of the benefit or purchase an annuity of the claim amount.
- From the third year, the policy will receive simple reversionary bonuses, as decided by the organization.
- In case the policyholder survives till the maturity and the policy is in force, then the vesting or maturity benefit offered will consist of base sum assured, terminal bonus, and accrued simple reversionary bonus.
- Terminal bonus is added to the policy on its completion of 5 years. The bonus is paid with maturity or death benefit.
- The insurance plan has a free look-in period of 15 days from the policy document’s receipt. A period of 30 days is given, in case the policy has been secured through electronic mode such as email. In case the policyholder is dissatisfied, the policy can be returned and the basic sum assured, after deducting charges, is refunded.
- If any of the premiums are missed on the allotted due date, then a grace period of 30 days is allowed from the unpaid premium’s due date. The policyholder can pay the due within the specified duration.
- The insurance policy also has surrender value, which is paid on the completion of 3 policy years, for regular pay and limited pay of 10 years. For Limited Pay 5 years, the premium should be paid for 2 policy years. In order to avail this benefit, the policyholder must ensure that all premiums have been paid on time
- The Retirement Savings Plan by MetLife is eligible for tax deductions, under the conditions and provisions of the Income Tax Act.
How does the MetLife Retirement Savings Plan Work?
Mr. Shyam, aged 40 years purchases a policy from MetLife Retirement Savings Plan. He buys the Regular Pay for a tenure of 10 years, by paying a minimum annualized premium of Rs 7,044. On the maturity of the policy, he receives the vesting benefit which includes basic sum assured of the entire term, accrued simple reversionary bonus, and terminal bonus.
The policyholder can choose to pay either single premium or regular premium on monthly, quarterly, semi-annually, or yearly basis. He may also elect to pay through the payroll savings plan mode.
There are no additional rider benefits with this policy.
GST of 18% is applicable on life insurance effective from the 1st of July, 2017