PNB MetLife College Plan

PNB MetLife College plan is a non-linked deferred participating, endowment plan that aims to specially focus on providing financial assistance to you for your child’s education. The plan offers systematic money-backs throughout the various stages of your child’s education. The plan offers guaranteed additions as well as insurance protection in the unfortunate event of death of the policyholder. The plan is ideal for customers who are looking to generate funds for education of their children and for those who wish to make sure their child’s education doesn’t take a hit if some unfortunate event, like death occurs.

Eligibility Criteria for PNB MetLife College Plan :

Maximum Age at maturity Minimum Entry Age Maximum Entry Age
69 years 20 years 45 years

Key Features of PNB MetLife College Plan

Plan type Non-Participating non-linked endowment plan.
Plan basis Individual, Insured person includes father, mother or legal guardian of the child
Premium paying terms Regular
Premium Payment Frequency Yearly, half-yearly, quarterly, monthly
Policy term 12-24 years
Min. Premium Amount Annual Mode - Rs.18,000

Non-annual Mode - Rs. 30,000

Maximum Premium Rs. 42,44,482

Grace period
30 days from the expected date of payment of premium (for yearly, half-yearly and quarterly modes)

15 days from the expected date of premium payment for monthly mode

Free Look Period 15 days from the date of signing the policy
Nomination Nomination facility is available under section 39 of the Insurance Act, 1938
Sum Assured Min. Sum Assured - Rs. 2,12,040

Max. Sum Assured - Rs. 5 Crores

Policy coverage Death benefits and maturity benefits.

Death Benefits: In case of death of the policyholder, the following two listed below are paid to the beneficiary:

1. Sum assured applicable plus reversionary bonuses accrued

2. All future premiums are waived off but policy remains active for remaining policy period

Maturity Benefits:Survival benefits which is 20% of base sum assured for the last 3 policy years plus 40% of base sum assured at maturity

Discontinuation of premium Any discontinuation needs to be intimated to MetLife and decision regarding reduced paid-up or revival of policy needs to be made within 2 years from the inception of policy

Benefits/Advantages of PNB MetLife College Plan

Listed below are some of the most prominent benefits and advantages offered by PNB MetLife College Plan.

  • Tax benefits: Tax benefits under section 80C and section 10D of the Income Tax Act are applicable on premiums paid for . Tax benefits, however, are subject to change as per tax laws.
  • Policy loan: After 3 policy years, customers can avail loans against this insurance policy.
  • Reduced Paid-up benefit: After the policy reaches surrender value, if the subsequent premiums are not paid by the policyholder within the grace period then the policy gets converted to a reduced paid-up policy by default along with a reduced paid-up sum assured on maturity.
  • Terminal Bonus pay-out: Policyholders get to avail certain terminal bonus also at the maturity of the insurance scheme. Terminal bonus depends upon PNB MetLife and is a percentage of the reversionary bonus.
  • Flexible policy period: Customers have the flexibility to choose policy period from 12-24 years.

How Does the PNB MetLife College Plan Work

Let’s take an example of Mr. Bhatia who is a software engineer who earns Rs.70,000 per month and has a son who is studying in the 1st standard. Mr. Bhatia wants to generate a substantial corpus after 12 years so as to have sufficient funds for furthering his son’s higher education after he completes his intermediate.

Mr. Bhatia chooses to avail the policy for 12 year policy period so that sufficient funds will be with him when it’s time for his son to make his career choice. According to PNB MetLife College Plan, Mr. Bhatia will get to avail a minimum assured sum of Rs.3 lacs at the end of 12 years.

GST of 18% is applicable on life insurance effective from the 1st of July, 2017

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