MetLife Endowment Savings plan is a savings cum insurance plan that offers you systematic savings for all the important milestones of your life as well as life protection. The PNB MetLife plan helps you accumulate a corpus as well as ensure financial protection for your family in the unfortunate event of sudden death. The policy is great for people who are looking to conservatively grow their money as well as avail protection for their family.
Eligibility Criteria for MetLife Endowment Savings Plan :
|Maximum Age at maturity||Minimum Entry Age||Maximum Entry Age|
|75 years||20 years||60 years|
Key features of MetLife Endowment Savings Plan
|Plan type||Participating non-linked endowment plan.|
|Premium paying terms||Regular, Limited Pay 5 years, Limited Pay 10 years|
|Premium Payment Frequency||Yearly, half-yearly, quarterly, monthly|
|Min. Premium Amount||
|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|
|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:
Sum assured plus all reversionary bonuses accrued plus terminal bonus if any is paid out or 105% of all premiums paid till date
Sum assured plus all reversionary bonuses accrued plus terminal bonus if any is paid to the policyholder on maturity of policy
|Discontinuation of premium||Any discontinuation needs to be intimated to MetLife and whether the policy will be surrendered is to be made known.|
Benefits/Advantages of MetLife Endowment Savings Plan
Listed below are some of the most prominent benefits and advantages offered by MetLife Endowment Savings Plan.
- Tax benefits: MetLife Endowment Savings plan offers tax benefits on premiums paid by the policyholder. This tax exemption is under section 80C, and D of the Income Tax Act, 1961.
- Simple Reversionary Bonus: The policy offers simple reversionary bonus after three policy years. This bonus is credited at the end of each policy year.
- Terminal Bonus pay-out: Policyholders get to avail certain terminal bonus also at the maturity of the insurance scheme. Terminal bonus depends upon MetLife and is a percentage of the reversionary bonus.
How Does The MetLife Endowment Savings Plan Work
MetLife Endowment Savings plan is a simple yet effective insurance plan that offers an opportunity to incur regular savings while offering life cover for protection against unforeseen events like death.
The plan offers limited pay option for 5 and 10 years as well as regular pay option. Let us discuss the details of this plan via an example.
Mr. Arun is a software developer who earns Rs.70,000 per month. Arun wants a plan that offers insurance protection as well as a savings option. Since, Arun will be survived by his parents and spouse and kids, in case anything happens to him, he wants to take limited pay option for 10 years of Rs.30,000 per annum. He wants to avail yearly premium payment option because he gets a bonus from his office every year which makes it easy for him to pay a one-time premium each year.
In case anything happens to Arun, his beneficiaries will get a substantial corpus as sum assured plus accrued bonuses as well as terminal bonus is any. Similarly, if Arun survives the maturity period, he stands to get sum assured along with all accrued bonuses.
GST of 18% is applicable on life insurance effective from the 1st of July, 2017