The MetLife Group Gratuity plan is a group linked plan that provides a full package service for those employers who wish to completely outsource their gratuity management process. All matters relating to gratuity disbursement to employees and the management of the systems thereof will be handled through this MetLife plan.
Eligibility Conditions of PNB MetLife Group Gratuity Plan
|Entry Age||Minimum – 18 years.|
|Maturity Age||70 years.|
|Sum Assured||Rs.1,000 per life insured.|
Key Features of PNB MetLife Group Gratuity Plan
|Type||A unit linked life insurance plan.|
|Premium paying term||Regular.|
|Premium paying frequency||Annually.|
|Free look period||
You need to submit a written reason for objection. The premium will be provided to you if you give a written notice for cancellation along with the policy document.
|Grace period||The policyholder will get 30 days of grace period from the premium due date to make the payment. If there is a claim before the expiry of the grace period, then the sum assured paid will be reduced for the unpaid premiums.|
|Tax benefits||You can avail tax benefits under section 80C and Section 10(10D) of the Income Tax Act, 1961.|
Unit Linked Funds
The primary objective of investments in this fund is to earn regular income by investing in high quality fixed income securities. This fund primarily invests in:
The primary objective of investments in this fund is to generate capital appreciation and current income through a mixed investment portfolio of equities and fixed income securities. This fund primarily invests in:
Investment Fund Application
|Asset Class||Debt Fund||Balanced Fund|
|Government and Government approved securities||0-90%||0-60%|
|Corporate bonds rated “AA” or above by any approved rating agency||0-60%||0-60%|
|Money market and other liquid assets||0-40%||0-40%|
|Infrastructure sector as defined by the IRDA||0-60%||0-60%|
Advantages of PNB MetLife Group Gratuity Plan
- Option to choose between two unit linked funds – debt fund and balanced fund.
- Company publishes a statement of accounts once every year.
- There is also the option of switching between the two funds depending on the investor’s risk appetite.
- The gratuity contribution can be paid in instalments.
- Professional assistance is given to you in the legal, tax, and accounting fields.
- Tax benefits as applicable under prevailing taxation laws.
How The Plan Works
Step 1: Choose between two unit linked funds – debt fund and balanced fund depending on your personal risk appetite and financial goals.
Step 2: Pay premiums annually, regularly.
Step 3: Avail maturity benefits, and in the event of death, dependants get a death benefit.
There are no riders available with this plan.
GST of 18% is applicable on life insurance effective from the 1st of July, 2017