Financial emergencies can arise at any point in our life, leaving us in a quandary over how to meet such obligations. One option available to us is a loan, which offers a temporary solution to our financial predicament. While obtaining a loan might be easy today, paying back a loan can be a long and tedious process and any unfortunate event during this term can put the onus of loan repayment on our loved ones. Met Loan Assure is a plan designed to ensure loan repayment does not take the life out of your loved ones in the event of your unfortunate demise, ensuring life can go on without an additional burden.
Eligibility Criteria of PNB MetLife Loan Assure Plan
|Entry Age||Minimum – 18 years Maximum – 60 years|
|Maturity Age||Maximum – 70 years|
|Sum Assured||Maximum – Rs 5 crore|
Key Features of PNB MetLife Loan Assure Plan
|Type||Non-participating reducing term single premium group insurance scheme.|
Death Benefit – In the unfortunate event of demise of policyholder, a death benefit will be provided to his/her nominee. This benefit will either be the Sum Assured or the amount of cover which is finalised after considering the reducing value of a particular loan.
Maturity Benefit – No maturity or survival benefit will be provided under this scheme.
Surrender Benefit – A surrender benefit can be claimed if the outstanding loan amount is cleared while the policy is still in place or if the policy is cancelled by the group policyholder. Surrender benefits can be availed only upon meeting certain conditions.
Minimum – 3 years
Maximum - 25 years
|Premium paying Term||Single payment|
|Loans||Loan facility is not available under this plan.|
|Surrender||Policyholders can surrender their policies if they repay their outstanding loan amount during the policy term.|
Advantages of PNB MetLife Loan Assure Plan
|Single Payment||Policyholders need to pay just one premium and are covered for the policy term without any additional payments.|
|Surrender value||Policyholders get surrender benefits when they are eligible to surrender their policy.|
|Simple||The entire process including application and claim is simple and hassle free.|
|Tax benefits||Policyholders are entitled to tax benefits under the provisions of the Income Tax Act, with all premiums paid eligible for tax deduction.|
|Joint life cover||In cases where more individuals have co-signed a loan, joint insurance cover will be provided to them.|
|Family protection||This plan protects the family of a policyholder in the unfortunate event of his/her demise by clearing off any pending loan amount.|
|Non-medical limit||Policyholders are protected up to their non-medical limits, as indicated in their proposal forms.|
How The Plan Works
MetLife Loan Assure is a group policy which can be availed by financial institutions or employers who offer loans to their employees. Under this plan, individuals who avail loan from financial institutions would be covered for their outstanding loan payment. The employer/organisation can choose to insure individual members so that they are not at a financial liability if something happens to the borrower and he/she is unable to repay this amount on account of such an incident. Premiums can be collected and paid to the insurance provider or an individual can approach an institution and pay the premium individually, which will then be paid to the insurance provider.
A certificate of insurance will be provided to every individual member of a group who has enrolled in this scheme, entitling him/her to all the benefits offered under the package. PNB MetLife will work on the mathematics, preparing a scheduled outstanding loan amount by taking into account the initial loan amount, interest rate and tenure of a loan.
For example, Mr. Kumar, an employee of an organisation takes a loan of Rs 2.5 lakh from his company. His company chooses to insure him through Met Loan Assure so that their liability is reduced if something happens to him. Mr. Kumar assures to return the loan in 10 years, paying a certain instalment yearly. His company asks him to pay the premium towards this insurance plan which comes to Rs 15,000/-. Five years down the line Mr. Kumar passes away due to bad health, having paid just half the amount of his loan. In this case, the pending amount will be paid by Met Loan Assure, ensuring that his family is not burdened with the additional task of repaying his loan.
Individuals are required to pay only one premium to avail the benefits offered by this PNB Metlife plan. This premium should be paid in full, without any instalments.
There are no additional riders available with this plan.
GST of 18% is applicable on life insurance effective from the 1st of July, 2017