PNB MetLife Monthly Income Plan – 10 Pay

Overview of PNB MetLife Monthly Income Plan - 10pay

This plan is a participating plan that offers a regular guaranteed income for you and your family – even when you’re not around, for 15 years or till the end of the policy. You can even choose the monthly income that you want, and PNB MetLife insurance guarantees this amount. Achieve your financial freedom and plan for your retirement with this plan.

Eligibility Criteria of PNB MetLife Monthly Income Plan – 10 Pay

EntryAge
  • Minimum – 18 years.
  • Maximum – 55 years.
MaturityAge Maximum – 65 years.
Sum Assured Base Sum Assured = Annualized Premium x 11.
Monthly Income Minimum: Rs.1,500. Maximum: Rs.1,00,000.

Key Features of PNB MetLife Monthly Income Plan – 10 Pay

Type Participating, non-linked, deferred interment plan.
Coverage Death Benefit – In the unfortunate event of demise of policyholder, a death benefit will be provided to his/her nominee which is the higher of:
  • Death Sum Assured plus Accrued Simple Reversionary Bonus and Terminal bonus, or
  • 105% of all premiums paid.

Where the Death Sum Assured is the higher of:

  • 10 times the annualized premium, or
  • Base Sum Assured, or
  • Maturity Sum Assured.

Base Sum Assured is = 11 times the annualized premium.

Maturity Sum Assured is = 135 times the chosen monthly income.

Maturity Benefit – On completing the policy term, the policyholder will be entitled to the following:

  • Chosen monthly income for the next 15 years. The first monthly income payout starts on the expiry of one month after the maturity. Plus,
  • Option to take accrued bonus as lumpsum, and
  • Option to enhance monthly income through accrued bonus.
Surrender Value Upon the surrender of the policy, the higher of either the Guaranteed Surrender Value or Special Surrender Value is payable.

The Guaranteed Surrender Value (GSV) is:

  • If all the premiums are paid for at least 3 full policy years, the policy acquired the GSV.
  • 30% of the total premiums paid, if surrendered between the 2nd and 3rd year.
  • 50% of the total premiums paid, if surrendered between the 4th and 7th year.
  • 70% of the total premiums paid, if surrendered in the 8th year.
  • 90% of the total premiums paid if surrendered in the last 2 years of the policy.

The Special Surrender Value (SSV) is:

  • (Maturity Sum Assured x Number of premiums paid / Number of premiums payable) + (The accrued Simple Reversionary Bonus).
Basis Single.
Policy term 10 years.
Premium paying Term 10 years.
Annualized Premium Minimum: Rs.23,280. Maximum: Rs.18,20,000.
Loans Loan facility is not available under this plan.
Tax benefits Tax benefits are applicable as per applicable taxation laws.

Get tax benefits on buying the policy, and tax free regular monthly income.
Grace Period There is a grace period of 30 days on non-payment of the unpaid premium. 15 days in the case of monthly and PSP modes.
Free Look Period There is a free look period of 15 days from the date of receipt of policy documents, and 30 days in case the policy has been sourced through distance marketing channels.
Reinstatement When the premiums are not paid within the grace period, the policy will lapse and is subject to non-forfeiture provisions.

Reinstatement can be requested up to 2 years from the date of the first non-paid premium.

Reinstatement is subject to receipt of a letter showing proof of insurability along with a formal request for reinstatement, and all the unpaid premiums, along with interest.

All premiums due till the date of reinstatement must be paid along with compound interest at the rate prescribed by the company.
Termination The policy stands terminated on the earliest among the following scenarios:
  • The payment of last monthly income at the end of the benefit payout period.
  • Payment of death benefit during the policy term.
  • Date on which the policy is surrendered.
  • Upon the expiry of two years from the date of policy lapse. When the policy is not reinstated, provided that the policy has not acquired any paid up value.
  • On the payment of the maturity benefit.
Exclusion
  • In the event that the policyholder commits suicide within one year from the commencement of insurance coverage, 80% of the premium received (without interest) will be payable to the nominee.
  • If the policyholder commits suicide within one year from reinstatement of the policy, insurance coverage will be void and 80% of the premiums received (without ROP) will be paid to the nominee.

Advantages of MetLife Monthly Income Plan – 10 Pay

  • Pay for 10 years, and convert this into guaranteed income for the next 15 years.
  • Guaranteed monthly income will be paid to your nominee for 15 years after your death, taking care of your family’s finances.
  • Enhance wealth at maturity with bonus payouts.
  • Tax efficient, at the time of purchase and while receiving regular income.
  • Cost effective way of ensuring comprehensive insurance coverage and securing a monthly income.
  • Policyholders can also take back all the premiums in case nothing happens to them, at the end of the policy term.

How The Plan Works

Step 1: Decide on a monthly income required.

Step 2: Pay premiums for 10 years.

At the end of 10 years, the Maturity Benefit, Simple Reversionary Bonus and Terminal Bonus become payable in addition to the death benefit.

Riders

There are no additional riders available with this plan.

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

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