Being financially secure is a luxury that many do not have today, but with careful planning and through wise economic choices, every individual can ensure that they are financially safe. There are a number of plans and options that individuals can opt for today. One such plan is the Guaranteed Savings Plan from PNB MetLife. Through this plan, customers can ensure that their future is secure while receiving guaranteed returns on investments, create a corpus to fulfill their financial goals, whether short or long term and also secure their family’s future.
A partnership between two premier companies, MetLife and PNB which is one of the most popular nationalised banks within India, PNB MetLife provides a number of unique and advantageous . These products range from Retirement, Health and Life Insurance covers. More than a 100 million lives have been insured across the world, with over 3.6 million in India alone. The PNB MetLife Guaranteed Savings Plan by PNB MetLife Insurance comes with a host of fantastic benefits and features.
Eligibility Conditions for PNB MetLife Guaranteed Savings Plan:
The eligibility conditions for the , are as illustrated.
|Type of Premium Payment||5 Pay||7 Pay||10 Pay|
|Premium payment term in years||5||7||10|
|Policy tenure in years||10||15||20|
|Minimum age of entry in years||8||3||3|
|Maximum age of entry in years||60||60||60|
|Maximum age at maturity in years||70||75||80|
|Minimum yearly premium in Rs.||46,480||21,068||14,178|
|Maximum yearly premium in Rs.||As per underwriting policy approved by Board||As per underwriting policy approved by Board||As per underwriting policy approved by Board|
|Minimum assured sum in Rs.||4,00,000||2,00,000||1,50,000|
|Maximum assured sum in Rs.||As per underwriting policy approved by Board||As per underwriting policy approved by Board||As per underwriting policy approved by Board|
|Premium payment modes||Annual/Semi-Annual/Monthly||Annual/Semi-Annual/Monthly||Annual/Semi-Annual/Monthly|
|Multiple of Premium||Age during Entry||Applicable Multiple|
|Multiple of Premium||45 years and over||10 times or 7 times|
|Multiple of Premium||Below 45 years||10 times|
Key Features of PNB MetLife Guaranteed Savings Plan:
|Plan Type||Non-linked Non-participating Life Insurance Plan|
|Maturity Benefits||Assured sum along with accrued additions that were guaranteed, as long as premiums have been paid.|
|Policy Tenure||10 years/15 years/20 years|
|Premium Payment Tenure||5 years/7 years/10 years|
|Premium Payment Frequency||Annual/Semi-Annual/Monthly|
|Loans||Once surrender value has been acquired, loans can be taken against the policy.|
|Surrender Value||Higher of GSV or Guaranteed Surrender Value and SSV or Special Surrender Value of the policy.|
|Free Look Period||Policy can be cancelled by providing a written document with all details within 15 days of receiving the policy, 30 days in case the policy was procured through the website.|
|Grace Period||Period of 30 days is provided or 15 in case of monthly payment mode.|
|Termination||Will be terminated at the earliest of -
|Tax Benefits||Available as per provisions of Income Tax Act of 1961.|
|Nomination||Applicable in accordance with provisions of Section 39 of Insurance Act 1938 as amended from time to time.|
|Assignment||Applicable in accordance with provisions of Section 38 of Insurance Act 1938 as amended from time to time.|
|Suicide Exclusion||In case of policyholder’s death due to suicide (regardless of whether he/she was sane or insane), within a year of policy’s inception, only 80% of premium received will be refunded.|
|Reinstatement||Can be done within 2 years from the due date of the first premium that was unpaid, but prior to maturity of policy. All outstanding premiums will have to be paid along with applicable interest.|
Benefits of PNB MetLife Guaranteed Savings Plan:
There are a number of benefits of the Guaranteed Savings Plan. These are provided below -
- Maturity Benefit - Policyholders will receive the sum that has been assured on maturity along with accrued guaranteed additions upon maturity, as long as all premiums have been paid fully.
Death Benefit - Nominees will receive assured sum on unfortunate demise of the policyholder. This sum is a higher of -
- Multiple of Yearly Premium*Annualised Premium
- 105% of all premiums that have been paid until death
- Assured sum on policy maturity
- Based Sum Assured
Sum Assured on Maturity - This is the percentage of Basic Sum Assured and varies based on the premium payment type chosen by customers.
- On choosing 5 Pay, customers receive 70% of the Basic Sum Assured.
- On choosing 7 Pay, customers receive 100% of the Basic Sum Assured.
- On choosing 10 Pay, customers receive 130% of the Basic Sum Assured.
Guaranteed Additions - This is added at the end of a policy year during the premium payment tenure as long as all premiums have been received for that year. This amount is Guaranteed Addition rate*Sum of every premium that has been received till that date.
- On choosing 5 Pay, customers receive 5% of the cumulative premiums.
- On choosing 7 Pay, customers receive 7% of the cumulative premiums.
- On choosing 10 Pay, customers receive 10% of the cumulative premiums.
Benefits Illustration for PNB MetLife Guaranteed Savings Plan:
Let us take the case of a 30 year old businessman names Manohar. He has opted for the PNB MetLife Guaranteed Savings Plan and has chosen a premium payment tenure of 10 years and policy tenure of 20 years. A sum assured of Rs. 5,56,917 has been chosen and annual premiums of Rs.50,000 (excluding taxes) are being paid. Guaranteed additions accrue and are added at the end of the policy tenure. Assuming he survives till maturity, he will receive -
|Benefits||Amount in Rs.|
|Sum assured on maturity||7,23,992|
|Accrued Guaranteed Additions||2,75,000|
Riders Available for PNB MetLife Guaranteed Savings Plan:
There are two riders available that customers can opt for. These are -
- PNB MetLife Accidental Death Benefit Plus Rider wherein additional protection is provided over and above death benefit in the event of the policyholder’s death in an accident.
- MetLife Serious Illness Rider wherein protection is provided over and above the death benefit in case the policyholder has been diagnosed with any of the critical illnesses mentioned under the Rider.
GST of 18% is applicable on life insurance effective from the 1st of July, 2017