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PNB Met Suraksha - Term Assurance with Return of Premium (TROP)

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PNB Met Suraksha-Term Assurance with Return of Premium (TROP)

Objective

This is a return-of-premium policy that aims to provide financial assistance on unfortunate demise of the insured person.

What does it do?

This policy can pay death benefit on death of the insured or refund entire basic premium paid along with guaranteed additions on survival at the end of policy tenure. The guaranteed additions are equal to 10 per cent of premiums (including policy fee) paid (and excluding extra premiums and rider premiums).
The policy will not lapse in case the policyholder fails to pay premium for any reason. It will continue with a reduced paid-up value, provided premiums for first 3 policy years were paid regularly. The reduced paid-up value is calculated using following formula:
(Number of premiums paid/ Total number of premiums payable) x Face amount
It also guarantees a surrender value if the policyholder does not wish to continue with the policy.

Pros

Riders are available for additional protection.
The policy provides guaranteed additions of 10 per cent of premiums paid (excluding rider premium) at maturity.
The policy offers a long reinstatement period of 3 years, unlike 2 in most plans. There is also a guaranteed surrender value.
Premiums paid towards this policy qualify for tax deduction under Section 80C.

Cons

Riders can be taken only at the time of purchase and not during the policy term.

Suited for

This policy can be taken by those who are not satisfied with pure risk insurance and would like to receive some part of premiums on survival.

Our View

Return-of-premium policies are relatively expensive as compared to simple term insurance policies that do not offer anything on survival. Before buying any life insurance policy, evaluate your needs and do not consider multiple benefits offered by any policy, until you need them.

Eligibility

Entry Age (years)

Minimum

18

Maximum

50

Maximum Maturity Age (years)

65

Policy Term (years)

Minimum

15

Maximum

20

Sum Assured (Rs)

Minimum

200000

Maximum

No limit

Premium Payment Frequency

Single, Yearly, Half-Yearly, Quarterly, Monthly

Premium Payment Term

Single, Limited-3 year pay, equal to policy term

Premium Factor (multiply with annual premium)

0.5131 for Half-Yearly, 0.2605 for Quarterly, 0.0886 for Monthly and 0.0868 for Payroll Savings Program

Policy Cover

Cover remains fixed for the tenure of the policy

Other Features

Free Look Cancellation

In case, you are not satisfied, you may choose to cancel the policy within 15 days of receiving the policy documents. Upon such cancellation, you will be paid back the premiums, minus the cost of stamp duty, medical reports and proportionate premium for the period for which the risk was covered.

Grace Period

You are allowed to pay premiums within 30 days of premium due date. If a due premium is not received within the grace period, your policy will lapse and the life insurance cover will be terminated.

Lapsed Policy Reinstatement

You may reinstate your lapsed policy within 3 years from date of first unpaid premium by paying due premiums and undergoing underwriting requirements, if any.

Tax Benefits

Section 80C, 10(10D) of the Income Tax Act, 1961 would apply. Premiums paid for Critical Illness Rider may qualify for deduction under Section 80D of the Income Tax Act, 1961.

Exclusions

In case of death by suicide during the first policy year, or within one year from the date of reinstatement, no death benefit is payable. Further, if the Life Assured under the policy, whether medically sane or insane, commits suicide, within one year of exercising the option to increase the Sum Assured, then the amount of increased Sum Assured will not be considered in the calculation of the Death Benefit

Paid Up Value

If policyholder due to any reason fails to pay premium, the policy does not lapse. It continues at ' Reduced Paid up Value' provided premiums for first three policy years have been paid on time. Reduced Paid Up Value = (No. of premiums paid / Total no. of premiums payable) x face amount.

Maturity Value

Basic premiums exclusive of rider premiums or extra premiums paid if any on survival at maturity.

Surrender Value

Regular Premium
= 30% x premiums paid including policy fee and excluding first year premium, extra premiums and rider premiums, payable at the end of 3rd year
Single Premium
= 90% x single premium including policy fee and excluding extra premiums and rider premiums; payable at the end of 2nd year
Limited Pay
= 80% x premiums paid including policy fee and excluding first year premiums, extra premiums and rider premiums; payable at the end of 3rd year

Customer Service

Address

MetLife India insurance Company Limited
Registered Office: Brigade Seshamahal, 5, Vani Vilas Road, Basavanagudi, Bangalore - 560004

Mail To

indiaservice@metlife.co.in

Call On

1800 425 6969 or +91 080 26438638 from 8 am to 8 pm

SMS

Protect' to 5676769

Additions to the Plan

Available Rider(s)

Accidental Death Benefit: Death due to accident within 180 days of accident.
Critical Illness Benefit: It covers 10 critical illnesses namely: Heart Attack, Stroke, Cancer, Surgery to coronary arteries, Kidney failure, Major organ transplant, Aorta surgery, Blindness, Heart valve replacement and Paraplegia. There is a waiting period of 90 days from the date of issue to avail the benefit and a survival period of 30 days after confirm diagnosis of the illness.

Rider Conditions

Entry Age (years)

Minimum

18

Maximum

55

Maximum Maturity Age (years)

60

Sum Assured (Rs)

Minimum

50000

Maximum

Lower of Base plan insurance or 10 lakh

Rider Premium (Rs)

Rider premiums vary for each policyholder. For instance, if a 30-year old opts for the Accidental Death rider for Rs 5 lakh sum assured over a 10 year tenure; the annual rider premium works to Rs711 and Rs 1004 in case of Critical Illness Rider.

Happy Investing!!

We can help. Call 0 94 8300 8300 (India)

Leave your comment with mail ID and we will answer them

OR

You can write back to us at PrajnaCapital [at] Gmail [dot] Com

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