PNB MetLife Mera Term Plan- A plan loaded with features
Key objective of life insurance is to protect family’s future in case of untimely death of the breadwinner and term insurance plan serves it best. Like any other term insurance plan PNB MetLife Mera Term plan is a pure term insurance plan without any survival or maturity benefits. Death benefit under the plan is paid to the nominee in case the life assured dies during the term of the plan.
Design your plan as you need
Money should be available when you need it most and keeping this in mind the plan offers the choice of different payout options.
Lump sum payment on death
Under this option the nominee can claim total sum assured in lump sum. This option best suits individuals who think that after repaying their loan liabilities etc. they can invest the balance amount as per their choice for their future financial needs.
Lump sum + monthly income
This offers an option to claim benefit in the form of lump sum along with regular monthly income. Under this option 50% of the sum assured is paid to the nominee in lump-sum and balance 50% is paid in 120 equal installments during next 10 years. The monthly income will be calculated at 0.58% of the sum assured. For instance, if the sum assured in the policy is Rs. 1 crore, the nominee will get Rs. 50 lakh in lump-sum and monthly pay out of Rs. 58000 for next 10 years.
Lump sum + Increasing Monthly Income
Since regular expenses of the dependent will increase year after year due to inflation and hence the nominee may like to receive the monthly income at the increasing rate. To serve this need of the beneficiary the plan offers an option of claiming the benefit in increasing monthly installment along with one time lump-sum payment.
50% of the sum assured is paid to the nominee in lump sum and the balance in increasing monthly instalments over the next 120 months. The first year’s monthly income shall be 0.39% of the sum assured. If the sum assured is Rs. 1 crore under the policy, the beneficiary will get Rs. 50 lakh in lump sum and monthly income of Rs. 39000 in the first year. Since the monthly income will increase by 12% every year and hence the beneficiary will get Rs. 43600 in the second year. Growing by the same rate the beneficiary will get Rs. 108150 every month in the 10th year.
Lump sum + monthly income till child ages 21
To meet the regular expenses of child’s education, policy provides an option to claim 50% of the sum assured in lump sum and balance amount in equal monthly installments until child turns 21 years of age. This option is available only if the child is 15 years or less at the time of death of the life assured. For instance, if the child is 5 years old at the time of death of the life assured he/she will get monthly income for next 16 years. Monthly income will depend on the age of the child which varies from 0.37% of the sum assured per month, if the child is less than 1 year to 4.43% of the sum assured when the child is 20 years old, at the time of the life assured’s death.
Additional Protection benefits
Needs of an individual may change with time and a higher cover may be needed to protect the interest. To serve the need of the policy holder, the plan is loaded with some additional benefits.
Life stage benefit
Since your responsibilities increase with time so you may need higher life cover as your life stage changes. To address this need plan offers Life Stage Benefit. Policy holder has option to increase his sum assured under the same plan without any medical examination. Sum assured can be increased to 50% of the original cover at the time of marriage and 25% on the birth of each child, limited to first two children. Total life stage benefit under the plan can go up to Rs. 1 cr. Premium will depend on the prevailing age of the life assured and premium table.
Joint life cover
Joint life cover is another feature of the plan. Under the option husband and wife both can be covered under a single plan. The coverage to the second life is limited to 50% of the sum assured chosen by the policy holder.
Conclusion
This plan offers a varied number of options for selecting the appropriate amount of coverage as well as payout options. This makes it one of the most flexible products in the term insurance category available in the market today. Based on needs, the most appropriate plan can be tailor-made which will help the policy holders secure their family’s future. Depending on financial literacy and risk appetite of your nominee, you can consider choosing for lumpsum payout and invest the proceeds in some investment options with higher liquidity and better returns (please do remember this is a pure term plan, hence no survival benefits available under the plan). Both partners can consider buying individual plans after analyzing their needs.
