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MetLife Major Illness Premium Back Cover Plan

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MetLife Major Illness Premium Back Cover Plan

MetLife Major Illness Premium Back Cover Plan is a traditional health insurance plan which covers major illnesses which a policyholder might suffer. The plan also returns the premiums paid on maturity in case no claim is made.


Highlights of the MetLife Major Illness Premium Back Cover Plan

  • This is a traditional health insurance plan which covers 35 major or critical illnesses.
  • The premiums paid are also returned as Maturity Benefit if the insured does not suffer from any covered illnesses.
  • The plan term is fixed and premiums are payable for the entire duration of the plan.
  • Rebates in premiums are allowed for higher Sum Assured levels.


Working of the MetLife Major Illness Premium Back Cover Plan

  • The policyholder chooses the Sum Assured. Based on the insured’s age, tenure and Sum Assured chosen, the premium would be fixed.
  • The premiums are to be paid for the entire duration failing which the plan lapses and no benefits would be payable.
  • On diagnosis of the specified illnesses, the Sum Assured would be paid.
  • On maturity, the premiums paid are returned.


Benefits and Features of MetLife Major Illness Premium Back Cover Plan

  • Illness Benefit - The plan covers 37 critical illnesses and the lumpsum Sum Assured is paid if the insured is diagnosed with any of the covered illnesses during the tenure of the plan. This benefit would be paid only if the illness is diagnosed 90 days after plan commencement and the insured survives 30 days after such diagnosis. 
  • Death Benefit - The plan does not pay any death benefit.
  • Maturity benefit – If the plan completes the specified term and matures, the total premiums paid by the policyholder would be returned.
  • Bonus – This is a health plan and as such, bonuses are not declared. 
  • Loan –Loans are not available under the plan.
  • Tax benefit – Premiums paid under the plan would be exempt from tax under Section 80Dof the Income Tax Act.


Eligibility Criteria of MetLife Major Illness Premium Back Cover Plan

The plan can be bought only by Resident Indians. The other eligibility criteria of the plan includes:
  Minimum Maximum
Entry age (Last Birthday) 18 years 55 years
Maturity Age (Last Birthday) NA 70 years
Plan tenure 10 years
Premium payable Rs.5958 Rs.168,772
Premium Paying Term Equal to plan term
Sum Assured Rs.5 lakhs Rs.50 lakhs
Premium payment mode Annually, half-yearly, quarterly or monthly



Additional Benefits of MetLife Major Illness Premium Back Cover Plan

  • Riders – No riders are available under the plan.
  • Sum Assured rebates – Higher levels of Sum Assured qualify for premium rebates. The rate of rebate is as follows:
Sum Assured Range Rebate allowed
Rs.5 lakhs to Rs.999,999 Nil
Rs.10 lakhs to Rs.24,99,999 Rs.4 per Rs.1000 Sum Assured
Rs.25 lakhs to Rs.50 lakhs Rs.7 per Rs.1000 Sum Assured
 
  • Grace Period – A grace period of 30 days is allowed for payment of premium after the due date in case of annual, half-yearly and quarterly mode and 15 days in case of monthly mode of premium payment. The life cover under the policy would continue during the grace period.
  • Free Look Period –A cooling off period or a free look period of 30 days is granted to the policyholder after the policy issuance to review the policy terms and conditions. If found unsatisfactory, the plan can be cancelled within this period and the premium paid would be refunded after deducting the relevant mortality charge, service tax, cess and stamp duty paid.


Premium Illustration

The following chart considers the rate of premium payable by a male and a female at different ages for different levels of Sum Assured chosen.



The table shows the tabulated premiums of the above chart for an easy reference:
Age Sum Assured - 5 lakhs Sum Assured - 10 lakhs Sum Assured – Rs.20 lakhs
Male Female Male Female Male Female
35 years 8,938 8,399 17,875 16,797 35,750 33,594
40 years 11,289 10,455 22,578 20,190 45,156 41,820



Exclusions in MetLife Major Illness Premium Back Cover Plan

  • There is a waiting period of 90 days from policy commencement or revival for the coverage of the specified illnesses and payment of the benefit.
  • Pre-existing conditions are not covered for the first 48 months from policy inception.
  • Medical conditions which are suffered due to self-inflicted injury, HIV/AIDS infection, war, congenital anomaly or defect, organ donation, alcohol or drug abuse, diagnosis and treatment outside India and radiation are excluded.
  • If the insured commits suicide within one year of plan commencement, only 80% of the premium paid would be refunded and the plan would be void.
  • In case of suicide committed within one year of revival, higher of the acquired Surrender Value or 80% of the total premiums paid under the plan would be refunded.


Non-Payment of premium in MetLife Major Illness Premium Back Cover Plan

Premiums have to be paid for at least 3 years after which the policy can be surrendered or made paid-up.

Making the policy Paid-up

If 3 full years’ premiums have been paid and then the premiums are discontinued, the plan can continue on a Paid-up Value. The Sum Assured under the plan would be reduced and called the Reduced Paid-up Sum Assured. It is calculated using the following formula:

Reduced Paid-up Sum Assured = Sum Assured * (number of premiums paid/total number of premiums payable)

On diagnosis of any specified illness when the policy is in a reduced Paid-up state, the Reduced Paid-up Sum Assured would be paid. On maturity, the aggregate premiums paid under the plan would be refunded.


Surrendering the policy

The plan acquires a Surrender Value only after the first 3 years’ premiums have been paid. The Surrender Value payable would be higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV). 
  • GSV = total premiums paid * GSV Factor
  • SSV = total premiums paid * SSV Factor


Revival 

Revival is allowed within 2 years from the date of the first unpaid premium. The policyholder would be required to pay the outstanding premium and any interest charged by the insurer to revive his policy.



 
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