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MetLife Money Back Plan

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MetLife Money Back Plan Review

MetLife Money Back Plan is a traditional, regular Money Back Plan which provides easy liquidity through regular payouts of the Sum Assured in installments. The plan also has the feature of insurance coverage which provides a lump sum benefit in the event of premature death.


Highlights of the MetLife Money Back Plan

  • This is a traditional Money Back Plan which requires regular premium payments till the end of the chosen plan term.
  • Survival benefits are paid from the 5th policy year and continue for 5 years.
  • Premium rebates are available for premium paying frequencies and also for high Sum Assured levels.


Working of the MetLife Money Back Plan

  • The policyholder chooses the Sum Assured and the premium paying frequency based on which the amount of premium would be determined.
  • Premiums are to be paid for the complete duration of the plan.
  • Guaranteed Survival benefits accrue from the 5th policy year.
  • On death during the period, the death benefit is paid.
  • On maturity, the maturity benefit is paid.
COMPARE THIS PLAN WITH OTHER MONEY BACK PLANS


Benefits and Features of MetLife Money Back Plan

  • Maturity Benefit – When the plan matures and the premiums have been duly paid, 60% of the Sum Assured would be paid as the Maturity Benefit.
  • Death Benefit – If the insured dies during plan term and the policy is in force, the death benefit payable would be higher of the following:
    • 10 times the annual premium
    • Sum Assured chosen on plan commencement
    • 105% of the total premiums paid till dearth
    • Maturity Benefit
  • Survival Benefit – 10% of the Sum Assured is paid as Survival Benefit from the 5th policy year till the 9th policy year.
  • Bonus – This is a non-participating plan and does not earn bonuses.
  • Loan –Loan can be taken on the policy after the policy has acquired a Surrender Value. The maximum amount of loan available is 90% of the acquired Special Surrender Value net of any unpaid premiums. The loan would also attract interest @12% per annum.
  • Tax benefit – Premiums paid under the plan would be exempt from tax under Section 80C up to a limit of Rs.1.5 lakhs. The death benefit or the maturity benefit received and the Survival benefit received would also be tax exempt under Section 10(10D) of the Income Tax Act.


Eligibility Criteria of MetLife Money Back Plan

The plan can be bought only by Resident Indians. The other eligibility criteria of the plan includes:
  Minimum Maximum
Entry age (Last Birthday) 13 years 55 years
Maturity Age (Last Birthday) NA 65 years
Plan tenure 10 years
Premium payable Rs.23,119 Rs.51,63,875
Premium Paying Term (PPT) Equal to plan term
Sum Assured Rs.2.5 lakhs Rs.5 crores
Premium payment mode Monthly, quarterly, half-yearly and annually



Additional Benefits of MetLife Money Back Plan

  • Riders – The plan does not have any riders available.
  • Premium Rebates – Discount in premiums are allowed if the premiums are paid in the annual or half-yearly mode. The discount would be 3% for the annual mode and 1.5% for half-yearly mode of premium payment. 
  • Sum Assured Rebate – Discounts are also given in premiums for choosing high Sum Assured levels. The applicable rebates are as follows:
Sum Assured Range Rebate per 1000 Sum Assured
Less than Rs.10 lakhs Nil
Rs.10 lakhs to Rs.25 lakhs Rs.2
Rs.25 lakhs and above Rs.4
 
  • Grace Period – A grace period of 30 days is allowed for payment of premium after the due date for annual, half-yearly and quarterly modes of premium payment. For monthly mode, the allowed period is 15 days. 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 15 days (30 days for distance marketing channels) 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 shows the premiums payable at different ages for different Sum Assured levels opted by an individual.



The premium rates are also tabulated hereunder for a quick reference:
Age Sum Assured - Rs.2.5 lakhs Sum Assured - Rs.5 lakhs Sum Assured -Rs.10 lakhs
30 years 23,933 47,865 95,730
40 years 24,215 48,430 96,860
50 years 25,053 50,105 100,210



Exclusions in MetLife Money Back Plan

  • If the insured commits suicide within a year of policy issuance, 80% of the premiums paid would be refunded and the policy would become void.
  • If suicide is committed within a year of policy revival, higher of 80% of the premiums paid till death or the Surrender Value acquired would be paid provided the policy is in force


Non-Payment of premium in MetLife Money Back Plan

Premiums have to be paid for at least 3 years. After this compulsory period, the policyholder can surrender the policy or make it paid-up.

Making the policy Paid-up

If at least3 full years’ premium has been paid, the policy would become a paid-up policy if future premiums are not paid. The Sum Assured under the plan would be reduced and would be called Reduced Paid-up Sum Assured. It would be calculated as follows:

Reduced Paid-up Sum Assured = {110% of the Sum Assured * (number of premiums paid/total number of premiums payable)} – Survival Benefits already paid

The benefits payable would be reduced and would be as follows:
  • Death Benefit – The death benefit would be calculated as follows:
    Sum Assured *(number of premiums paid/total number of premiums payable)
  • Maturity Benefit – The Reduced Paid-up Sum Assured would be paid on maturity. A paid-up policy would not accrue any further survival benefits.


Surrendering the policy

Surrender is allowed only after the policy becomes paid-up, i.e. after3 full years’ premiums have been paid. On surrendering the policy, higher of the Guaranteed Surrender Value (GSV) or the Special Surrender Value (SSV) would be paid. Also, the discounted value of the enhanced Survival Benefit, if deferred, would be paid.
  • GSV = (Basic Premium paid excluding taxes * GSV Factor)
  • The SSV factors would be declared by the company based on its performance 


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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