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Met Smart Child Plan

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Met Smart Child Plan
 
Met Smart Child Plan is a Child Plan which is a Unit Linked Insurance Plan. The policy can be used to plan your child’s future cash requirements.
 
How it works – In this plan, premium needs to be paid till the end of the policy tenure of 10, 15 or 20 years as selected. The premium, net of charges, is invested in the chosen fund. This plan also offers Loyalty Additions to policies with tenure of 15 or 20 years of 2% and 3% of Average Fund Value respectively.
 
In this plan, the Fund Value +Loyalty Additions, if any, are paid to the policyholder on maturity. However, if the Life Insured dies within the Policy Tenure, then the Sum Assured is paid as Immediate Death Benefit. The future premiums are waived off and paid by the insurance company so that the policy continues as per schedule to pay the Fund Value on policy maturity. This ensures that the dream of the parent for the child’s educational expenses is not hampered.
 
However, if the child dies before the Life Insured, the policy continues and only the beneficiary can be changed accordingly.
 
 
Key Features of Met Smart Child Insurance Plan
 
  • It is a Unit Linked Insurance plan for the benefit of the child
  • In this plan, policy tenure can be 10, 15 or 20 years
  • This plan also offers Loyalty Additions to policies with tenure of 15 or 20 years
  • Loyalty Addition is 2% or 3% of Average Fund Value for Policy Tenure of 15 or 20 years respectively
  • Fund Value + Loyalty Additions are paid to the policyholder on maturity as Maturity Benefit
  • In this plan there is 3 way Death Benefit:
    • Higher of Sum Assured or 105% of Total Regular Premiums Paid is paid as Immediate Death Benefit and policy continues
    • Future Premiums paid by the Insurance Company through the inbuilt Premium Waiver Benefit Rider. All funds from Flexi Cap, Virtue II & Multiplier II Funds, at the time of insured’s death will be transferred to Balancer II, which is a moderate risk fund
    • The Fund Value + Loyalty Additions would be paid on policy maturity as per schedule
  • There are 6 funds for Investment Purpose
  • There is no medical requirement in this plan
  • There is Systematic Transfer Option in this plan

COMPARE THIS PLAN WITH OTHER ULIP PLANS

 
 
Benefits you get from Met Smart Child Insurance Policy
 
Death Benefit – In case of death of the Life Insured within the Policy Tenure, the nominee gets:
  • Higher of Sum Assured or Sum of Total Regular Premiums paid is paid as Immediate Death Benefit and policy continues
  • Future Premiums paid by the Insurance Company through the inbuilt Premium Waiver Benefit Rider. All funds from Flexi Cap, Virtue II & Multiplier II Funds, at the time of insured’s death will be transferred to Balancer II, which is a moderate risk fund
  • The Fund Value + Loyalty Additions would be paid on policy maturity as per schedule
 
Maturity Benefit – When the policy matures, the Fund Value + Loyalty Additions would be paid as Maturity Benefit.
 
Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C and the Maturity proceeds are tax free under section 10(10)D subject to fulfilment of terms and conditions
 
 
Eligibility conditions & other restrictions in Met Smart Child Policy                  
 

 

 
Minimum
Maximum
Sum Assured (in Rs.)
10 X AP
Policy Term (in years)
10, 15
20
Premium Payment Term (in years)
Equal to Policy Term
Entry Age of Life Insured (in years)
18
55
Entry Age of Beneficiary (in years
90 days
17
Age at Maturity (in years)
-
75
Annual Premium (in Rs.)
18,000
Till age 35 : 2 lakh
36-45 age : 1.25 lakhs
Age 46+ : 1 lakh
Payment modes
Annual, Semi Annual, Quarterly, Monthly and PSP
 
 
Additional Features and Benefits of Met Smart Child Plan
 
Riders – There are No Additional Riders in this plan. However, there is 1 in built rider:
  • Premium Waiver Benefit Rider
 
Investment Fund Options
In this plan, there are 6 Funds for Investment purpose:
  1. Protector II Fund
  2. Preserver II Fund
  3. Balancer II Fund
  4. Flexi Cap Fund
  5. Virtue II Fund
  6. Multiplier II Fund
 
Top-up – Top Premium is allowed in this plan.
 
Switching - There is allowed in this plan. The first 4 switches in a policy year are allowed free of cost and there is a charge of Rs 250 per switch thereafter.
 
Partial Withdrawal - In this policy, partial withdrawal is allowed except in the last 5 policy years. Two partial withdrawals are allowed in a Policy Year of which the first one is free of cost charge and Rs 250 will be charged on the subsequent partial withdrawal done in the same policy year.
 
 
Charges in Met Smart Child Plan
 
Premium Allocation Charge – This charge is deducted from the Premium Paid by you

 

Policy Year
Premium Allocation Charge
1st
7% of Premium
2nd
6% of Premium
3rd onwards
5% of Premium
 
 
Policy Administration Charge— This is the charge for the administrative working of the policy and is deducted by cancellation of units on a monthly basis.

 

Policy Year
Policy Administration Charge
1st to 5th
Rs 10 p.m.
6th onwards
Rs 35 p.m.
Settlement Period
Rs 35 p.m.
 
 
Fund Management Charge– This charge is deducted by adjusting the NAV of the units on a daily basis.

 

Type
Charge
Protector II Fund
1.00% of Protector II Fund Value
Preserver II Fund
1.00% of Preserver II Fund Value
Balancer II Fund
1.15% of Balancer II Fund Value
Flexi Cap Fund
1.25% of Flexi Cap Fund Value
Virtue II Fund
1.25% of Virtue II Fund Value
Multiplier II Fund
1.25% of Multiplier II Fund Value
Discontinue Fund
0.50% of Discontinue Fund Value
 
 
Discontinuation Charge— This charge is for discontinuing the plan before the end of the Policy Tenure.

 

Year of Discontinuation
Annual Premium <= Rs 25,000 p.a.
Annual Premium > Rs 25,000 p.a.
1st
Lower of 20% of (Annual Premium or Fund Value) subject to a maximum of Rs 3,000
Lower of 6% of (Annual Premium or Fund Value) subject to a maximum of Rs 6,000
2nd
Lower of 15% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000
Lower of 4% of (Annual Premium or Fund Value) subject to a maximum of Rs 5,000
3rd
Lower of 10% of (Annual Premium or Fund Value) subject to a maximum of Rs 1,500
Lower of 3% of (Annual Premium or Fund Value) subject to a maximum of Rs 4,000
4th
Lower of 5% of (Annual Premium or Fund Value) subject to a maximum of Rs 1,000
Lower of 2% of (Annual Premium or Fund Value) subject to a maximum of Rs 2,000
5th onwards
NIL
 
 
Mortality Charge — This charge is paid for the Life Coverage provided according to the Sum At Risk. This is based on the mortality rates which are specified for all ages and amount of cover being provided.
 
Service Tax would be applicable on the charges depending on the applicable rates.
 
 
What happens if?
 
You stop paying the premium before 5 years - If the policy holder stops paying the premium, the insurance cover will cease and the fund value net of any discontinuance charge will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will earn a minimum guaranteed interest rate equal to the savings account rate of State Bank of India and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated Fund Value will be payable to the nominee.
The policy can be revived as well but within a period of 2 years from the Date of Discontinuance of the Policy or before completion of the Lock-in period of 5 policy years, whichever is earlier.
 
You stop paying the premium after 5 years - If the policy holder stops paying the premium after 5 years, then there is no Surrender/Discontinuance Charges and the Fund Value is paid to the policy holder and the policy will terminate immediately.
 
You want to surrender the policy – If the policy holder wants to surrender the policy before completing 5 years, then the insurance cover will cease and the Fund Value net of any discontinuance charge, if at least 5 years’ premiums have not been paid, will be transferred to the Discontinued Policy Fund. The Discontinued Policy Fund will earn a minimum guaranteed interest rate equal to the savings account rate of State Bank of India and the proceeds from this will be payable after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee.
 
If the policyholder surrenders the policy after completion of 5 policy years, then there is no Surrender/Discontinuance Charges and the Fund Value is paid to the policy holder and the policy will terminate immediately.
 
You want a loan against your policy - There is no loan available under this plan.

 
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