A savings plan designed to ensure your child’s expenses are covered, the MetLife College Plan gives parents and opportunity start saving early and let their child reap the benefits. This plan is a Non-linked deferred participating endowment plan that has regular cash payout and bonuses through the child’s growing years. In the event of the death of the policyholder, the assured sum along with any bonuses will be disbursed. Any outstanding premiums for the policy will be waived off.
The MetLife College Plan is designed for parents who want to have a solid financial plan for their child’s education. Under this plan, the person insured will be the father, the mother or the legal guardian of the child. To be eligible for this plan, customers must meet the following requirements set out by MetLife:
|Type of plan||Non-linked deferred participating endowment plan|
|Minimum age at entry||20 years|
|Maximum age at entry||45 years|
|Maximum age at maturity||69 years|
|Policy terms||12 years to 24 years|
|Premium Payment Term||Regular|
The minimum and maximum sum assured is laid out by MetLife taking into consideration the cost of raising a child and the cost of education. Listed below is the information related to premiums and sums assured under the MetLife College Plan:
|Maximum Premium||Rs. 42,44,482|
|Minimum Sum Assured||Rs. 2,12,040|
|Maximum Sum Assured||Rs. 5 Crores|
*Premiums vary based on age, location, plan term and other factors
With the MetLife College Plan, you can be at peace knowing that there is a guaranteed fund for your child’s education. Flexible options to save according to your needs and budget also make this plan very attractive. The benefits offered by MetLife with the College Plan are as follows:
If the parent dies during the policy term, if the policy is in force, MetLife will pay the nominee the following benefits, irrespective of survival benefits paid:
Death sum assured - Sum assured upon death plus accrued reversionary bonus, where the sum assured is the higher of the following:
Waiver of premiums - Apart from this, all future premium, if any, will be waived and the policy will remain in force for the remainder of the policy term.
Survival benefit - If not already paid, as and when due, a fixed amount of the base sum assured will be payable at the end of the year as follows:
At the end of the policy term, the maturity sum assured plus simple reversionary bonus accrued after the death of the life insured, plus any terminal bonus.
If the policyholder survives, in the last three policy years, 20% of the base sum assured will be payable at the end of each policy year.
If the policyholder survives till the maturity date, the following is payable:
The minimum guaranteed sum assured on maturity is equal to 40% of the base sum assured.
From the fifth year onwards, the company may declare terminal bonuses as a percentage of the accrued simple reversionary bonus. This bonus is payable at the end of the policy term along with the maturity or death benefit.
Simple Reversionary Bonus
This policy will participate from the third year onwards for Simple Reversionary Bonuses. The bonus will be credited to the policyholder at the end of the policy year that occurs immediately after the bonus declaration date. Policyholders are eligible for simple reversionary bonuses if all premiums have been paid. The bonus is expressed as a percentage of the sum assured. Bonuses are no guaranteed through the policy term, however, once it is declared, it is guaranteed. The simple reversionary bonus is payable upon the following events, whichever is earlier:
From the date of death or lapse of the policy, the policy will not accrue any simple reversionary bonus.
There are no add-ons available with this plan.
Under all insurance policies, there are certain exclusions for which the insurance company will not be liable to pay the benefits. Under the MetLife College Plan, the following exclusions will be applicable:
A few features of the MetLife College Plan worth noting have been mentioned below:
|Nomination||Policyholder can nominate or change the existing nominee under Section 39 of the Insurance Act, 1938|
|Tax Benefit||Tax benefit is applicable at the time of purchase and when the benefits are paid out|
|Flexible Terms||Policyholders can choose between 12 to 24-year terms|
|Education Fund||The fund for your child’s education is guaranteed during the last 3 years of the policy term|
|Free-Look Period||15 days from the receipt of the policy document|
|Surrender Value||If premiums have been paid for at least 3 full policy years, a surrender value will be acquired equal to the maximum of Guaranteed Surrender Value and Special Surrender Value|
|Reduced Paid-up Value||If premiums have been paid for at least 3 full policy years and no further payments are made, the policy will acquire a Reduced Paid-up Value|
|Reinstatement||A lapsed policy can be reinstated within 2 years from the date of first unpaid premium|
|Grace Period||30 days from the due date of unpaid premium For monthly and PSP mode, 15 days|
|Loan Facility||Available to a maximum of 90% of the Special Surrender Value of the relevant policy year, currently at an interest rate of 10.5% p.a. (Subject to change)|
|Alterations||Alteration between modes of premiums payment can be made on any policy anniversary. Presently the fee is Rs.100, subject to change from time to time|
Under the provisions of the Income Tax Act, 1961, policyholders are eligible for tax exemptions and other benefits. With the MetLife College Plan, benefits are available at the time of purchasing the policy, paying premiums and receiving payouts. You are advised to consult a tax advisor to know more about the applicable benefits on the MetLife College Plan as per the prevailing tax laws which a subject to amendments from time to time.
Potential customers and existing ones can benefit from a host of services provided by PNB MetLife designed to help save time, make policies available easily and provide convenience. MetLife, through their customer service, their website and through advisors, help customers with all issues and queries related to their insurance products. Some of the services offered by MetLife are as follows:
MetLife in partnership with Punjab National Bank offers a wide range of protection, investment, savings and retirement products in the Indian market. Since 2001, PNB MetLife has made a mark in the insurance segment of India servicing millions of customers. PNB MetLife doesn’t just provide insurance products but also provides guidance and advice through more than 25,000 financial advisors and bank partners. It is one of the fast-growing life insurance companies in India raking in profits year after year in the last five financial years. With the MetLife College Plan, your child’s education is secured financially with a guaranteed fund. It also provides the advantage of death benefits, maturity benefits, bonuses and more.
A. You can meet an advisor from PNB MetLife to discuss the MetLife College Plan through the following avenues:
A. If you wish to cancel the policy within the free-look period, you need to submit a written request to cancel the policy and state your objection to the policy within 15 days from the date of receipt of the policy document. You can cancel the policy via the following avenues:
You need to send the duly filled and signed copy of the cancellation request form, the original policy document, ID proof and a cancelled cheque with the name of the policyholder and the account number.
A. The requirement of a medical examination depends on factors such as the sum assured, your age, whether you are a smoker or not, and other such factors. The medical tests needed is based on the decision of the underwriter.
A. If you need to lodge a claim with PNB MetLife, these are the options available to you:
You can send in your claim in written form via post, email or fax, too.
A. Once all the documents and the claim form are received by PNB MetLife, the process can take up to 30 days. In case further investigations are required, then the process can take up to 6 months from the date of intimation of the claim.
A. Yes, your nominee can file for an insurance claim. The documents required are similar to that of a death within the country. The death certificate will need to be attested by the Indian Embassy of the country in which the death occurred.
A. Yes, you may appoint more than one nominee under the MetLife College Plan. During the time of payout, the nominees will receive their share of the benefits.
A. Yes, you can apply for a duplicate policy by downloading the request form and format of Rs.100 indemnity bond. The bond on stamp paper of Rs.100 (for Jammu and Kashmir, Rs.40) is required along with a fee of Rs.200 for the issuance of a duplicate policy.