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MetLife Superannuation Plan

In today’s world, it is extremely important for businesses to retain their existing employees and attract new talent. The present economic situation may make it very difficult for various organisations to offer increment continuously for motivating their employees. In such a situation, providing employees with financial security can definitely prove to be motivational factor. It becomes even more motivating for an employee when the company offers financial security to the employee’s loved ones too. MetLife Superannuation Plan is a group variable non-linked insurance scheme that allows you to take proper care of all your employees. It offers solutions that can make your company a better place to work and helps you in attracting new talent by being different from the other organisations.

Eligibility – Who is the MetLife Superannuation Plan for?

The MetLife Superannuation Plan is for all the employers who wish to make their organisation a better place to work for their employees. In order to be eligible for this plan, certain criteria set out by PNB MetLife must be met. The eligibility criteria for MetLife Superannuation Plan is given below:

Type of Plan Group variable non-linked insurance scheme
Minimum age at entry 18 years
Maximum age at entry According to the rules set out on the scheme
Maximum maturity age According to the rules set out on the scheme
Maximum contribution The maximum contributions will be as per the independent actuary’s certificate in accordance with AS15 (revised)
Minimum contribution The minimum contributions will be as per the independent actuary’s certificate in accordance with AS15 (revised)
Maximum group size No limit
Minimum group size 10 is the minimum group size
Minimum term of the policy Renewable on a yearly basis

This group variable non-linked insurance scheme can definitely offer a solution if you are:

  • An employer who has no funds for Superannuation but would like to set up such funds.
  • A Trustee/Employer who manages the Superannuation funds in-house but wishes a fund transfer to a Life Insurance organisation for management.
  • A Trustee/Employer who have their superannuation funds managed by a different life insurance organisation but expecting a switch over.

Sum Assured and Premium Range – What you Get and What it Costs?

A comprehensive solution is offered by the MetLife Superannuation plan for employers who intend on outsourcing management and administration of liabilities associated with superannuation in an integrated and effective way. The MetLife Superannuation scheme is pretty much similar to the cash accumulation scheme. If you choose the MetLife Superannuation plan, you can avail the following:

  • Interest of 2% p.a. assured on every tranche of contributions paid.
  • Facility of availing an annual statement of account.
  • Ability to make payments for instalment contribution. All contributions that are received during each FY quarter are separately administered with one single fund.
  • Option of paying the premium or contribution via demand drafts, cheques, banker’s cheque, NEFT and pay orders.

The contributions towards the MetLife Superannuation plan can be made in any instalments. You may also choose to pay the contributions in monthly, quarterly, semi-annual or annual modes.

Plan Coverage – What MetLife Superannuation Plan Covers?

Termination, resignation and retirement:

The MetLife Superannuation Plan is a unique scheme that offers coverage on termination, resignation and retirement. The accumulated benefit payout according to the rules of the Group Policyholder scheme will be subject to available Fund Value. In the event of complete surrender or bulk exit before the third renewal of the MetLife Superannuation scheme, Market Value Adjustment (MVA) is applicable. If the amount upon exit in a policy year is more than 25% of the balance in Policy Account then that exit will be known as Bulk Exit.

Every portion of the contributions that you make towards the MetLife Superannuation plan, you will be able to enjoy guaranteed interest at the rate of 2% p.a. The guarantee is applicable on all funds that are payable on death of the policyholder/s whilst in service or the policyholders who have completed their service tenure as per the definition in the scheme and exiting due to normal retirement, disability or illness retirement or early/voluntary retirement. After exit, benefits will be rolled out for the employee from the employer’s end provided there is enough balance in the employee’s policy account.

Death:

Accumulated benefits are payable according to the rules stated in the Group Policyholder scheme. However, these payments are subject to the total fund available for a particular group scheme. If the benefit payout arises due to death of the policyholder the Market value Adjustment (MVA) will not be applicable.

Add-On Plans – Additional coverage under the MetLife Superannuation Plan:

There are no add-on plans for the MetLife Superannuation Plan.

Other Key Features:

Some of the important features offered by the MetLife Superannuation Plan are mentioned below:

Surrender Under certain circumstances, the organisation may defer surrender of policy for a particular span of time. However, this period must not be more than a period of six months. The company must get prior approval from IRDA for taking this step. The exceptional circumstances are mentioned below:
  • When disposal of the high value investments is not at all reasonable or reasonably not practicable without affecting the interest of all the remaining policyholders due to monetary, economic, political, etc. that cannot be controlled by the company.
  • Times when the market experiences a lot of volatility and surrender can prove to be harmful for the remaining policyholders.
  • In the event of war, strikes, riots, civil unrest, bands and natural calamities.
  • In case of a disaster that affects day-to-day functioning.
Free Look Provision You can enjoy a period of 15 days from the date you get the policy document for reviewing the terms and conditions of the MetLife Traditional Employee Benefits Plan. In case you do not like the things mentioned under the terms and conditions section, you can choose to return the policy. You must provide reasons why you are not taking the policy. The mortality charges and contributions will be refunded to you. However, proportionate risk premium and stamp duty will be deducted. All rights of the policyholder will stand extinguished after the cancellation of the policy.
Nomination An individual (nominee) can be nominated by you before the policy term ends. You can also change an existing nominee before the end of the term. This must be done as per the provisions of Section 39 of the Insurance Act, 1938. The Act has undergone several amendments from time to time.
Transfer, Partial Assignment, Assignment You can choose to transfer, partially assign or completely assign the MetLife Superannuation policy as per the provisions of Section 39 of the Insurance Act, 1938. The Act has undergone several amendments from time to time. However, you must provide prior notice before taking this step.

Other Benefits:

Applicability of Guarantee The contributions paid minus the payouts made along with the declared interest is guaranteed under the MetLife Superannuation Plan. The guarantee will only be applicable after a year from the receipt of contribution date.
Benefit Statements After the financial year ends, you will get your benefit statement that includes the amount that you paid as contribution. It will also include all declared interest.

Why should you Buy the MetLife Superannuation Plan?

PNB MetLife India Insurance Company Limited has more than 800 corporate clients in the country who make use of their employee benefit plans. It has been catering to the insurance needs of the people in India since 2001. This company exhibits great financial strength and it is one of the best insurance providers in the country. It is of utmost importance that the employers take good care of their employees and motivate them continuously. This product is a great solution if an employer has no funds for Superannuation but would like to set up such funds. It is also good for employers and trustees who have their superannuation funds managed by a different life insurance organisation but are expecting a switch over. The MetLife Superannuation Plan offers solutions that can make your company a better place to work and helps you in attracting new talent by being different from the other organisations.

Frequently Asked Questions (FAQs):

Q. Can the policy automatically terminate?

A. Yes, the MetLife Superannuation Plan can terminate automatically. The Group Policy will terminate automatically after a period of 30 days if the fund in the Group Policyholder’s account is zero. This can happen due to claims settlement when policyholders exit the scheme.

Q. What are the surrender charges associated with the MetLife Superannuation Plan?

A. 0.05% of the Fund Value is the Surrender Charge associated with the MetLife Superannuation plan. It is subject to a maximum of Rs.500,000 provide that the policy has been surrendered within the 3rd renewal of the policy.

Q. Is partial surrender allowed under MetLife Superannuation Plan?

A. No, partial surrender is not allowed under MetLife Superannuation Plan.

Q. What is the surrender charge applicable on the scheme after the 3rd renewal of the scheme?

A. There is no Surrender charge applicable on the scheme after the 3rd renewal of the scheme.

Q. What is Fund Value?

A. Fund Value is the summation of all the contributions received in a financial year along with interest. The payout is also calculated and adjusted from the annual contribution. The final value is known as Fund Value.

Q. What is Group Policyholder’s Fund?

A. The summary of all the contribution accumulated in one year minus the payouts is called Group Policyholder’s Fund. The interest is also added to the contributions from time to time. Every portion of the contributions towards the MetLife Superannuation Plan is considered as a separate fund. These funds are also tracked separately for interest crediting purposes.

Q. What is the minimum Group size for the MetLife Superannuation Plan?

A. The minimum group size is 10 for the MetLife Superannuation Plan.

Q. What are the modes in which the premiums can be paid?

A. The premiums can be paid in any instalments. You may also choose to pay the contributions in monthly, quarterly, semi-annual or annual modes.

Q. What is the maximum Group size for the MetLife Superannuation Plan?

A. There is absolutely no limit on maximum Group Size for MetLife Superannuation Plan.

Q. I am 32 years old. Can I apply for this policy?

A. Yes, you can apply for this policy. Anyone above the age of 18 years can avail the MetLife Superannuation Plan.