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  • Met Life Traditional Employee Benefit Plan

    Life Insurance
    • Premiums as low as Rs.17/day for sum assured of Rs.1 crore*
    • Claim up to Rs. 1,50,000 deduction under section 80C**
    • Choose between annual and monthly premium payment options

    Attracting new talent and retaining old talent has turned out to be a challenge in modern business environment. At present, the economic scenario is such that it is really difficult to constant increments for motivating the employees. Providing employees with one of the best financial security options which cover their loved ones too can definitely be a motivational factor. The MTEBP (MetLife Traditional Employee Benefits Plan) is a Fund based group non-linked variable insurance plan that takes care of the employers who do not offer leave encashment or gratuity benefits. The plan is a great solution for trustees or employers who have their leave encashment and gratuity funds managed by a different life insurance organisation but is expecting a switch over.

    Eligibility – Who is the MetLife Traditional Employee Benefits Plan for?

    The MetLife Traditional Employee Benefits Plan is for all the employers or trustees who wish to take utmost care of 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 Traditional Employee Benefits Plan is given below:

    Type of Plan Fund based group non-linked variable insurance plan
    Minimum age at entry 18 years
    Maximum age at entry A year less than the Retirement Age as defined by the employer
    Maximum maturity age The Retirement Age as defined by the employer
    Maximum contribution Rs.500 crore
    Minimum contribution Rs.1 lakh
    Maximum group size No limit
    Minimum group size 10 is the minimum group size
    Minimum term of the policy Renewable on a yearly basis

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

    The MetLife Traditional Employee Benefits Plan provides a comprehensive solution to the employers who want to outsource the management and administration of leave encashment and gratuity liabilities in an integrated and effective manner. MetLife Traditional Employee Benefits Plan is a Fund based group non-linked variable insurance plan.

    An employer or trust can avail the following with the Fund based group non-linked variable insurance plan:

    • Interest of 2% p.a. guaranteed on every tranche of contributions paid.
    • Provision of availing an annual statement of the account.
    • Facility to make payments for the 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 MetLife Traditional Employee Benefits Plan comes with risk cover of Rs.1,000 for every member. For each member, Rs.1.35 p.a. is charged as mortality fee on a yearly basis. In case the Group Policyholder wishes to avail higher risk cover, the same can be arranged through a renewable group scheme for 1 year. The fund management charge is 0.40% p.a. The Fund Management charge is adjusted in expected yield of investment before the declaration of quarterly interest rate.

    Plan Coverage – What MetLife Traditional Employee Benefits Plan Covers?

    The MetLife Traditional Employee Benefits Plan offers coverage on death, resignation, retirement and termination of an employee. The benefit that is payable to the employer from the total fund will be specified in the trust deed according to the rules of the individual trustee’s/employer’s scheme. In case the member exits the scheme due to his/her death, then the Rs.1, 000 (risk cover benefit) will be payable by the organisation.

    In case there is complete withdrawal of the scheme before the 3rd year policy anniversary is completed, respective surrender charges will be associated. Surrender Value is equal to the scheme’s fund value minus surrender charges minus MVA (Market Value Adjustment).

    Add-On Plans – Additional coverage under the MetLife Traditional Employee Benefits Plan:

    There are no add-on plans for the MetLife Traditional Employee Benefits Plan.

    Other Key Features:

    The Group policy will be terminated automatically if the policyholder surrenders the scheme. Termination of the group policy will also happen if balance amount in the policyholder’s fund is zero as a result of claims settlement. Some of the features of the MetLife Traditional Employee Benefits Plan are as follows:

    Surrender Under the MetLife Traditional Employee Benefits Plan, partial surrender is not allowed. If the policy is completely withdrawn, the Surrender Value will be equal to the scheme’s fund value minus surrender charges minus MVA (Market Value Adjustment). The charges associated with the surrender stands at 0.05% of the total Fund Value. It is subject to a maximum amount of Rs.500, 000. However, for this to be true, the surrender of the policy must take place within the 3rd renewal of the scheme. No Surrender charge is applicable after the scheme’s 3rd renewal. 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.
    The company has the authority to defer the policy surrender for a span not exceeding 30 days from the application date for maintaining equity and fairness among the Group Policyholders.
    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.

    Other Benefits of MetLife Traditional Employee Benefits Plan:

    Benefit Statement – 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 Traditional Employee Benefits Plan?

    PNB MetLife India Insurance Company Limited 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. PNB MetLife offers a wide range of retirement and protection products. It has more than 800 corporate clients in the country who make use of their employee benefit plans. The MetLife Traditional Employee Benefits Plan takes care of the employers who do not offer leave encashment or gratuity benefits. The plan is a great solution for trustees or employers who have their leave encashment and gratuity funds managed by a different life insurance organisation but is expecting a switch over. The employers must constantly find new ways to motivate their employees. Retaining the existing employees and attracting new talent is something that the employers must focus on. The MetLife Traditional Employee Benefits Plan allows the employers to provide great security for the employees.

    Frequently Asked Questions (FAQs):

    Q. What is Bulk Exit?

    A. 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. The exit can happen for any reason other than death of the policyholder.

    Q. Is there a mortality charge for this plan? If yes, what is the mortality charge?

    A. Yes, there is a mortality charge for the MetLife Traditional Employee Benefits Plan. For each member, Rs.1.35 per Rs.1, 000 is charged as mortality fee on a yearly basis.

    Q. Is there any other charge applicable on the MetLife Traditional Employee Benefits Plan?

    A. No, there is no other charge applicable on the MetLife Traditional Employee Benefits Plan.

    Q. What is Policy/Scheme Renewal?

    A. The MetLife Traditional Employee Benefits Plan will be renewed automatically after it completes a year. There aren’t any prescribed timelines for making the contributions towards the scheme. As long as there is enough in the policy account for recovery charges and policy claims, the scheme will continue to offer its services.

    Q. Will I get an intimation in case there is not enough funds in the policy account?

    A. An intimation will be sent to the policyholder 30 days in advance if it is observed that funds are not enough for recovery charges and policy claims.

    Q. What is the maximum Group size for the MetLife Traditional Employee Benefits Plan?

    A. There is no limit on the maximum Group Size for the MetLife Traditional Employee Benefits Plan.

    Q. What is the minimum Group size for the MetLife Traditional Employee Benefits Plan?

    A. The minimum group size is 10 for the MetLife Traditional Employee Benefits Plan.

    Q. Can I make a lump sum contribution of Rs.100 crore?

    A. Yes, you can make a lump sum contribution of Rs.100 crore. The minimum contribution limit stands at Rs.1 lakh and the maximum contribution that you can make is Rs.500 crore.

    Q. What are the premium paying modes?

    A. The contributions that you want to make towards the fund are payable in any instalment or any mode.

    Q. I am 23 years old. Can I avail this policy?

    A. Yes, you can avail this policy. Anyone above the age of 18 years can avail the MetLife Traditional Employee Benefits Plan.