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Met Life Unit Linked Employee Benefits 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

MetLife offers this plan to employers who want need a solution for managing leave encashment and gratuity liabilities. This plan suits employers who want to provide financial security to their employees in order to attract and retain talent by providing a better workplace. This product is ideal for the following people:

  • An employer who does not have benefits of leave encashment and gratuity but would like to provide these benefits to the policyholders.
  • An employer or trustee who already has an in-house fund management for leave encashment and gratuity but would like to transfer the management of it to a life insurance company.
  • An employer or trustee who has a fund for leave encashment and gratuity that is managed by another life insurance company and would like to switch over.

With this Fund Based Group Non-Linked Variable Insurance Scheme, employers can provide attractive benefits to their employees in order to retain talent and reduce attrition.

Eligibility -Who is the MetLife Unit Linked Employee Benefit Plan for?

For any insurance plan, there is a certain eligibility criteria that needs to be met by the policyholder before purchasing the plan. Those who wish to purchase this plan, need to meet the eligibility criteria set by MetLife.

Minimum entry age 18 years
Maximum entry age 74 years
Maximum age at maturity As per the individual employer’s scheme
Minimum Group Size 10 members
Maximum Group Size No limit
Minimum Policy Term One year
Type of Plan Fund Based Group Non-Linked Variable Insurance Scheme

*Ages mentioned are defined as the age last birthday.

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

Your sum assured will depend on your business needs and what you require as an individual. Premiums start of at Rs.1 lakh as a minimum contribution towards this plan. You need at least 10 members to purchase this plan. Listed below is the information related to what the plan costs and what you can get out of it.

Minimum Contribution Rs.1 lakh
Maximum Contribution Rs.500 crore
Policy Term One year (Renewable)
Inbuilt Life Cover Upon Death Rs.1,000

*Premiums vary based on age, location, plan term and other factors

Plan Coverage - What the MetLife Unit Linked Employee Benefits Plan Covers?

The PNB MetLife Unit Linked Employee Benefit Plan offers a number of benefits to employers and their employees. By purchasing this plan, the policyholders stand to benefit from the following:

  • Guaranteed interest of 2% p.a. per tranche of the contributions paid.
  • Interest rate for each quarter is declared at the beginning of the quarter for every financial year.
  • Interest rates depend on the prevailing yields.
  • Declared interest will be credited on a prorated basis and will become part of the fund.
  • Choice to pay contributions through multiple avenues including NEFT, cheques, demand drafts, pay orders, and bankers cheque.
  • Provision to view the annual statement of accounts.
  • Option to pay contributions in instalments.
  • Contributions made will be put into a single fund but tracked separately every quarter to credit interest.

This plan carries a mandatory risk cover of Rs.1, 000 for every member. A mortality fee of Rs.1.35 p.a. per member is levied on an annual basis separately. In the event that the group policyholder wished to opt for higher risk cover, this can be arranged through a separate one-year renewable group scheme which goes on sale from time to time. The benefits under this plan are payable under the following circumstances:

  • Death
  • Retirement
  • Resignation
  • Termination

The benefit that is payable from the fund will be defined in the trust deed in accordance with the rules of the trustee’s scheme or the individual’s employer. The liability borne by the company is limited to the extent of the fund value.

  • Death benefit – In case of the death of the member, the company will be liable to pay the risk cover benefit of Rs.1, 000. No market value adjustments will be made in this case.
  • Withdrawal – If a complete withdrawal is made from the scheme before completing the third policy anniversary, the surrender value equal to the fund value less surrender charges and market value adjustments will be payable.
  • Bulk exit – In the event of a bulk exit of member from the scheme before completing the third policy anniversary, the fund will be adjusted to the extent of the market value adjustment.

Riders / Add-On Plans – Additional Coverage under the MetLife Unit Linked Employee Benefits Plan:

There are no riders available with this policy. Any additional cover offered by PNB MetLife from time to time will be communicated to you.

Exclusions - What the MetLife Unit Linked Employee Benefits Plan doesn’t Cover?

If the exit of a member from the scheme is due to death, then the company is liable to pay the risk cover benefit of Rs.1, 000. No Market Value Adjustment will be made.

Other Key Features – Free look Period, Surrender Values and Grace Period etc.

Free Look Period 15 days from the date of receipt of the policy document.
Surrender Complete surrender is allowed under this policy. No partial surrenders will be allowed.
Surrender Value Fund value minus surrender charges and market value adjustment.
Surrender Charges Surrender before third renewal: 0.50% of the fund value, subject to a maximum of Rs.5 lakhs. Surrender after third renewal: No charge
Bulk Exit For any other event other than death, if the total amount on exit in one policy year is more than 25% of the balance in the policy fund as is at the beginning of the year, the exit will be defined as a bulk exit.
Market Value Adjustment Market Value Adjustment = (Fund value of the scheme minus surrender charges) X (1 – market value of total fund/policy account value of total fund)
Premium payment mode Any mode or any instalment.
Benefit statement A statement including the total contribution paid minus any payout or withdrawals plus declared interest will be issued at the end of each financial year.
Policy Renewal Automatic renewal every year.
Grace Period There are no schedule timelines for the payment of the contributions. The scheme will continue as long as there is enough funds to cover policy claims and charges.
Insufficient Funds If the fund value is not sufficient, MetLife will intimate the information 30 days in advance.
Fund Management Charges 0.40% p.a. adjusted in the expected investment yield prior to declaring the quarterly rate of interest.
Loans Not available.
Non-zero positive additional interest Credited at the end of each quarter.
Non-zero positive residual interest Credited at the end of every year, if any.

Tax Benefits – How you can save with the MetLife Unit Linked Employee Benefits Plan?

As per the provisions of the Income Tax Act, 1961, you will be eligible for tax benefits. You are advised to consult a tax advisor to know more about the exemptions and benefits available as per the prevailing tax laws in India.

Other Benefits – How you can save with the MetLife Unit Linked Employee Benefits Plan?

PNB MetLife offers credible insurance products and schemes to customers in the Indian market. The company also offers a number of services that enhance the overall customer experience and after-sales services. Some of the services offered by PNB MetLife to its customers that save time, energy and provide convenience are listed below:

  • Locate a PNB MetLife branch online
  • Contact the customer care round the clock via phone, SMS, email or fax
  • Escalate any grievance through the redressal mechanism
  • Contact an advisor through the PNB MetLife website
  • Contact a branch manager or insurance relationship manager at the PNB MetLife branches
  • Compare different insurance plan online
  • Calculate premiums online using the premium calculator
  • Download the brochure and terms and conditions

Why you should Buy the MetLife Unit Linked Employee Benefits Plan from (company name)?

MetLife established its presence in India in 2001 in partnership with Punjab National Bank, a leading bank in the country. The company has since earned a top position in the market operating through over 8,000 locations. Providing excellent products in the realm of insurance, protection, retirement and savings, PNB MetLife has raked in profits for the past five years as of FY 2014-15. With the Unit-Linked Employee Benefits Plan, you can motivate your employees at the workplace with greater benefits. As an employer, you can have lesser worries by having the fund managed by PNB MetLife.

Frequently Asked Questions (FAQs):

Q. What happens in case one of the group members falsely represents himself?

A. In case of fraud of misrepresentation of the group member, their name will be deleted from the scheme and MetLife will refund the value in his or her policy account. In case the misrepresentation is by the group policyholder, the policy account value will be refunded and the policy will be terminated.

Q. When can a new member be added to the MetLife Unit-Linked Employee Benefits Plan?

A. Benefits payable under this policy are meant only for the employer, insured members and the nominees. This policy cannot be assigned to anyone else.

Q. How do I file a claim with PNB MetLife?

A. Send in a written notice regarding the event giving rise to a claim to PNB MetLife within 30 days from the occurrence of the event. You need to include the following documents:

  • Duly-filled claims form.
  • Age proof of the insured member.
  • In case of death, official death certificate issued by a competent government authority.
  • Employer’s certification of the accrued benefit amount payable in accordance with the trust deed or scheme rules.
  • Any other documents as required by PNB MetLife.

Q. How is the market value adjustment determined for bulk exits?

A. If the bulk exit qualifies for market value adjustments, it will be determined as follows:

  • The market value of the underlying assets will be determined as on the date of calculation.
  • The difference between the value of the policy account and the market value will be taken into account.
  • If the difference is positive, then the MVA will be 1-(difference arrived at/policy account value).
  • If the difference is negative, the MVA will be zero.

Q. What are the charges for Fund Management?

A. You will be charged 0.40% p.a. This fee is adjusted in the expected investment yield prior to declaring the quarterly rate of interest.

Q. Are there any other charges associated with the MetLife Unit-Linked Employee Benefits Plan?

A. Yes, there is a mortality charge of Rs.1.35 per Rs.1, 000 sum assured. This is charged separately on a yearly basis.

Q. I have lost the group policy document. How do I get a duplicate?

A. You can write in to PNB MetLife for a duplicate group policy. It will be issued to replace the original document at the applicable fee.

Q. What are the charges for returning the policy within the free-look period?

A. Within 15 days from the date of receipt of the policy, you can return the policy to PNB MetLife. You will be eligible for a refund of the contribution and the mortality charges levied. Stamp duty charges and proportionate charges for the period covered will be deducted from the refund.

Q. How will the benefits from this policy be paid?

A. The benefits from this policy will be paid via cheque, demand draft or electronic mode of payment. Cheques and DDs will be issued to the last known address.

Q. Can I make partial withdrawals from this plan?

A. No, partial withdrawals cannot be made from the fund.

Q. Can I surrender part of the MetLife Unit-Linked Employee Benefits Policy?

A. No, only complete surrender of the policy is allowed under the MetLife Unit-Linked Employee Benefits Plan.

Q. How is the non-zero positive residual addition calculated?

A. If there is any non-zero positive residual addition, it will be credited at the end of the year to the policy account. It is calculated as follows:

Gross investment yield at the end of the policy year earned in the shadow account – (actual yield earned at the end of the policy year in the policy account - yield referred in the reduction in yield for that time period).