PNB MetLife Offers Met College Plan To Build Children’s Future

Met College Plan is a traditional insurance cum investment policy, aimed at meeting the financial needs of a child in the future. This traditional plan is a participating policy and is thus dependent on the periodic bonuses declared by the insurer. Being a transparent policy, it would keep the policyholder well informed on the costs incurred and profits made.This policy has a maximum policy term of 24 years and minimum term of 12 years, as per the industry norms.

Investing in your child's future:A wise decision & a loving choice

Benefits of Investing In Child Plan

Waiver of Premium Benefit

Future Premiums are paid by the insurer upon death of policyholder

Flexible Payout Options

Your premiums help your child achieve their dreams through lump sum or regular payouts

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Tax Benefits^

You get tax benefits under Section 80(C) and no tax on returns under Section 10 (10D)

Investment Flexibility

It offers the flexibility to invest at regular intervals or as a one-time contribution

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Nothing Is More Important Than Securing Your Child's Future

Invest ₹10k/month your child will get ₹1 Cr^# Tax-Free* on Maturity

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We are rated^~

7.7 Crore

Registered Consumer

Insurance Partners

4.2 Crore

Policies Sold

Disclaimer: #The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CAGR 8%; ₹50,45,591 @ CAGR 4%. *Tax benefits and savings are subject to changes in tax laws. All plans listed here are of insurance companies’ funds.

Depending on the profits made by the participating life fund, this policy would declare a bonus after the completion of the 2^nd year. The sum payable upon maturity or the death of the insurer will include the reversionary bonus made from the profits. This bonus is calculated by simple interest formula levied on the sum assured.

The policy will pay 20% for three years towards the end of the policy term, before maturity. Upon maturity, the policy will make the balance 40% payment of the assured amount along with the accumulated bonus. There can be a terminal bonus as well.

If the policyholder expires during the policy’s term, it will immediately bestow the death benefit along with the accumulated bonus till date to the nominee. Furthermore, the insurer will waive off the future premium installments to keep the maturity benefits intact. In this policy, the death benefit is 10 times higher than the annual premiums paid.

How the policy works?

Let us assume, a 35-year-old individual purchases the Met College Plan for an annual premium of Rs 1, 00,000 for duration of 20 years. The total sum assured is around Rs. 20.84 Lakhs, where the policyholder will start receiving the 20% of the assured amount, three years prior to the policy term completion, i.e., around Rs. 4.17 Lakhs, as per the 8% assumed rate of return. This also includes the guaranteed maturity benefit of around Rs. 8.34 Lakhs, which makes a net return of 5% per annum. Met College Plan is offered with an attractive structure and features matching transparency of a traditional plan.

Usually traditional plans have a return of 4-6% per annum and subsequently financial planners skip such investment plans. Due to the low levels of returns, the policyholder must invest more to meet the financial goals, successfully. However, a term policy like Met College Plan is much cheaper and offers greater benefits, as it ensures the financial goal is not interrupted in case of the policyholder’s untimely death.

(Source: This article has been adapted from the article "Product crack: PNB Metlife’s Met College Plan" that appeared on 26 February , 2015 in livemint.com)

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†Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. The sorting is based on past 10 years’ fund performance (Fund Data Source: Value Research). For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
#The investment risk in the portfolio is borne by the policyholder. Life insurance is available in this product. The maturity amount of Rs 1 Cr. is for a 30 year old healthy individual investing Rs 10,000/- per month for 30 years, with assumed rates of returns @ 8% p.a. that is not guaranteed and is not the upper or lower limits as the value of your policy depends on a number of factors including future investment performance. In Unit Linked Insurance Plans, the investment risk in the investment portfolio is borne by the policyholder and the returns are not guaranteed. Maturity Value: ₹1,05,02,174 @ CARG 8%; ₹50,45,591 @ CAGR 4%
+Returns Since Inception of LIC Growth Fund
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
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^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.