PNB Metlife Century Plan
As we grow, our dreams and responsibilities grow bigger, but sometimes money becomes a hindrance to fulfilling them. The uncertainties of life sometimes make you compromise on your dreams to cater to other important expenses like providing for your family, paying for health expenses, children’s school fees, etc.
Understanding your needs, PNB MetLife has come up with the perfect solution, PNB Metlife Century Plan, that allows you to live a life without compromises and secures your family’s future. It is a participating life insurance plan that provides you with income and covers your whole life (till the age of 100). It ensures survival benefits continue to be paid even after the death of the Life Assured, and no future premiums are payable after death. The plan also safeguards your financial needs even after retirement. To learn more about this plan, have a look at the following mentions.
|Parameters||Premium payment term||Family care option||Option 1: Super Income||Option 2: Smart Income||Option 3: Future Income|
Maturity Option 1: 80 minus Age at entry
Maturity Option 2: 100 minus Age at entry
|Premium payment term (In years)||With/without|
5 to 10
12 and 15
|8, 10, 12, 15|
|Minimum age at entry||All||Without||30 days|
|Maximum age at entry (In years)||5 to 9||Without||55||55||55|
|10, 12, & 15||60||65||60|
|5 to 10, 12, & 15||With||50||50||50|
|Maturity age (In years)||All||With/without|
Maturity Option 1:80 years
Maturity Option 2: 100 years
|Minimum sum assured||5 to 9||With/without||Rs. 6,00,000|
|10, 12, and 15||Rs. 2,40,000|
|Maximum sum assured||All||With/without||Based on Board Approved Underwriting Policy|
|Minimum annualized premium||5 to 9||With/without||Rs. 60,000|
|10, 12, and 15||Rs. 24,000|
|Maximum annualized premium||All||With/without||As per Board Approved Underwriting Policy|
What will you get with PNB Metlife Century Plan?
This plan has come up with a sack full of benefits and special features that promise to keep you and your family safe financially. The special advantages of the policy have made it unique and popular among consumers. The following details will give you a descriptive and comprehensive idea of the policy. Have a look.
Choice of 3 income options:
Those are as follows:
- Super Income option – Cash bonuses (if declared) will be paid from the first year or the first month onwards, based on the Income mode selected. A minimum cash bonus is Guaranteed at 10% of Annualised Premium during the premium payment term.
- Smart Income option – Cash bonuses (if declared) will be paid from the first year or the first month onwards, based on the Income mode selected.
- Future Income option – Cash bonuses (if declared) will be paid from the end of the 15th policy year till maturity. Guaranteed cash bonuses at 30% of the Annualised premium will be paid during the Fixed Income period. Simple reversionary bonuses (if declared) will accrue during the first fourteen policy years and will be paid as Fixed Income over a Fixed Income period.
On survival of the Life Assured, provided that the Policy is in In-force Status and all due Installment Premiums have been paid, the following benefit will be payable:
- Super Income Option – The Survival Benefit in the form of a Cash Bonus, if declared, shall be payable every year from the 1st Policy Year until death or the end of the policy term, whichever is earlier. Under this option, Cash Bonus (if declared) payable during the premium payment term shall be subject to a Minimum Guaranteed Cash Bonus rate as mentioned below.
|Family care benefit||Premium payment term|
|Less than 10 years||10 years and above|
- Smart Income Option – The Survival Benefit in the form of a Cash Bonus, if declared, shall be payable every year from the 1st Policy Year until death or end of the Policy term, whichever is earlier. Cash bonus rates declared during the policy term are not guaranteed and purely depend on the experience of the underlying Participating Fund.
- Future Income Option – Under this option, Simple Reversionary Bonus, if declared, will accrue at each policy anniversary from the 1st policy year till the 14th policy year. The Survival Benefit will be the sum of Fixed Income and Cash Bonus which will be paid every year from the end of the 15th policy year. Fixed Income shall be paid during the Fixed Income Payout Period. Cash Bonus, if declared, shall be payable until death or end of Policy Term. Cash Bonus (if declared) payable during the Fixed Income Payout Period shall be subject to a Minimum Guaranteed Cash Bonus rate as mentioned below.
|Family care benefit||Minimum cash bonus rate|
This product provides an option to choose the Maturity date to the policyholder as age 80 years or 100 years. On survival of the Life Assured till the Maturity Date (as chosen), provided that the Policy is in In-force Status, the policyholder will receive an aggregate of:
- Sum Assured on Maturity;
- Accrued cash bonuses, if not paid earlier;
- Fixed Income, if applicable and not paid earlier;
- Terminal Bonus, if declared.
Sum Assured on Maturity is defined as the sum of all Annualized Premiums paid during the Premium Payment Term plus additional benefit, if applicable. The policy shall terminate on payment of the Maturity Benefit, and no more benefits will be payable.
Family Care Benefit:
If the Family Care Benefit option is chosen at the inception of the policy, then in case of Death of Life Assured, all future premiums payable (if any) shall be waived off. Sum Assured on Death shall be payable as lumpsum and all future Survival Benefits and Maturity Benefits will be paid to the nominee. The annualized premium used to derive the benefits on survival and maturity, for a policy opting for Family Care Benefit will be subject to a guaranteed rate of reduction to cover the additional cost of mortality arising from such policies. The guaranteed rate of reduction varies by age at entry, premium payment term, Maturity age option, and Plan option.
In the event of the unfortunate death of the Life Assured during the policy term provided that the policy is still In-force status on the date of death, and all due premiums are paid, the nominee shall receive Death Benefit and the Policy shall terminate. Death Benefit shall be equal to the following and payable as lumpsum:
- Sum Assured on Death, plus;
- Accrued cash bonuses, if not paid earlier, plus;
- Accrued Simple Reversionary Bonus less Sum of all Fixed Incomes already paid (if applicable),
- Interim Cash/Simple Reversionary Bonus (if any) plus
- Terminal Bonus on death (if declared)
Death Benefit shall not be less than 105% of Total Premiums Paid as of the date of death. If Family Care Benefit has been chosen at the inception of the policy, then in case of death of Life Assured, all future premiums (if any) shall be waived off and Sum Assured on Death shall be payable as lumpsum and all future survival benefits and maturity benefit shall continue to be paid to the nominee.
Flexibility To Accumulate Survival Benefit Payout:
At any point during the Policy term, the Policyholder shall have the option to defer the Survival Benefit(s), arising out of declared Cash Bonuses and/or Fixed Income, if applicable, and accrue them instead. The accrued Cash Bonuses and/or Fixed Income payouts will be accumulated monthly at Reverse Repo Rate published by RBI and the current Reverse Repo Rate is 3.35% per annum. The policyholder can withdraw the accrued Cash Bonuses and/or Fixed Income partly/ fully at any point during the policy term. If the unpaid Survival Benefits are not taken by the policyholder during the policy tenure, the same shall be payable along with benefits payable at the time of termination of the policy in the form of death, maturity, or surrender. This option can be availed under an in-force as well as a reduced paid-up policy. The policyholder can choose to opt in or opt-out of this feature at any point during the policy term.
Flexibility to choose a mode of Survival Benefit payout:
The Policyholder will have the option to choose to receive the Cash bonus and Fixed Income installments as yearly, half-yearly, quarterly, or monthly installments at any point during the policy term 30 days prior to the next Policy Anniversary. Installments for Cash Bonus and Fixed Income for frequencies other than annual mode shall be arrived at by multiplying Cash Bonus and/or Fixed Income by the Income Payout Factor as given below and will be paid out at the end of the period for the chosen frequency.
|Income payout frequency||Income payout factor|
|Annual||100% of the Annual Amount|
|Half-yearly||97% of Annual Amount x 1/2|
|Quarterly||96% of Annual amount x 1/4|
|Monthly||95% of Annual Amount x 1/12|
Flexibility To Choose the date of Survival Benefit payout:
The benefits, as per the option in force under the policy, will by default be payable on the policy anniversary. Alternatively, the policyholder also has the option to receive the benefits on any date of his/her choice.
Simple Reversionary Bonus rates, Cash Bonus rates, and Terminal Bonus rates, if any, shall be declared at the end of the financial year and shall be paid out to the eligible policyholders during the next year as per the date chosen by the policyholder during the policy tenure or on policy termination date respectively. Bonus rates are not guaranteed and purely depend on the experience of the underlying Par Fund.
- Once declared, the Simple Reversionary Bonus is guaranteed and is applicable at death or surrender, or maturity. Simple Reversionary Bonus rates are expressed as a percentage of Annualized Premium.
- Once declared, the Cash Bonus is guaranteed and payable on survival or on death.
- All policies that have completed 10 policy years or PPT, whichever is earlier, shall receive the terminal bonus (if declared) on maturity or on exit due to death (except where Family Care Benefit is chosen) or surrender based on the terminal bonus rates declared by the Company. Terminal Bonus (if declared) shall be added to the Special Surrender Value for surrendering policies.
You may take a loan against your policy once it acquires a Surrender Value. The maximum amount that can be availed is 80% of the Surrender Value of your policy at the end of the relevant policy year, less any unpaid premiums for that year and loan interest accrued, if a loan already exists on the policy, to the end of that year. Currently, the Company charges an interest rate of 9% per annum, compounding annually.
The following rider options are available under this plan.
- Benefit Rider Plus – This Rider provides additional protection over and above the death benefit under Policy in the event of the death of the Life Assured in an Accident.
- PNB MetLife Serious Illness Rider – This Rider provides additional protection over and above the death benefit under Policy if the Life Assured is diagnosed with any of the 10 critical illnesses covered under the Rider.
Flexible Premium Payment Modes and Modal Factors:
You may choose to pay premiums in Yearly, Half Yearly, Quarterly, or Monthly modes subject to the minimum annualized premium under each mode. In case a mode other than annual is chosen, then the annualized premium is equal to (Installment premium/modal factor). Factors on the premium will be applicable as per the table below:
|Premium paying mode||Modal factors|
If premiums are not paid on their due dates, a grace period of 30 days (15 days for monthly mode) from the due date of unpaid premium will be allowed for payment of premium without interest.
If your Policy has acquired a Surrender Value, and you choose to discontinue your Policy, you will be entitled to the Surrender Value, which is higher of the Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV) of the policy. Where Family Care Benefit is chosen, and waiver of premium has been triggered after death of the life assured, the policy shall continue till maturity and cannot be surrendered.
If a policy has acquired Guaranteed Surrender Value and future installment premiums are not paid, the policyholder shall have the option to either surrender the policy or continue it as a paid-up policy with reduced benefits. Once the policy becomes paid up with reduced benefits, the Rider benefits (if any), shall cease immediately after payment of surrender value with respect to rider benefits (if applicable). If the policy continues with reduced benefits, the following shall be payable:
- Death benefit – The amount payable on the death of the Life assured shall be equal to the Reduced Paid-Up Sum Assured on Death plus the Sum of Accrued Cash Bonuses, if not paid earlier; and Accrued Simple Reversionary Bonus less the sum of Fixed Income paid till the date of death, and Terminal Bonus (if declared).
- Survival benefit – No Cash Bonus shall be paid in case of Super Income and Smart Income options. In the case of the Future Income option, Fixed Income each year during the Fixed Income Payout Period will be payable.
- Maturity benefit – Maturity benefit is defined as a Reduced paid-up Sum Assured on Maturity plus Accrued Cash Bonuses (if not paid earlier) plus Fixed Incomes (if not paid earlier) plus Terminal bonuses (if declared).
If your policy is in lapsed or paid-up condition, you can revive the policy during the revival period by paying the arrears of premiums along with interest at the prevailing rate of interest if any. If the base plan is revived, rider benefits can be revived by paying the arrears of premiums under the riders along with interest payment at the prevailing rate of interest. The prevailing rate of interest used for revival is 7% compounded per annum.
The following additional benefits are available.
- Additional Benefit as High Premium Reward – Following additional benefit (expressed as a percentage of the Sum Assured on Maturity) shall be provided on Maturity based on the premium size:
|Premium size||Additional benefit|
|Rs. 0 – 99,999||0%|
|Rs. 100,000 – 2,99,999||5%|
|Rs. 300,000 – 499,999||7.5%|
|Rs. 500,000 & above||10%|
- Additional Benefit for Online sales – This product will be available for sale through the Online channel with an applicable additional benefit of 10% (expressed as a percentage of the Sum Assured on Maturity) shall be added to such Sum Assured on Maturity.
What are the general exclusions of the PNB Metlife Century Plan?
The general exclusions of PNB Metlife Century Plan are as follows.
- Anything that does not satisfy the terms and conditions of the company and the policy will fall under the category of exclusions.
- If there is any kind of breach of law with criminal intent, that will also be permanently excluded from the policy.
- In case of death due to suicide within 12 months from the date of commencement of risk under the policy or from the date of revival of the policy, as applicable, the nominee or beneficiary of the policyholder shall be entitled to at least 80% of the total premiums paid till the date of death or the surrender value available as on the date of death whichever is higher, provided the policy is in force.
How does PNB Metlife Century Plan work?
Mr. David, a 36-year-old businessman purchased PNB Metlife Century Plan for himself. Let us find out how much premium amount he has to pay to avail of the benefits of the policy and how much maturity benefit he will receive for the given credentials.
|Payment terms||5 years|
|Cover terms||64 years|
|Family Care Benefit||Yes|
|Plan option||Smart Income|
|Income payout mode||Annual|
|Sum assured||Rs. 1,20,000|
|Payable premium||Rs. 1,25,400|
Basic premium – Rs. 1,20,000
GST – Rs. 5400
|Maturity benefit at 4%||Rs. 5,95,800|
|Maturity benefit at 8%||Rs. 52,99,800|
Frequently Asked Questions
Fixed Income = (Sum of all accrued Simple Reversionary Bonuses) / (Fixed Income Payout Period). The fixed Income Payout Period commences from the end of the 15th policy year and is equal to the outstanding term till maturity or specified fixed period, whichever is earlier. The Fixed period is equal to 30 years for maturity age option 100 years and 20 years for maturity age option 80 years.
Sum Assured on Death shall be defined as higher of Basic Sum Assured (BSA), which is the absolute amount assured to be paid on death and defined as 10 times of Annualized Premium, or Annualized Premium multiplied by the Death Benefit Multiple.
Interim Cash Bonus = Interim Cash Bonus Rate X Annualized Premium x Months outstanding since last Survival Benefit payout date till next policy anniversary/12.
The general conditions are as follows:
- The rider Sum Assured under each of the riders shall not exceed the Sum Assured of the base policy.
- The premium for all health riders put together shall be subject to a ceiling of 100% of the premium of the basic product.
- The premium for all non-health riders put together shall be subject to a ceiling of 30% of the premium of the basic product.
- Premium paying term for riders will be equal to the outstanding base premium paying term.
- The rider can be attached at the inception of the policy or at any policy anniversary during the premium payment term.
- The rider will not be offered if the term of the rider exceeds the outstanding term under the base policy.
- For policies where Family Care Benefit is chosen, no waiver of premium benefit shall be applicable to riders.
The Policyholder has a free look period of 15 days from the date of receipt of the policy document and a period of 30 days in case of electronic policies and policies obtained through distance mode.
Tax benefits under this plan may be available as per the provisions and conditions of the Income Tax Act, 1961, and are subject to amendments made thereto from time to time.