PNB Metlife – Mera Term Plan Plus – Review
PNB Metlife Mera Term Plan Plus has unique features. PNB Metlife has claim settlement ratio of over 90% in the last couple of years. This term plan comes with a unique feature which protects child education benefit as an additional layer of protection and a few more options. What are the key features of PNB Metlife Mera Term Plan? What are the Pros and Cons in this term insurance plan? Should you opt PNB Metlife Mera Term Plan Plus?
Also Read: Best Term Insurance Plans to opt in 2020-21
This article is based on request from Mr. Sridhar Adhya on an email.
Overview of PNB Metlife Mera Term Plan Plus
PNB Metlife Mera Term Plan Plus is a specifically designed term plan that provides protection till the age of 99 years of age, even if you choose to pay the premium for a limited period. This is an online term plan. It offers wide flexibility with cover enhancement options, protection against death, disability, and disease, etc.
Here are the key features of this term plan:
1) Offers risk coverage in case of death, permanent disability and for critical illnesses
2) One can cover their spouse
3) Term plan that comes with limited premium payment options, but coverage would be for the entire tenure of the policy
4) Risk coverage till 99 years of age
5) One can choose child education benefit option that covers child education expenses as an additional layer of protection
Features of PNB Metlife Mera Term Plan
Here are the distinctive features of the PNB Metlife Mera Term Plan:
PNB Metlife Mera Term Plan is a non-linked and a pure term insurance plan.
There are three benefit options available in the plan which provides the options to choose the coverage against death, disease, and disability:
- Life – Death Benefit
- Life Plus – Death benefit+ Terminal illness benefit + waiver of premium on total disability or diagnosis of critical illness
- Life plus health – Death benefit + Terminal illness benefit + waiver of premium on total disability or diagnosis of critical illness + Accelerated Critical Illness benefit
The policy offers additional options – Return of Premium and Spouse Coverage.
This term plan offers up to 81 years of tenure and coverage till 99 years of age.
There is no policy loan available in this plan.
A grace period of 15 days for monthly premium payment mode and 30 days for all other modes is granted to the policyholder to revive the policy in case of failure in paying the premiums.
The policy cover can be enhanced and make more comprehensive through riders.
The premiums paid are eligible for income tax exemption u/s 80c.
What are the eligibility criteria to take this term plan?
Here are the eligibility criteria:
|Minimum Age at entry||18 years|
|Maximum age at entry||60 years|
|Minimum sum assured||Rs 25 Lakhs|
|Maximum Sum Assured||No limit|
|Minimum Policy Term||10 Years|
|Maximum Policy Term||81 Years|
|Premium Payment Options||Premium can be paid for entire tenure or only for 10 years
Premium can be paid either monthly or yearly
What are the premium payment options?
One can opt for single pay, limited premium payment (5 years minimum and maximum till 60 years of age) and regular premium payment options.
Additional Options in PNB Metlife Mera Term Plan
PNB Metlife Mera Term Plan offers a variety of choices while choosing your plan to suit your requirements and pocket. These options lent high flexibility to the plan.
1) Return of Premiums (RoP) – This option can be opted for at the time of inception of the policy. Here, the maturity benefits equal to the sum assured on maturity is payable provided that then life assured survives till the maturity date of the policy.
2) Spouse Coverage – Under this option, which is to be opted for at the time of inception of the policy, the policyholder may choose to cover his/her spouse under the same policy by paying an additional premium.
3) Cover Enhancement Options: There are three Cover Enhancement Options available in the plan, the policyholder can opt for any of these at the time of inception of the policy:
I) Step up benefit – Under this benefit, the step-up sum assured is added to the policy for the next 10 years at every policy anniversary starting from the first policy anniversary. Step-up Rate is fixed at 10%.
II) Life Stage Benefit – Under this option, the policyholder may opt to increase the cover at various important stages of his life like marriage, childbirth etc. The maximum additional sum assured put together under all these events will be Rs. 50 Lakhs.
- Marriage: 50% of Basic Sum Assured subject to a maximum of Rs. 50 Lakhs
- Birth of 1st child: 25% of Basic Sum Assured subject to a maximum of Rs. 25 Lakhs
- Birth of 2nd child: 25% of Basic Sum Assured subject to a maximum of Rs. 25 Lakhs
- Home loan taken by the Life Assured after the Date of Commencement of Risk (only once during the policy term): 50% of Basic Sum Assured subject to a maximum of Rs. 50 Lakhs
III) Child Education Benefit – The policy offers a unique benefit of Child Education Support Benefit. Under it, the policyholder may opt to increase the sum assured to provide support to the education of one of his child. An additional premium is charged from the date of inception of this policy. This option can be opted for only if the nominated child has 5 to 19 years of education left for completion of graduate degree. This additional sum assured is subject to a minimum of Rs 10 lakh and a maximum of Rs 1 crore.
What are the riders available in this term plan?
There are few riders available that can be attached to the policy to make the policy more comprehensive:
1) Accidental Death Benefit – The chosen accidental death benefit sum assured is paid to the nominee.
2) Accidental Disability Benefit – The insured is paid the pre-decided accidental disability benefit in case he/she meets with an accident that results in disability.
3) Serious Illness Cover – The insured is paid the serious illness benefit on the first diagnosis of the 10 covered serious illnesses.
4) Critical Illness Cover – The critical illness benefit is paid on the first diagnosis of two critical illnesses, which are cancer and heart attack.
What is the claim settlement ratio of PNB Metlife in the last 5 years?
Here are the claim settlement ratios of PNB Met Life in the last 5 years.
Any exclusions in this term plan?
Here are some of the major exclusions in this term plan.
1) Intentional self-inflicted injury, attempted suicide.
2) Any pre-existing condition.
3) War, terrorism, invasion, act of foreign enemy, hostilities (whether war be declared or not), armed or unarmed truce, civil war, martial law, mutiny, rebellion, revolution, insurrection, military or usurped power, riot or civil commotion, strikes.
4) Taking part in any naval, military or air force operation during peace time.
5) Participation by the insured person in an assault, a criminal offence, an illegal activity or any breach of law with criminal intent.
6) Any external congenital condition
how does Mera Term Plus Insurance Plan work?
Let me explain this with few examples below:
Example 1 – Priya – 30 years – 2 Crores Sum Assured
Example 2 – Sumit – 35 years – 1 Crore Sum Assured
Pros in PNB Metlife Mera Term Plan Plus
This term plan has a variety of risk coverage options i.e. death, disability and disease.
It covers critical illnesses
One can cover spouse as part of the plan
It offers coverage for optional riders
One can get coverage till 99 years of age.
Cover enhancement provides an increase in sum assured at critical stages of life.
Negative points in this term plan
PNB Metlife has low claim settlement ratio till 2018.
Some of the exclusions makes this term plan not that attractive.
It has a minimum sum assured as Rs 25 Lakhs. One cannot take lower sum assured in this plan.
PNB Metlife – Mera Term Plan Plus – Should you opt?
PNB Metlife Mera Term Plan Plus is a flexible term plan that offers some good features. The features like Cover Enhancement options, Benefit Options, and Additional Options give extra teeth to the policy and giving it a niche over other term plans. Its low claim settlement ratio (except for 2018-2019) makes such plan unattractive. One should consider negative points indicated above before opting such term insurance plans.
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