BackProduct crack: PNB Metlife’s Mera Term Plan
In all variants, the sum assured can be increased by 50% and 25% up to `50 lakh by opting for a life stage benefit, when buying the policy
Premium
This is an online term plan that only charges for insurance. So, if the policyholder survives the term, no money is given, but if she dies during the term, beneficiaries get the insurance money.
WHAT DO YOU GET?
The sum assured can be customised in four ways. In the first, the beneficiary gets the full sum assured all at once on policyholder’s death and the plan terminates. In the second option, 50% of sum assured is paid in lump sum and the balance in monthly instalments (0.58% of the sum assured) for 10 years. The third option pays 50% of sum assured on death and then a monthly income, which goes up 12% every year on a simple interest basis. So, it starts with a monthly income of 0.39% of sum assured every month and increases by 12% every year. The fourth option works like a child plan as it links the insurance benefits with the age of the child. But this option is available only to policyholders whose child (beneficiary) is younger than or 15 years of age. Here, 50% of sum assured is paid on death of policyholder and the balance is paid in equal monthly instalments till the child turns 21. If policyholder dies when the child is 20 years old, the child will get a monthly income for one year only (4.43% of sum assured). But if the child is less than a year old at that time, monthly income will be 0.37% of sum assured. If the policyholder dies after the child turns 21, staggered payments will stop and the entire sum assured will be made available.
WHAT’S SPECIAL?
In all variants, the sum assured can be increased by 50% and 25% up to 50 lakh by opting for a life stage benefit, when buying the policy. Medical examination is not required, but you will need to pay for this increase. The second option is to choose a joint life cover in which the second person insured carries a sum assured of 50% of the original sum assured up to a maximum of 50 lakh. Life stage benefit is not available here. If the policyholder dies, benefits will be paid as per the option chosen and future premiums will be waived. If the second person dies first, the sum assured is paid and the policy continues (policyholder has to pay premiums). If both deaths occur together, the sum assured is paid and the policy terminates.
WHAT DO YOU GET?
In the staggered monthly option for sum assured of 1 crore and policy term of 25 years for a 35-year-old, the premium would be 9,227 (10,410 in lump sum option). Policy will pay around 41.81 lakh as lump sum, as it factors in time value of all periodic payments and calculates the present value of the sum assured to give 50% of that sum assured. Monthly income is 48,495 over 10 years. There is another online staggered benefits plan (pays 42 lakh as lump sum and 48,500 monthly for 130 months), which is cheaper.
MINT MONEY TAKE
This is a comprehensive plan that allows customisation. But there are caveats. For instance, joint life cover can be a maximum of 50 lakh, and it cannot be discontinued. You could instead buy individual covers. In terms of pricing, you can look at other plans in the market.
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