PNB MetLife Child Plans

PNB MetLife Life Insurance Company comprises of numerous stakeholders some of which include MetLife International Holdings LLC, Punjab National Bank Limited, Jammu and Kashmir Bank Limited and M. Pallonji and Company Limited among others. The company being the major alliance between MetLife International Holdings, one of the pioneer insurance companies of the world and Punjab National Bank boasts of expertise in both the insurance sector and financial sector. The company caters to the customer’s needs through a presence across 8000 locations including banks and other financial institutions besides the insurer’s own branches.

PNB MetLife Child Plans

PNB MetLife Life Insurance Company offers child plans in two varieties. While one of the plans is a traditional plan which offers guaranteed benefits, one plan is a unit linked plan which has an option of utilizing the plan as a child plan. Let us discuss the plans offered by the company and the features they have in details.

MetLife Smart Child Plan

It is a unit linked plan which provides for the welfare of the child in the event of the insured’s death. The notable aspects of the plan are mentioned underneath:

• Premiums under the plan have to be paid for the entire tenure of the plan
• Loyalty Additions are added at the maturity of the plan @2% or 3% of the average fund value depending on the plan tenure chosen
• The premiums paid after the deduction of charges are invested in a choice of 6 funds namely Protector II, Preserver II, Balancer II, Flexi Cap, Virtue II, and Multiplier II.
• On death of the insured within the plan tenure, the payable value will be higher of the chosen Sum Assured or 105% of the total premiums which were paid till death. All subsequent premiums are waived off and paid by the company under the inbuilt Premium Waiver Benefit. The amount lying in equity oriented funds gets transferred to the Balancer II Fund to protect against market volatility. When the term of the plan expires, the fund value is paid to the nominee
• At maturity, the value payable is the Fund Value which can either be taken in lump sum or in instalments post maturity under the feature of Settlement Option. The benefit can also be availed in a combination of lump sum and instalment option.
• If 5 years of the plan are completed, the policyholder can also avail the facility of partial withdrawals which should be a minimum of Rs.5000
• 4 free annual switches are available

Eligibility Details

MetLife College Plan

A traditional money back child education plan to safeguard the child’s future. The features and benefits of the plan are as follows:

• The plan participates in the profits of the company by way of earning bonuses
• 20% of the Sum Assured is paid as survival benefits in the last 3 years of the policy
• Simple reversionary bonuses accrue from the 3^rd policy year and thereafter till the end of the term
• In case of death of the insured during the tenure of the plan, a benefit higher of 10 times the annual premium or base Sum Assured or minimum guaranteed Maturity Sum Assured or 105% of all premiums paid till the date of death is payable along with the vested reversionary bonuses. All future premiums will be waived off but the plan continues. Survival benefits are paid in the last three years of the plan as and when they accrue. When the term expires, i.e. on maturity, the Maturity Sum Assured including the reversionary bonuses accrued post death and any Terminal Bonus is paid to the nominee
• On maturity, the Maturity Sum Assured including the reversionary bonuses accrued and any Terminal Bonus is paid to the nominee
• Loans are available up to a maximum of 90% of the Special Surrender Value
• Tax relief is available on premiums paid as well as the claim amount received under Sections 80C and 10(10D) respectively

Eligibility Details

Applying for a Child Plan from the company:

Online

The company offers specific plans which are available online only. The customer only needs to log into the company’s website, choose the required plan, choose the coverage and provide the details. The premium will be determined using the filled details. The customer then needs to pay the premium online through credit card, debit card or net banking facilities and the policy will be issued

Intermediaries

Plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process.

Applying For Child Plans through PolicyBazaar

1. On the PolicyBazaar homepage, click on Child Plans under the Personal tab.
2. Click New Quotes to compare and choose from top insurance providers.
3. Fill your date of birth (DOB), whether you are a smoker/non-smoker, and the payout amount. On the basis of your payout amount, you will get an estimate of your premium. Next click Continue.
4. Fill in your name, email address, city, country code, and mobile number. Click Continue.
5. You will be taken to the Life Insurance quotes page where you will see life insurance quotes of more than 10 insurers. Next, choose the plan as per payment schedule – One Time Payout and Monthly Payout Plans.
6. After reviewing and comparing each life insurance quote, click the premium amount to buy the desired plan.
7. You will see a pop-up on the screen which will give you an overview of the chosen plan like premium, plan features, exclusions, additional riders, etc. Click Proceed.
8. This will take you to the insurer’s website. Fill in the necessary details to buy the plan.

How much Child Plan Coverage to Opt for?

The amount of child plan coverage needed may vary from person to person. There are many factors that affect this like socio-economic status of the family, income of the parents, number of children in the family, other insurance plans already purchased, etc. So before you buy a child plan for your son or daughter’s future, make sure you assess the requirements properly. A staggeringly large number of people buy insurance that is either too low or too high. Don’t make that mistake and opt for the correct amount of child plan coverage.

Does the socio-economic status affect the coverage amount?

Of course it does! Parents raise their children in a particular way and this depends greatly on their socio-economic background. Children from very affluent families may go to the most expensive private schools and colleges. However children from lower middle class families may only go to government run schools and colleges that charge considerably less. As a result, to meet the various educational costs, the coverage amounts also vary.

How much child plan coverage to opt for if I have more than one child?

It is very obvious that the higher the number of children, the higher coverage you will require. A person who has only one child will require half the cover amount of a person who has two children. Of course the parents of an only child may want to create a large fund for her and so that fund may even exceed the fund created by a parent of two children. But on an average, you need to have a coverage amount that is sufficient to provide for the needs of all your children together.

How much child plan coverage to opt for if I already have a life insurance policy?

A life insurance policy and a child plan are completely different. A life insurance policy would terminate once you die, but a child plan would continue till the time you had originally wanted it to continue, even after your death. So a child plan is of utmost importance as it continues to cover your child even if you die suddenly. As a result, having a life insurance policy should not prevent you from buying a child plan. However, if you have a large life insurance plan, then you can have a smaller child plan simply because a portion of the life insurance money can be used for the child’s future as well. But do not make the mistake on relying on that alone.

How to calculate how much child plan coverage to opt for?

For this, you need to keep the following in mind:

1. Age of the child – The younger she is, the more number of milestones she will have left in life and so you will have to plan for and cover all of them.
2. Specific goals – You need to see if you or your child has any specific goals like studying in a particular university, going abroad, starting a business, having a theme wedding, etc. If any such goals are present, you would need extra coverage.
3. Financial health of the family – If the financial situation of the family is not very strong with loans, etc to repay, you need to have appropriate child plan coverage. You must ensure that even if the family’s finances get tested, the situation must not affect the child and her education in any way.

PNB MetLife Child Plans - FAQ

1. How to pay premium? What are the modes of payment available?

PNB Metlife provides the following modes for paying premium:

• Online mode
• Cash or cheque deposit at branch office
• Through courier
• Drop Box facility
• ECS or Auto Debit facility

For online premium payment, login to your account with Client ID and password, and click on the ‘Pay Premium’ tab for completing the process.

2. How can I check policy status for PNB MetLife child plans?

You can check your policy status by login in with your User ID and password on the e-portal. There is a policy details tab, wherein the status of the policy can also be checked.

3. What is the policy renewal process for PNB MetLife child plans?

You need to submit the required documents along with renewal form at any of the nearest PNB Metlife branches in your city.

4. What is the company’s process to settle claim for PNB MetLife child plans?

The company’s claim policy requires you to intimate the company about the claim policy by letter, fax, or email.

• Directly through any of the PNB Metlife branch offices
• Through Advisors
• Through claims department in the head office
• Through regional service team

Once all the required documents are submitted (list of documents can be found on the website) and the same is verified the claims are settled within 30 days of receipt of the same.

5. What is the policy cancellation process for PNB MetLife child plans?

The company’s cancellation process requires you to duly fill and submit a surrender form along with policy documents to any of the PNB Metlife branches in your city. After receiving the documents and the necessary amount for cancellation, the policy will be cancelled on record for the particular policyholder.