PNB Met Smart Child Insurance Plan

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Introduction/Overview

PNB MetSmart Child Insurance policy is a Unit Linked Insurance Plan that is used to take care of future costs for a child, be it rising educational fees or extracurricular activities, etc.

Key Features

  • The policy paying term can be 10, 15 or 20 years
  • This a ULIP that is geared towards the benefit of your child
  • Loyalty Additions are offered on policies that are of 15 or 20 years
  • On completion of policy term, Fund value with applicable loyalty additions is paid.
  • On the premature Death of the parent, the child’s future is secured with a three-way Death benefit.
  • Six funds are available for investment with this policy.
  • There are no medical requirements.
  • Systematic Transfer Option is available.

Benefits

  • The policy can be bought without the hassles of medicals and with minimum paperwork
  • Based on the customer’s propensity to take risks, there are 6 Unit Linked Funds for investment.
  • Systematic Transfer Option allows the customer to take advantage of market volatility.
  • Tax benefit is available as per the Income Tax Act under section 80 (C).
  • On maturation of the policy, the fund value plus the Loyalty Additions is paid as Maturity Benefit.
  • In case of the death of the policyholder, the beneficiary receives the following: (1) Higher of either Sum Assured or 105% of the Total Annualized Regular Premium paid. (2) Future payments will be ceased. Additionally, PNB Metlife will on a monthly basis credit an amount that is equivalent to one annualized regular premium into the policyholder’s fund.

Product Specification:

 

Minimum

Maximum

Entry Age (Last Birthday) for Life Insured

18 years

55 years

Entry Age (Last Birthday) for beneficiary

90 days

17 years

Maturity Age (Last Birthday)

 

75 years

Policy Term (PT) in years

10,15 and 20 years

Premium Paying Term (PPT) in years

Equal to Policy Term – 10, 15 and 20 years

Premium Paying Frequency

Annual, Semi-Annual, Quarterly, Monthly and Payroll Savings Program

Yearly Premium

Rs. 18000

2 lakhs

Sum Assured

 10 times the chosen Annual Premium

Details About Premium

Annual premium in Rupees

Age of the policyholder

Sum Assured (Rs.)

Annual Premium (Rs.)

Policy Term (yrs)

18

180000

18000

10

18

180000

18000

15

30

1200000

120000

10

30

1400000

140000

20

55

500000

50000

20

Sum Assured is 10 X Annualized Premium

Policy Details

Grace Period: Thirty days is given to the policyholder to pay all due premiums. This timeframe is reduced to 15 days in case of premiums being paid via monthly mode. The policy will acquire a “Discontinued” status if payment is not made within the applicable timeframe.

Policy Termination or Surrender Benefit: If the policy is surrendered before the completion of 5 years, then the insurance cover ceases and the Fund Value net of any discontinuance charge, if at least 5 years’ premiums have not been paid, will be transferred to the Discontinued Policy Fund. This Fund will earn a minimum guaranteed interest rate equal to the savings account rate of State Bank of India. Proceeds from this will be payable only after the fifth policy anniversary. In case of death of the Life Assured during this period, only the accumulated fund value will be payable to the nominee After completing five policy years, if it is surrendered, then there is no Surrender/Discontinuance Charges and the Fund Value is paid to the policyholder and the policy will terminate immediately.

Free Look Period: The policy may be cancelled if the customer so wishes, within 15 days of receiving the policy document. The amount refunded is equivalent to non-allocated Premiums plus charges levied through cancellation of units plus Fund Value at the cancellation date. This amount is subject to deduction of expenses towards stamp duty and proportionate risk premium.

Inclusions

  • Four switches in a policy years are allowed free of charge, after that Rs. 250 is charged per switch.
  • Two partial withdrawals are permitted in a single policy year, in which only the first is free of charge.
  • A discontinued policy may be revived within two years of discontinuance by paying all due premiums.

Additional features or riders

  • There are various charges that apply to this policy. They are as follows:
  1. Premium Allocation Charge which is deducted from the Premium paid by the customer.
  2. Policy Administration Charge, which is deducted by the cancellation of units on a monthly basis.
  3. Fund Management Charge that is deducted by adjusting the NAV of the units daily.
  4. Discontinuation Charge which is for discontinuing the plan before the end of the policy term.
  5. Mortality Charge that is paid for the Life Coverage provided according to the Sum At Risk.

Exclusions

  • If suicide is committed by the person insured within a year of the commencement of policy or the date of the last reinstatement, only the Fund Value in the unit account as on the date of death would be refunded.

Documents Required

The policyholder has to fill up an ‘Application form ’with identity proof, bank account proof, address proof and a recent photograph. Select cases may require income proof.