PNB Met Smart One Plan

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Introduction/Overview

PNB Met Smart One Insurance policy is a single premium Unit Linked Insurance Plan. It offers a host of investment management options along with Loyalty Additions that help to create and accelerate the wealth of its customers.

Key Features

  • This policy is a ULIP and is a convenient investment cum protection plan.
  • The policyholder has a variety of options for building his investment portfolio; six funds are available for investment with this policy. The policyholder also has a choice of stocks, bonds and money market funds.
  • Policyholders are protected from market downswings with the unique Stop Loss option.
  • Liquidity options are available with the Partial Withdrawals.
  • Loyalty additions help to accelerate wealth.

Benefits

  • The policyholder has the choice of two investment strategies; one is the Self Managed option and the other is the Auto Rebalancing option. The Self Managed option gives the policyholder the freedom to manage his or her investment portfolio independently. There is a choice of six Unit Linked Fund options for the policyholder.

The Auto Rebalancing option is ideal for customers who do not wish to maintain their portfolio on a regular basis. The funds are allocated to the Flexi Cap Fund and Protector II Fund in proportions chosen by the policyholder.

  •  Policyholders have the option to receive the Maturity Benefit as a lump sum or as structured payments using the Settlement Option facility
  • If the person insured passes away, the nominee receives the Death Benefit. The Death Benefit payable is higher of the following:
    (1) The Single Premium Fund Value, or 
    (2) The Sum Assured less Partial Withdrawals or 
    (3) 105% of the Single Premium paid.
  • The Stop Loss option is available on the Flexi Cap Fund. It is used to protect policyholders from market downswings.
  • Tax benefits are available under this policy as per the Income Tax Act under sections 80 (C) and 10(10D).
  • Loyalty Additions are available with this policy. The percentage of Loyalty Additions varies, according to the size of the Single Premium. It is credited to the policy at the end of every Policy year starting from the sixth year to the tenth year.
  • Partial withdrawals are permitted after five years from the commencement of the policy. After five years, partial withdrawals can be made, subject to the condition that the withdrawal amount is a minimum of Rs. 5000 and should not exceed 5% of the Total Fund Value.

Product Specification:

 

Minimum

Maximum

Entry Age (Last Birthday) for Life Insured

Three months

65 years

Maturity Age (Last Birthday)

18

75 years

Policy Term (PT) in years

   10 years

20 years

Premium Paying Term (PPT) in years

Single

Premium Paying Frequency

Single

Yearly Premium

Rs. 18000

Rs. 5,00,000

Sum Assured Multiple

Five times of the single premium in the first policy year & 1.25 times of the single premium for the remaining term of the Policy

       

Details About Premium

Annual premium in Rupees

Age of life insured

Premium (Rs.)

Sum Assured (Rs.)

Policy Term (years)

25

18000

90000

10

30

400000

2000000

15

40

75000

375000

20

55

500000

2500000

20

Policy Details

Grace Period: As the premium is paid only once on the purchase of the policy there is no Grace Period for this Policy.

Policy Termination or Surrender Benefit:

The customer may surrender his or her investment before maturity at any time during the plan year after five years of the Policy Term. Upon surrendering, the Total Fund Value is payable upon processing of the surrender request. If the policy is surrendered within the first five years from the start of the plan, then the fund value is transferred to what is called as the Discontinued Policy Fund. A minimum Guaranteed Interest rate of 4% p.a. or as declared by the authority from time to time, will be earned. The Fund Management Charge on the Discontinued Policy Fund shall not exceed 0.5% per year on the Discontinued Fund. The fund value is payable on the first working day of the sixth policy year.

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, medical examination and proportionate risk premium.

Additional Features or Riders

  • There are various charges that apply to this policy. They are as follows:
  1. Premium Allocation Charge is deducted from the Single Premium paid by the customer. The balance is invested to buy units
  2. Policy Administration Charge is deducted by the cancellation of units on a monthly basis.
  3. Fund Management Charges are adjusted while calculating the NAV of the Unit Linked Funds each day.
  4. At the beginning of each month, Mortality Charges are deducted by cancellation of units at the relevant NAV.
  5. Switching Charge – There is a limit of four free switches allowed in a single policy year. Subsequently each switch is charged at Rs. 250.
  6. Partial Withdrawal Charge – This policy allows one partial withdrawal free of cost in a policy year from the Top Up Fund or the Single Premium. For subsequent withdrawals, there is a charge Rs. 250 per withdrawal.
  7. Miscellaneous Charge in which Rs.250 is levied for various alterations such as a change in the Base Sum Assured, Premium Redirection, etc.

Exclusions

  • The term insurance cover is void if the person insured, whether sane or insane at the time, commits suicide within one year from the start of the policy cover. The company will refund only Fund Value in the unit account as on the date of death. The same is applicable if the person insured commits suicide within one year from the date of last reinstatement. Any charges that are recovered subsequent to the date of death will be paid back to the nominee along with the Death Benefit.

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.