PNB Metlife Smart Invest Pension Plan

What is the PNB MetLife Smart Invest Pension Plan (SIPP)?

PNB MetLife Smart Invest Pension Plan is a flexible, unit-linked pension savings plan designed to build a retirement corpus. This pension plan offers a mix of equity and debt investments, ensuring potential growth and security. With options for regular payouts or a lump sum at maturity, the plan guarantees a steady income for life. This plan provides tax benefits under Sections 80C and 10(10D), making it an ideal choice for those seeking a secure, stress-free retirement.

Features of PNB Metlife SIPP Plan

The key features of the PNB Metlife SIP Plan are as follows:

• Grow Your Retirement Savings: You can benefit from market-linked returns that can help increase your retirement savings.

• No Premium Allocation & Policy Charges: No charges for premium allocation or policy administration during the policy term.

• Return of Mortality Charges: The mortality charges are refunded, adding more value to your policy.

• Various Investment Strategies & Fund Options: You can choose from three investment strategies and two fund options, including the new Pension Mid Cap Fund and Pension Bond Fund.

• Flexible Features: You enjoy flexibility with unlimited switches, premium redirection, partial withdrawals, and top-up premiums.

Eligibility Criteria for PNB Metlife Smart Invest Pension Plan

*Monthly payments can be made through standing instructions, direct debit (ECS, ACH).

Benefits of PNB Metlife Smart Invest Pension Plan

• Death Benefit: The higher of ₹10,000, the Fund Value (including any Top-Up Fund Value), or 105% of premiums paid (adjusted for any partial withdrawals in the last 2 years) will be paid in case of the Life Assured's death during the policy term.

• Options for Nominee or Beneficiary: The nominee can either withdraw the full proceeds as a lump sum, use it to purchase an Immediate or Deferred Annuity, or receive a lump sum if the amount is insufficient to purchase a ₹1,000/month annuity.

• Vesting Benefit: If the Life Assured survives to the Vesting Date, the Total Fund Value (including any Top-Up Fund Value) will be the Vesting Benefit.

• Options on Vesting: On Vesting, the proceeds can be used to purchase an Immediate or Deferred Annuity, commute up to 60%, or use up to 50% of the commuted value to buy an annuity from another insurer. If the proceeds are insufficient for a ₹1,000/month annuity, the balance will be paid as a lump sum.

• Postponement of Vesting Date: The Vesting Date can be postponed by up to 1 year, up to age 70, with a request submitted at least 3 months before the original date. The policy term is extended, and benefits continue as per the revised term.

• Return of Mortality Charges: If the Life Assured survives the policy term, 100% of the total mortality charges (excluding taxes) will be added back to the fund value, allocated proportionally to the existing funds, subject to full premium payment.

• Top-Up Premium: Top-Up premiums of at least ₹25,000 can be paid during the policy term, provided the policy is active. The Top-Up Sum Assured is 1.05 times the Top-Up premium paid, and these premiums cannot be withdrawn for 5 years, except in case of policy surrender.

• New Fund Offering (NFO): PNB MetLife offers two new funds:

  • Pension Mid Cap Fund: Focuses on long-term capital growth through midcap stocks, ideal for high-risk investors with long-term goals.

  • Pension Bond Fund: Invests in domestic debt instruments to provide steady returns with moderate risk, benefitting from improvements in India’s economy. 

• Fund Allocation Based on Years to Vesting: Fund allocations between Pension Mid Cap Fund and Pension Bond Fund adjust based on the vesting period, with higher equity exposure as the vesting date nears.

• Switching (Only Under Self-Managed Strategy): You can switch between fund options at any time, with a minimum switch value of ₹5,000, without any charges or limits on the number of switches.

• Premium Redirection (Only Under Self-Managed Strategy): Future premium allocation can be redirected to different funds free of charge.

• Partial Withdrawal: Partial withdrawals are allowed after the 5-year lock-in period, with a minimum withdrawal of ₹5,000 and a maximum of 25% of the total fund value per year. Withdrawals are first made from Top-Up funds. 

• Change in Premium Payment Mode: You can change your premium payment mode (Yearly, Quarterly, Half-Yearly, or Monthly) anytime during the policy term, with the change applied from the next policy anniversary.

• Policy Loans: Loans are not allowed under this policy.

Portfolio Management Strategies of PNB Metlife Smart Invest Pension Plan

The PNB Metlife SIPP Plan offers the following portfolio management strategies:

• Self-Managed Strategy: Offers full control over investments, allowing you to choose from debt or equity-oriented funds and switch between them anytime to match your risk profile.

• Systematic Transfer Strategy: Available for Regular or Limited Pay policies with annual premiums, this strategy starts by investing in a debt-oriented fund (Pension Bond Fund) and gradually transfers the amount to an equity-oriented fund (Pension Mid Cap Fund) over 12 months, reducing market timing risks.

• Automatic Asset Rebalance Strategy: Rebalances your portfolio annually to reduce equity exposure as the policy nears its vesting date, maintaining a predefined balance between equity and debt funds based on the time remaining until vesting.

Policy Details of PNB Metlife Smart Invest Pension Plan

• Free Look Period: You can cancel the policy within 30 days of receiving the policy document if you disagree with the terms. Upon cancellation, the refund includes the fund value, non-allocated premiums, and deducted charges, after adjusting for risk cover, medical expenses, and stamp duty. 

• Grace Period (For Non-Single Premium Policies): A 30-day grace period (15 days for monthly mode) is given to pay due premiums without penalties. The policy remains active during this period. If the premium is not paid within the grace period, the policy moves to discontinued status.

• Lock-in Period: The policy has a 5-year lock-in period, during which policy proceeds cannot be withdrawn, except in case of death or specified contingencies. 

• Premium Discontinuance (Non-Single Pay Policies): 

  • During Lock-in Period: If premiums are not paid within the grace period, the fund value (after deducting discontinuance charges) is moved to the Pension Discontinued Fund, and the policy cover ceases.

  • After Lock-in Period: The policy is converted into a reduced paid-up status, with the Sum Assured being 105% of total premiums paid. Charges continue until revival.

• Change in Premium Payment Mode: You can change your premium payment mode anytime during the policy term, effective from the next policy anniversary. 

• Discontinuance of Single Premium Policies: 

  • During Lock-in Period: If surrendered within 5 years, the fund value (after deducting discontinuance charges) is transferred to the Pension Discontinued Fund and paid at the end of the lock-in period.

  • After Lock-in Period: You can surrender anytime, and the full fund value is paid.

• Pension Discontinued Fund: For discontinued policies, the fund value is transferred to the Pension Discontinued Fund. The proceeds are paid after the lock-in period, except in case of death, where the nominee receives the discontinued fund value immediately.

• Surrender: 

  • Within 5 Years: The fund value (after discontinuance charges) is moved to the Pension Discontinued Fund and paid at the end of the lock-in period.

  • After 5 Years: The policyholder receives the total fund value.

• Auto Foreclosure of Policy:

  • After the Premium Payment Term, if the fund value falls below 10% of the annual premium, the policy is foreclosed, and the available fund value is paid.

  • If the fund value is insufficient to cover charges, the policy is foreclosed.

• Termination of Policy: The policy terminates upon the earliest of the following:

  • Free look cancellation

  • Policy foreclosure

  • Vesting benefit payout

  • Payment of Pension Discontinued Fund or surrender value

  • Death of the policyholder

  • Any other event specified in policy terms

Suicide Exclusion Criteria of PNB Metlife Smart Invest Pension Plan

In the unfortunate event of death due to suicide within 12 months from the date of commencement of risk or the date of revival of the policy (whichever is applicable), the nominee or beneficiary will be entitled to the Fund Value as on the date of death notification. Additionally, any charges recovered after the date of death, except Fund Management Charges (FMC) and guarantee charges, will be added back to the Fund Value as of the date of death intimation.