MetLife Retirement Savings Plan

What are the Key Features?

What are the Plan benefits?

In the event of the untimely demise of the insured during the policy term, Death Benefit payable is higher of Death Sum Assured plus Accrued Simple Reversionary Bonus plus Terminal Bonus. Here, Death Sum Assured is 105% of the total premiums paid. Death benefit under this policy is not less than the surrender value.The nominee has the option to utilize the entire or some part of the death benefit for purchasing an immediate annuity at the prevailing rate or the nominee can withdraw the death benefit amount as a lump sum.The policy terminates on payment of the death benefit.

In case of survival of the insured till the vesting date, Base Sum Assured plus Accrued Simple Reversionary Bonus plus Terminal Bonus is payable as the vesting benefit.

The insured has the option to choose from the following vesting benefits:

• Utilize the full vesting benefit to purchase the immediate annuity at the prevailing annuity rates.
• To get the amount as lump sum up to the extent allowed under Income Tax Act and the remaining amount to purchase annuity (guaranteed) at the prevailing annuity rates.
• Utilize the vesting benefit to to purchase a Single Premium Deferred Pension Policy to defer the purchase of the immediate annuity.
• Extend the accumulation period for the same policy, if you are below 55 years of age.

The policy terminates on payment of the vesting amount.

Simple Reversionary Bonus is declared every year from the 3rd policy year onwards, based on the company’s experience and it is non-guaranteed. Simple Reversionary Bonus is a percentage of the sum assured and it is payable on the death of the insured or surrender or on vesting, whichever occurs earlier.

Terminal Bonus may be declared from the 5th policy year onwards. Terminal Bonus is a percentage of the accrued Simple Reversionary Bonus and it is payable with the death or vesting benefit.

No loan can be availed under this policy.

Surrender value is the maximum of guaranteed surrender value or special surrender value. Surrender value is payable on payment of all due premiums for at least 3 full policy years for regular pay & limited pay of 10 years. Surrender value becomes payable on payment of all due premiums for at least 2 full policy years for limited pay of 5 years. For single pay policy, surrender value is payable at anytime.

Who can Buy the Rider?

Is any Rider Available with this Plan?

No rider can be attached under this plan.

Is the Plan, eligible for Tax Benefit?

Tax benefits can be availed as applicable under the Income Tax Act, subject to change in tax laws.

How the Plan Works?

Let us understand the plan with the help of Raman’s example.

Raman bought MetLife Retirement Savings Plan for Sum assured of Rs 3 Lacs for a fixed term of 11 years.

Scenario 1: Raman Survives the Policy Term

Upon choosing MetLife Retirement Savings Plan, premiums are paid for the opted premium payment term. On the date of vesting, the vesting benefit payable is the sum assured (Rs 3 Lacs) plus simple reversionary bonus plus terminal bonus. This benefit can be used to buy an immediate annuity or may defer the purchase of an annuity to a later date.

Scenario 2: Raman dies during the policy term

In the event of death, the nominee has the option to utilize the entire or some part of the death benefit for purchasing an immediate annuity at the prevailing rate or the nominee can withdraw the death benefit amount as a lump sum which is Rs 3 Lacs.The policy terminates on the payment of the death benefit.

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