MetLife Smart One

What are the Key Features?

What are the Fund Investment Options?

Metlife Smart One offers 2 investment strategies to manage funds:

1. Self Managed Option

The insured has an option to invest in one of the following investment funds:

• Protector ll Fund
• Preserver ll Fund
• Balancer ll Fund
• Flexi Cap Fund
• Virtuel Fund
• Multiplier ll Fund

You can also choose Systematic Transfer Option under self managed option which will allow you take the benefit of the market volatility by taking advantage of the rises and fall in the market with the benefit of rupee cost averaging.

2. Auto Rebalancing Option

This option is appropriate for the customers who don’t want to manage their investment portfolio directly or regularly. Under this option, the customer may choose between the 2 funds which are Flexi Cap Fund and Protector ll Fund. In case of extreme market movements,the mix of both the funds is automatically rebalanced as per the ratio chosen between the funds at the time of taking the policy.

What are the Plan benefits?

In the event of your (life insured) death during the policy term and policy is in-force, the nominee will receive the following death benefit as per age.

• If the death of the insured occurs before 60 years, the death benefit is higher of single premium fund value, 105% of the single premium paid, or base sum assured less partial withdrawals made during the last 24 months before the date of death.
• If the death of the insured occurs on or after 60 years, the death benefit payable is higher of 105% of the single premium paid, single premium fund value, or base sum assured less partial withdrawals made during the last 24 months prior the date of death or all partial withdrawals made after attaining the age of 60, whichever is higher.

Total fund value is payable at the maturity of the policy. If you wish to defer your maturity proceeds, you may choose to do so with the Settlement Option.

You may choose to receive the total fund value in installments for a period of 5 years starting from the date of maturity or choose a combination of part lump sum and installment. During the settlement period, you can receive the remaining fund value by terminating the policy. You can withdraw funds up to 12 times in a year and the minimum withdrawal is 5% of the fund value.

In order to exercise the settlement option, you need to intimate the company 90 days before the date of maturity. Fund management charges are deducted during the settlement period.

Stop Loss option helps avoid downside risk and it can be opted on Flexi Cap Fund. You can choose a stop loss level of 10%/15%/20%/25%/30% of the NAV of Flexi Cap Fund. If the NAV falls to the stop loss level, the funds are automatically switched to Protector II and this switch is not counted amongst the free switches available.

Loyalty additions are 0.4%, when single premium is in-between Rs 50,000 to Rs 99,999. It is 0.6% when single premium is in-between Rs 1,00,000 to Rs 1,99,999. It is 0.8%, when single premium is in-between Rs 2,00,000 to Rs 3,99,999. It is 1% when single premium is in-between Rs 4,00,000 to Rs 5,00,000. Loyalty additions are expressed as a percentage of average single premium fund value. Loyalty additions are credited to the policy at the end of each policy year, starting from 6th year to 10th policy year.

You can withdraw money after completion of 5th policy year. The minimum amount for partial withdrawal is Rs 5,000 and the maximum amount that can be withdrawn is up to 5% of the fund value. The total fund value after withdrawal should be at least 30% of the single premium.

You can switch among the available ULIP fund options. The minimum of Rs 5000 should be done in switching. Switching option is not available, when you choose auto rebalancing option.

You may redirect your future premiums between available funds cost free once in a policy year. Redirection of premium is not available with Auto Rebalancing Option.

No loan benefit can be availed under this plan.

Policy can be surrendered after completion of the first five policy years. No charges are levied for surrendering the policy. The total fund value as applicable, is payable on surrender of the policy.

Who can Buy the Rider?

Is any Rider Available with this Plan?

No riders can be opted under this plan.

What are the Plan Charges?

Premium Allocation Charges: Premium allocation charge is 3% of the single premium, when premium amount is less than Rs 50,000 and it is 2% of the single premium, when premium amount is Rs 50,000 and above.

Policy Administration Charge: Policy administration charge is 0.1% (of single premium) per month, during 1st to 5th policy years. No policy administration charge is deducted from 6th policy year onwards.

Mortality Charges: Mortality charge is based on the age of the insured, cost of insurance, and the sum assured. Mortality charge is deducted at the beginning of each month by cancelling the number of units under the policy.

Fund Management Charges: Fund management charge is 1% per annum for Preserver II and Protector II fund, 1.15% per annum for Balancer II fund, 1.25% per annum for Flexi Cap, Virtue II, and Multiplier II fund.

Switching Charge: You can avail 4 free switches in a policy year and upon exercising more switches, Rs 250 per transaction is levied.

Partial Withdrawal Charge: One partial withdrawal during a policy year is free of charge and then, each of the subsequent withdrawals in a policy year is charged with Rs 250.

Miscellaneous Charge: Rs 250 is charged for any alteration requests such as change in name, address, contact details, change in nominee details, issuance of duplicate policy document, etc.

Is the Plan, eligible for Tax Benefit?

Tax benefits under section 80C towards the premiums paid and the policy proceeds are eligible for tax benefits under section 10 (10D) of the Income Tax Act, subject to prevailing tax laws.

How the Plan Works?

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

Raman bought MetLife Sart One for Sum assured of Rs 5 Lacs with a single premium of Rs 50,000 for a 10 year policy term.

Scenario 1: Raman Survives the Policy Term

If Raman survives till maturity of the policy, he will receive the fund value. This fund value is inclusive of loyalty additions, which were credited under the policy during 6th to 10th policy year.

Scenario 2: Raman dies during the Policy Term

In the event of death of Raman during 8th policy year, higher of fund value (inclusive of loyalty additions) or sum assured is payable to the family. Death benefit ensures financial security for the family.

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