MetLife Launches Met Smart Child ULIP Plan
This is the second Child Savings Plan added in MetLife’s portfolio, after Met Bhavishya
MetLife India Insurance (MetLife), has announced the launch of its new unit linked child plan – “Met Smart Child”. This plan offers complete solution for child’s higher education, even in the absence of parents. The life insured is the parent or grandparent and the beneficiary is the child/grandchild. This is the second Child Savings Plan added in MetLife’s portfolio, after Met Bhavishya.
The unique feature of Met Smart Child is that the fund is locked in for the benefit of the child till the child turns 18. This will ensure that the fund never gets misused and is solely used for the child’s benefit.
Met Smart Child offers a differentiated death benefit. In case of the unfortunate demise of the parent, the sum assured under the product is paid immediately to the beneficiary and all the future premiums which would have been otherwise paid by the parent are paid by MetLife into the fund.
These future premiums are paid into the Balancer fund, which offers the twin benefits of potential equity based upsides as well the steady performance of the debt markets.
The plan is available in three terms of 10, 15 and 20 years with a minimum premium of Rs. 18,000. The amount cover is equal to 10 times of the chosen premium and remains constant throughout the term of the Policy. The plan comes with 6 unit linked funds for customers with varying risk appetite to choose from.
It provides customers with an option of unlimited switches between the available funds to take care of the changing risk appetite of the customers. Systematic Transfer Option under this plan allows the customer to hedge against the near term market volatilities and built corpus for long term systematically.
Policies with 15 and 20 year term have a loyalty additions benefit of 2% and 3% respectively. These loyalty additions will be paid even on demise of the parent.
The fund will charge 7% in the first year, 6 per cent in the second year and from third year onwards a charge of 5% will be levied on the premiums before investing. The administration charges will be Rs 10 per month between first to fifth year and from sixth year onwards the administration charges become Rs 35 per month. The fund management charges will range from 1.10 % – 1.25% and the mortality charges will be calculated on the basis of the attained age of the parent.
Met Smart Child plan can be easily bought by just filling an application form. Ease of buying feature has been designed especially keeping in mind the fast pace of life.
In case of your sudden demise, child’s future is secured by the death benefit payable under the Policy. The death benefit which is at least 100% of Sum Assured is paid immediately to your child and the policy continues to work towards providing or higher education expenses, with an amount equal to monthly premiums (for corresponding annualized premium chosen at inception), as a part of Premium Waiver Benefit (PWB), being paid by MetLife into the Policy on every monthly Policy Anniversary irrespective of the Premium payment mode chosen by you. You can be a Parent or grandparent to opt for this Policy with beneficiary being the child or grandchild respectively.
Met Smart Child at a Glance
Minimum/Maximum Age at entry (LBD)* for Life Insured 18/55 Years
Minimum /Maximum Age at entry (LBD)* for beneficiary 90 days/17 years
Premium Payment term (years) Same as policy Term
Minimum Annualised Premium Rs. 18,000 p.a.
Maximum Annualised Premium Till age 35 : 2 lakh
36-45 age : 1.25 lakhs
Age 46+ : 1 lakh
Policy Term 10, 15 & 20 years
Sum Assured 10 times the chosen Annualised Premium only
Premium Payment modes Annual, Semi Annual, Quarterly, monthly
and PSP (Payroll Savings Program)
Systematic Transfer Option:
In case you wish to make the most of market volatility, you may choose Systematic Transfer Option which allows you to take the advantage of rises and falls in the market and allows you to get the benefit of rupee cost averaging.
How does Systematic Transfer Option work for you?
- You should be paying premiums in an annual mode to avail this option
- You may choose Systematic Transfer option either at Policy Inception or during the term of the Policy
- In case this option is chosen at policy inception, the premium allocation percentage in Protector II Fund should be at least 50% of the Annualized Premiums paid. If the option is chosen during the term of the Policy, then Protector II Fund should at least have 50% of Total Fund Value.
- Your Fund will be automatically transferred from Protector II Fund to Flexi Cap Fund at the end of every month in the following manner
Month1 1/12 of the units available at the end of Month1
Month2 1/11 of the units available at the end of Month2
Month5 1/8 of the units available at the end of Month5
Month11 1/2 of the units available at the end of Month11
Month12 Balance Units available at the end of the Month12
Other conditions on Systematic Transfer Option:
Systematic transfer plan if chosen during the term of the Policy will be activated only by the next policy anniversary.
The request for opting in and out of systematic transfer plan has to be given at least 30 days before the next monthly policy anniversary
This facility will be deactivated in case the policy moves to discontinuance fund status.
No switches will be allowed in and outside of Protector II Fund and Flexi Cap Fund funds during this strategy is active.
This will not be available with Auto rebalancing option.
In case premium payment mode from Annual to any other mode is changed, this option will be deactivated.
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