Type of Plans
PNB MetLife categorizes its plan under 4 different categories as part of what it calls as “Circle of Life”. These categories namely are –
1. Family Protection – 12 Plans
2. Long Term Savings – 9 Plans
3. Child Education – 9 Plans
4. Retirement – 12 Plans
If you are planning to buy an insurance plan, I would urge you to watch the video at this link.
Simplifying Plans
When we start to look at various plans offered under above categorizes, a different picture starts emerging.
Firstly, 7 of these 42 plans are either Group Plans, Riders (Accidental Disability, Serious Illness) or Superannuation Plan. The same will not be covered as part of this post.
That leaves us with 35 plans. Now of these 35, Plans under Long Term Savings as well as Child Education are exactly same. The number of such plans is 9. Infact both these categories are just replica of each other.
Removing these 9 duplicates now leaves us with 26 plans to cover. Within these 26, there is now an overlap of 8 plans between Long Term Savings/Child Education and the Retirement Plans. Further removing these 8, leaves us finally with 18 plans to cover. So, first thing we see is duplicity of plans under various categories. I am sure you would have guessed why is that the case.
List of Plans
The list of 18 plans that we have narrowed down above is noted below along with the categories under which they are listed.
| Plan Name | Child Plan | Long Term | Retirement | Family | Unit Linked | Participating |
| PNB MetLife Bachat Yojana | Yes | Yes | No | Yes | ||
| PNB MetLife Endowment Savings Plan Plus | Yes | Yes | Yes | No | Yes | |
| PNB MetLife Super Saver Plan | Yes | Yes | Yes | No | Yes | |
| PNB MetLife Guaranteed Future Plan | Yes | Yes | Yes | No | No | |
| PNB MetLife Guaranteed Income Plan | Yes | Yes | Yes | No | No | |
| PNB MetLife Guaranteed Savings Plan | Yes | Yes | Yes | No | No | |
| PNB MetLife Mera Wealth Plan | Yes | Yes | Yes | Yes | No | |
| PNB MetLife Smart Platinum | Yes | Yes | Yes | Yes | No | |
| PNB MetLife Smart Platinum Plus | Yes | Yes | Yes | Yes | No | |
| PNB MetLife Retirement Savings Plan | Yes | No | Yes | |||
| PNB MetLife Immediate Annuity Plan | Yes | No | No | |||
| PNB MetLife Aajeevan Suraksha Plan | Yes | No | No | |||
| PNB MetLife Family Income Protector Plus | Yes | No | No | |||
| PNB MetLife Income Protection Plan | Yes | No | No | |||
| PNB MetLife Mera Jeevan Suraksha Plan | Yes | No | No | |||
| PNB MetLife Mera Term Plan | Yes | No | No | |||
| PNB MetLife Mera Term Plan Plus | Yes | No | No | |||
| PNB MetLife POS Suraksha | Yes | No | No |
Now, as you can see, the plans can be categorized in 3 categories namely
1. Non-Market Linked, Non-Participating Plans which are either Guaranteed or Term Plans
2. Market Linked, Non-Participating Plans which are either ULIP plans including ELSS
3. Non-Market Linked, Participating Plans which are Bonus linked plans and many of these are called Endowment plans.
Lets now have a look at the different plan categories in a bit more detail along with the returns that they can generate.
Non-Market Linked, Non-Participating Plans
This category has the maximum – 11 Plans of PNB Metlife which fall under this category which are neither Market linked nor Bonus Linked. Since these are not linked to any variable factors, their returns are either Guaranteed or Nil (Term Plans) with an exception of Return of Premium option.
| Plan Name | Type | Maturity Benefit |
|---|---|---|
| PNB MetLife Guaranteed Future Plan | Child/Long Term/Retirement | Guaranteed Benefits |
| PNB MetLife Guaranteed Income Plan | Child/Long Term/Retirement | Guaranteed Benefits Sum Assured + Guaranteed Additions |
| PNB MetLife Guaranteed Savings Plan | Child/Long Term/Retirement | Guaranteed Benefits Sum Assured + Guaranteed Additions |
| PNB MetLife Immediate Annuity Plan | Retirement Plan | Guaranteed Annuity |
| PNB MetLife Aajeevan Suraksha Plan | Family Protection | None* + Return of Premium |
| PNB MetLife Family Income Protector Plus | Family Protection | None* + Return of Premium |
| PNB MetLife Income Protection Plan | Family Protection | Return of Premium |
| PNB MetLife Mera Jeevan Suraksha Plan | Family Protection | None* + Return of Premium |
| PNB MetLife Mera Term Plan | Family Protection | None |
| PNB MetLife Mera Term Plan Plus | Family Protection | None* + Return of Premium |
| PNB MetLife POS Suraksha | Family Protection | Return of Premium |
Market Linked (ULIP) Plans
There are 3 Plans of PNB Metlife which fall in the category which are Market linked or as they are popularly knows as ULIP (Unit Linked Insurance) Plans. The investment under these plans is directly made to market and thus they offer almost nil guarantee around their returns. Their returns can hugely vary and a large population of such plans often go for administrative fees as well. Rule of Thumb – It is never a good idea to mix Insurance and Investment. One should rather invest in Mutual funds separately and take a Pure Insurance plan instead of going with a Khichdi.
| Plan Name | Type | Maturity Benefit |
|---|---|---|
| PNB MetLife Mera Wealth Plan | Child/Long Term/Retirement | Not Guaranteed. As per Fund Value. |
| PNB MetLife Smart Platinum | Child/Long Term/Retirement | Not Guaranteed. As per Fund Value. |
| PNB MetLife Smart Platinum Plus | Child/Long Term/Retirement | Not Guaranteed. As per Fund Value. |
Bonus Linked Plans
There are 5 Plans of PNB Metlife which fall in the category which are Bonus linked plans. The returns of a bonus linked plan are a factor of company’s investment performance. They also don’t offer any guaranteed returns but the risk category of such investment is Medium. This is one of the most popular category though the returns from this category are vary usually between 4-6%.
| Plan Name | Type | Maturity Benefit |
|---|---|---|
| PNB MetLife Bachat Yojana | Child/Long Term | Base Sum Assured + Bonus Money Back but Returns not Guaranteed |
| PNB MetLife Endowment Savings Plan Plus | Child/Long Term/Retirement | Sum Assured + Bonus (SRV + TB) Money Back but Returns not Guaranteed |
| PNB MetLife Super Saver Plan | Child/Long Term/Retirement | Sum Assured + Bonus (SRV + TB) Money Back but Returns not Guaranteed |
| PNB MetLife Retirement Savings Plan | Retirement | Sum Assured + Bonus (SRV + TB) Money Back but Returns not Guaranteed |
Confusion
With so many plans around, its only confusion and chaos when it comes to choosing a Life Insurance Plan. Even if we ignore the 35 Plans we saw first and go with 18 plans, it is almost impossible to go through each of them and understand their nuances. And with this we have around 20 Insurance companies that offer similar number of plans making it a total of god knows how many plans. The customer gets baffled and asks the penultimate question “Karna kya hai bhai” – (What do I have to do?) and which is where the agent suggests a plan which is more beneficial for their commission and companies progress as opposed to what customer’s needs are.
Further, many fraudulent calls by Insurance agents lure unsuspecting people to get stuck in these policies.
Youtube Review
Before we close
When was the last time your received a call from an Insurance company/agent asking you to take a “TERM PLAN”. Ever wondered why is that not the case. I think it would have become pretty obvious now. With the advent of digital technology, go to sites and check/compare various plans. Understand the various options that they offer. Watch Youtube videos to understand various aspects. Remember – If it is Too good to be True – it probably isn’t. More than 60% people lose money in Insurance because they get lured into promises/dreams of high returns and made to pay hefty premiums only to realize after a couple of years that they have made a fool of themselves. Don’t worry you are not alone (Watch: Why 60% people Lose Money in Life Insurance)
If you are stuck with an Insurance plan and are wondering if you can cancel your Insurance plan, the video on this link can provide you with some guidance.
Be an informed consumer and take decision only after reviewing all the aspects of a policy especially its Surrender Value. Spending a couple of hours today reading about a policy can help you save a lot in the future.
Always Remember – SAVE MORE to EARN MORE because “EVERY PAISA MATTERS”