If your agent is suggesting you to invest in PNB Metlife Mera Wealth Plan, then let me ask you a question first. Do you know what is a ULIP plan? If not I would suggest you to read about unit linked plans first and then better to decide whether to invest or not. I am not discouraging this product, rather asking my readers to know about the investment products before they buy.
In this article, I will talk about another ULIP plan which is launched by PNB Metlife, named PNB Metlife Mera Wealth Plan which will help you to build wealth in long term. I will try to explain the PNB Metlife Mera Wealth Plan features, benefits, maturity amount, return on investment and complete review of PNB Metlife Mera Wealth Plan.
Key Features of PNB Metlife Mera Wealth Plan
ULIP plans are one of the most complex insurance cum investment products. One need to know at least the basic details of ULIP and also how they work in real time.
- MetLife Mera Wealth Plan is an investment-cum-protection plan which you can personalize according to your needs and financial goals. Means if you visit their online portal you will find they are offering users to choose from 4 options like Savings plan, Investment Plan, Child Plan, Retirement plan and accordingly the premium & return amount will calculate.
- As per the basics of ULIP plan, your paid premiums will be invested in 6 funds covering low risk to high risk types. You will be provided options to switch among six funds, including two new funds – Multiplier Fund and Liquid Fund. The min value of every switch should be Rs 5000 and all are free only.
- You can either manage the funds by yourself choosing the Self-Managed option in case you think you can do the same or choose the Systematic Transfer Option to do this automatically as per the rules set by them.
- The premium payment option is also flexible. You can choose duration of premium payment as single, 5 pay, 10 pay or regular pay. And also choose between premier option or online.
- The maturity value will be the net value of your funds at the time of maturity. In case of unfortunate death, your nominee will get the lump-sum amount as sum assured. Generally it will be higher of these 3 : 1) Fund value 2) Sum assured less partial withdrawals 3) 105% of total premiums paid excluding service tax.
- Get Loyalty Additions every year from end of 6th policy year till maturity for both premier and online options, provided your policy is in force and all due premiums till date have been paid.
- You can use the premium redirection option under self-managed option to change the allocation of future premiums.
- Partial withdrawal is allowed only after completion of 5 years. You can check out the product brochure about the complete chart explaining how much partial withdrawal is allowed.
- In case you don’t pay premium within first 5 year of policy term then as ULIP rules I think your policy will move to discontinuation fund and you will claim the same after completion of 5 years only.
I think it is better to go through the complete brochure of PNB Metlife Mera Wealth Plan for such details.
Various ULIP Charges
This is why ULIP plans are quite expensive and not able to give enough return as per expectation. There are various charges which actually you have to bear from your premiums. Let’s check out the various charges applied to this policy.
- Mortality Charges to provide the life insurance coverage.
- Premium allocations charges ranging from 2% – 4% of the paid premium in case of premier mode. But for online option, you don’t have to pay this.
- Again a certain percentage will be deduct as policy administration charges which is again differ for both premier mode & online mode.
- Approx 1% of fund management charge & 0.5% of policy discontinuation charges are also applied.
- On top of all service charge will be applicable.
Seems like the online mode is quite cheaper compare to premier mode as the ULIP charges are low comparatively.
Should I Buy PNB Metlife Mera Wealth Plan?
As I said, ULIPs are very complex in nature due to various charges and complexity of fund management. Although your money will be invested in various funds only, the return will be determined as per the risk profile you are opting. You may think that ULIP investment is quite similar to mutual funds, but there are various differences.
Most of the people invest in ULIP plan and they come out in 5 years only. Which is very bad as the charges are high in first 5 years and you will get very bad return on investment. In case you are going to stay invested for long run then ULIP plans will also give good return as it is linked with market only. But still the return may not beat mutual fund returns as per historical data analysis so far.
You can use the PNB Metlife Mera Wealth Plan online premium calculator to find out how much premium you need to pay for a sum assured value. In fact with that link you can buy this policy online itself. I think its better to buy online to reduce some cost compared to offline. You can ask for a free insurance quote also before buying the plan.
One more thing is that with return on investment, ULIPs also provide insurance coverage which is simply negligible. If you have no requirement of insurance or happy with such a low life cover then fine, other wise there is no alternative to a term insurance policy with a high life coverage.
I would like to hear from your experiences if any pnb metlife insurance policies. Share your queries or any kind of suggestion here by writing a comment below.