PNB MetLife - Guaranteed Increasing Income Plan

PNB MetLife Guaranteed Increasing Income Plan provides you a life cover along with increasing income every year to take care of rising expenses and a lump sum at maturity to fulfill your life goals.
You can avail additional protection through riders and protect your family against financial losses incurred in case of accidental death and serious illnesses, at a nominal cost.

* Guaranteed Increasing Income Benefit: Guaranteed Annual Income payouts that increase at a rate of 10% p.a.(simple) payable at the end of the year after premium payment term.

*Guaranteed Sum Assured on Maturity: Get 40% to 85% of Basic Sum Assured based on Premium Paying Term and Policy Term

*Build-up Option: Choose to defer your income payouts to receive an enhanced lump sum at maturity

*Tax benefits: You may be eligible to avail tax benefits on premiums paid and benefits received, as per prevailing tax laws

*Death Benefit Payout Option: Choose the death benefit as Lump sum or as an Annual Income that increases at a
rate of 10% p.a. (simple) paid for 10 years.

*Pay as you like: Choose to pay premiums for 5, 7, 10 or 12 years

*Protection: Get life cover for the entire policy term. Option to enhance your protection through additional Rider Benefits at a nominal cost

Minimum Age at entry (years)

Maximum Age at entry (years)

Maximum Entry Age for Annual and Half yearly mode : 60 Years

Maximum Entry Age for Monthly mode : 58/60/56 years

You may elect to pay premiums by Yearly, Half Yearly, or Monthly mode subject to the minimum annualized premium under each mode. Factors on premium will be applicable as per the table below:
Premium Paying Mode
Modal Factor
Half Yearly
0.5131
Monthly
0.0886
Alterations between different modes of premium payment are allowed at any policy anniversary on request.

PPT (Yrs)
Min Basic Sum Assured (Rs.)
Max Basic Sum Assured (Rs.)
5
4,00,000
As per Board approved underwriting policy
7
2,00,000
10 and 12
1,50,000

Sum Assured on Death x (Number of Instalment Premiums paid) / (Number of Instalment
Premiums payable during the Premium Payment Term) plus all the deferred reduced Guaranteed Increasing income installments till the date of death shall be accumulated at compound interest @ 5% p.a. will be payable.
Where reduced Guaranteed Increasing income is defined as: Guaranteed increasing income benefit x (Number of Installment Premiums paid / Number of Installment Premiums payable during the Premium Payment Term).
The policy terminates with the payment of this claim amount. Death Benefit payable will be paid as lump sum to the nominee, irrespective of the Death Benefit Payout Option chosen by the policyholder.
At any point in time the minimum death benefit shall be 105% of all premiums paid as on date of death.

Reduced Paid-up Sum Assured on Maturity plus all the deferred reduced Guaranteed Increasing Income Benefit accumulated at compound interest @ 5% p.a. is payable, where Reduced Paid-up Sum assured on maturity is defined as:
(Guaranteed Sum Assured on Maturity) x (Number of Instalment Premiums paid /Number of Instalment Premiums payable during the Premium Payment Term).
Where reduced Guaranteed Increasing income is defined as: Guaranteed Increasing Income benefit x (Number of Installment Premiums paid/ Number of Installment Premiums payable during the Premium Payment Term).
The Instalment premiums paid are the premiums excluding taxes and underwriting extra premiums paid, if any. The policy terminates with the payment of maturity claim amount.
There is no survival benefit payable if the policy is in Reduced Paid-Up Status.
Once the policy becomes Paid-Up, Rider benefits, if any, will cease immediately.

Tax benefits under this plan may be available as per the provisions and conditions of the Income Tax Act, 1961 and are subject to amendments made thereto from time to time. Please consult your tax advisor for advice on the availability of tax benefits for the premiums paid and proceeds received under the policy.

This Rider provides additional protection over and above the death benefit under this Policy in the event of the death of the Life Assured in an Accident

Please go through the terms and conditions of your Policy very carefully. If you have any
objections to the terms and conditions of your Policy, you may cancel the Policy by giving a
signed written notice to us within 15 days (30 days in case the Policy is sold to You through distance marketing) from the date of receiving your Policy, stating the reasons for your objection and you will be entitled to a refund of the premium paid, subject to a deduction of proportionate risk premium for the period of cover, stamp duty and/or the expenses incurred on medical examination (if any).

Grace Period means a period of 15 days from the premium due date if the Installment Premium is payable monthly and 30 days for all other frequencies for payment of Installment Premium. The Policy shall continue to be In Force Status during the Grace Period. Any instalment premium that is not received in full by us by its due date may be paid in full during the Grace Period. In the event of the Life Assured s death during the Grace
Period, the Death Benefit shall be payable in full in accordance with Death Benefit section.

You may take a loan against your policy once it acquires a Surrender Value. The maximum amount that can be availed is 90% of Special Surrender Value of your policy at the end of the relevant Policy Year less any unpaid premiums for that year and loan interest accrued, if a loan already exists on the policy, to the end of that year. While you avail the loan, your Policy must be assigned in favor of the Company to the extent of the outstanding loan. The rate of interest for your loan amount shall be prescribed by the Company from time to time. The rate of interest is taken as the 10 Year G-Sec rate plus 250 basis points rounded up to nearest 50 basis points. The Company will review the rate on an annual basis in April based on the prevailing G-Sec rate. However under special circumstances where the G-Sec rate changing in excess of 200 basis points from the G-Sec rate used for calculating the current interest rate, the company shall review the rate based on the prevailing G-Sec rate. This formula will be reviewed annually and only altered subject to prior approval of IRDA of India. Currently, the company charges 10% p.a. interest on policy loans.

The policy acquires surrender value as mentioned below:
For Premium Paying Term of 5 and 7 years: If all due premiums have been paid for at least two consecutive years, the policy shall acquire a guaranteed surrender value.
For Premium Paying Term of 10 years and 12 years:
If all due premiums have been paid for at least three consecutive years, the policy shall acquire a guaranteed surrender value.
If your Policy has acquired a Surrender Value, you will be entitled to the Surrender Value, which is higher of the Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV) of the policy. The policy will be terminated once it is surrendered and cannot be revived.

If you discontinue paying premium, your policy will be Lapsed or Reduced Paid-up.
Lapse: Premium payment term of 5 and 7 years: If all due premiums for the first two consecutive years are not paid, the policy lapses at the end of the grace period and the risk cover and rider benefits, if any, will cease immediately.
Premium payment term of 10 and 12 years: If all due premiums for the first three consecutive years are not paid, the policy lapses at the end of the grace period and the risk cover, and rider benefits, if any, will cease immediately.

A lapsed policy can be revived as defined in the Revival section.

You can revive your lapsed/Paid-up policy and the riders for its full coverage within two years from the due date of the first unpaid premium but before policy maturity, by paying all outstanding premiums together with the interest, as applicable. The interest for revival of the policy will be charged at market related rates set by the Company from time to time.
Revival of the policy and riders, if any, is subject to Board approved underwriting policy. A surrendered policy cannot be revived.

If the Life Assured whether sane or insane, commits suicide within one year:
From the date of inception of the policy, the nominee or beneficiary of the policyholder shall be entitled to 80% of the premiums paid without interest, provided the policy is in force or
From the date of revival of the policy, the nominee or beneficiary of the policyholder shall
be entitled to an amount which is higher of the Surrender Value on the date of death or 80% of the premiums paid till the date of death.