PNB Met Life Century Plan: Review(2023)-Should you buy?

What is on your dream list?

It varies from person to person – Buying a car, building a home, World tour, dreams related to kids, etc. But life is full of uncertainties. If you don’t plan then you may have to compromise on these dreams.

Do you have an investment plan to fulfill these dreams?

PNB MetLife Century Plan provides you with income for your whole life along with cover for the whole of your life.

Will this plan help to fulfill your dreams?

Will this plan allow you to live a life without compromises?

What are the pros and cons of this plan? From cash bonus to IRR Analysis and everything you need to know about this plan with illustrations and precise calculations.

Let’s get started!

Table of Contents

1.) An overview of PNB Met Life Century Plan
2.) Feature of PNB Met Life Century Plan
3.) Eligibility Criteria of PNB Met Life Century Plan
4.) Benefits of PNB Met Life Century Plan
5.) How to Cancel/Surrender PNB Met Life Century Plan?
6.) Advantages of PNB Met Life Century Plan
7.) Disadvantages of PNB Met Life Century Plan
8.) Research Methodology on PNB Met Life Century Plan
9.) Benefit Illustration Analysis of PNB Met Life Century Plan
10.) PNB Met Life Century Plan vs. Other Investments plans – Review

• PNB Met Life Century Plan vs. PNB MetLife Guaranteed Savings Plan – Review
• PNB Met Life Century Plan vs. Term Insurance + PPF or ELSS – Review

11.) PNB Met Life Century Plan vs. Other Investment Plans – Comparison Review
12 .) Final Verdict on PNB Met Life Century Plan

An Overview of PNB Met Life Century Plan

PNB MetLife Century Plan is an Individual, Non-linked, Participating, Savings, Life Insurance plan. The plan provides a regular income and helps to build a corpus to achieve the planned goals and secure your loved one’s future, without any compromises.

It also provides a waiver of premiums to ensure that your goals are not compromised in case of untimely demise.

Please check out the PNB Met Life Century Plan brochure (leaflet) pdf.

After reading the brochure this review will help you calculate and evaluate the pros and cons effectively!

Features of PNB Met Life Century Plan

• Choose from various premium payment term options from 5 to 10 or 12 or 15 years and stay covered for the whole of your life.
• Option to pay premiums in Yearly, Half Yearly, Quarterly, or Monthly mode
• Get life protection & income for the whole life period.
• Enjoy the flexibility to accumulate the survival benefit payouts and withdraw as and when required.
• Choice of 3 Income options based on your need – Super income option, Smart income option & Future income option
• Helps to create a legacy with a lump sum at maturity.
• Under the Super income option, the cash bonus – is 10% & for the Future Income option, the cash bonus – is 30%.

Eligibility Criteria of PNB Met Life Century Plan

Particulars	Premium Payment Term	Family Care Option	Option 1: Super Income	Option 2: Smart Income	Option 3: Future Income
Policy Term	All	With/ Without	Maturity Option 1: 80 minus Age at Maturity Option 2: 100 minus Age at entry
Premium Payment Term (years)		With/ Without	5 to 10, 12, 15	5 to 10, 12, 15	8, 10, 12, 15
Minimum Age at Entry1 (years)	All	Without	0 (30 days)
		With	18
Maximum Age at Entry1 (years)	5 to 9	Without	55	55	55
	10, 12, 15		60	65	60
	5 -10, 12, 15	With	50	50	50
Maturity Age1 (years)	All	With/ Without	Maturity Option 1:80 years: Maturity Option 2: 100 years
Minimum Sum Assured (Rs.)	5 to 9	With/ Without	6,00,000
	10, 12, 15		2,40,000
Maximum Sum Assured (Rs.)	All	With/ Without	Based on Board Approved Underwriting Policy
Minimum Annualized Premium (Rs.)	5 to 9	With/ Without	60,000
	10, 12, 15		24,000
Maximum Annualized Premium (Rs.)	All	With/ Without	As per Board Approved Underwriting Policy

Benefits of PNB Met Life Century Plan

Survival Benefit:

Super income option – The Survival Benefit in the form of a Cash Bonus, if declared, shall be payable every year from 1st Policy Year until death or the end of the policy term, whichever is earlier.

During the premium paying term, the cash bonus rates are subject to a minimum guaranteed rate. Cash bonus rates declared after PPT are not guaranteed and purely depend on the experience of the underlying Participating Fund.

Smart income option – The Survival Benefit in the form of a Cash Bonus, if declared, shall be payable every year from 1st Policy Year until death or the end of the policy term, whichever is earlier.

Cash bonus rates declared during the policy term are not guaranteed and purely depend on the experience of the underlying Participating Fund.

Future income option – Simple Reversionary Bonus, if declared will accrue at each policy anniversary from the 1st policy year till the 14th policy year.

The Survival Benefit will be the sum of Fixed Income and Cash Bonus which will be paid every year from the end of the 15th policy year.

Cash Bonus (if declared) payable during the Fixed Income Pay-out Period shall be subject to a Minimum Guaranteed Cash Bonus rate. It is payable on death or end of the policy term.

PNB Met Life Century Plan Maturity Benefit: Review

Option to choose the Maturity date for the policyholder as age 80 years or 100 years.

On survival of the Life Assured, till the Maturity Date (as chosen), provided that the Policy is in In-force Status, the policyholder will receive an aggregate of:

• Sum Assured on Maturity (Sum of annualized premium paid);
• Accrued cash bonuses, if not paid earlier;
• Fixed Income, if applicable and not paid earlier;
• Terminal Bonus, if declared

Check your PNB Met Life policy status (पीएनबी मेटलाइफ पॉलिसी स्टेटस)

PNB Met Life Century Plan Death Benefit: Review

In the event of the unfortunate death of the Life Assured during the policy term provided that the policy is still in in-force status on the date of death, Death Benefit shall be equal to the following and payable as lumpsum:

• Sum Assured on Death, plus;
• Accrued cash bonuses, if not paid earlier, plus;
• Accrued Simple Reversionary Bonus less Sum of all Fixed Incomes already paid (if applicable),
• Interim Cash/Simple Reversionary Bonus (if any) plus
• Terminal Bonus on death (if declared)

PNB Met Life Century Plan Family care benefit: Review

If Family Care Benefit has been chosen at the inception of the policy, then in case of death of Life Assured, all future premiums (if any) shall be waived and Sum Assured on Death shall be payable as lumpsum and all future survival benefits and maturity benefit shall continue to be paid to the nominee.

PNB Met Life Century Plan Bonus: A Comprehensive Analysis

Simple Reversionary Bonus rates, Cash Bonus rates, and Terminal Bonus rates, if any, shall be declared at the end of the financial year.

It shall be paid out to the eligible policyholders during the next year as per the date chosen by the policyholder. Bonus rates are not guaranteed and purely depend on the experience of the underlying Par Fund.

Simple revisionary bonus – Percentage of Annualised premium – Payable on death/Surrender/Maturity.

Cash bonus – The percentage of Annualised Premium – Payable on survival/death

Terminal bonus – Percentage of Basic Sum assured – payable on completion of 10 policy years or Premium payment term whichever is earlier.

Additional benefits

Additional Benefit as High Premium Reward:

The following additional benefit (expressed as a percentage of the Sum Assured on Maturity) shall be provided on Maturity.

Premium Size	Additional Benefits
Rs. 0 – 99,999	0%
Rs. 100,000 – 2,99,999	5%
Rs. 300,000 – 499,999	7.50%
Rs. 500,000 & above	10%

Flexible premium payment modes and modal factors:

You may choose to pay premiums by Yearly, Half Yearly, Quarterly, or Monthly mode subject to the minimum annualized premium under each mode.

Calculate your PNB Met Life Century Plan premium by clicking below.

PNB MetLife Life Insurance Premium Calculator Online in India. (पीएनबी मेटलाइफ लाइफ इन्शुरन्स प्रीमियम कैलकुलेटर)

Loan:

A loan against the policy is allowed once it acquires a Surrender Value. The maximum amount that can be availed is 80% of the Surrender Value of your policy at the end of the relevant Policy Year.

Riders:

PNB MetLife Accidental Death Benet Rider Plus (UIN: 117B020V03)

PNB MetLife Serious Illness Rider (UIN: 117B021V03)

The Grace Period, Discontinuance & Revival – Review

Grace period:

If premiums are not paid on their due dates, a grace period of 30 days (15 days for monthly mode) from the due date of unpaid premium will be allowed.

Discontinuance:

If a policy has acquired Guaranteed Surrender Value and future installment premiums are not paid, the policyholder shall have the option to either surrender the policy or continue it as a paid-up policy with reduced benefits.

Revival:

Policy in lapsed or paid-up condition can be revived within a period of five consecutive years from the due date of the first unpaid installment premium. On the revival of the policy, corresponding cash bonuses shall accrue and will be paid to the policyholder.

How to Cancel/Surrender PNB Met Life Century Plan?

Free look period

If the policyholder disagrees with any of the terms or conditions, (s)he has the option to return the policy to the insurer for cancellation. The Policyholder has a free look period of 15 days from the date of receipt of the policy document and a period of 30 days in case of electronic policies and policies obtained through distance mode.

How to cancel PNB Met Life Century Plan mandate online?

Mandate Cancellation – PNB MetLife

Surrender

If your Policy has acquired a Surrender Value& and you choose to discontinue your Policy, you will be entitled to the Surrender Value, which is higher than the Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV) of the policy.

GSV = (GSV Factor multiplied by Total Premiums Paid; plus, Accrued Cash Bonuses/Fixed Incomes (if not paid earlier); plus, GSV Simple Reversionary Bonus Factor multiplied by the sum of all accrued Simple Reversionary Bonuses, if any) few Survival Benefits applicable.

Pros (Advantages) of PNB Met Life Century Plan

• Flexibility to choose the life cover – 80 or 100 years of age & also premium paying term.
• The cash bonus option starts in the first year itself in the selected variant.
• Deferment of cash bonuses helps in compounding wealth accumulation.
• The cash bonus increases every 15 years, under the Smart income option.
• All future pay-outs continue even after the demise of the policyholder if the family care benefit is chosen.

Cons (Disadvantages) of PNB Met Life Century Plan

• Only a small percentage of cash bonus is guaranteed. Most of the cash bonuses are not guaranteed.
• The lock-in period is 5 years for surrender or loan.
• The cash bonus can’t be relied on as a secondary source of income for retirees.

Research Methodology on PNB Met Life Century Plan:

Till now, we have come across some important key features and other important things that we need to know about PNB Met Life Century Plan.

But, we cannot decide by using this factual information.

So, now let’s do a detailed analysis of the IRR of PNB Met Life Century Plan to see how can it benefit us.

In this analysis, first, we are going to use the PNB Met Life Century Plan Online Calculator to calculate the IRR of the PNB Met Life Century Plan.

Then, we are going to apply the same value to calculate the IRR of other investments such as PPF and ELSS.

And finally, we are going to compare the IRR of PNB Met Life Century Plan with other investments to see whether PNB Met Life Century Plan benefits us or not.

Benefit Illustration Analysis of PNB Met Life Century Plan: Good or Bad?

There are 3 options under the PNB Met Life Century Plan. The cash bonus varies from plan to plan. The following table shows the various options & their respective IRR (Internal Rate of Return).

	Option 1 Super income		Option 2 Smart Income		Option 3 Future income
Male	30 years		30 years		45 Years
Sum Assured	6,00,000		5,0,0000		10,50,000
Premium Paying term	12		10		10
Policy term	Till the age of 100		Till the age of 100		Till the age of 100
Annual premium	50,000		50,000		1,00,000
	At the rate of 4%	At the rate of 8%	At the rate of 4%	At the rate of 8%	At the rate of 4%	At the rate of 8%
IRR	3.04%	6.24%	2.90%	6.11%	-0.03%	5.92%

The above illustration has been calculated using assumed gross investment returns of 8% respectively. The assumed rate of return is not guaranteed and these are not the upper or lower limits.

On analyzing the various option, it is evident that the return on investment differs from option to option.

The reason for this is, the calculated cash bonus is not guaranteed & in some cases it is constant & in some cases, it increases at a predefined period.

The IRR in general should be higher than the inflation rate. The IRR of PNB Met Life Century is far below than inflation rate. So, from an investment point of view, this plan is not beneficial.

PNB Met Life Century Plan vs. Other Investment Plans: Review

PNB Met Life Century Plan vs. PNB MetLife Guaranteed Savings Plan – Review

PNB MetLife Guaranteed Savings Plan is an individual, Non-linked, Non-Participating, Savings, Life insurance plan.

It provides a flexible premium paying term of 5,7,10 years

To know more please check PNB MetLife Guaranteed Savings Plan official brochure (leaflet) pdf.

To know whether the promises made in this brochure are true or not. Please check out our review.

PNB MetLife Guaranteed Savings Plan – Review (2023) – Is it Good or Bad?

PNB Met Life Century Plan vs. Term Insurance + PPF or ELSS – Review

PNB Met Life Century plan offers a return in the range of 2% – 6%. These returns are not inflation-beating ones.

Moreover, the cash bonus receivable year on year will not suffice to meet any short-term goals. And sometimes the annual survival benefit may end up in discretionary expense. Also, the sum assured is not adequate for any individual.

Instead of investing in the PNB Met life century plan, investors can go for a pure-term policy with appropriate life cover protection.

Investing in PNB met life 100 years plan has a tax benefit advantage. Similarly, investing in PPF & ELSS mutual funds also offers tax advantages.

Investors can consider inflation beatings for wealth accumulation.

Other Investments	Rate of Return
ELSS	12% (Assumed)
PPF	7.10%
RBI Bonds	7.15%

In the above illustration we have calculated the returns given by other investment plans such ELSS,PPF, and RBI bonds which seem to be better than PNB Met Life 100 years Plan.

PNB Met Life Century Plan vs. Other Investment Plans – Comparison Review

By step by step analysis, we have reviewed the alternatives for PNB Met Life Century Plan.

From the comprehensive evaluation of pros and cons, it seems clear that Term Insurance + ELSS or PPF seem to be far better options.

This is not just an assumption but we have proved it from clear illustration.

Do you want to see this review in Hindi?

PNB Met Life Century Plan(पीएनबी मेटलाइफ सेंचुरी प्लान) : Review(हिंदी)-Should you buy?(Hindi)

Final Verdict on PNB Met Life Century Plan: Good or Bad?

PNB Met Life Century Plan is a variant of the traditional Money back policy. In this plan, the guaranteed cash bonus percentage is very limited.

The major portion of the pure-term bonus is non-guaranteed. We can’t earmark these survival benefits as they are fluctuating.

But still why do agents want to sell you this plan? Just like many policies in the bazaar this policy also gives a high agent commission.

Cash bonus rates declared during the policy term are not guaranteed and purely depend on performance.

From an investment perspective, it is advisable to build a portfolio based on the investment horizon & risk appetite. The portfolio asset allocation should be reviewed & rebalanced for wealth accumulation.

Are you surfing for advice to buy this plan on social media platforms like Quora, Facebook, Twitter, etc? Please stop it, and quickly consult a professional financial planner!

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