PNB Met Life Super Saver Plan: Analysis & Review– Should you buy?

All our aspirations & goals need financial support. 

To fulfil all your aspirations & goals, have you started saving at an early age?

But more importantly, have you started saving at the RIGHT place?

Will PNB Met Life Super Saver Plan help you accumulate your savings? 

Will it provide long-term financial protection for you and your family?

Table of Contents:

1.)What is the PNB Met Life Super Saver Plan?

2.)Features of the PNB Met Life Super Saver Plan

3.)Eligibility Criteria of the PNB Met Life Super Saver Plan

4.)Benefits receivable under the PNB Met Life Super Saver Plan

• Death Benefit
• Maturity Benefit
• Bonus

5.)Other Benefits of the PNB Met Life Super Saver Plan

6.)Grace period, Revival, Discontinuance & Paid-up of the PNB Met Life Super Saver Plan

7.)Free Look period of the PNB Met Life Super Saver Plan

8.)Surrendering the PNB Met Life Super Saver Plan

9.)Advantages of the PNB Met Life Super Saver Plan

10.)Disadvantages of the PNB Met Life Super Saver Plan

11.)Research Methodology

12.)IRR of the PNB Met Life Super Saver Plan

13.)PNB Met Life Super Saver Plan vs Other Investments

14.) PNB Met Life Super Saver Plan vs. PPF vs. ELSS

15.)Final verdict

What is the PNB Met Life Super Saver Plan?

It is an Individual, Non-linked, Participating, Savings, Life insurance plan. 

There are 3 plan options under this policy which are mentioned below:

Option1: Savings + Get life cover for the entire policy term. A Lump sum benefit on death or maturity

Option2: Savings + Family care – In addition to the Savings option benefits, all the future instalment premiums payable after the death of the policyholder are not required to be payable. 

The policy continues & the maturity benefit is receivable.

Option3: Savings + Healthcare – In addition to the Savings option benefits, this option offers a Waiver of Premium (WOP) on the occurrence of Critical Illness. No future premium is payable until the end of the premium paying term.

Features of the PNB Met Life Super Saver Plan:

• You have the flexibility to choose your premium paying term: 5, 7, 10, 12 or 15 years
• You have the flexibility to choose bonus pay-out options: Accumulation or Liquidation
• This plan offers you guaranteed benefits receivable at the end of your policy term.
• The non-guaranteed benefits can be received at the end of your policy term or you can receive them every year after your premium paying term.
• Under the family care option, the maturity benefit is paid as scheduled even after the death of the Life Assured and no future premiums are payable after death.
• Under critical illness care, on the occurrence of a specified critical illness, all future premiums are waived & the benefits continue for the policyholder.
• Get additional cover through accidental death and serious illness riders, at a nominal cost.

Eligibility Criteria of the PNB Met Life Super Saver Plan:

Let us first understand the basic structure of this policy by carefully studying the tables below:

Plan Option	Option 1: Savings
	Option 2: Savings + Family Care
	Option 3: Savings + Health Care
Bonus options	Accumulation Or Liquidity
Premium Payment Term (PPT) (Years)	5, 7, 10, 12, 15 and Regular pay
Minimum Sum Assured	2,20,000
Maximum Sum Assured	As per Board approved underwriting policy
Premium Payment modes	Yearly / Half Yearly / Monthly

There are several Premium Payment Terms available to the policyholder as mentioned below,

You can choose at your convenience:

Premium Payment Term	Minimum Policy term	Maximum Policy term
5 and 7	10	20
10	11	20
12	13	20
15	16	20
Regular Pay	10, 12 and 15

The Minimum and Maximum Premium to be paid in this policy are mentioned below:

Premium Payment Term	Minimum Premium	Maximum premium
5	50,000	Basis the Basic Sum Assured accepted as per Board approved underwriting policy
7	35,000
10	25,000
12, 15 and Regular pay	20,000

The Minimum and Maximum age at entry and how each option reflects this are mentioned below in the table:

	Option 1: Savings	Option 2: Savings + Family Care	Option 3: Savings + Health Care
Minimum age at entry	0 (30 days)	18	18
Maximum age at entry	55- 60	45 – 60	45 – 55
Minimum age at maturity	18	28	28
Maximum age at maturity	80	70	70 – 75

Benefits receivable under the PNB Met Life Super Saver Plan:

Death Benefit:

Under Option 1 & 2 – Sum Assured on Maturity + Accrued Simple Reversionary Bonus, if declared + Terminal Bonus, 

if declared subject to a minimum of 105% of Total Premiums paid up to the date of death.

Under Option 3 – Sum Assured on death

All future premiums shall be waived for the remaining Premium Payment Term.

At the end of the policy term, Sum Assured on Maturity + Accrued Simple Reversionary Bonus, if declared + Terminal Bonus, if declared.

Sum Assured on death, will be higher of

• 10 times the Annualised Premium
• Basic Sum Assured (BSA)

Maturity Benefit:

If the Life Assured survives until the Maturity Date, the following Maturity benefit payable shall be payable.

Under all the options – Sum Assured on Maturity + Accrued Simple Reversionary Bonuses if declared + Terminal Bonus if declared.

Bonus:

Simple Reversionary Bonus (SRB) – This bonus commences from the 1st Policy Anniversary till the end of the policy term to the policyholder.

Terminal Bonus (TB) – This is declared from the 10th Policy Year onwards or from the third last policy year whichever is earlier.

Accumulation: Simple Reversionary Bonus, if declared will accrue throughout the Policy Term and is paid as a lump sum on the Maturity Date or death (except in Plan option 2: Savings + Family Care), whichever is earlier. 

For Savings + Family Care option, after the death of the Life Assured, the Simple Reversionary bonus, if declared, shall be accrued and paid along with the Maturity benefit.

Liquidity: Simple Reversionary Bonus, if declared, accrues during Premium Payment Term & will be paid at the Maturity Date or death (except in Plan option 2: Savings + Family Care) whichever is earlier.

Simple Reversionary Bonus, if declared after the expiry of the Premium Payment Term till the Maturity Date or Death, whichever is earlier will be paid at the end of each policy year to the policyholder. 

Other Benefits of the PNB Met Life Super Saver Plan:

Loan:

The loan can be taken against the policy once it acquires a Surrender Value. The maximum amount that can be availed is 90% of the Special Surrender Value of your policy.

Riders:

• PNB MetLife Accidental Death Benet Rider Plus.
• PNB MetLife Serious Illness Rider.

Rebate on High Sum Assured:

You will be eligible for a discount on the Premium depending on the Premium paying term & The Basic Sum Assured Amount.

Flexible premium payment modes and modal factors:

You may choose to pay premiums in Yearly, Half Yearly, or Monthly mode.

Premium Paying Mode	Modal Factors
Half Yearly	0.5131
Monthly	0.0886

The Grace period, Revival, Discontinuance & Paid-up of the PNB Met Life Super Saver Plan:

Grace period:

A grace period of 30 days from the due date of the unpaid premium will be allowed for payment of the premium without interest.

This grace period is reduced to 15 days if you had opted for the monthly mode of payment.

Revival:

If your policy is lapsed or paid up, under one condition, you can revive the policy, which is within a period of five consecutive years from the date of the first unpaid premium by paying the arrears of premiums along with interest at the prevailing rate of interest.

Discontinuance:

If you discontinue the payment of premiums before your policy has acquired a Surrender Value, 

Your Policy will lapse at the end of the grace period and the Death Benefit and Rider Benefits, if any, will cease immediately.

Paid-up:

If the policy has acquired a surrender value and no premiums are paid in the future,

The policy will continue as a Reduced Paid-Up policy with reduced benefits unless the policy is surrendered.

Free Look period of the PNB Met Life Super Saver Plan:

If the Policyholder is not satisfied with the “Terms and Conditions” of the PNB Met Life Super Saver Plan, it can be returned within 15 days from the date of receipt of the policy bond stating the reasons for objections.

This Free Look Period will get extended to 30 days in case this policy was sold to you online or through Distance Marketing.

Surrendering the PNB Met Life Super Saver Plan:

The policy will acquire a Surrender value if all due instalment premiums for the first two consecutive years are paid. 

On surrendering the policy, you will be entitled to get the Surrender Value, which is higher than the Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV) of the policy.

For Savings + Family Care option, after the death of the life assured, the policy shall continue until maturity and cannot be surrendered.

Advantages of the PNB Met Life Super Saver Plan:

• Premium paying terms & modes can be chosen at your convenience.
• Bonus can be received yearly or you can choose to get it accrued.
• The policyholder can get life cover for the entire policy term.
• Safeguard your family’s future even in your absence with no future premiums payable after the death, which is available under option 2: Savings + Family.
• Protect your financial goals against illnesses with a Waiver of Premium on 35 critical illnesses which is available under option 3: Savings + Health.
• The policyholder is eligible for tax benefits on premiums paid under Section 80 and benefits received under Section 10 (10D), as per the Income-tax Act.

Disadvantages of the PNB Met Life Super Saver Plan:

• The bonuses are non-guaranteed. As the bonus that you may receive yearly under the liquidity option are non-guaranteed in nature, you cannot earmark any expense / short-term financial goal.
• The sum assured is too low, which may not be sufficient to meet the financial goals of your family.
• Some of the allied benefits are available under options 2 & 3 only. Option 1 is a Simple Endowment Policy.

For more details, read the PNB Met Life Super Saver Plan’s policy brochure.

Research Methodology:

We have evaluated all the details of the PNB Met Life Super Saver Plan. But, it is not enough to decide whether we should buy this plan or not.

So, now we are going to do research and analyse the IRR of the PNB Met Life Super Saver Plan to see whether this plan will benefit us or not.

In this research methodology, first, we are going to see the IRR of the PNB Met Life Super Saver Plan by using the PNB Met Life Super Saver Online Calculator.

Then we are going to use the same value to calculate the return on other investment alternatives.

Later, we are going to compare the IRR of Bajaj Allianz Life Assured Wealth Goal vs. other investments.

This method of research can give us a clear view to decide whether we should buy this plan or not.

IRR of the PNB Met Life Super Saver Plan:

Let us assume:

 A 40-year-old male pays an annual premium of Rs. 1,50,000 & chooses the accumulation of bonus option. 

Let us analyse the IRR under all three-plan options that are available under the PNB Met Life Super Saver Plan.

Male	40 years
Annual premium	1,50,000
Premium Paying term	15 years
Policy Term	15 years
Bonus option	Accumulation

	Option 1		Option 2		Option 3
Sum Assured	21,14,865		19,64,611		20,47,320
	At 4%	At 8%	At 4%	At 8%	At 4%	At 8%
Maturity Benefit	28,87,030	35,95,931	26,81,917	33,40,452	27,94,824	34,81,084
IRR	3.06%	5.66%	2.16%	4.80%	2.66%	5.28%

The above illustration has been determined using the assumed investment returns at 4% and 8% in worst and best-case scenarios respectively.

After calculating the IRR under each variant, neither of the plan options works out to an inflation-beating return.

Locking your funds for a longer term of 15 years would mean the time value of your money would get eroded under this plan.

The Maturity benefits do not seem sufficient enough to meet your financial goals along with not being able to provide adequate life cover for your family in your absence.

So, Let us compare the IRR of the PNB Met Life Super Saver Plan with other investment alternatives to get a more clear picture of whether it is worth investing in for the long run or not.

PNB Met Life Super Saver Plan vs Other Investments:

Let us take the same scenario as in the above illustrations in the PNB Met life benefit illustration & compare it with other Investment alternatives. 

In the above benefit illustration, a 40-year-old male takes the PNB Met Life Super saver plan for an annual premium of Rs.1,50,00 for a 15-year policy term.  

Let us assume the same person takes a Pure Term Insurance Policy for a life cover of Rs. 1 crore for a policy term of 15 years. 

The annual premium would amount to Rs.18,000. 

The balance amount left after paying the premium for the pure-term policy is invested in other Investments for your financial goals.

These investments could be done based on your risk appetite & investment horizon. 

Having an adequate life cover separately & investing in your financial goals separately will provide you with a road map for achieving better returns in the future.

Pure Term – Sum Assured:	Rs. 1 Crore.
Policy Term:	15 Years
Annual premium:	Rs. 18,000
Investment for goals:	Rs. 1,32,000

PNB Met Life Super Saver Plan vs. PPF vs. ELSS:

Here PPF & ELSS instruments are considered for investing the balance amount left after paying the premium for pure term life cover,

A comparison of Debt and Equity-related Investment Instruments can be seen in the table below.

		Term Insurance + PPF		Term insurance + ELSS
Age	Year	Term Insurance premium + PPF	Death benefit	Term Insurance premium + ELSS	Death benefit
40	1	-1,50,000	1,00,00,000	-1,50,000	1,00,00,000
41	2	-1,50,000	1,00,00,000	-1,50,000	1,00,00,000
42	3	-1,50,000	1,00,00,000	-1,50,000	1,00,00,000
43	4	-1,50,000	1,00,00,000	-1,50,000	1,00,00,000
44	5	-1,50,000	1,00,00,000	-1,50,000	1,00,00,000
45	6	-1,50,000	1,00,00,000	-1,50,000	1,00,00,000
46	7	-1,50,000	1,00,00,000	-1,50,000	1,00,00,000
47	8	-1,50,000	1,00,00,000	-1,50,000	1,00,00,000
48	9	-1,50,000	1,00,00,000	-1,50,000	1,00,00,000
49	10	-1,50,000	1,00,00,000	-1,50,000	1,00,00,000
50	11	-1,50,000	1,00,00,000	-1,50,000	1,00,00,000
51	12	-1,50,000	1,00,00,000	-1,50,000	1,00,00,000
52	13	-1,50,000	1,00,00,000	-1,50,000	1,00,00,000
53	14	-1,50,000	1,00,00,000	-1,50,000	1,00,00,000
54	15	-1,50,000	1,00,00,000	-1,50,000	1,00,00,000
55		35,80,024		55,11,433
	IRR	5.61%		10.57%

By choosing to invest in either of the two options, you get a life cover of Rs. 1 crore. 

The maturity benefit given here under ELSS Mutual Funds is post-tax returns.

The IRR for Term Insurance + PPF is 5.61%

The IRR for Term Insurance + ELSS is 10.57%. 

From the return perspective & also from the life cover perspective, these options are better for an investor than the PNB Met Life Super Save plan as they can provide you with better returns compared to this policy.

Final Verdict:

PNB Met Life Super Saver plan may look like it is suitable for investors who like to save systematically & invest towards their long-term financial goals. 

But these savings do not enable you to fulfil your financial goals.

Keeping in mind the inflation rate, the return on investment of this plan won’t be sufficient to meet the inflated cost of your financial goals. 

The potential return of the PNB Met Life Super Saver Plan won’t beat inflation consistently over a long duration.

If you have any comments or questions, write them in the comment box below.

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