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Is the PNB MetLife Grow Plan the dependable income solution you’ve been waiting for, or just another traditional insurance product?
Is the PNB MetLife Grow Plan your key to consistent returns and peace of mind, or are smarter investment options out there?
Is the PNB MetLife Grow Plan worth locking your money into, or are flexible investment plans the better choice?
In this article, we take a closer look at the PNB MetLife Grow Plan—its features, benefits, potential drawbacks, and a detailed breakdown of returns.
Table of Contents
What is the PNB MetLife Grow Plan?
PNB MetLife Grow Plan is an Individual, Non-Linked, Participating, Savings Life Insurance Plan. The plan helps you achieve your lifelong aspirations by providing a reliable, regular income while ensuring life coverage. Start receiving benefits as early as the second policy year.
What are the features of the PNB MetLife Grow Plan?
- Choose from 4 plan variants: Increasing Income, Extended Life Cover, Milestone Income, and Wealth options
- Enjoy life insurance coverage throughout the PNB MetLife Grow Plan policy term, along with the option to add riders for enhanced protection
- Flexible premium payment terms ranging from 7 to 15 years to match your financial comfort
- Select your maturity age from 5 options: 70, 75, 80, 85, or 100 years
- Receive Survival Benefits starting as early as the second policy year, continuing up to age 100
- Leave behind a meaningful legacy with return of premiums and a possible terminal bonus at maturity
- Get potential tax advantages on both premiums paid and benefits received, subject to current tax regulations
Who is eligible for the PNB MetLife Grow Plan?
| Particulars | Increasing Income | Milestone Income | Extended Life Cover | Wealth |
| Maturity Option | To Age 70 | To Age 70 | Not Applicable | |
| To Age 75 | To Age 75 | |||
| To Age 80 | To Age 80 | |||
| To Age 85 | To Age 85 | |||
| To Age 100 | ||||
| Premium Payment Term (PPT) (Years) | 7 to 15 | 10 to 15 | 7 and 10 | |
| Policy Term (PT) (Years) | Maturity Age minus Entry Age of the Life Assured | PPT 7: 15 or 20 | ||
| PPT 10: 20 or 25 | ||||
| Income Start Year/Milestone Frequency | 2nd/3rd/4th/5th or (PPT+1) policy year | Milestone Frequency – Every 4 years or Every 5 years | 2nd/3rd/4th/5th or (PPT+1) policy year | Not applicable |
| Minimum Age at Entry (Years) | For all available Maturity Options: 0 years (30 days) | For all available Maturity Options: 0 years (30 days) | 0 years (30 days) | |
| Maximum Age at Entry (Years) | For Maturity Options – | For Maturity Options – | 60 | |
| To Age 70: 40 | To Age 70: 40 | |||
| To Age 75: 45 | To Age 75: 45 | |||
| To Age 80: 50 | To Age 80: 50 | |||
| To Age 85: 55 | To Age 85: 55 | |||
| To Age 100: 60 | ||||
| Annualized Premium | Minimum: Rs. 24,000 | |||
| Maximum: Subject to Board-approved Underwriting Policy | ||||
| Minimum Sum Assured | Rs. 2,40,000 | |||
| Premium Payment Mode/Survival Benefit Payout Frequency | Annual/Half – Yearly/Quarterly/Monthly | |||
| Rider Options | PNB MetLife Accidental Death Benefit Rider Plus, | |||
| PNB MetLife Serious Illness Rider | ||||
What are the plan options in PNB MetLife Grow Plan?
- Increasing Income – Income increases every year from (Income Start Year + 1) th policy year till maturity
- Extended Life Cover – Benefits of Increasing Income option with life cover after maturity until age 100 years.
- Milestone Income – Receive increasing income every 4th or 5th policy year as per Milestone Frequency chosen.
- Wealth – Lumpsum maturity benefit at the end of the policy term
What are the benefits of the PNB MetLife Grow Plan?
1.Survival Benefit
Increasing Income and Extended Life Cover:
The Survival Benefit in the form of Guaranteed Income (GI) and Cash Bonus (CB), if declared, shall be payable every year in arrears as per the Survival Benefit Payout Frequency chosen starting from the Income Start Year till the end of the PNB MetLife Grow Plan policy term.
These are expressed as a percentage of Benefit Sum Assured (BSA). The increased BSA will be used for the calculation of the Gl and CB.
Milestone Income:
Reversionary Bonus (RB), if declared, will accrue at each policy year starting from the first policy year till the end of the policy term. Accrued Reversionary Bonus is payable as a Survival Benefit every 4th or 5th policy year, as per the choice.
RB is expressed as a percentage of the Benefit Sum Assured (BSA). The increased BSA will be used for the calculation of RB.
Wealth:
No Survival Benefit is payable under this option.
2.Maturity Benefit
Maturity Benefit is defined as the higher of:
- Sum Assured on Maturity (sum of all annualised premiums paid) plus Accrued Reversionary Bonus, if applicable, plus Accrued Survival Benefit, if applicable and not paid earlier, plus Terminal Bonus, if declared or
- 105% of the Total Premiums Paid as on the date of maturity.
3.Death Benefit
The death benefit will be higher of the following
- Sum Assured on Death plus Accrued Reversionary Bonus, if applicable, plus Accrued Survival Benefit, if applicable and not paid earlier, plus Terminal Bonus, if declared. Or
- 105% of the Total Premiums Paid as on the date of death. Or
- Surrender Benefit payable as on the date of death.
Where, Sum Assured on Death is defined as 10 times Annualised Premium.
Extended Life Cover Plan Option: The PNB MetLife Grow Plan policy shall continue only for Death Benefit till the Life Assured attains 100 years of age.
Grace Period, Discontinuance and Revival of the PNB MetLife Grow Plan
Grace Period
The grace period for payment of the premium is 15 days, where the PNB MetLife Grow Plan policyholder pays the premium on a monthly basis and 30 days in all other cases.
Discontinuance
Lapse: If the first full policy year’s premium is not paid, the PNB MetLife Grow Plan policy shall lapse at the end of the grace period, and the risk cover and rider benefits, if any, will cease immediately. No benefits will be paid when the policy is in lapsed status.
Reduced paid-up: If the due premium has been paid for at least the first full policy year, the PNB MetLife Grow Plan policy shall acquire a Special Surrender Value after the completion of the first policy year.
Revival
A Policy that has lapsed or that has been converted to a Reduced Paid-Up Policy Status may be revived during the Revival Period.
Free Look Period for the PNB MetLife Grow Plan
If you have any objections to the terms and conditions of your Policy, you may cancel the Policy within 30 days beginning from the date of receipt of the Policy Document, whether received electronically or otherwise.
Surrendering the PNB MetLife Grow Plan
For all Plan Options, the Surrender value payable during the PNB MetLife Grow Plan policy term shall be the higher of the Guaranteed Surrender Value or Special Surrender Value.
If the due premium has been paid for at least the first full policy year, the policy shall acquire a Special Surrender Value after the completion of the first policy year. If all due premiums have been paid for at least two consecutive policy years, the policy shall acquire Guaranteed Surrender Value.
What are the advantages of the PNB MetLife Grow Plan?
- Loan facility available: You can avail of a loan against your policy in times of need
- Enhanced protection through riders: Strengthen your family’s financial safety by adding optional riders for specific unforeseen events
- Flexibility to accumulate benefits: At any time during the PNB MetLife Grow Plan policy term, you have the option to accumulate your Survival Benefits instead of receiving them immediately
- Multiple premium payment modes: Pay premiums as per your convenience—Annually, Half-Yearly, Quarterly, or Monthly
- Customizable benefit payouts: Choose your preferred frequency of Survival Benefit payouts right at the policy inception
What are the disadvantages of the PNB MetLife Grow Plan?
- Survival benefits often get used for discretionary expenses, limiting their long-term financial impact
- The sum assured may be insufficient to cover your family’s essential financial needs in case of an emergency
- Early annual withdrawals disrupt the power of compounding, reducing the overall growth potential of your investments
Research Methodology of PNB MetLife Grow Plan
The PNB MetLife Grow Plan is a savings-cum-insurance product, where your premium is split between life cover and savings. Hence, simply evaluating cash flows isn’t enough—you need to assess the investment efficiency of the plan.
The best way to do this is by calculating the Internal Rate of Return (IRR), which offers a more realistic picture of potential returns.
Benefit Illustration – IRR Analysis of PNB MetLife Grow Plan
Let’s take a closer look at the benefit illustration provided in the brochure: A 40-year-old male opts for the Wealth Plan variant of PNB MetLife Grow Plan with a Sum assured of ₹ 10 Lakhs (minimum death benefit – ₹ 10.50 Lakhs).
The policy term is 25 years, and the premium paying term is 10 years. The annualised premium is ₹ 1 Lakh.
| Male | 40 years |
| Sum Assured | ₹ 10,50,000 |
| Policy Term | 25 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 1,00,000 |
Under the Wealth option, the maturity benefit is paid only at the end of the PNB MetLife Grow Plan policy term. The illustration assumes two future return scenarios: 4% p.a. and 8% p.a.
These are hypothetical and not guaranteed—they don’t represent either the minimum or maximum potential returns.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 40 | 1 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 41 | 2 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 42 | 3 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 43 | 4 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 44 | 5 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 45 | 6 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 46 | 7 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 47 | 8 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 48 | 9 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 49 | 10 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 50 | 11 | 0 | 10,50,000 | 0 | 10,50,000 |
| 51 | 12 | 0 | 10,50,000 | 0 | 10,50,000 |
| 52 | 13 | 0 | 10,50,000 | 0 | 10,50,000 |
| 53 | 14 | 0 | 10,50,000 | 0 | 10,50,000 |
| 54 | 15 | 0 | 10,50,000 | 0 | 10,50,000 |
| 55 | 16 | 0 | 10,50,000 | 0 | 10,50,000 |
| 56 | 17 | 0 | 10,50,000 | 0 | 10,50,000 |
| 57 | 18 | 0 | 10,50,000 | 0 | 10,50,000 |
| 58 | 19 | 0 | 10,50,000 | 0 | 10,50,000 |
| 59 | 20 | 0 | 10,50,000 | 0 | 10,50,000 |
| 60 | 21 | 0 | 10,50,000 | 0 | 10,50,000 |
| 60 | 22 | 0 | 10,50,000 | 0 | 10,50,000 |
| 60 | 23 | 0 | 10,50,000 | 0 | 10,50,000 |
| 60 | 24 | 0 | 10,50,000 | 0 | 10,50,000 |
| 60 | 25 | 0 | 10,50,000 | 0 | 10,50,000 |
| 60 | 15,82,114 | 33,20,500 | |||
| IRR | 2.85% | 6.67% | |||
At 4% assumed return, the projected maturity amount is ₹15.82 lakhs. The IRR works out to just 2.85% as per the PNB MetLife Grow Plan maturity calculator, which is even lower than a savings bank account interest rate
At 8% assumed return, the projected maturity amount is ₹33.20 lakhs. The IRR is approximately 6.67% as per the PNB MetLife Grow Plan maturity calculator, still underwhelming when compared to other long-term investment options
In addition, the sum assured is insufficient to provide meaningful financial protection for a family. The IRR analysis shows that the PNB MetLife Grow Plan falls short as both an investment and insurance solution.
It fails to offer adequate life cover and does not deliver competitive returns to justify the premium commitment.
PNB MetLife Grow Plan Vs. Other Investments
To truly assess whether the PNB MetLife Grow Plan is a smart financial choice, it’s important to compare it with an alternative strategy, where the same premium is split between a pure term insurance plan and a dedicated investment option.
This helps evaluate the return efficiency and overall benefits more effectively.
PNB MetLife Grow Plan Vs. Pure-term + Equity Mutual fund
Since the PNB MetLife Grow Plan combines life insurance and investment, we will do the same in the comparison.
A pure term life insurance policy with a sum assured of ₹10.50 lakhs will cost an annual premium of ₹ 17,200. The PNB MetLife Grow Plan Policy term is 25 years, and the Premium payment term is 10 years.
This provides the same life cover as PNB MetLife Grow Plan, but at a much lower cost. This leaves you a remaining annual amount of ₹82,800 for investment.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 10,50,000 |
| Policy Term | 25 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 17,200 |
| Investment | ₹ 82,800 |
The balance amount is invested annually into a debt instrument or an equity instrument based on risk appetite. Here we have chosen PPF (Debt) and an Equity Mutual Fund (equity).
| Term Insurance + PPF | Term insurance + Equity Mutual Fund | ||||
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 40 | 1 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 41 | 2 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 42 | 3 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 43 | 4 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 44 | 5 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 45 | 6 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 46 | 7 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 47 | 8 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 48 | 9 | -1,00,000 | 10,50,000 | -1,00,000 | 10,50,000 |
| 49 | 10 | -97,500 | 10,50,000 | -1,00,000 | 10,50,000 |
| 50 | 11 | -500 | 10,50,000 | 0 | 10,50,000 |
| 51 | 12 | -500 | 10,50,000 | 0 | 10,50,000 |
| 52 | 13 | -500 | 10,50,000 | 0 | 10,50,000 |
| 53 | 14 | -500 | 10,50,000 | 0 | 10,50,000 |
| 54 | 15 | -500 | 10,50,000 | 0 | 10,50,000 |
| 55 | 16 | 0 | 10,50,000 | 0 | 10,50,000 |
| 56 | 17 | 0 | 10,50,000 | 0 | 10,50,000 |
| 57 | 18 | 0 | 10,50,000 | 0 | 10,50,000 |
| 58 | 19 | 0 | 10,50,000 | 0 | 10,50,000 |
| 59 | 20 | 0 | 10,50,000 | 0 | 10,50,000 |
| 60 | 21 | 0 | 10,50,000 | 0 | 10,50,000 |
| 60 | 22 | 0 | 10,50,000 | 0 | 10,50,000 |
| 60 | 23 | 0 | 10,50,000 | 0 | 10,50,000 |
| 60 | 24 | 0 | 10,50,000 | 0 | 10,50,000 |
| 60 | 25 | 0 | 10,50,000 | 0 | 10,50,000 |
| 60 | 34,43,008 | 79,13,343 | |||
| IRR | 6.86% | 11.27% | |||
To comply with PPF account rules, a minimum annual contribution of ₹500 for 15 years was maintained. Accordingly, minor adjustments were made in the investment allocation to accommodate this requirement.
The final maturity amount from the PPF account stands at ₹34.43 lakhs, offering an IRR of 6.86% over the investment period.
In comparison, the Equity Mutual Fund investment yields a pre-tax maturity value of ₹89.07 lakhs. After accounting for capital gains tax at the time of redemption, the post-tax value comes to ₹79.13 lakhs. This results in an IRR of 11.27%.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 25 years | 89,07,678 |
| Purchase price | 8,28,000 |
| Long-Term Capital Gains | 80,79,678 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 79,54,678 |
| Tax paid on LTCG | 9,94,335 |
| Maturity value after tax | 79,13,343 |
Combining insurance and investment in a single plan like the PNB MetLife Grow Plan may provide convenience, but it significantly compromises returns. The IRR from the plan is far lower than what a disciplined investor can achieve by separating life insurance and wealth creation.
To build long-term wealth and secure your financial goals, it is far more effective to buy a pure term plan for protection and invest the rest in suitable instruments like mutual funds.
Final Verdict on PNB MetLife Grow Plan
The PNB MetLife Grow Plan is a traditional life insurance policy that combines protection and savings. It offers four plan variants designed to help individuals save regularly, with benefits paid out either as a lump sum or through periodic income.
However, like most traditional insurance plans, this policy bundles insurance and investment, leading to suboptimal returns. Even if you opt to forgo annual payouts and wait until maturity, the final return remains unimpressive and it also has a high agent commission.
As shown in the returns analysis, this plan is unlikely to help you build the corpus needed to meet your future financial goals.
Moreover, the sum assured is too low to provide meaningful financial support to your family in the event of an untimely demise. To address this, a pure term life insurance policy is a more suitable option—it offers a substantially higher life cover at a much lower premium.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
When it comes to achieving your life goals, investments should be aligned with your risk profile and investment time horizon. If you’re unsure how to choose the right instruments, consider seeking guidance from a Certified Financial Planner to explore modern, goal-oriented investment options.
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