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Can the PNB MetLife Mera Wealth Plan help you achieve financial growth and lifelong security?
Can the PNB MetLife Mera Wealth Plan be the key to secure your family’s future and build wealth simultaneously?
Can the PNB MetLife Mera Wealth Plan help you secure your legacy while growing your wealth effortlessly?
In this review, we will explore the features, advantages, drawbacks, and returns of the PNB MetLife Mera Wealth Plan. By analysing the returns and comparing them with other investment options, we aim to provide deeper insights.
Table of Contents:
What is the PNB MetLife Mera Wealth Plan?
What are the features of the PNB MetLife Mera Wealth Plan?
Who is eligible for the PNB MetLife Mera Wealth Plan?
What are the benefits of the PNB MetLife Mera Wealth Plan?
What are the Investment strategies and Fund Options in the PNB MetLife Mera Wealth Plan?
What are the Various charges under the PNB MetLife Mera Wealth Plan?
Grace Period, Discontinuance and Revival of PNB MetLife Mera Wealth Plan
Free Look period for PNB MetLife Mera Wealth Plan
Surrendering PNB MetLife Mera Wealth Plan
What are the advantages of PNB MetLife Mera Wealth Plan?
What are the disadvantages of PNB MetLife Mera Wealth Plan?
Research methodology of PNB MetLife Mera Wealth Plan
Benefit Illustration – IRR Analysis of PNB MetLife Mera Wealth Plan
PNB MetLife Mera Wealth Plan vs. Other Investment
PNB MetLife Mera Wealth Plan vs. Pure-term + PPF / ELSS
Final Verdict on PNB MetLife Mera Wealth Plan
What is the PNB MetLife Mera Wealth Plan?
PNB MetLife Mera Wealth Plan is an Individual, Unit-Linked, Non-Participating Life Insurance plan. It helps you achieve your financial goals along with a life insurance cover for the financial security of your loved ones. PNB MetLife Mera Wealth Plan provides an opportunity to invest in market-related instruments.
What are the features of the PNB MetLife Mera Wealth Plan?
- Choose between two plan options: Premier or Online.
- Select your preferred premium payment term: Single Pay, 5 Pay, 10 Pay, or Regular Pay.
- Pick from two available investment strategies that suit your needs.
- Receive Loyalty Additions every year starting from the end of the 6th policy year until maturity, applicable for both Premier and Online options.
- Opt for a lump sum payout at maturity or choose structured payouts.
- In case of an untimely demise, receive the higher of the Sum Assured or Fund Value.
Who is eligible for the PNB MetLife Mera Wealth Plan?
What are the benefits of the PNB MetLife Mera Wealth Plan?
1.) Death benefit
In the unfortunate event of death of the life assured, the nominee will receive the death benefit which will be higher of
- Fund value
- The Basic Sum Assured less all Partial Withdrawals, made during the two-year period immediately preceding the date of death of the Insured or
- 105% of Total premiums paid excluding partial withdrawals made during the two-year period immediately preceding the date of death of the Insured
Where, Sum Assured = Multiple * Annualized Premium or Single Premium
- Single pay multiple = 1.25
- Other options = 10 or (0.5 * Policy term) whichever is higher
2.) Loyalty Additions
It will be allocated at the end of every PNB MetLife Mera Wealth Plan policy year, starting from the end of the sixth policy year.
3.) Maturity benefit
On survival of the Life Assured till the end of the policy term, the maturity benefit is payable which is equal to the total fund value as on the maturity date. You will have the option to receive the Maturity Benefit as a lump sum or as a structured payout through the Settlement Option.
What are the Investment strategies and Fund Options in the PNB MetLife Mera Wealth Plan?
i.) Self-Managed Option
This option enables you to manage your investments actively. Under this option, you can invest your premiums amongst the 12 available funds in proportions of your choice, subject to a minimum of 20% in each fund.
| Asset Category | |||||
| S. No | Fund Name | Equities | Debt | Money Market | Risk Profile |
| 1 | Protector II fund | 0 | Govt & debt Securities -0-60% | 0-40% | Low Risk |
| 2 | Preserver II fund | 0 | Govt & debt Securities -0-60% | 0-40% | Very low risk |
| 3 | Balancer II fund | 0-60% | Govt & debt Securities -0-60% | 0-40% | Medium Risk |
| 4 | Multiplier III | 60-100% | 0 | 0-40% | Very High Risk |
| 5 | Liquid fund | 0 | 0 | 100% | Low Risk |
| 6 | Flexi cap fund | 60-100% | 0 | 0-40% | Very High Risk |
| 7 | Mid-cap fund | 60-100% | 0 | 0-40% | Very High Risk |
| 8 | Premier Multi cap fund | 60-100% | 0 | 0-40% | Very High Risk |
| 9 | Virtue II fund | 60-100% | 0 | 0-40% | Very High Risk |
| 10 | Crest (Thematic Fund) | 60-100% | 0 | 0-40% | Very High Risk |
| 11 | Small cap fund | 60-100% | 0 | 0-40% | Very High Risk |
| 12 | Bharat Manufacturing fund | 60-100% | 0 | 0-40% | Very High Risk |
ii.) Systematic transfer strategy
The Systematic Transfer Strategy helps safeguard your wealth against market volatility and is available only if you have opted for a Regular Pay or Limited Pay policy with annual frequency as the premium payment mode.
This strategy ensures a gradual exposure to equity from debt in a phased manner through equal instalments over 12 months. All instalment premiums will be invested in the Protector II Fund (debt-oriented fund).
This amount will be systematically transferred to the Flexi Cap Fund (equity-oriented fund) over the 12-month Policy period.
What are the Various charges under the PNB MetLife Mera Wealth Plan?
A. Mortality charges
The mortality charge will be based on the attained age of the Life Insured, the Rate as per the Mortality Charge Table, the Option applicable (Premier/Online) and the applicable Sum at Risk (Death Benefit less Fund Value).
B. Premium allocation charges
These are expressed as % of the premium and are levied during the premium payment term only. It is deducted from the premium amount at the time of premium payment.
C. Policy Administration Charge
Policy Administration Charge will be levied every month throughout the PNB MetLife Mera Wealth Plan policy term by redemption of units.
| Premier mode | Single pay – Lower of 6,000 or (850 increasing at 3% p.a.)Other pay options – Lower of 6,000 or (2.20% of Premium increasing at 3% p.a.) |
| Online Mode | Single pay – Lower of 6,000 or (850 increasing at 3% p.a.)Other pay options – Lower of 6,000 or (5.50% of Premium increasing at 3% p.a.) |
D. Fund management charges
| S. No | Fund Name | Fund Management Charge |
| 1 | Protector II fund | 1.00% |
| 2 | Preserver II fund | 1.00% |
| 3 | Balancer II fund | 1.15% |
| 4 | Multiplier III | 1.25% |
| 5 | Liquid fund | 1.00% |
| 6 | Flexi cap fund | 1.25% |
| 7 | Mid-cap fund | 1.25% |
| 8 | Premier Multi cap fund | 1.25% |
| 9 | Virtue II fund | 1.25% |
| 10 | Crest (Thematic Fund) | 1.25% |
| 11 | Small cap fund | 1.25% |
| 12 | Bharat Manufacturing fund | 1.25% |
| Discontinued Fund | 0.50% |
E. Discontinuance charges
The Discontinuance Charges are expressed either as a percentage of the fund value (FV) or as a percentage of the annualized premium (AP) or Single Premium. It depends on the premium amount, year of discontinuance and premium paying term.
Inference from the charges: The fees associated with this plan are relatively high compared to other market-linked investments. Premium allocation charges, policy administration fees, and discontinuance charges act as additional overheads for investors.
Over time, these costs can substantially reduce your overall returns.
Grace Period, Discontinuance and Revival of PNB MetLife Mera Wealth Plan
(For other than Single pay policies)
Grace period
A grace period of 30 days (15 days for monthly mode) from the due date of unpaid Premium will be allowed to pay all your due Premiums.
Discontinuance
In case of discontinuance of policy during the lock-in period: the PNB MetLife Mera Wealth Plan policy will move to the Discontinued Status.
The Fund Value as on the date of discontinuance shall be transferred to the Discontinued Policy Fund after deducting the applicable discontinuance charge and all risk cover(s) under the Policy, shall cease.
At the end of the lock-in period, the proceeds of the discontinuance fund shall be paid to the policyholder and the policy shall terminate.
In case of discontinuance of policy after the lock-in period: the PNB MetLife Mera Wealth Plan policy shall attain reduced Paid-up Status with reduced Paid-up Sum Assured.
The Paid-up sum assured is given the original sum assured multiplied by the total number of premiums paid to the original number of premiums payable as per the terms and conditions of the policy.
Revival
The Policyholder has the option to revive the PNB MetLife Mera Wealth Plan policy, within a revival period of three years from the date of discontinuance of the policy.
Free Look period for PNB MetLife Mera Wealth Plan
If You have any objections to the terms and conditions of Your Policy, you may cancel the PNB MetLife Mera Wealth Plan policy within 30 days from the date of receipt of the Policy Document, whether received electronically or otherwise.
Surrendering PNB MetLife Mera Wealth Plan
During the first five policy years, on receipt of surrender intimation, the Fund Value after deduction of applicable Discontinuance Charge, shall be transferred to the Discontinued Policy Fund.
The proceeds of the discontinued policy shall be paid at the end of the lock-in period. Only fund management charges will be deducted from this fund during this period.
After Completion of the first five years, on receipt of surrender intimation, you will be entitled to the total Fund Value under the policy.
What are the advantages of PNB MetLife Mera Wealth Plan?
- You can change the allocation of future premiums with premium redirection.
- You can switch between available segregated fund options, either partially or fully.
- Partial withdrawals are allowed only after the Lock-in Period of 5 policy years or when the Life Assured reaches 18 years of age, whichever is later.
What are the disadvantages of PNB MetLife Mera Wealth Plan?
Research methodology of PNB MetLife Mera Wealth Plan
Estimating potential returns is essential when assessing a market-linked product. This calculation helps compare it with other investment options, enabling you to make well-informed decisions. Below is an Internal Rate of Return (IRR) analysis based on figures from the policy brochure.
Benefit Illustration – IRR Analysis of PNB MetLife Mera Wealth Plan
Consider a 40-year-old male purchasing the PNB MetLife Mera Wealth Plan with a sum assured of ₹50 Lakhs. The policy term is 20 years, with a premium payment term of 10 years and an annual premium of ₹5 Lakh. He chooses the Premier Plan Option.
| Male | 40 years |
| Sum Assured | ₹ 50,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 5,00,000 |
The fund value becomes accessible at the end of the policy term, provided all premiums are paid on time.
The policy brochure presents potential returns based on assumed investment rates of 4% and 8%, though these returns are not guaranteed and don’t represent the maximum or minimum you may earn.
The actual maturity benefit will depend on various factors, including future policy performance.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 40 | 1 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 41 | 2 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 42 | 3 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 43 | 4 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 44 | 5 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 45 | 6 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 46 | 7 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 47 | 8 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 48 | 9 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 49 | 10 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 50 | 11 | 0 | 50,00,000 | 0 | 50,00,000 |
| 51 | 12 | 0 | 50,00,000 | 0 | 50,00,000 |
| 52 | 13 | 0 | 50,00,000 | 0 | 50,00,000 |
| 53 | 14 | 0 | 50,00,000 | 0 | 50,00,000 |
| 54 | 15 | 0 | 50,00,000 | 0 | 50,00,000 |
| 55 | 16 | 0 | 50,00,000 | 0 | 50,00,000 |
| 56 | 17 | 0 | 50,00,000 | 0 | 50,00,000 |
| 57 | 18 | 0 | 50,00,000 | 0 | 50,00,000 |
| 58 | 19 | 0 | 50,00,000 | 0 | 50,00,000 |
| 59 | 20 | 0 | 50,00,000 | 0 | 50,00,000 |
| 60 | 76,41,638 | 1,39,44,848 | |||
| IRR | 2.75% | 6.72% | |||
At a 4% return, the estimated fund value is ₹76.41 Lakhs, resulting in an IRR of 2.75% as per the PNB MetLife Mera Wealth Plan Maturity calculator, which is lower than the interest rates offered by typical savings accounts.
At an 8% return, the projected fund value is ₹1.39 Crores, giving an IRR of 6.72%, as per the PNB MetLife Mera Wealth Plan Maturity calculator comparable to or sometimes lower than bank fixed deposit rates.
Though the PNB MetLife Mera Wealth Plan is a long-term investment over 20 years, its returns may not keep pace with inflation. As a result, investing in PNB MetLife Mera Wealth Plan may fall short of meeting the inflated costs associated with your financial goals.
PNB MetLife Mera Wealth Plan vs. Other Investment
The relatively low returns from the PNB MetLife Mera Wealth Plan make it unsuitable for long-term financial goals.
The same premium amount could be more effectively allocated to achieve higher returns. Let’s revisit the previous scenario but this time, by separating the insurance and investment components.
PNB MetLife Mera Wealth Plan vs. Pure-term + PPF / ELSS
A pure-term life insurance policy with a sum assured of ₹50 Lakhs costs an annual premium of ₹18,900, for a policy term of 20 years and a 10-year premium payment period. This leaves ₹4,81,100 per year available for investment, which can be directed based on your risk preference.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 50,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 18,900 |
| Investment | ₹ 4,81,100 |
Low-risk investors might opt for debt instruments like the Public Provident Fund (PPF), while higher-risk investors may choose equity instruments such as Equity-Linked Savings Schemes (ELSS). In this scenario, we consider both PPF (debt) and ELSS (equity) as investment options.
| Term Insurance + PPF | Term insurance + ELSS | ||||
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + ELSS | Death benefit |
| 40 | 1 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 41 | 2 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 42 | 3 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 43 | 4 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 44 | 5 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 45 | 6 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 46 | 7 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 47 | 8 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 48 | 9 | -5,00,000 | 50,00,000 | -5,00,000 | 50,00,000 |
| 49 | 10 | -4,97,500 | 50,00,000 | -5,00,000 | 50,00,000 |
| 50 | 11 | -500 | 50,00,000 | 0 | 50,00,000 |
| 51 | 12 | -500 | 50,00,000 | 0 | 50,00,000 |
| 52 | 13 | -500 | 50,00,000 | 0 | 50,00,000 |
| 53 | 14 | -500 | 50,00,000 | 0 | 50,00,000 |
| 54 | 15 | -500 | 50,00,000 | 0 | 50,00,000 |
| 55 | 16 | 0 | 50,00,000 | 0 | 50,00,000 |
| 56 | 17 | 0 | 50,00,000 | 0 | 50,00,000 |
| 57 | 18 | 0 | 50,00,000 | 0 | 50,00,000 |
| 58 | 19 | 0 | 50,00,000 | 0 | 50,00,000 |
| 59 | 20 | 0 | 50,00,000 | 0 | 50,00,000 |
| 60 | 1,42,01,630 | 2,93,68,342 | |||
| IRR | 6.84% | 11.74% | |||
The PPF account requires a minimum annual contribution of ₹500 for 15 years, but since the premium payment term is 10 years, adjustments are made for the remaining years. Also, while PPF has an annual limit of ₹1.5 Lakhs, the excess amount is negligible for illustration purposes.
The final maturity value of the PPF account is ₹1.42 Crores, with an IRR of 6.84%, similar to the 8% return scenario of the PNB MetLife Mera Wealth Plan. However, as a debt instrument, PPF delivers better returns than the market-linked ULIP.
| ELSS Tax Calculation | |
| Maturity value after 20 years | 2,93,68,342 |
| Purchase price | 48,11,000 |
| Long-Term Capital Gains | 2,45,57,342 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 2,44,32,342 |
| Tax paid on LTCG | 30,54,043 |
| Maturity value after tax | 2,63,14,299 |
For the ELSS investment, the pre-tax maturity value is ₹2.93 Crores. After factoring in capital gains tax, the final maturity value is ₹2.63 Crores, yielding a post-tax IRR of 11.74%.
These returns significantly outperform those of the PNB MetLife Mera Wealth Plan, aiding in wealth accumulation and accelerating your investment growth trajectory.
Final Verdict on PNB MetLife Mera Wealth Plan
The PNB MetLife Mera Wealth Plan is a traditional ULIP that combines disciplined market investment with life coverage. However, investors willing to take the high risks associated with market-linked products typically expect inflation-beating returns over the long term.
Unfortunately, the PNB MetLife Mera Wealth Plan lacks the ability to generate alpha, meaning the risk and return are not well-balanced.
While the plan is marketed as a wealth-building tool, a closer analysis reveals that its relatively low returns, insufficient sum assured, and limited access to funds make it an unsuitable option for those aiming to build wealth and also it has a high agent commission.
Securing adequate life insurance is crucial to protect your family, and this can be done more effectively with a pure-term life insurance policy, which comes at an affordable premium.
Instead of relying on this ULIP, it’s better to focus on building a well-diversified investment portfolio that aligns with your financial goals and risk tolerance.
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Wealth accumulation is achievable by creating a balanced and diversified portfolio. For expert guidance, consider consulting a Certified Financial Planner who can help you design a strong investment strategy tailored to your needs.
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