Categories: Insurance

PNB MetLife POS Suraksha Plan: Good or Bad? A Detailed Review

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Is the PNB MetLife POS Suraksha Plan the simple and secure solution it claims to be—or is its simplicity hiding critical trade-offs?

Does the PNB MetLife POS Suraksha Plan strike the right balance between protection and value—or is it more protection than profit?

Is this PNB MetLife POS Suraksha Plan genuinely suited for your financial goals—or just another product that sounds better on paper than in practice?

In this review, we explore the key features, benefits, and drawbacks of the plan, complete with detailed illustrations to help you make an informed decision.

Table of Contents:

What is the PNB MetLife POS Suraksha?

What are the features of the PNB MetLife POS Suraksha?

Who is eligible for the PNB MetLife POS Suraksha?

What are the benefits of the PNB MetLife POS Suraksha?

1. Maturity benefit

2. Death benefit

Grace Period, Lapsed and Paid-up Policy and Revival of the PNB MetLife POS Suraksha

Free Look Period for PNB MetLife POS Suraksha

Surrendering the PNB MetLife POS Suraksha

What are the advantages of the PNB MetLife POS Suraksha?

What are the disadvantages of the PNB MetLife POS Suraksha?

Research Methodology of PNB MetLife POS Suraksha

Benefit Illustration – IRR Analysis of PNB MetLife POS Suraksha

PNB MetLife POS Suraksha Vs. Other Investments

PNB MetLife POS Suraksha Vs. Pure-term + PPF/ELSS

Final Verdict on PNB MetLife POS Suraksha

What is the PNB MetLife POS Suraksha?

PNB MetLife POS Suraksha is an Individual, Non-linked, Non-Participating, Savings Life Insurance Plan with Return of Premiums.

It is a life insurance plan with regular monthly income for your family in case of your untimely demise. It also provides a Return of all Premiums on survival till maturity.

What are the features of the PNB MetLife POS Suraksha?

  • Ensure your family’s financial well-being with a guaranteed monthly income for 10 years
  • Receive 100% of the total premiums paid on survival till maturity
  • Flexible premium payment options: choose from 5, 10, or 15 years
  • Choose between a lump sum payout or regular monthly income as the death benefit
  • Enjoy tax benefits on premiums and payouts, subject to prevailing tax laws

Who is eligible for the PNB MetLife POS Suraksha?

Age at entry (Years) Premium Paying Term Policy Term Minimum age Maximum age
5 10 18 55
10 10
10 15 50
15 15
Maximum age at maturity (Years) 65
Premium Paying Term (Years) 5/10/15 years
Policy Term (Years) Premium Paying Term (Years) Policy Term (Years)
5 10
10 10
10 15
15 15
Minimum Instalment Premium (Rs.) (Exclusive of taxes) Premium Paying Term (Years) Policy Term Annual Mode (Rs.) Half-Yearly Mode (Rs.) Monthly Mode (Rs.)
5 10 3,500 1,796 310
10 10 3,000 1,539 266
10 15 2,000 1,026 177
15 15
Maximum Premium (Rs.) As per maximum Basic Sum Assured of ₹25,00,000
Minimum Basic Sum Assured (Rs.) ₹ 50,000
Maximum Basic Sum Assured (Rs.) ₹ 25,00,000 (in multiples of 50,000)
Premium Payment modes Yearly / Half-yearly / Monthly
Income Payout Period 120 months (10 years)

What are the benefits of the PNB MetLife POS Suraksha?

1. Maturity benefit

On survival of the Life Assured till the Maturity Date, provided that the PNB MetLife POS Suraksha Plan Policy is In-force status, the Sum Assured on Maturity will be payable.

Sum Assured on Maturity = 100% of the Total Premiums Paid

2. Death benefit

In the event of the unfortunate death of the Life Assured during the PNB MetLife POS Suraksha Plan policy term, provided that the policy is In-force status, the Sum Assured on Death will be payable. Where Sum Assured on Death is the highest of:

  • 10 times the Annualised Premium
  • Basic Sum Assured, which is the absolute amount assured to be paid on death
  • 105% of the Total Premiums Paid as on the date of the Life Assured’s death

DEATH BENEFIT OPTION:

Death Benefit payable to the Nominee as a Lump sum or level monthly instalments based on the option chosen by the Life Assured at the time of inception of the policy.

Lumpsum option: the Sum Assured on Death shall be paid in one lump sum

Level Monthly Income Option: death benefit as a level monthly income over 120 months, where the monthly income factor is 1.10%.

Grace Period, Lapsed and Paid-up Policy and Revival of the PNB MetLife POS Suraksha

Grace Period

The grace period for payment of the instalment premium for all types of life insurance policies shall be fifteen days, on a monthly basis and 30 days in all other cases.

Lapsed policy

If the first full policy year’s premium is not paid, the PNB MetLife POS Suraksha Plan Policy shall lapse at the end of the Grace Period, and the risk cover will cease immediately.

Paid-up policy

If the policy has acquired a surrender value (premiums have been paid for the first full policy year) and no future instalment premiums are paid, the policy shall continue as a Paid-Up policy with reduced benefits, or you shall have the option to surrender the policy

Revival

A policy that has lapsed or that has been converted to a Paid-up Policy Status can be revived

Free Look Period for PNB MetLife POS Suraksha

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 POS Suraksha

If all due premiums have been paid for the first full policy year, the PNB MetLife POS Suraksha Plan policy shall acquire a Special Surrender Value after completion of the first policy year.

If all due premiums have been paid for at least two full policy years, the policy shall acquire a Guaranteed Surrender Value. The Surrender Value is equal to the maximum of the Guaranteed Surrender Value and the Special Surrender Value.

What are the advantages of the PNB MetLife POS Suraksha?

  • Multiple premium payment modes to suit your convenience
  • Enjoy discounts on premiums for higher sum assured and longer premium payment terms
  • Choose to receive the death benefit either as a lump sum or in convenient instalments

What are the disadvantages of the PNB MetLife POS Suraksha?

  • No loan facility is provided under the plan
  • Once the policyholder selects the death benefit option (lump sum or instalments), the nominee cannot modify it later
  • The death benefit is paid over a fixed 10-year period, with no flexibility to adjust based on future needs
  • The return of premium feature increases the overall cost of the plan
  • The plan does not include any bonus or loyalty additions
  • The maximum sum assured is capped at ₹25 lakhs, which may fall short of adequately supporting a family

Research Methodology of PNB MetLife POS Suraksha

With the PNB MetLife POS Suraksha plan, you pay regular premiums in exchange for life coverage, and if you survive the policy term, you’re refunded the total premiums paid as a maturity benefit.

However, the plan lacks any real value addition in terms of returns. Let’s examine the numbers based on the policy brochure.

Benefit Illustration – IRR Analysis of PNB MetLife POS Suraksha

A 35-year-old male opts for the plan with a sum assured of ₹10 lakhs. The PNB MetLife POS Suraksha Plan policy term and premium payment term are both 15 years, and the annual premium amounts to ₹12,940.

Male 35 years
Sum Assured ₹ 10,00,000
Policy Term 15 years
Premium Paying Term 15 years
Annualised Premium ₹ 12,940

Over 15 years, he pays a total of ₹1,94,100. If he survives the term, he receives the exact same amount—₹1,94,100—at maturity. The Internal Rate of Return (IRR) on this investment is effectively zero, as there are no bonuses, interest, or other benefits added.

Age Year Annualised premium / Maturity benefit Death benefit
35 1 -12,940 10,00,000
36 2 -12,940 10,00,000
37 3 -12,940 10,00,000
38 4 -12,940 10,00,000
39 5 -12,940 10,00,000
40 6 -12,940 10,00,000
41 7 -12,940 10,00,000
42 8 -12,940 10,00,000
43 9 -12,940 10,00,000
44 10 -12,940 10,00,000
45 11 -12,940 10,00,000
46 12 -12,940 10,00,000
47 13 -12,940 10,00,000
48 14 -12,940 10,00,000
49 15 -12,940 10,00,000
50 1,94,100
IRR 0.00%

In essence, the plan offers life coverage during the term and merely returns the premiums if the policyholder survives.

This makes it an inefficient option from an investment standpoint. If life insurance is the goal, a pure-term policy would provide higher coverage at a lower cost. With POS Suraksha, you end up paying a relatively high premium just to get your own money back, without any growth.

PNB MetLife POS Suraksha Vs. Other Investments

Instead of opting for a life insurance plan with a return-of-premium feature, it’s wiser to choose a pure-term life insurance policy with an adequate sum assured. In a pure-term policy, you pay premiums solely for life cover—there’s no payout if you survive the term.

However, the premiums are significantly lower compared to return-of-premium or with-profit plans.

PNB MetLife POS Suraksha Vs. Pure-term + PPF/ELSS

For example, a 15-year pure-term policy with a ₹10 lakh sum assured costs around ₹4,500 per year. In contrast, the PNB MetLife POS Suraksha plan charges ₹12,940 annually for the same coverage. That’s a difference of ₹8,440 per year.

Pure Term Life Insurance Policy
Sum Assured ₹ 10,00,000
Policy Term 15 years
Premium Paying Term 15 years
Annualised Premium ₹ 4,500
Investment ₹ 8,440

This annual saving can be invested based on your risk appetite:

Low-risk investors can opt for PPF (Public Provident Fund)

High-risk investors might choose ELSS (Equity Linked Savings Scheme)

Term Insurance + PPF Term insurance + ELSS
Age Year Term Insurance premium + PPF Death benefit Term Insurance premium + ELSS Death benefit
35 1 -12,940 10,00,000 -12,940 10,00,000
36 2 -12,940 10,00,000 -12,940 10,00,000
37 3 -12,940 10,00,000 -12,940 10,00,000
38 4 -12,940 10,00,000 -12,940 10,00,000
39 5 -12,940 10,00,000 -12,940 10,00,000
40 6 -12,940 10,00,000 -12,940 10,00,000
41 7 -12,940 10,00,000 -12,940 10,00,000
42 8 -12,940 10,00,000 -12,940 10,00,000
43 9 -12,940 10,00,000 -12,940 10,00,000
44 10 -12,940 10,00,000 -12,940 10,00,000
45 11 -12,940 10,00,000 -12,940 10,00,000
46 12 -12,940 10,00,000 -12,940 10,00,000
47 13 -12,940 10,00,000 -12,940 10,00,000
48 14 -12,940 10,00,000 -12,940 10,00,000
49 15 -12,940 10,00,000 -12,940 10,00,000
50 2,28,905 3,39,798
IRR 2.03% 6.73%

Let’s look at the potential outcomes after 15 years:

PPF Investment: Grows to ₹2.28 lakhs with an IRR of 2.03%, which, despite being modest, is still more than what the POS Suraksha plan offers (zero return).

ELSS Investment: Grows to a pre-tax value of ₹3.52 lakhs, and after tax, yields ₹3.39 lakhs—offering a post-tax IRR of 6.73%.

ELSS Tax Calculation
Maturity value after 15 years 3,52,398
Purchase price 1,26,600
Long-Term Capital Gains 2,25,798
Exemption limit 1,25,000
Taxable LTCG 1,00,798
Tax paid on LTCG 12,600
Maturity value after tax 3,39,798

By choosing a pure-term policy and investing the premium savings smartly, you not only get life protection at a lower cost but also have the potential to build a meaningful corpus.

This comparison clearly shows that return-of-premium plans are less efficient—they demand higher premiums without offering real investment growth.

Final Verdict on PNB MetLife POS Suraksha

The PNB MetLife POS Suraksha Plan offers life insurance coverage along with a return of premiums at maturity—a feature the insurer promotes as a key benefit. However, this return-of-premium feature comes at a significantly higher cost, which may not be justifiable.

Beyond this, the plan provides no real value addition, and the sum assured is often insufficient to meet even the basic financial needs of a family and it also has a high agent commission.

An analysis of the plan’s Internal Rate of Return (IRR) reveals that it effectively delivers zero returns. In contrast, a pure-term insurance policy offers substantial life cover at a much lower premium.

The premium savings from such a policy can be invested in long-term wealth creation.

By choosing a pure-term plan for protection and directing the premium difference into suitable investments, you can achieve both comprehensive life coverage and financial growth.

A well-diversified investment portfolio—aligned with your goals, time horizon, and risk tolerance—can help you build wealth more efficiently.

Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?

For personalised financial planning, it’s also advisable to consult a Certified Financial Planner (CFP). A CFP can help you create a goal-based plan and recommend the right combination of insurance and investment products tailored to your specific needs.

Holistic

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