What are Pension Plans?-pnb-metlife-pension-plans

Plans which provide a financial cushion in your retirement are called pension plans by way of providing income inflows. These plans come under two different types called Immediate and Deferred Annuity plans. Under Immediate plans, pension payments starts immediately after the payment of the lump sum premium which is called the Purchase Price. If the policyholder deceases during the course of receiving annuity payouts, the payouts stop without any further provision of death benefit. Deferred annuity plans are those where there is a wait of certain years after which the annuity payouts are made. During the waiting period called the deferment period, the customer can pay premiums to accumulate a fund from which pension payments are made after vesting, i.e. the date after which the payouts will commence. If the person dies during the deferment period, the company will pay him a specified death benefit. PNB Metlife Pension Plans PNB Metlife Life Insurance Company is offering only one type of pension plan called the Metlife Monthly Income Plan – 10 Pay which is a deferred Endowment plan suitable for retirement. Let us take a look at the plan in details along with its features and benefits. Metlife Monthly Income Plan – 10 Pay A traditional deferred endowment plan which provides for a fund post retirement in the form of monthly payouts. The features and benefits of the plan are as follows: The plan participates in the profits of the company by way of earning bonuses Premiums under the plan are required to be paid for a fixed tenure of 10 years. On maturity, the monthly payouts will start and are payable from the 11th policy year to the 25th policy year. Bonuses which have accrued under the plan can be taken in lump sum on maturity or can be added to the monthly incomes proportionately to increase the amount of payouts. In case of death of the insured during the tenure of the plan the death benefit will be payable which will be higher of the 10 times the annual premium or the base Sum Assured which is 11 times the annual premium or Maturity Sum Assured which is 135 times the chosen Monthly Income or 105% of all premiums paid till the date of death The death benefit can be availed in either lump sum or in monthly instalments like in the case of maturity benefit. For monthly benefit option, the death benefit will be divided by 135 and paid for 180 months post the date of death Discounts in premiums are allowed for choosing yearly or halfd-yearly mode of premium payment @3% and 1.5% respectively The premiums paid are exempt from taxation under Section 80C of the Income Tax Act and the claim received in exempt under Section 10(10D) of the Income Tax Act. Eligibility Details Applying for a Pension Plan from the company: Online The company offers specific plans which are available online only. The customer only needs to log into the companys website, choose the required plan, choose the coverage and provide the details. The premium will be determined using the filled details. The customer then needs to pay the premium online through credit card, debit card or net banking facilities and the policy will be issued Intermediaries Plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process. Applying For Pension Plans through PolicyBazaar On the PolicyBazaar homepage, click on Retirement under the Personal tab. Click New Quotes to compare and choose from top insurance providers. Fill your date of birth (DOB), whether you are a smoker/non-smoker, and the payout amount. On the basis of your payout amount, you will get an estimate of your premium. Next click Continue. Fill in your name, email address, city, country code, and mobile number. Click Continue. You will be taken to the Life Insurance quotes page where you will see life insurance quotes of more than 10 insurers. Next, choose the plan as per payment schedule – One Time Payout and Monthly Payout Plans. After reviewing and comparing each life insurance quote, click the premium amount to buy the desired plan. You will see a pop-up on the screen which will give you an overview of the chosen plan like premium, plan features, exclusions, additional riders, etc. Click Proceed. This will take you to the insurers website. You will have to fill in the necessary details to buy the plan.