Grace Period: PNB Metlife provides a span of 30 days to pay all dues, starting from the due date of the unpaid premium. If the due payments are made during the Grace Period, the payable amount will be without interest. In the case of premium payments via monthly payment modes the grace period allowed is 15 days. If the insured fails to pay his premiums even by the allowed grace period then the plan is subject to lapse and immediately enables non-forfeiture options to it.
Policy Termination or Surrender Benefit: The policy shall be terminated at the earliest of the following:
(1) The date of surrendering the policy.
(2) On the payment of the death benefit.
(3) On the payment of the maturity benefit when the policy matures.
(4) If the policy is not reinstated within three years from the date of policy lapse.
If all policy premiums have been paid for three policy years, then the policy acquires a Surrender value. The maximum Guaranteed Surrender Value (GSV) and the Special Surrender Value (SSV) is as same as this value. The GSV depends on a percentage of the total Premiums paid and the rebated value of accrued Simple Reversionary Bonus. The SSV completely depends on the prevailing market conditions and is not guaranteed.
Free Look Period: The policyholder is allowed to review his plan within the free look period, where he judge whether he should buy the policy depending on the features and benefits it offers. If, within 15 days of receiving the plan documents, the insured feels that he is not happy with the plan provisions, then he can cancel it by returning the policy documents. After this, the company shall return the premiums paid towards it after making required deductions of any medical costs, stamp duty charges etc.
The Paid-Up Value is acquired if premiums are paid for at least three policy years, and no further due premiums are paid. It will then be eligible for a Reduced Paid-Up Value.
A lapsed policy can be reinstated by submitting a written request within two years from the date of the first unpaid premium. Reinstatement is subject to sufficient evidence being provided of insurability to the company. Furthermore, the policyholder has to pay all due premiums and interest accrued up to the date of reinstatement.
Suicide: If the insured commits suicide within first year of the policy inception, then his nominees are paid 80% of the premiums paid till the date of death and the term insurance cover remains void. If the insured commits suicide within first year of the plan, then his nominees shall be paid the higher of, the Surrender Value as on the date of death or 80% of the premiums paid till death.