The Hindu Business Line : MetLife India's MetUltimate

MET Ultimate is a whole-life policy from MetLife India that guarantees a minimum return on investments. It offers some of the flexibility of a unit-linked plan but the charges are higher compared to other linked plans in the market.

There are three benefit options — level death benefit, increasing death benefit and inflation-adjusted face amount. The maturity benefit is the account value in all the cases; only the death cover will vary.

In the level death benefit option, the death benefit is the higher of the face amount and 110 per cent of the account value. The account value is based on the premiums paid, charges deducted, interest earned and withdrawals made. The option has a limited premium payment period of 10 years.

In the increasing death benefit option, the death benefit is the sum of the face amount and the account value. Premium is to be paid over 20 years. Under this option, with each passing year, the face amount increases by five per cent of the initial sum assured. The death benefit will be higher of the face value or 110 per cent of the accumulated value.

Other features

A guaranteed interest of 3.5 per cent is credited to the accumulation account through the life of the policy. Policies issued in 2004 will be paid a guaranteed 5 per cent interest for the first two years.

A bonus may be declared depending on the actual investment performance.

After a minimum of three years, you can increase, decrease, stop or skip premiums, in which case all charges will be deducted from your accumulation account. Life cover remains intact till mortality charges are covered through the accumulation account.

The death benefit can be increased or decreased once a year after three years.

You can withdraw cash from your accumulation account after the first two policy years.

Additional premium can be paid to prop up your account value.

Preferential premium rates for women and non-smokers.

You can take a loan for up to 70 per cent of the cash surrender value after the first three years. You might not have to use this facility as the policy allows you to make withdrawals from the policy.

Readers are requested to compare products featured under this column with similar ones offered by other players.

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