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Life Insurance is a good savings and Investment policy in Nepal

Life Insurance is a good savings and Investment policy in Nepal. Met Life Insurance Nepal provides good savings and investment policy in Nepal. Here we shall discuss salient features and categories of Life Insurance is a good savings and Investment policy in Nepal.


Savings and Investment Life insurance 

It can be further categorize into three insurance scheme which we shall discuss below:

  1. Future care-DPS(Deposit Protection Scheme) Life Insurance
As a sensible and responsible individual, you must be looking for the best      possible avenues to grow your hard earned money. An ideal financial plan for you may be the one that accumulates your money with reasonable returns as well as provides protection to you and your family against uncertainties. If you are looking for such a plan, Metlife's Future care-DPS can offer you the solution!
 Future Care- DPS is a saving and protection plan that provides an attractive maturity value and a substantial Accident Benefit.

You can select your plan from the following 2 options:

  • A. Future Care-DPS-Gold
This plan Provides you an opportunity for -

  • Earning reasonable returns leading to attractive Maturity Value to meet your financial planning needs.
  • Enjoying life insurance coverage under which the Face Amount(face amount is defined as the Future Care - DPS annual basic premium times the policy term) will be paid in case of death of the insured due to covered cause anytime while the policy is in-force regardless of the number of premiums paid. If the Account value at the time of death is higher than the Face amount, the Account Value will be paid less any indebtedness.
  • Enjoying additional Accidental Benefits under which 2 times the Face Amount will be paid in the event of Accidental Death or Accidental Permanent & Total disability, consequently enjoying a total coverage of 3 times the Face Amount in Case of Accidental death. In case of Accidental Dismemberment the additional Accidental Benefit may reach up to 2 times the Face Amount depending on the type and extent of loss.

Insurance Benefits and Projected Maturity values

For illustrative purposes, you may want to have a look at the following tables which show the Insurance benefits and the projected maturity Values(MV) in Rupees for some sample ages and sample Investment Yield(IY) rates for Annual Premium of Rupees 30,000*(these values are just for illustrative purpose and the actual benefits and values will change with age, premium and the Investment Yield credited by the company are different).


Metlife Insurance Nepal DPS Gold Plan

B. Future Care - DPS Silver plan:

This plan provides you an opportunity for-
  • Earning reasonable returns leading to attractive Maturity Value to meet your financial planning needs.
  • Enjoying Death Benefits under which the Account Value or the total premiums paid for the Basic policy, whichever is higher, will be paid less any indebtedness.
  • Enjoying additional Accident Benefits under which 2 times the face amount (face amount is defined as the future care DPS basic annual premium times the policy term) will be paid in the event of Accidental Permanent & Total Disability. In case of Accidental Dismemberment the additional Accidental Benefit may reach up to 2 times the face amount depending on the type and extent of loss.

Insurance Benefits and projected Maturity Values

For illustrative purposes, you  may want to have a look at the following tables which show the insurance benefits and the projected maturity values (MV) in Rupees for some sample ages and sample Investment Yield (IY) rates for Annual Premium of Rupees 30,000 (these values are just for illustrative purpose and the actual benefits and values will change with age, premium amount and the Investment Yield Credited by the company are different)



Life Annuity (pension) Option

This plan provides you the option to go for life time annuity with guaranteed period of 20 year using the maturity proceed. Under this option you will receive monthly pension from the age of your choice up to your 100th birthday. In the regretful event of loss of life during the guaranteed twenty years, your loved ones will continue to receive the monthly benefit for the remainder of guaranteed period.

The monthly benefit amount will be calculated as follows:

Monthly benefit amount = Maturity Amount/(Annuity factor * 12)
*Example: Maturity Amount: NPR 200,000; Attained age :55 Yrs; Annuity Factor 12.44 @ assumed rate of 6% 
Monthly Income = 1,264.73 i.e., 200,000/(12.44*12)

(*The illustration is only based on assumptions and presented for understanding purpose. The actual amount will be determined at the time of maturity using actual interest rate, mortality and expenses.

 Supplementary benefits

You have the option to increase your insurance protection by purchasing critical care and family protection (WP) riders by paying prescribed additional premium.

Critical Care

Treating a critical illness is expensive and often impacts families' future plans. our Critical Care Provide Lump sum payment equal to 100% or 50% of the Face Amount (depending on your entry age and policy term and your choice) in case of diagnosis of or actual undergoing of surgery for, as the case may be, within age 60 years the following illness/medical conditions as defined in the policy document.
  • Major cancer
  • Benign Brain Tumor
  • Stroke
  • First Heart Attack
  • Serious Coronary Artery Diseases
  • Heart Valve Surgery
  • Primary Pulmonary Hypertension

Family Protection (WP) Rider - Disability:

If you become permanently and totally disabled due to accident or sickness within age sixty (60) years, you will not be required to pay premiums for the remaining term of the policy and supplementary contracts. Met life Insurance Nepal will pay all the premiums on your behalf. You will be entitled all the coverages and maturity values as per policy provisions.

Other Terms and Conditions:

  1. The maturity value can be received as a lump sum or used to purchase an annuity or a combination of both. The annuity values will be determined by the company at the time of maturity.
  2. Projected Maturity Value is calculated following deduction of cost of Insurance, Expenses and charges of the plan and by crediting a net investment yield. The maturity value is not guaranteed and will vary based on investment performance. The maturity value will be lower for policies paying premium more frequently than yearly.
  3. During the 1st Policy year the policy does not acquire any cash surrender value, which is the Account value on the date of surrender less the surrender charge and processing fee. Upon surrender at any time after the expiration of the 1st policy year and before maturity, the policyowner will receive the cash surrender value less any indebtedness. A surrender charge will be applicable if the policy is surrendered during the first 5 years. The cash surrender value may be less than the premium paid.
  4. This policy does not cover Death on account of suicide (within first two years of the policy), war, pre-existing condition or other exclusions as specified in the policy document.
  5. The policy may lapse with no value if premium is not paid regularly as due. Cost of Life Insurance, expenses and other charges will be deducted till Maturity or until the net cash surrender value is exhausted, whichever is earlier.
  6. Policy loan will be allowed up to a maximum of 90% of the net cash surrender value.
  7. Tax advantages regarding the premium payment are subject to Tax laws/Rules of government. Please consult your Tax advisor for confirmation and advice.
  8. Dump in premium will be equal to minimum of one basic premium and maximum of ten basic premium. Dump in premium do not impact death benefit (the face amount is a multiple of the initial basic premium only).

Some Important Features of Future care- DPS:

  • Entry age: 18 to 54 years
  • Policy term: Minimum 5 years and maximum 20 years
  • Maximum Face Amount: NPR 15,000,000
  • Mode of premium payment: Quarterly, Half-yearly or yearly
  • Minimum Annual Premium: NPR 12,000
  • Maximum Annual Premium: NPR 3,000,000
  • Accidental Coverage expires at age 65 years
  • Income Tax savings on your paid premium, subject to Tax laws
  • All illustrations are for standard lives only and shall vary for substandard lives depending on underwriting rules
  • Underwriting rules: Existing company rules will apply


2.Three Payment Plan Life Insurance 

The main feature of this Life Insurance plan is the face amount can be paid by dividing in 3 installments and has attractive returns with low insurance premium amount. Since the insurer can receive the face amount during the policy period so there is less chance of financial burden for the insurer. Following are the salient features of this Life Insurance plan;
  • This insurance policy can be issued for 1 month child(31 days) up to 60 years old people.
  • Face Amount starts from  minimum NPR 50,000 up to Maximum NPR 1,50,00,000 .
  • 25% of the face amount is paid by end of 1/3 of the policy period.
  • Another 25% of the face amount is returned by end of 2/3 of the policy period.
  • You can use this amount for fulfilling your requirements or dreams, instead you can also invest this amount for maximum benefit.
  • The remaining 50 % face amount is paid with accrued or earned  bonus at the end of Policy period.

Bonus 

This insurance policy falls under profit earned by company so the bonus depends upon the rate defined by company at regular intervals.

Additional benefit 

By paying small amount you can add 3 times benefit up to NRS 10,00,000 (Ten Lakhs) which will have 24 hours coverage of Accidental Death Benefit Coverage Rider. It provides payment of an additional sum in the event of death of insured due to accident.

Protection 

Your  life insurance is done for guaranteeing full face amount and accrues bonus during whole insurance policy period. If the insured dies within the policy period then installment already paid will not be deducted. You will be fully insured up to your last breathe.

Attractive Features

  • Your policy Premium will not be raised.
  • Cash value, Paid up value is guaranteed.

3. Endowment Life Insurance plan

This type of endowment life insurance plan is mainly falls under savings and investment which can be issued  either for 10, 15, 20, 25, 30 years or when the age of insurer reaches 55, 60, or  65 years.

Eligibility

The age of insured should be minimum 1 months (31 days) and his/her maximum age should be 55 years

Face Amount

The face amount for this life insurance is minimum NRS 50,000 (Fifty thousand) and maximum NRS 15,000,000(15 million)

Mode of payment 

Insurance premium can be paid in 3 months(quarterly), 6 months (semi annually) or 12 months (Annually).

Other Salient Features

Following are some of the salient features of this endowment life insurance plan
  • Your Insurance premium will not be raised.
  • Cash value, paid up value is guaranteed.
  • Insurance policy does payment of face amount and accrued bonus to insured at maturation of policy period.
  • If Insured dies before end of policy period then premium payment is ended up and the face amount with accrued bonus will be paid to beneficiary chosen by insurance policy holder.
  • In case the premium amount cannot be paid then upon request of policy holder that insurance which has acquired cash value can be converted to equivalent face amount and will be continued as paid up policy.
  • The payment of paid up policy will be made at the end of policy period.
  • If needed policy owner can surrender the policy which has acquired cash value and he/she can receive the payment as directed by governing body.

Bonus

Bonus of this endowment life insurance policy depends upon the profit earned by this Metlife insurance Nepal as this insurance falls under profit category and the policy rate is published by the company at regular period.

Why to do insurance now?

 Following are the reasons for which you should do insurance now;

  • Low Premium cost: since the premium amount depends on your age lower your age lower will be premium amount and your total cost of insurance will be low.
  • You may not Qualify for insurance later: Change in your job sector or health will lead you disqualify for insurance. This can be tomorrow also so do insurance now.
  • Your Cash Value will increase soon: Since cash value increases yearly faster you start insurance the faster you will get return benefit in future so do it now
  • Life is not guaranteed: Our physical body life is not of  fixed age, who knows what happens the next day to them so better do insurance now and feel safe.

How to enroll and pay premium of Life insurance ?

If you are interested in this valuable plan and if you are within the age limit stated  please write Insurance and send message to +9779851186065 or Please send me 
message in my facebook profile  or in my official Facebook page without any hesitation. I will serve you 24 hours.

You can also check famous insurance policies from metlife like Life shield Health Insurance in Nepal

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