Final Project Report on MARKETING

DECLARATION

I Sarita Nanda , here by declare that this project report entitled “AGENCY INSURANCE SALES AT METLIFE” is an original piece of work & is the result of my work on behalf of METLIFE INDIA INSURANCE COMPANY LTD. This project report has not been submitted to any other university or institute for the award of any degree or diploma.

Sarita nanda BJB AUTONOMOUS COLLEGE Bhubaneswar

ACKNOWLEDGMENT
At first I would like to thank the Almighty, for his blessing.

I wish to express my appreciation and thanks to all those with whom I have had the opportunity to work and whose thoughts & insights have helped me in furthering my knowledge and understanding of the subject Every page of this report reminds me about the moral support and guidance that was bestowed upon me by my esteemed Guide, professors, friends and family members throughout the duration of the project. My sincere gratitude goes to my company Project guide Mr.Raghunandan Pattanaik, Training Manager METLIFE without whose valued guidance, encouragement and inspiration the completion of this project would ever have been possible.I also thank the sales team of METLIFE for their support during my project. Last but not least, I would like to express my gratefulness to my faculty project guide Prof.Prabhat Kumar Choudhury, HOD of IMBA for guiding me through out the project spending his precious time and sharing his valuable knowledge. I am unable to mention many others who have helped me greatly but it gives immense pleasure to appreciate and thanks all those without whose encouragement and help this project would never have been completed.

PREFACE

PREFACE
With largest number of life insurance policies in force in the world, Insurance happens to be a mega opportunity in India. It’s a business growing at the rate of 15-20 per cent annually and presently is of the order of Rs 450 billion.

Together with banking services, it adds about 7 per cent to the country’s GDP. Gross premium collection is nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of GDP.

Yet, nearly 80 per cent of Indian population is without life insurance cover while health insurance and non-life insurance continues to be below international standards. And this part of the population is also subject to weak social security and pension systems with hardly any old age income security. This itself is an indicator that growth potential for the insurance sector is immense.

A well-developed and evolved insurance sector is needed for economic development as it provides long term funds for infrastructure development and at the same time strengthens the risk taking ability. It is estimated that over the next ten years India would require investments of the order of one trillion US dollar. The Insurance sector, to some extent, can enable investments in infrastructure development to sustain economic growth of the country.

Insurance is a federal subject in India. There are two legislations that govern the sector- The Insurance Act- 1938 and the IRDA Act- 1999. The insurance sector in India has come a full circle from being an open competitive market to nationalisation and back to a liberalised market again. Tracing the developments in the Indian insurance sector reveals the 360 degree turn witnessed over a period of almost two centuries.

INTRODUCTION

INTRODUCTION
Risk and uncertainty are incidental to human life and his properties. It causes huge losses which arise from accidents, destruction of property, fire, floods, earthquakes and many other natural calamities. Similarly modern business

enterprises are also exposed to various types of risks, uncertainties and unpredictable events which involve the loss of one or other kind. If such loss happens in the business, the business becomes crippling, finding it hard to survive, grow and exist in the face of cut throat competition. Thus the business enterprises need protection against the probable chances of future loss. the same is in case of farmers .They invest in land ,labor and capital with a hope to produce different crops .But it may so happen that due to some reason or other they are not in a position to grow their products .Consequent upon they go to the extent of committing suicides. In all these circumstances we can think of insurance which is simply a mechanism that helps to reduce the affect of such unwanted situation to some extent. Thus insurance doesn’t eliminate loss arising from uncertain events but protects against risk and uncertainty .One cannot prevent loss arising out of perils. But one can try to reduce its impact by insurance. Insurance components the losses and spreads the losses over a large number of people who insure themselves against the risk and there by protect their life and properties.

INDIAN INSURANCE MARKET
Historical Perspective The history of life insurance in India dates back to 1818 when it was conceived as a means to provide for English Widows. Interestingly in those days a higher premium was charged for Indian lives than the non-Indian lives as Indian lives were considered more riskier for coverage. The Bombay Mutual Life Insurance Society started its business in 1870. It was the first company to charge same premium for both Indian and nonIndian lives. The Oriental Assurance Company was established in 1880. The General insurance business in India, on the other hand, can trace its roots to the Triton (Tital) Insurance Company Limited, the first general insurance company established in the year 1850 in Calcutta by the British. Till the end

of nineteenth century insurance business was almost entirely in the hands of overseas companies.

Insurance regulation formally began in India with the passing of the Life Insurance Companies Act of 1912 and the provident fund Act of 1912. Several frauds during 20's and 30's sullied insurance business in India. By 1938 there were 176 insurance companies. The first comprehensive legislation was introduced with the Insurance Act of 1938 that provided strict State Control over insurance business. The insurance business grew at a faster pace after independence. Indian companies strengthened their hold on this business but despite the growth that was witnessed, insurance remained an urban phenomenon. The Government of India in 1956, brought together over 240 private life insurers and provident societies under one nationalised monopoly corporation and Life Insurance Corporation (LIC) was born. Nationalisation was justified on the grounds that it would create much needed funds for rapid industrialization. This was in conformity with the Government's chosen path of State lead planning and development. The (non-life) insurance business continued to thrive with the private sector till 1972. Their operations were restricted to organized trade and industry in large cities. The general insurance industry was nationalized in 1972. With this, nearly 107 insurers were amalgamated and grouped into four companiesNational Insurance Company, New India Assurance Company, Oriental Insurance Company and United India Insurance Company. These were subsidiaries of the General Insurance Company (GIC).

Important milestones in the life insurance business in India:
1912: The Indian Life Assurance Companies Act enacted as the first statute to regulate the life insurance business. 1928: The Indian Insurance Companies Act enacted to enable the government to collect statistical information about both life and non-life insurance businesses.

1938: Earlier legislation consolidated and amended to by the Insurance Act with the objective of protecting the interests of the insuring public.

1956: 245 Indian and foreign insurers and provident societies taken over by the central government and nationalised. LIC formed by an Act of Parliament- LIC Act 1956- with a capital contribution of Rs. 5 crore from the Government of India.

Important milestones in the general insurance business in India are:
1907: The Indian Mercantile Insurance Ltd. set up- the first company to transact all classes of general insurance business. 1957: General Insurance Council, a wing of the Insurance Association of India, frames a code of conduct for ensuring fair conduct and sound business practices. 1968: The Insurance Act amended to regulate investments and set minimum solvency margins and the Tariff Advisory Committee set up. 1972: The general insurance business in India nationalised through The General Insurance Business (Nationalisation) Act, 1972 with effect from 1st January 1973. 107 insurers amalgamated and grouped into four companiesthe National Insurance Company Limited, the New India Assurance Company Limited, the Oriental Insurance Company Ltd. and the United India Insurance Company Ltd. GIC incorporated as a company.

INSURANCE SECTORS REFORMS

In 1993, Malhotra Committee- headed by former Finance Secretary and RBI Governor R.N. Malhotra- was formed to evaluate the Indian insurance industry and recommend its future direction. The Malhotra committee was set up with the objective of complementing the reforms initiated in the financial sector. The reforms were aimed at creating a more efficient and competitive financial system suitable for the requirements of the economy keeping in mind the structural changes currently underway and recognising that insurance is an important part of the overall financial system where it was necessary to address the need for similar reforms. In 1994, the committee submitted the report and some of the key recommendations included: i) Structure Government stake in the insurance Companies to be brought down to 50%. Government should take over the holdings of GIC and its subsidiaries so that these subsidiaries can act as independent corporations. All the insurance companies should be given greater freedom to operate. ii) Competition Private Companies with a minimum paid up capital of Rs.1bn should be allowed to enter the sector. No Company should deal in both Life and General Insurance through a single entity. Foreign companies may be allowed to enter the industry in collaboration with the domestic companies. Postal Life Insurance should be allowed to operate in the rural market. Only one State Level Life Insurance Company should be allowed to operate in each state. iii) Regulatory Body The Insurance Act should be changed. An Insurance Regulatory body should be set up. Controller of Insurance- a part of the Finance Ministry- should be made independent

iv) Investments Mandatory Investments of LIC Life Fund in government securities to be reduced from 75% to 50%. GIC and its subsidiaries are not to hold more than

5% in any company (there current holdings to be brought down to this level over a period of time) v) Customer Service LIC should pay interest on delays in payments beyond 30 days. Insurance companies must be encouraged to set up unit linked pension plans. Computerisation of operations and updating of technology to be carried out in the insurance industry. The committee emphasized that in order to improve the customer services and increase the coverage of insurance policies, industry should be opened up to competition. But at the same time, the committee felt the need to exercise caution as any failure on the part of new players could ruin the public confidence in the industry. Hence, it was decided to allow competition in a limited way by stipulating the minimum capital requirement of Rs.100 Crores. The committee felt the need to provide greater autonomy to insurance companies in order to improve their performance and enable them to act as independent companies with economic motives. For this purpose, it had proposed setting up an independent regulatory body- The Insurance Regulatory and Development Authority. Reforms in the Insurance sector were initiated with the passage of the IRDA Bill in Parliament in December 1999. The IRDA since its incorporation as a statutory body in April 2000 has fastidiously stuck to its schedule of framing regulations and registering the private sector insurance companies. Since being set up as an independent statutory body the IRDA has put in a framework of globally compatible regulations. The other decision taken simultaneously to provide the supporting systems to the insurance sector and in particular the life insurance companies was the launch of the IRDA online service for issue and renewal of licenses to agents. The approval of institutions for imparting training to agents has also ensured that the insurance companies would have a trained workforce of insurance agents in place to sell their products.

THE ROLE OF INSURANCE REGULATORY AND DEVELOPMENT AUTHORITY

Insurance Regulatory and Development Authority (IRDA) was constituted in 1999 by an Act of Parliament to protect the interests of the policyholders and to regulate, promote and ensure orderly growth of the insurance industry. IRDA consists of a ten member team that comprises a Chairman, five wholetime members and four part-time members. IRDA allows registration of new players in the insurance field. It also has the authority to renew, modify, withdraw, suspend or cancel such registration. IRDA ensures protection of the interests of the policy holders in matters concerning assigning of policy, nomination by policy holders, insurable interest, settlement of insurance claim, surrender value of policy and other terms and conditions of contracts of insurance. It specifies requisite qualifications, code of conduct and practical training for intermediary or insurance intermediaries and agents. After creation of IRDA, insurance sector has seen tremendous growth. Before IRDA came into force there were only players in the insurance field, namely, Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC). Since then 23 new players have entered in the insurance sector.

MISSION OF IRDA
To protect the interests of the policyholders, to regulate, promote and ensure orderly growth of the insurance industry and for matters connected therewith or incidental thereto.

OBJECTIVES OF IRDA: Protection of consumer interest.  To ensure financial soundness of the insurance industry.  To ensure healthy growth of the insurance market.

These objectives must be achieved with minimum government involvement and cost. IRDA’s functioning can be financed by levying a small fee on the

premium income of the insurers thus putting zero cost on the government and giving itself autonomy.

CURRENT SCENARIO OF INSURANCE INDUSTRY IN INDIA
The Government of India liberalised the insurance sector in March 2000 with the passage of the Insurance Regulatory and Development Authority (IRDA) Bill, lifting all entry restrictions for private players and allowing foreign players to enter the market with some limits on direct foreign ownership. Under the current guidelines, there is a 26 percent equity cap for foreign partners in an insurance company. There is a proposal to increase this limit to 49 percent. The opening up of the sector is likely to lead to greater spread and deepening of insurance in India and this may also include restructuring and revitalizing of the public sector companies. In the private sector 12 life insurance and 8 general insurance companies have been registered. A host of private Insurance companies operating in both life and non-life segments have started selling their insurance policies since 2001. Non-Life Insurance Market In December 2000, the GIC subsidiaries were restructured as independent insurance companies. At the same time, GIC was converted into a national reinsurer. In July 2002, Parliament passed a bill, delinking the four subsidiaries from GIC. Presently there are 12 general insurance companies with 4 public sector companies and 8 private insurers. Although the public sector companies still dominate the general insurance business, the private players are slowly gaining a foothold. According to estimates, private insurance companies have a 10 percent share of the market, up from 4 percent in 2001. In the first half of 2002, the private companies booked premiums worth Rs 6.34 billion. Most of the new entrants reported losses in the first year of their operation in 2001.

With a large capital outlay and long gestation periods, infrastructure projects are fraught with a multitude of risks throughout the development, construction and operation stages. These include risks associated with project implementation, including geological risks, maintenance, commercial and

political risks. Without covering these risks the financial institutions are not willing to commit funds to the sector, especially because the financing of most private projects is on a limited or non- recourse basis. Insurance companies not only provide risk cover to infrastructure projects, they also contribute long-term funds. In fact, insurance companies are an ideal source of long term debt and equity for infrastructure projects. With long term liability, they get a good asset- liability match by investing their funds in such projects. IRDA regulations require insurance companies to invest not less than 15 percent of their funds in infrastructure and social sectors. International Insurance companies also invest their funds in such projects. Insurance costs constitute roughly around 1.2- 2 percent of the total project costs. Under the existing norms, insurance premium payments are treated as part of the fixed costs. Consequently they are treated as pass-through costs for tariff calculations. Premium rates of most general insurance policies come under the purview of the government appointed Tariff Advisory Committee. For Projects costing up to Rs 1 Billion, the Tariff Advisory Committee sets the premium rates, for Projects between Rs 1 billion and Rs 15 billion, the rates are set in keeping with the committee's guidelines; and projects above Rs 15 billion are subjected to re-insurance pricing. It is the last segment that has a number of additional products and competitive pricing. Insurance, like project finance, is extended by a consortium. Normally one insurer takes the lead, shouldering about 40-50 per cent of the risk and receiving a proportionate percentage of the premium. The other companies share the remaining risk and premium. The policies are renewed usually on an annual basis through the invitation of bids. Of late, with IPP projects fizzling out, the insurance companies are turning once again to old hands such as NTPC, NHPC and BSES for business.

Re-insurance business

Insurance companies retain only a part of the risk (less than 10 per cent) assumed by them, which can be safely borne from their own funds. The balance risk is re-insured with other insurers. In effect, therefore, re-insurance is insurer's insurance. It forms the backbone of the insurance business. It helps to provide a better spread of risk in the international market, allows primary insurers to accept risks beyond their capacity, settle accumulated losses arising from catastrophic events and still maintain their financial stability. While GIC's subsidiaries look after general insurance, GIC itself has been the major reinsurer. Currently, all insurance companies have to give 20 per cent of their reinsurance business to GIC. The aim is to ensure that GIC's role as the national reinsurer remains unhindered. However, GIC reinsures the amount further with international companies such as Swissre (Switzerland), Munichre (Germany), and Royale (UK). Reinsurance premiums have seen an exorbitant increase in recent years, following the rise in threat perceptions globally. Life Insurance Market The Life Insurance market in India is an underdeveloped market that was only tapped by the state owned LIC till the entry of private insurers. The penetration of life insurance products was 19 percent of the total 400 million of the insurable population. The state owned LIC sold insurance as a tax instrument, not as a product giving protection. Most customers were underinsured with no flexibility or transparency in the products. With the entry of the private insurers the rules of the game have changed. The 12 private insurers in the life insurance market have already grabbed nearly 9 percent of the market in terms of premium income. The new business premiums of the 12 private players has tripled to Rs 1000 crore in 2002- 03 over last year. Meanwhile, state owned LIC's new premium business has fallen.

Innovative products, smart marketing and aggressive distribution. That's the triple whammy combination that has enabled fledgling private insurance

companies to sign up Indian customers faster than anyone ever expected. Indians, who have always seen life insurance as a tax saving device, are now suddenly turning to the private sector and snapping up the new innovative products on offer. The growing popularity of the private insurers shows in other ways. They are coining money in new niches that they have introduced. The state owned companies still dominate segments like endowments and money back policies. But in the annuity or pension products business, the private insurers have already wrested over 33 percent of the market. And in the popular unitlinked insurance schemes they have a virtual monopoly, with over 90 percent of the customers. The private insurers also seem to be scoring big in other ways- they are persuading people to take out bigger policies. For instance, the average size of a life insurance policy before privatisation was around Rs 50,000. That has risen to about Rs 80,000. But the private insurers are ahead in this game and the average size of their policies is around Rs 1.1 lakh to Rs 1.2 lakh- way bigger than the industry average. Buoyed by their quicker than expected success, nearly all private insurers are fast- forwarding the second phase of their expansion plans. No doubt the aggressive stance of private insurers is already paying rich dividends. But a rejuvenated LIC is also trying to fight back to woo new customers.

THE INSURANCE SECTOR IN INDIA ACCOUNTS FOR 7% OF INDIA'S GDP
With largest number of life insurance policies in force in the world, Insurance happens to be a mega opportunity in India. It's a business growing at the rate of 15-20 per cent annually and presently is of the order of Rs 450 billion. Together with banking services, it adds about 7 per cent to the country's GDP. Gross premium collection is nearly 2 per cent of GDP and funds available with LIC for investments are 8 per cent of GDP. Yet, nearly 80 per cent of Indian population is without life insurance cover while health insurance and non-life insurance continues to be below international standards. And this part of the population is also subject to weak social security and pension systems with hardly any old age income security. This it is an indicator that growth potential for the insurance sector is immense. A well-developed and evolved insurance sector is needed for economic development as it provides long term funds for infrastructure development and at the same time strengthens the risk taking ability. It is estimated that over the next ten years India would require investments of the order of one trillion US dollar. The Insurance sector, to some extent, can enable investments in infrastructure development to sustain economic growth of the country. Insurance is a federal subject in India. There are two legislations that govern the sector- The Insurance Act- 1938 and the IRDA Act- 1999. In India, insurance is generally considered as a tax-saving device instead of its other implied long term financial benefits. Indian people are prone to investing in properties and gold followed by bank deposits. They selectively invest in shares also but the percentage is very small. Even to this day, Life Insurance Corporation of India dominates Indian insurance sector. With the entry of private sector players backed by foreign expertise, Indian insurance market has become more vibrant.

LIST OF THE PRIVATE INSURANCE COMPANIES
Name of the company Allianz Bajaj Life Insurance Co Aviva Life Insurance Birla Sun Life Insurance Co HDFC Standard Life Insurance Co ICICI Prudential Life Insurance Co ING Vysya Life Insurance Co. Life Insurance Corporation of India Max New York Life Insurance Co. MetLife Insurance Co. Om Kotak Mahindra Life Insurance Reliance insurance SBI Life Insurance Co TATA- AIG Life Insurance Company Nature of Holding Private Private Private Private Private Private Public Private Private Private Private Private Private

Besides Life Insurance, all the above mentioned companies provide coverage in Medical Insurance, Automobile Insurance, Accident Insurance, Home Insurance and many others. In short the future of insurance companies in India looks bright. All of the Above Are The Private Insurance Companies Which Are Currently Operating In India With LIFE INSURANCE CORPORATION OF INDIA (LIC) which is a Public Holding

NAME OF THE PLAYER MARKET SHARE (%)
Name of the Player LIFE INSURANCE CORPORATION OF INDIA ICICI PRUDENTIAL BIRLA SUN LIFE BAJAJ ALLIANZ SBI LIFE INSURANCE HDFC STANDARD TATA AIG MAX NEW YARK AVIVA OM KOTAK MAHINDRA ING VYSYA MET LIFE Market share (%) 82.3 5.63 2.56 2.03 1.80 1.36 1.29 0.90 0.79 0.51 0.37 0.21

APPLICATION OF INFORMATION TECHNOLOGY IN INSURANCE SECTOR

There is a evolutionary change in the technology that has revolutionized the entire insurance sector. Insurance industry is a data-rich industry, and thus, there is a need to use the data for trend analysis and personalization. With increased competition among insurers, service has become a key issue. Moreover, customers are getting increasingly sophisticated and tech-savvy. People today don’t want to accept the current value propositions, they want personalized interactions and they look for more and more features and add ones and better service The insurance companies today must meet the need of the hour for more and more personalized approach for handling the customer. Today managing the customer intelligently is very critical for the insurer especially in the very competitive environment. Companies need to apply different set of rules and treatment strategies to different customer segments. However, to personalize interactions, insurers are required to capture customer information in an integrated system. With the explosion of Website and greater access to direct product or policy information, there is a need to developing better techniques to give customers a truly personalized experience. Personalization helps organizations to reach their customers with more impact and to generate new revenue through cross selling and up selling activities. To ensure that the customers are receiving personalized information, many organizations are incorporating knowledge database-repositories of content that typically include a search engine and lets the customers locate the all document and information related to their queries of request for services. Customers can hereby use the knowledge database to mange their products or the company information and invoices, claim records, and histories of the service inquiry. These products also may be able to learn from the customer’s previous knowledge database and to use their information when determining the relevance to the customers search request.

THE ROLE OF LIFE INSURANCE IN ONE’S LIFE
Risks and uncertainties are part of life's great adventure -- accident, illness, theft, natural disaster - they're all built into the working of the Universe, waiting to happen.

Life insurance is a unique financial product. In some respect, it is an oxymoron in that it deals scientifically and precisely with variables that are emotional and, within the context of our own individual lives, completely unpredictable. Perhaps the most important factor about life insurance is simply that it works. Since the 1850s, when the modern life insurance policy was created, insurance companies have consistently kept their contractual “promise to pay”. This in turn has made it possible for millions of men and women in this country to keep their promises to their families, building a plan of financial security on the foundation of life insurance protection.

INSURANCE AS AN INVESTMENT
Insurance is an attractive option for investment. While most people recognize the risk hedging and tax saving potential of insurance, many are not aware of its advantages as an investment option as well. Insurance products yield more compared to regular investment options, and this is besides the added incentives (read bonuses) offered by insurers. You cannot compare an insurance product with other investment schemes for the simple reason that it offers financial protection from risks, something that is missing in non-insurance products. In fact, the premium you pay for an insurance policy is an investment against risk. Thus, before comparing with other schemes, you must accept that a part of the total amount invested in life insurance goes towards providing for the risk cover, while the rest is used for savings.

In life insurance, unlike non-life products, you get maturity benefits on survival at the end of the term. In other words, if you take a life insurance policy for 20 years and survive the term, the amount invested as premium in the policy will come back to you with added returns. In the unfortunate event of death within the tenure of the policy, the family of the deceased will receive the sum assured.

Now, let us compare insurance as an investment options. If you invest Rs 10,000 in PPF, your money grows to Rs 10,950 at 9.5 per cent interest over a year. But in this case, the access to your funds will be limited. One can withdraw 50 per cent of the initial deposit only after 4 years. The same amount of Rs 10,000 can give you an insurance cover of up to approximately Rs 5-12 lakh (depending upon the plan, age and medical condition of the life insured, etc) and this amount can become immediately available to the nominee of the policyholder on death. Thus insurance is a unique investment avenue that delivers sound returns in addition to protection.

INSURANCE AS RISK COVERAGE
First and foremost, insurance is about risk cover and protection - financial protection, to be more precise - to help outlast life's unpredictable losses. Designed to safeguard against losses suffered on account of any unforeseen event, insurance provides you with that unique sense of security that no other form of investment provides. By buying life insurance, you buy peace of mind and are prepared to face any financial demand that would hit the family in case of an untimely demise. To provide such protection, insurance firms collect contributions from many people who face the same risk. A loss claim is paid out of the total premium collected by the insurance companies, who act as trustees to the monies.

Insurance also provides a safeguard in the case of accidents or a drop in income after retirement. An accident or disability can be devastating, and an insurance policy can lend timely support to the family in such times. It also comes as a great help when you retire, in case no untoward incident happens during the term of the policy.

With the entry of private sector players in insurance, you have a wide range of products and services to choose from. Further, many of these can be further customized to fit individual/group specific needs. Considering the amount you have to pay now, it's worth buying some extra sleep.

INSURANCE AS A TAX PLANNING
Insurance serves as an excellent tax saving mechanism too. The Government of India has offered tax incentives to life insurance products in order to facilitate the flow of funds into productive assets. Under Section 88 of Income Tax Act 1961, an individual is entitled to a rebate of 20 per cent on the annual premium payable on his/her life and life of his/her children or adult children. The rebate is deductible from tax payable by the individual or a Hindu Undivided Family. This rebate is can be availed upto a maximum of Rs 12,000 on payment of yearly premium of Rs 60,000. By paying Rs 60,000 a year, you can buy anything upwards of Rs 10 lakh in sum assured. (depending upon the age of the insured and term of the policy) This means that you get a Rs 12,000 tax benefit. The rebate is deductible from the tax payable by an individual or a Hindu Undivided Family.

INSURANCE DISTRIBUTION CHANNELS
At present the distribution channels that are being utilized are:

• • • • •

Direct selling Corporate agents i.e. pushing the insurance product through the directors or partners of a company Group selling Worksite marketing Brokers and cooperative societies

To this list can be added the number of alternate delivery channel The Insurance industry in India has been progressing at a rapid pace since opening up of the industry in 2000. As per Assocham, India’s premier apex chamber of industries, the country’s domestic insurance market would touch around US$ 60.5 Billion by the year 2010 from existing size of about US$ 10.2 Billion. According to the Insurance Regulatory and Development Authority (“IRDA”), new business premium income from April 2006 to February 2007 amounted to INR579.38 billion (US$13.18 billion), registering an impressive 120% growth over the same period last year. The Insurance industry graph is definitely ascending. Distribution accounts for the largest element in insurer are cost and affect profitability. The size of the country combined with problems of connectivity in the rural areas, makes insurance selling in India a difficult proposition. The distribution capabilities strongly influence product design in insurance. The distribution channels have a direct impact on the insurer’s market image. Emergence of alternative channels such as Bancassurance and Internet is reshaping the insurance industry. India with a population of more than a billion people offers unlimited growth potential especially in the rural areas.

THE EMERGENCE OF NEW DISTRIBUTION CHANNELS
There was a time when captive agents wrote the bulk of an insurance company’s business. But increasingly people are buying insurance products from independent producers and institutional channels such as banks, broker-

dealers, IFAs and wire houses. In a way, this is good news for insurance companies. Managing a captive agency force is an expensive business. Studies estimate that insurance companies invest anywhere between $65,000 and $200,000 in training each agent. This investment often does not deliver the desired return because there is a great deal of attrition among agents. Besides training, there are huge operational overheads attached to maintaining a captive force. Independent producers and institutional channels are likely to bring new efficiencies into the distribution framework and corner a larger percentage of the policies written. For instance, banks and large broker-dealers already have huge networks in place, existing relationships with customers and brand equity. If insurance companies are able to position themselves as preferred partners with these channels, they could quickly increase their market share and at the same time bring down their cost per business acquisition

THE CONSUMER IS EVOLVING AND SO ARE HIS NEEDS:
The way consumers look at insurance products today is completely different from how they looked at them a few years ago. Insurance products are no longer about just covering risks and lives. Since the 1980s insurance in many markets has increasingly become a wealth-management product. Consumers are seeking variety and customizability in their investment portfolios. The demographics are also in favor of insurance companies. The average lifespan is increasing and so are standards of living. This is creating demand for products that not only offer protection but also double up as investments. Insurance companies have an opportunity to bring innovation into their product mix.

They can gain a competitive advantage by quickly launching innovative products that are aligned with evolving consumer needs. To do this, insurance companies must be able to understand consumer needs better and have agile systems that let them launch products quickly. To capitalize on these opportunities, however, insurance companies must get closer to the customer by expanding their distribution network. They have to

incorporate new and alternative channels, arm the sales forces with effective sales tools and position themselves as preferred partners with their channels. In most markets, except Asia, insurance carriers generate more than 80% of their business through alternative distribution channels such as bancassurance, broker-dealers, wire houses and IFAs. The key challenge for insurers is to attract and retain these distribution channels by: • Making it easy for channels to do business with them • Providing good and quick underwriting support • Delivering differentiated service to top performers • Providing proactive service • Launching incentive plans and contests • Managing commissions in a more efficient manner In a marketplace where products are increasingly becoming commoditized, the big differentiator that insurers can offer their channels is ease of doing business. Insurance companies can position themselves as preferred providers by delivering on key areas such as: • New business and underwriting support • Marketing and sales support • Underwriting speed • Client services • Commission rate In this white paper, we will look at how insurance companies can streamline their distribution networks, address the business and technological challenges and capitalize on the opportunities.

To sum up, it is apparent that multiple distribution channels will help an insurance company to offer a range of contact points to the customer, thereby increasing the chances of success. However, along with these distribution channels comes the challenge of 'relationship management'. Since most of the

new channels involve collaboration with various entities whose demands and powers of negotiation are varied, it requires delicate skills on the part of the insurance company to manage these relationships. Effective management of channel conflict, and curtailing the costs of distribution will be of utmost importance.

Agent

Insurance Company

Agent

Agent

Agent

C U S T

Insurance Company Broker

O M E R S

Insurance Company

Bank

INSURANCE SECTOR POISED FOR 200% GROWTH TO TOUCH RS. 2000 BLN BY 2010:
Indian insurance sector is likely to register unprecedented growth of 200% and attain a size of Rs. 2000 billion by 2009-10, in which a private sector insurance business will achieve a growth rate of 140% as a result of

aggressive marketing technique being adopted by them against 35-40% growth rate of state owned insurance companies. The aforesaid findings are made by The Associated Chambers of Commerce and Industry of India (ASSOCHAM) on `Insurance in Next 2 Years’, saying that in the last couple of years, the insurance sector has grown by CAGR of around 175% and the trend will emerge still better because of potential factor. Currently, the insurance sector size is estimated at Rs.500 billion. Releasing the ASSOCHAM findings, its President, Mr. Venugopal N. Dhoot said that on account of intense marketing strategies adopted by private insurance players, the market share of state owned insurance companies like GIC, LIC and others have come down to 70% in last 4-5 years from over 97%. The private insurance players despite the sector is still regulated has been offering rate of return (RoR) to its policy holders which is estimated at about 35% as against 20% of domestic insurance companies. This factor is mainly responsible for hike in private insurance market share which will grow further which is why the ASSOCHAM estimates that its growth rate could even exceed 140%. Secondly, the state owned insurance companies such as LIC and GIC have limited number of policies to offer to their subscribers while in case of private insurance companies, their policy numbers are many more and the premium amount as well as the maturity period is much competitive as against those of government insurance companies. Interestingly, said Mr. Dhoot that the private sector insurance players have started exploring the rural markets in which until recently, the state owned companies had the monopoly.

The Chamber has projected that in rural markets, the share of private insurance players would increase substantially as these have been able to generate a faith among their rural consumers. Estimating the potential of the Indian insurance market from the perspective of macro-economic variables such as the ratio of premium to GDP,

ASSOCHAM reveals that India’s life insurance premium, as a percentage of GDP is 1.8% against 5.2% in the US, 6.5% in the UK or 8% in South Korea. ASSOCHAM findings further reveal that in the coming years, the corporate segment, as a whole will not be a big growth area for insurance companies. This is because penetration is already good and companies receive good services. In both volumes and profitability therefore, the scope for expansion is modest. The Chamber has suggested that insurer’s strategy should be to stimulate demand in areas that are currently not served at all. Insurance companies mostly focus on manufacturing sector, however, the services sector is taking a large and growing share of India’s GDP. This offers immense opportunities for expansion opportunities. To understand the prospects for insurance companies in rural India, it is very important to understand the requirements of India's villagers, their daily lives, their peculiar needs and their occupational structures. There are farmers, craftsmen, milkmen, weavers, casual labourers, construction workers and shopkeepers and so on. More often than not, they are into more than one profession. The rural market offers tremendous growth opportunities for insurance companies and insurers should develop viable and cost-effective distribution channels; build consumer awareness and confidence. The ASSOCHAM found that there are a total 124 million rural households. Nearly 20% of all farmers in rural India own a Kissan Credit cards. The 25 million credit cards used till date offer a huge data base and opportunity for insurance companies. An extensive rural agent network for sale of insurance products could be established. The agent can play a major role in creating awareness, motivating purchase and rendering insurance services. There should be nothing to stop insurance companies from trying to pursue their own unique policies and target whatever needs that they want to target in rural India. ASSOCHAM suggests that insurance needs to be packaged in such a form that it appears as an acceptable investment to the rural people.

Insurance Sector In India Poised For Tremendous Expansion
Insurance Sector in India is poised for tremendous expansion said Shri Pawan Kumar Bansal, the Minister of State for Finance while addressing a meeting of Insurance Australia Group on 21st September 2007 in Sydney. Shri Bansal said the banks also have entered the insurance sector in the form of corporate

agencies or under referral arrangements to utilize the extensive and broad reach for marketing of insurance products. IRDA has also notified Micro Insurance regulations facilitating insurers to tap the potential of rural markets. As per these regulations like Non-Government Organizations (NGO), Micro Finance Institutions (MFI) and Self Help Groups (SHG) have been recognized as micro insurance agents. It is envisaged that micro insurance would facilitate penetration of insurance to rural and remote areas. He said that Micro Insurance being an integral part of overall insurance system, attempts to offer the target specific insurance products at a relatively lower cost, for a lower coverage of amount. Foreign equity upto 26% is allowed in the insurance sector. The entry of foreign partners has resulted in the sector attracting FDI of US 543 million as on 31 st March, 2007. The private companies have created a niche for themselves. They have been able to increase their share in the insurance market in competition with their counterparts in the public sector. As a part of the reform process, premium rates for non-life insurance products have been de-tariffed from 1.1.2007. Shri Bansal said that in insurance sector though the growth in recent years has been significant, India is far behind the world averages and ranks 78th in terms of insurance density and 54 th in terms of insurance penetration. The world averages are US $ 469.6 in terms of insurance density and 8.06% in terms of insurance penetration. Against this, insurance density was US$ 19.70 and insurance penetration was 3.17% in India for the year 2003. However, these two indices have increased following the opening of this sector.

Insurance Regulatory and Development Authority has granted registration to 37 insurance companies, which include 17 life insurance (including on PSU), 19 non-life insurance (including four PSU, one AICL & one ECGC) companies and one re-insurance company. At present seventeen insurance companies are operating in the general insurance side and seventeen Insurance companies on the life side

According to Shri Bansal, India offers a stable investment climate as well as a huge market with a growing middle class. Investor confidence in India is at an all time high today. A.T. Kearney in 'The FDI Confidence Index 2005' has ranked India as the 2nd most attractive investment destination just behind China whereas 'World Investment Report, 2005' ranked India as the 2nd most attractive investment destination among Transnational corporations, he added FDI is now permitted in 21 activities through the auto-route. These include FDI in development of township, housing, built-up infrastructure and construction development projects, exploration and mining of diamonds and precious stones and insurance.

SWOT ANALYSIS OF INSURANCE INDUSTRY
Strengths:  Premium rates are increasing and so are commissions.  The variety of products is increasing.  Prospects expect more services from their brokers. Weaknesses  Insurance companies are often slow to respond to changing needs.  There is an increasing trend of financial weakness among the companies.  There are more competitors for agencies to compete with banks and Internet players. Opportunities  The ability to cross sell financial services is barely being tapped.  Technology is improving to the point that paperless transactions are available.  The client's increasing need for an "insurance consultant" can open new ways to service the client Threats .

The increasing cost and need for insurance might hit a point where a backlash will occur. Government regulations on issues like health care, mold and terrorism can quickly change the direction of the insurance Increasing expenses and lower profit margins will hit hard on the smaller agencies and insurance companies.

PORTERS’ FIVE FORCE
THREAT OF ENTRANTS 1. Economies of scale: Economies of scale don’t work here. As result of that there is no company which can dominate the other very much. So there is always a very heavy threat of new entrants in insurance industry. 2. Working Capital Requirement This is sector which has a very high competition and hence there is need of huge working capital to enter into this market. Also the company needs a lot of money for its day to day expenses. Hence in terms of working capital the threat of new entrants is very low. That is why we can see that generally big companies are coming into this industry. 3. Proprietary Product Difference There doesn’t seem to be too difference between the product differences between the companies. Normally the companies are coming out with the similar kind of product. There is near universalisation of the products. So there is a high threat of new entrants. 4. Absolute Cost Advantage In terms of absolute cost advantage if we asses we can see that there isn’t much cost advantage for any player in the market. LIC although has some product which cost lower and hence the company is getting a base in the lower segment but that doesn’t seem such significant .So the threat of new entrant is very high.

5. Brand Identity There is a place of brand reputation in this industry. LIC has over the years established a brand name for itself and the people especially n the rural area believes in the brand name. Through years of strong marketing and promotion the company has been able to establish a brand name for themselves. So in this area the threat of brand name is very low.

SUPPLIER POWER This is a finance sector where there is no role of supplier and hence the company doesn’t face any problem from supplier side BUYERS’ POWER 1. Buyers’ Concentration In this industry buyers are the most important force and the managers have to constantly reach out to the customer and hence a complete customization of the product is going on. So the companies have to look at their potential market and hence they have to go for a complete segmentation of the market and target different market. On the basis of the segmentation made the company has to place the product in those areas. 2. Buyers’ Switching Cost This a field where a customer buys an product he has to stay associated with company for a long period of time and pay the premium to the company in certain interval. Hence big amount of money is associated with buying of any product. So the buyer switching cost is very high. 3. Buyer Information The buyers possess very strong information about the insurance products. The agents are the main source of information provider of the products to the customer. Through internet, newspapers also the information about insurance is available. So the customers are not ignorant about the

industry anymore. So the buyers again prove to be very strong in this field. 4. Brand Identity of Buyers The customers have different perception about different companies in the market. LIC is normally associated safe, secured and highly reliable company. The private players are normally preferred as they give higher returns, so it is mostly preferred for investment. LIC is preferred by the lower earning people and also the government employees have high faith on it. Whereas mostly the rich people especially the business class people and the corporate sector people prefer the private companies.

5. Price Sensitivity Price is something which is very important factor in the case of Indian customers. People generally believe that LIC is the company which gives a reliable service at low price. But in the higher segment the people don’t look for money rather they look for faster growth and started to believe in the private companies. Here again the customer has vital role to play. SUBSTITUE PRODUCT Substitute products are those which fulfill the similar needs as any other product. Here there is lot of substitute product for the product in insurance companies. But there are also substitute for the product of the insurance industry. Those are the mutual fund, direct investment I equity market, the banks and also the bank assurance. Although some industry cannot fulfill the need of security of life but as many people are now looking for investment these industries become a good substitute. RELATIVE PRICE/PERFORMANCE RELATIONSHIP OF SUBSTITUTES Although the insurance is very god option at the same price one can afford to invest in the mutual fund or bank assurance and can get the similar returns. So the threat becomes very high to the insurance industry. RIVALRY

The industry is very much dominated by the LIC. But in the last 10 years scenario has changed a lot and the private players have ate up quarter of the pie. The rivalry in the rural is not very high but in the urban market competition has really intensified. So the market share is getting distributed among the companies

COMPANY PROFILE

ABOUT THE LIFE INSURANCE COMPANY – METLIFE
MetLife Insurance Company is ranked 37 on the Fortune 500®.The MetLife companies are one of the world's largest, strongest and most respected financial organizations. MetLife India Insurance Company Limited (MetLife) is an affiliate of MetLife, Inc. and was incorporated as a joint venture between MetLife International Holdings, Inc., The Jammu and Kashmir Bank,Punjab National Bank and other private investors. MetLife is one of the fastest growing life insurance companies in the country. It serves its customers by offering a range of innovative products to individuals and group customers at more than 850 locations through its bank partners and company-owned offices. MetLife has more than 1,32,000 Financial Advisors, who help customers meet their financial and protection goals across the length and breadth of the country. For more information about MetLife, please visit the company’s website at www.metlife.co.in. MetLife, Inc., through its affiliates, serves approximately 80 million customers in the Americas, Asia Pacific and Europe. Affiliated companies, outside of India, include the number one life insurer in the United States, with over 143 years of experience and relationships with over 90 of the top one hundred FORTUNE 500®1 companies. The MetLife companies offer life insurance, annuities, automobile and home insurance, retail banking and other financial services to individuals, as well as group insurance, reinsurance and retirement and savings products and services to corporations and other institutions.

MISSION:Build financial freedom for all through leadership in providing financial advice and building long-term relationships through innovative protection, accumulation and retirement products, robust underwriting processes and creating world-class customer service experience for our customers. We want to provide customers in India with world-class solutions for financial security, and in the process add significant value to our shareholders, associates and society

VALUES:We lead through Innovation to offer world class and competitive products to our customers. We build Long Term Relationships with our customers by creating a world class service experience through operational excellence and the innovative use of We create a Customer Centered and Result Focused Vision that inspires each one of our Associates and has their buy-in technology We are committed to creating a High Performance Organization by creating an environment that allows each one of our Associates to perform at their peak. As a result we will also be recognized as an Employer of Choice We are committed to Partnering with our internal and external Customers for mutual success We work with Integrity, Fairness and Financial Prudence in all our dealings keeping the interests of our Shareholders, Customers and Associates paramount. CORPORATE PARTNERS:As the vital channel for MetLife’s products, they have chosen some exemplary banks and financial institutions. These will serve as the interface between the customers and themselves to aid them understand the unique

needs and aspirations of every Indian. And update their products with features that form the cornerstones of financial freedom. These are the list of corporate partners who have tied up their functionality with Met life India insurance. The Jammu and Kashmir Bank Axis Bank Dhanalakshmi Bank Karnataka Bank Karvy Consultants Limited Geojit Securities Way2wealth Consultancy Mini Muthoottu Bank

PRODUCT DETAILS
No one can give you all the answers when it comes to dealing with life's ups and downs. But we can certainly equip you to deal with life better. Please find below the various products offered by MetLife to suit your specific need:
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Accumulation • Whole Life Policy • Met 100- Limited Pay Whole life Non - Participating • Met 100- Limited Pay Whole life Participating • Endowment Policy • MET Suvidha • MET saral • Money Back Policy • Met Sukh • Met Bhavishya Multi Purpose • Met Platinum Protection • Met Suraksha - TROP • Met Suraksha - TA • Met-Mortgage Protector SP/Limited pay(MRTA) Retirement • MET Pension - Participating Deferred Annuity Add Ons • Accidental Death Benefit (ADB) • Term Rider • Waiver Of Premium • Critical Illness

The various products offered by MetLife are:-

Accumulation
Worldwide, accumulation products help our customers invest wisely and enjoy benefits during those important phases of life – be it their children’s education, marriage or buying a house. In addition to providing risk coverage. MetLife's accumulation products are ideal for those who like to avail of life cover as well as investment benefits. The following policies are available under the accumulation plans:

Whole Life PolicyAs the most basic forms of Insurance, Whole Life Policy gives you cover of protection as long as you live. As the inevitable happens, your near and dear ones get to enjoy the sum assured. In a Whole Life Policy, you pay the same amount in premiums throughout the term of the contract. Some Whole Life Policies let you pay premiums for a shorter period such as 15, 20 or 25 years, but give your protection cover for longer than this period. However, with these policies, you might have to pay a higher premium since the payments are made during a shorter period. MET 100 (Non Participating Limited Pay Whole Life) Suitability The plan is suitable for those who
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Want life time protection Want to pay affordable premium Want access to the cash value of the policy Want tax advantages

Salient Features
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MET 100 is a Whole Life plan. Duration of the plan is for entire life or till 100 years of age. Premiums cease at death or on expiry of the premium paying term whichever is earlier.

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This plan can be availed for terms 15, 20 or 25 years. The plan is a Non Participating one and hence all Premium rates, Sum Assured, Surrender Values and Paid up Values are guaranteed upfront. If premiums have been paid for at least 3 years then the Policy acquires a Guaranteed Surrender Value, which can be surrendered for cash for its full Guaranteed Surrender Value. Loan can be availed under the policy provided the policy is kept in force for 3 years (90% of the guaranteed surrender value can be taken as loan on approval).

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The policyholder has the option of converting the policy into a paid-up policy whereby the policy can be kept in force by reducing the face amount in accordance with the premiums paid. The Premium modes available are: Annual, Semi-Annual, Quarterly, Monthly and Payroll Savings Program (PSP).

Benefits On Survival
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Guaranteed Sum Assured at age 100.

On Death
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During the Term of the plan, Nominee / Beneficiary shall receive the Guaranteed Sum Assured on death.

Additional Riders On Payment of additional premiums any one or more of the following riders can be added to this Policy.
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Accidental Death Benefit Rider Term Rider Waiver of Premium Rider Critical Illness Rider

Other Conditions
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Minimum Entry age: Age 0 last birthday. Maximum Entry age: Age 70 last birthday for PPT of 15 years. Age 65 last birthday for PPT of 20 years. Age 60 last birthday for PPT of 25 years. Minimum Face Amount: Rs. 50,000. Maximum Face Amount: No Limit Minimum premium Amount: Annualized premium of Rs. 2,500 (not inclusive of the Rider Premium)

for issue ages 15 and above. Annualized premium of Rs. 1,000 (not inclusive of the Rider Premium) for issue ages under 15. Exclusions
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In the event the Insured commits suicide, whether sane or insane at that time, within one year from the effective date of insurance cover or the date of the Policy or the date of the last reinstatement whichever is later, the benefit is restricted to the extent of refunding the premium(s) received without interest, if any, less any expenses incurred by us.

Indicative Rates (These are just indicative, please refer to our Premium calculator or contact our FA to get the exact rates.) Face Amount: Rs 5,00,000 MET 100 Age/PPT 15 25 35 45 7,670 9,655 20 6,500 8,205 25 5,900 7,475

13,860 11,880 10,915

Illustration To get you a better picture of the Met 100, one should go through this example. Ajay is 27 years and works for a software company in Bangalore. He was recently married to Sangeeta. Ajay gets the Met 100 Limited pay version paying a premium of Rs.6765 for 20 years. The sum assured to Ajay would be Rs.5,00,000. In addition to this, Ajay’s policy has a critical illness rider

added on for 2,00,000 that protects him against 10 critical illnesses. For this he would be paying a premium of a mere additional Rs. 744 a year. Annual Premiums paid by Ajay Critical illness rider Total Yearly premium paid by Ajay Rs 6,765 Rs 744

Rs 7,509

What this means is for a mere Rs.7509 per year, Ajay has a Life Assured sum of Rs.5 lakhs. In case of the sudden unfortunate demise of Ajay, his family will receive a sum assured of Rs. 5,00,000. In case Ajay develops one of those 10 critical illnesses within 60 years of age, Rs. 2,00,000 will be paid to the family for hospital and other expenses. And the policy will still be in force even post the pay out of Rs 2,00,000. MET 100 Gold (Participating Limited Pay Whole Life) Suitability The plan is suitable for those who
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Want to share the future prosperity of the company by getting reversionary and terminal bonuses Want life time protection Want to pay affordable premium Want access to the cash value of the policy Want tax advantages

Salient Features
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MET 100 Gold (Par WL) is a Whole Life plan. Duration of the plan is for entire life or till 100 years of age. Premiums cease on death or on expiry of the premium paying term whichever is earlier. This plan can be availed for terms 15, 20, 25 years or Life (Age 85 minus Age at entry). The plan is a Participating one

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No Bonus is payable for first two policy years. Thereafter a bonus as declared by the company will be credited as reversionary bonus on the policy anniversary. Company may also declare terminal bonus.  Reversionary Bonus: The bonus would be a % of basic face amount plus accrued reversionary bonus, if any.  Terminal Bonus: if any, would be a % of accrued reversionary bonus, which becomes payable on maturity or on death if it occurs after 10th policy anniversary.  The participation in profit under this policy continues even after premium paying term, provided premiums have been paid for full term.  Both Reversionary and Terminal Bonus are not guaranteed. If premiums have been paid for at least 3 years then the Policy acquires a Cash Surrender Value, which shall be determined by the company from time to time. This cash surrender value will not be below the Guaranteed Cash Surrender value which is calculated as 30% of the total premiums paid up to the date of surrender excluding the first year premium and any extra premium. Loan can be availed under the policy provided the policy is kept in force for 3 years (90% of the cash surrender value can be taken as loan on approval). The policyholder has the option of converting the policy into a Non – Participating paid-up policy whereby the policy can be kept in force by reducing the face amount in accordance with the premiums paid. The Premium modes available are: Annual, Semi-Annual, Quarterly, Monthly and Payroll Savings Program (PSP).
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Benefits On Survival
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The Face Amount plus accrued Reversionary bonus plus Terminal bonus, if any, is payable upon survival to Age 100.

On Death

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The Face Amount plus accrued Reversionary bonus plus Terminal bonus, if any, is payable upon death prior to Age 100.

Additional Riders On Payment of additional premiums any one or more of the following riders can be added to this Policy.
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Accidental Death Benefit Rider Term Rider Waiver of Premium Rider Critical Illness Rider

Other Conditions
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Minimum Entry age: Age 15 last birthday. Maximum Entry age: Age 70 last birthday for term of Age 65 last birthday for term of 20 Age 60 last birthday for term of 25 Age 70 last birthday for Life-PPT policy Minimum Face Amount: Rs. 50,000. Maximum Face Amount: Rs. 499,000. Minimum premium Amount: Annualized premium of Rs. inclusive of the Rider Premium).

15 years. years. years.

2,500 (not

Exclusions
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In the event the Insured commits suicide, whether sane or insane at that time, within one year from the effective date of insurance cover or the date of the Policy or the date of the last reinstatement whichever is later, the benefit is restricted to the extent of refunding

the premium(s) received without interest, if any, less any expenses incurred by us. Indicative Rates (These are just indicative, please refer to our Premium calculator or contact our FA to get the exact rates.) Face Amount: Rs 1,00,000

MET 100 Gold (Par WL) Age/PPT 15 25 35 45 Illustration Mr.Tijori is 27 years old and works for a Courier Company in Bangalore. He recently married Sudipta. Mr. Tijori buys a Met 100 Gold Par at a premium paying term of 20 years. He has a sum assured of Rs.3,00,000 at an yearly premium of Rs.7,404 and a critical illness rider for Rs.2,00,000 that protects him against 10 critical illnesses at an additional premium of just Rs.744 per year. Annual Premiums paid by Tijori Critical illness rider Total Yearly premium Rs 7,404 Rs 744 20 25 Life

2806 2333 2073 1740 3715 3072 2765 2391 5073 4231 3843 3502

Rs 8,148

In case of the sudden unfortunate demise of Mr. Tijori, his family will receive a sum assured of Rs 3,00,000. In case Mr. Tijori is diagnosed with 10 critical illness till the age of 60, Rs 2,00,000 will be paid to his family for hospital and other expenses. The policy will still be in force post the pay out of Rs 2,00,000.

Endowment Policy
As the most popular of all policies, Endowment gives you the right mixture of risk coverage and returns on investment. With an Endowment policy, you can get the sum assured along with bonus (applicable in case of participating) accumulated at the end of the term of the policy. Unlike the Whole Life Policy, the Endowment policies cover the risk on life of the Insured (usually

the breadwinner) till the time the children grow up and are settled. By that time you could plan your policy to mature and can enjoy the accumulated benefits in your own lifetime. MET Suvidha (Participating Endowment Assurance) Suitability The plan is suitable for those who
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Want the saving and security in one policy. Want to share the future prosperity of the company by getting reversionary and terminal bonuses. Want protection. Irregular or shorter income earning spans. Want tax advantages.

Salient Features
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Choose any term between 15 - 30 year i.e for terms 15, 16, 17, 18…30 years. Choose from various premium paying term namely single, limited (5 year and 10 years) and regular pay. Avail Tax Benefits under Income tax act 1961. The plan is a Participating one.  No Bonus is payable for first two policy years. Thereafter a bonus as declared by the company will be credited as reversionary bonus on the policy anniversary. Company may also declare terminal bonus.

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Reversionary Bonus: It is an insurance amount in addition to the face amount. If declared and vested, the reversionary bonus is payable, together with the face amount, on death of the insured person or maturity of the policy. The bonus will be credited at rates as declared by the company, on the policy anniversary.

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Terminal Bonus: if any, would be a % of accrued reversionary bonus, which becomes payable on maturity or on death, if it occurs after the 10th policy anniversary. Both Reversionary and Terminal Bonus are not guaranteed as they are based on the company's actual investment returns, mortality, persistency and expense experience.

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GSV for Regular Pay and Limited Pay: Guaranteed cash surrender value calculated as 30% of the total premiums paid until the date of surrender, excluding the first year premium and any extra premium, if all premiums have been paid for at least 3 full years and/or the policy had been in force for 3 full years GSV for Single Pay: The guaranteed surrender value would be payable from end of 2nd year onwards and would be equal to 90% of the premium paid, excluding any extra premium. Loan can be availed under the policy provided the policy is kept in force for 3 years (90% of cash Surrender Value at the end of the relevant policy year less any unpaid premiums for that year and loan interest accrued to the end of that year can be taken as loan on approval). The Premium modes available are: Annual, Semi-Annual, Quarterly, Monthly and Payroll Savings Program (PSP).

The following are the brands available for Met Suvidha Par: Band Silver Gold Minimum Amount Maximum Amount Rs 75,000 Rs 225,000 Rs 224,999 Rs 349,999 No Limit

Platinum Rs 250,000

Sameer is 30 years old and works as an Area Sales Manger in a FMCG company. He buys a 20 year term Met Suvidha par endowment assurance plan from MetLife India Insurance for a sum assured of Rs 5,00,000. He pays an annual premium of Rs 21,685/-. The beneficiary of the policy is his wife Meera.

Total Yearly premium Amount available upon maturity

Rs 21,685 Rs 5,00,000

In case of the unfortunate demise of Vijay during the term of the policy, Meera (beneficiary) will receive the sum assured of Rs 5,00,000. At the end of the term of the policy term Vijay will receive Rs 5,00,000 . Benefits On Maturity
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The Face Amount plus accrued Reversionary bonus at rates as declared by the company plus Terminal bonus, if any, is payable upon survival to maturity age.

On Death
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The Face Amount plus accrued Reversionary bonus at rates as declared by the company plus Terminal bonus, if any, is payable upon death during the policy term.

Other Conditions
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Minimum Entry age: Age 15 years last birthday Maximum Entry age: Age 60 years last birthday Maximum Maturity Age: Age 75 years last birthday Minimum Face amount: Rs. 75,000 Maximum Face amount: No Limit Minimum premium Amount: Annualized premium of Rs. 2,500 (not inclusive of the Rider Premium)

Exclusions
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In the event of the Insured committing suicide, whether sane or insane at that time, within one year from the effective date of insurance cover or the date of the Policy or the date of the last reinstatement whichever is later, the benefit is restricted to the extent of refunding the

premium(s) received without interest, if any, less any expenses incurred by us. MET Suvidha (Non Participating Endowment Assurance) Suitability The plan is suitable for those who
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Want the saving and security in one policy. Want protection. Irregular or shorter income earning spans. Want tax advantages.

Salient Features
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Choose any term between 5 - 30 year i.e for terms 5, 6, 7, 8…30 years. Choose from various premium paying term namely single, limited (5 year and 10 years) and regular pay. Avail Tax Benefits under Income tax act 1961. GSV for Regular Pay and Limited Pay: Guaranteed cash surrender value calculated as 30% of the total premiums paid until the date of surrender, excluding the first year premium and any extra premium, if all premiums have been paid for at least 3 full years and/or the policy had been in force for 3 full years GSV for Single Pay: The guaranteed surrender value would be payable from end of 2nd year onwards and would be equal to 90% of the premium paid, excluding any extra premium. Loan can be availed under the policy provided the policy is kept in force for 3 years (90% of cash Surrender Value at the end of the relevant policy year less any unpaid premiums for that year and loan interest accrued to the end of that year can be taken as loan on approval).

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The Premium modes available are: Annual, Semi-Annual, Quarterly, Monthly and Payroll Savings Program (PSP).

The following are the brands available for Met Suvidha Non-Par:

Band Silver Gold

Minimum Amount Maximum Amount Rs 75,000 Rs 225,000 Rs 224,999 Rs 349,999 No Limit

Platinum Rs 350,000 Illustration

Vijay is 32 and works as a brand manager in a FMCG company. He buys a 10 year term Met Suvidha endowment assurance plan from MetLife India Insurance for a sum assured of Rs.5,00,000. He pays an annual premium of Rs.42,440. The beneficiary of the policy is his wife Meera. Annual Premiums paid by Vijay Total Yearly premium Amount available upon maturity Rs 42,440 Rs 21,685 Rs 5,00,000

In case of the unfortunate demise of Vijay during the term of the policy, Meera (beneficiary) will receive the sum assured of Rs.5,00,000. At the end of the term of the policy term Vijay will receive Rs.5,00,000 Benefits On Maturity
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On the maturity of the Policy holder the 100% face amount is payable

On Death
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The 100% of the Face Amount is payable upon death during the policy term.

Other Conditions
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Minimum Entry age: Age 15 years last birthday Maximum Entry age: Age 60 years last birthday Maximum Maturity Age: Age 75 years last birthday

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Minimum Face amount: Rs. 75,000 Maximum Face amount: No Limit Minimum premium Amount: Annualized premium of Rs. 2,500

Exclusions
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In the event of the Insured committing suicide, whether sane or insane at that time, within one year from the effective date of insurance cover or the date of the Policy or the date of the last reinstatement whichever is later, the benefit is restricted to the extent of refunding the premium(s) received without interest, if any, less any expenses incurred by us.

Met Saral
Introduction The easiest way to ensure that you become a Lakhpati! The process has been made so simple No medical check and sign a simplified application form and insurance cum investment plan is yours. Just need to write us a cheque and fill the application so we can begin your insurance policy . The term offers you quick return options - 5 year term and 10 year term plan, at the end of which you receive the sum assured as a lump sum of a lakh. A timely and useful protection cum investment option that you will be happy you made. So get in touch with you nearest MetLife Insurance desk and enjoy the rewards of an endowment plan that MetLife India Insurance brings especially for you - Met Saral What is Met Saral
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Non Par Endowment with term of 5 and 10 year Simplified application form

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Guaranteed issue No Medical Test Tax Benefits under Sec 80 C and 10( 10 D) of Income tax act 1961

What is Met Saral

This policy is available for following ages and terms:
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Minimum Entry Age: Age 15 years last birthday Maximum Entry Age: Age 50 years last birthday Maximum Maturity Age: Age 60 years last birthday Face amount: Rs. 1,00,000 (fixed) Tax Benefits under Sec 80 C and 10( 10 D) of Income tax act 1961

Premium Paying Modes The product is available in the Semi Annual & Annual mode only Riders There are no riders attached to the base policy Other Provisions Exclusion on Base policy: In the event the Insured commits suicide, whether sane or insane at that time, within one year from the effective date of insurance cover or the date of the policy or the date of the last reinstatement whichever is later, the benefit is restricted to the extent of refunding the premium(s) received without interest, if any, less any expenses incurred by us.

Money Back Policy
As the most popular accumulation policy across consumers in different stages of their life, Money back pays you back lump sums throughout the term of the policy, at regular intervals. These periodic lump sums are usually a

percentage of the sum assured and the insurance continues through the term of the policy. MET SUKH (Non Participating Money Back Plan) Suitability The plan is suitable for those who
• • • •

Want money back at regular intervals Want to grow savings Want the protection of insurance Want tax advantages

Salient Features
• • • • •

•

•

•

A money back policy where lump sum amounts are paid to the life assured at periodic intervals on survival Premiums cease on death or on expiry of term whichever is earlier. This plan can be availed for terms 20 years. The plan is a Non Participating one and hence all Premium rates, Sum Assured, Surrender Values and Paid up Values are guaranteed upfront. Provided the policy is in full force, a guaranteed addition of Rs.100.00 per Rs.1, 000 of Face Amount will be added to the Face Amount at the end of each policy anniversary and will be payable either on the date of maturity or on earlier death of the Life Insured If premiums have been paid for at least 3 years then the Policy acquires a Guaranteed Surrender Value, which can be surrendered for cash for its full Guaranteed Surrender Value. The policyholder has the option of converting the policy into a paid-up policy whereby the policy can be kept in force by reducing the face amount in accordance with the premiums paid. The Premium modes available are: Annual, Semi-Annual, Quarterly, Monthly and Payroll Savings Program (PSP).

Benefits On Survival Term At the end of Amount of money back For Example, on a Rs. 1,00,000 policy

5th year 20 years

20% of sum assured

Rs. 20,000/Rs. 20,000/Rs. 20,000/Rs. 2,40,000/-

10th year 20% of sum assured 15th year 20% of sum assured 20th year 40% Plus accrued guaranteed additions

On Death
•

During the Term of the plan, Nominee / Beneficiary shall receive the Guaranteed Sum Assured plus accrued guaranteed additions

Additional Riders On Payment of additional premiums any one or more of the following riders can be added to this Policy.
• • • •

Accidental Death Benefit Rider Term Rider Waiver of Premium Rider Critical Illness Rider

Other Conditions
• • • • •

Minimum Entry age: Age 15 last birthday. Maximum Entry age: Age 55 last birthday. Minimum Face Amount: Rs. 75,000. Maximum Face Amount: No Limit Minimum premium Amount: Annualized premium of Rs. 8,000 (not inclusive of the Rider Premium)

Exclusions
•

In the event the Insured commits suicide, whether sane or insane at that time, within one year from the effective date of insurance cover or the date of the Policy or the date of the last reinstatement whichever is later, the benefit is restricted to the extent of refunding the premium(s) received without interest, if any, less any expenses incurred by us.

Indicative Premium (These are just indicative, please refer to our Premium calculator or contact our FA to get the exact rates.)

Face Amount: Rs 5,00,000 MET Sukh Age/Term 25 35 45 Illustration Mr Vijay is aged 29 and works in a real estate company as a manager. He buys a Met Sukh policy for a face amount of Rs 3,00,000 to fund periodic expenses incurring in his life over the next 20 years - like his child’s education, house and marriage expenses of his daughter. Mr. Vijay also opts for an additional critical illness rider of 2,00,000. Annual Premium for the base policy Premium for Critical illness rider Annual Premiums paid by Mr Vijay Rs 29880 Rs 628 20 49380 49915 51635

Rs 30508

For this premium, Mr.Vijay gets to enjoy periodical returns as money back. Please find the amounts below indicative of the amounts Mr.Vijay gets in 5year gaps. Age 34 60000 Age 39 60000

Age 44 60000 Age 49 720000* * includes the Guaranteed additions of Rs 100 per Rs 1000 of sum assured Apart from the periodical money-back returns, his wife will receive a sum assured of Rs.3,00,000 and accrued guranteed additions, should the unfortunate happen during policy tem. And during the term of the policy, if Mr.Vijay contacts any of the insured critical illnesses, he would be paid Rs.2,00,000 to fund his medical and hospitalization expenses. Met Bhavishya (Money Back Policy) This is a non par money back policy that provides guaranteed returns that specially designed to meet children’s educational expenses at different life stages. There are two options to choose from and fixed term benefits, periodic additions & terminal additions are payable based on the option that you select. The policy is suitable for parents having children between the age 0-12 children and parents in the age group 20-50 years old. Met Bhavishya could be the ideal plan if:
• • •

This is a money back policy where lump sum amounts are paid to the life assured to fund the educational needs of the child There are two options A and B depending on the funding requirement to choose from depending on the requirement of the fund Guaranteed additions of Rs 50 / Rs 1000 of sum assured, and terminal additions of 20% of the guaranteed additions payable for every year premium paid provided the policy is in force

•

• •

In built Waiver of premium in case death of the life assured and the fixed term benefits will continue post the death of the life assured to the beneficiary The beneficiary in Met Bhavishya policy is the child The policy can be customised through 4 riders - Accidental Death Benefit, Critical Illness (10 illness), Waiver of Premium (Accidental Disability) and Term Rider

Illustration Mr Ajay is aged 26 year years old and works for a software company in Bangalore. He was recently married to Sangeeta and has a 6 month year old baby. Mr Ajay buys Met Bhavishya option B. He pays a premium of Rs 51,030 per year. He has a sum assured of Rs 10,00,000. Face Amount: Rs 1,00,000 Child’s age 17 21 23 25 Payout 20% of FA 30% of FA 50% of FA Rs 50 per Rs 1000 of Sum assured ( Guaranteed additions ) and 20% of Guaranteed additions For 25 years of premium paying For Example for a policy of Rs 10,00,000 Rs.2,00,000 Rs.3,00,000 Rs.5,00,000 Rs.15,00,000

In case of the unfortunate death of Mr Ajay
• • •

Sum assured of Rs 10,00,000 Waiver of all future premiums Fixed term benefits will continue as per the policy schedule

Other Conditions Option A Option B Minimum age of child Maximum age of child 0 8 0 12 20 50

Minimum entry age of parent 20 Maximum entry age of parent 50

Minimum Face amount Rs 1,00,000 Maximum Face amount : No Limit Minimum Annualised Premium Amount Rs 6000 Premium paying options You have the choice of paying your premium either in yearly, half-yearly or quarterly modes, depending on your convenience Tax Benefits The Premium paid under this plan will qualify for deduction under Sec 80 C of the income tax act 1961 and the returns are fully exempt under Sec 10 (10 D) General exclusion In case the life insured commits suicide within 1 (one) year of the commencement of the policy, no benefits outlined in the plan would be payable. Exclusions for Accidental Death Benefit, Term Rider and Waiver of Premium The Accidental Death Benefit, Term Rider & Waiver of Premium would not be paid out in the following circumstances:
•

•

•

Self-inflicted injuries, suicide, insanity, immorality of the proposer, or his committing any breach of law or being under the influence of drugs, liquor etc. When the life insured is engaged in aviation or aeronautics other than as a passenger on a licensed commercial aircraft operating on a scheduled route. Due to injuries from war (whether war is declared or not), invasion, hunting, other dangerous hobbies or activities, or having been on duty in military, para-military, security or police organization.

Prohibition of rebates Section 41 of the Insurance Act, 1938 states:
•

No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an

•

insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer. Any person making default in complying with the provision of this section shall be punishable with fine, which may extend to five hundred rupees.

MetLife has a comprehensive plan that allows you to provide that allimportant shelter for your family against life’s uncertainties. MET Suraksha - TROP Suitability The plan is suitable for those who want
• • • • •

Low cost protection for a specified period Tax benefit throughout the premium paying term Return of premium with guaranteed additions at the end of the premium paying term Multiple premium paying option Customisation with 2 riders - Accidental Death Benefit and Critical Illness

Salient Features
• • • •

Met Suraksha ( TROP ) has policy term of 15 & 20 year Met Suraksha has three premium paying options namely single, limited (3 year limited pay) and regular pay for all policy terms The Premium modes available are: Annual, Semi-Annual, Quarterly, Monthly and Payroll Savings Program (PSP) Guaranteed additions are at 10% of premiums (inclusive of policy fee) paid (excluding extra premiums) paid on the maturity of the policy Benefits Death Benefit

o

The Death benefit for Met Suraksha - Term Assurance with return of premium is the sum assured

Maturity Benefit
o

The Maturity Benefit for Met Suraksha TROP is the return of premium and 10% guaranteed additions

The premium paying option:The following option are available for Met Suraksha TROP:
o o o

Single Pay. 3 year limited Pay. Regular Pay.

Other Conditions Minimum issue age Maximum issue age Maximum expiry age Terms Minimum sum assured Maximum sum assured Minimum annual premium Illustration Mr Sameer is a 30 year old man working in an IT company in Bangalore . He buys a Met Suraksha TROP policy with a sum assured of Rs 20, 00,000 for a 20 year term . The total premiums paid would be Rs 9620/- per annum. His wife Sunita is a beneficiary In case of the unfortunate death of Mr Sameer his wife Sunita will Age 18 year last birthday Age 50 years last birthday Met Suraksha Level Term to 60 Age 65 years last birthday 15/20 years Rs.2,00,000 The maximum face amount will be determined on a case by case basis based on medical and financial underwriting. Rs2,500 p.a

receive Rs 20,00,000 . At maturity Mr Sameer would receive Rs 211640/ ( Premiums paid +Guaranteed additions ) Exclusions In the event the Insured committing suicide, whether sane or insane at that time, within one year from the effective date of insurance cover or the date of the Policy or the date of the last reinstatement whichever is later, the benefit is restricted to the extent of refunding the premium(s) received without interest, if any, less any expenses incurred by us. MET Suraksha Suitability The plan is suitable for those who want
• • •

Low cost protection for a specified period Tax benefit throughout the premium paying term Multiple premium paying option

Salient Features
• • •

Met Suraksha ( TA) has policy term of 5/10/15/20 /25 years and level term to age 60 years. Met Suraksha has three premium paying options namely single, limited (3 year limited pay) and regular pay for all policy terms The Premium modes available are: Annual, Semi-Annual, Quarterly, Monthly and Payroll Savings Program (PSP). Benefits Death Benefit
o

The Death benefit for Met Suraksha - Term Assurance is the sum

Maturity Benefit
o

There is no Maturity Benefit of Met Suraksha

Premium paying option The following option are available for MET Pension:

o o o

Single Pay. 3 year limited Pay. Regular Pay.

Other Conditions Minimum issue age Maximum issue age 18 Years Age Last Birthday Met Suraksha - TA: Age 60 years last birthday Met Suraksha Level Term to 60 Met Suraksha - TA: Age 65 years last birthday Met Suraksha Level Term to 60: Age 60 years last birthday For Met Suraksha - TA: Rs.50,000 For Met Suraksha - TA: The maximum face amount will be determined on a case by case basis based on medical and financial underwriting. For Met Suraksha - TA: Rs.1,000 p.a.

Maximum expiry age Minimum sum assured Maximum sum assured Minimum annual premium Illustration

Mr Sameer is a 30 year old man working in an IT company in Hyderabad . He buys a Met Suraksha policy with a sum assured of Rs 20, 00,000 for a 10 year term . The total premiums paid would be Rs 4500/- His wife Sunita is a beneficiary In case of the unfortunate death of Mr Sameer his wife Sunita will receive Rs 20,00,000 . Exclusions
o

In the event the Insured committing suicide, whether sane or insane at that time, within one year from the effective date of insurance cover or the date of the Policy or the date of the last

reinstatement whichever is later, the benefit is restricted to the extent of refunding the premium(s) received without interest, if any, less any expenses incurred by us.

Met-Mortgage Protector Single Pay / Limited Pay (MRTA) Met-Mortgage Protector Single Pay / Limited Pay is specially designed to protect your dependents against the liabilities incurred on a housing loan. Available in terms of 5 through 25 years, the Met Mortgage Limited pay version continues even after the premium paying term is over Met Mortgage Protector could be the ideal plan for you if you’re looking for • •

An affordable plan that has been designed to help your family repay the outstanding home loan in case of your unfortunate death. Premium payment options – single pay or limited pay

Tax Benefits The Premium paid under this plan will qualify for deduction under Sec 80 C of the income tax act 1961 and the returns are fully exempt under Sec 10 (10 D). Premium paying options You have the choice of paying your premium either in yearly, half-yearly or quarterly modes, depending on your convenience. Indicative Premiums (These are just indicative, please refer to our Premium calculator or contact our FA to get the exact rates.)

Face Amount: Rs 5,00,000 Loan Interest: 11% MET Mortgage Protector (SP)

Age/Term 5 25 35 45 Face Amount: Rs 5,00,000

10

15 8704 11183

4609 6906 5113 8278

7916 14272 20733

Loan Interest: 11% MET Mortgage Protector (LP) Age/Term 10 25 35 45 Other Conditions To insure your family under Met Mortgage SP, you need to fulfill the following conditions:
• • • • • •

15

20

1700 1675 1683 1948 2001 2093 3119 3430 3740

Minimum age of Entry – 18, last birthday Maximum age of Entry – 60, last birthday Maximum Maturity Age – 65, last birthday The minimum face amount is Rs.50,000/There is no limit on the maximum face amount Minimum Premium Amount – As applicable to the minimum face amount

General Exclusion In case the life insured commits suicide within 1 (one) year of the commencement of the policy, no benefits outlined in the plan would be payable. Prohibition of rebates

Section 41 of the Insurance Act, 1938 states: •

•

No person shall allow or offer to allow, either directly or indirectly, as an inducement to any person to take out or renew or continue an insurance in respect of any kind of risk relating to lives or property in India, any rebate of the whole or part of the commission payable or any rebate of the premium shown on the policy, nor shall any person taking out or renewing or continuing a policy accept any rebate, except such rebate as may be allowed in accordance with the published prospectuses or tables of the insurer. Any person making default in complying with the provision of this section shall be punishable with fine, which may extend to five hundred rupees.

Retirement
There's a day in all our lives that we look forward to with anticipation and some anxiety too - the first day of retirement. A time when finances are crucial. A time when you want to be sure that you are financially independent and secure. MetLife has comprehensive plans that allow you to build a fund to enjoy financial security on retirement.
MET Pension - Participating Deferred Annuity

Suitability The plan is suitable for those who want
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Financial security after retirement Tax benefit throughout the premium paying term Multiple premium paying option

Salient Features
• •

•

MET Pension is structured as a participating endowment and a participating immediate annuity. Save up to Rs 33,660 in tax for every year of premium payment subject to conditions given under income tax 1961 (* For person having a taxable income of above Rs. 10 lakhs). Choose from various premium paying term namely single, limited (3 year and 5 years) and regular pay.

• •

• •

•

A one-time lump sum addition equal to 10% of the face amount is payable along with the maturity proceeds. Withdraw up to 33% of the annuity amount tax free and chose to buy an annuity with the balance amount from not only MetLife but any other insurance company. MetLife gives you only one annuity option namely - Life annuity. The plan is a Participating one.  No Bonus is payable for first two policy years. Thereafter a bonus as declared by the company will be credited as reversionary bonus on the policy anniversary. Company may also declare terminal bonus.  Reversionary Bonus: It is an insurance amount in addition to the face amount. If declared and vested, the reversionary bonus is payable, together with the face amount, on death of the insured person or maturity of the policy. The bonus will be credited at rates as declared by the company, on the policy anniversary.  Terminal Bonus: if any, would be a % of accrued reversionary bonus, which becomes payable on maturity or on death, if it occurs after the 10th policy anniversary.  Both Reversionary and Terminal Bonus are not guaranteed as they are based on the company's actual investment returns, mortality, persistency and expense experience The Premium modes available are: Annual, Semi-Annual, Quarterly, Monthly and Payroll Savings Program (PSP).

Benefits Death Benefit
•

•

Endowment phase: In case of the death of the policy holder during the endowment phase, there will be return of premium plus reversionary bonus if any Immediate annuity phase: There will be no death benefit during the annuity phase for the beneficiary of the policy

Maturity Benefit
•

•

The amount of maturity benefit at the end of the endowment phase is equal to the face amount plus guaranteed addition plus attached reversionary bonuses, if any plus terminal bonus, if any. 1/3 of the maturity benefit will be paid out to you as a lump sum, tax free. The balance must be used to convert into a life annuity either with

MetLife India Insurance or with any other insurance company offering annuities. Premium Paying Options The following option are available for MET Pension:
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Single Pay. 3 year limited Pay. 5 year limited Pay. Regular Pay.

Illustration Mr Ajay is a 27 year old man working in an IT company in Pune having annual Taxable Income 6 lakhs. He buys a Met Pension policy with a sum assured of Rs 5, 00,000. He chooses a vesting age ( retirement ) of 55 years . This vesting age would be the age when the annuity would start . The total premiums paid would be Rs 18,550/-. Guaranteed Total Premium Paid (Rs.) 519,000 Illustrated Illustrated (Returns at 3%) (Returns at 6%) 519,000 1,215,040 41,797 519,000 2,590,895 89,127

Total Maturity amount 550,000 at vesting (Rs.) Amount receivable under Life Annuity *(Rs. p.a.) 18,920

What You Pay Annually Annual Premium Paid on Basic Policy (Rs.) Annual Tax Savings u/c 80CCC (Rs.)** 18,550 5,676

Net Annual Premium if tax savings are considered (Rs.) 12,874

* The Annuities calculations shown in the table below are based on the current annuity rates and the assumptions taken in the benefit illustration. The Annuity shown in the table are indicative and are not guaranteed. ** If the Annual Taxable Income is more than Rs. 10,00,000 then the tax savings will be 33.66% of the amount eligible under Section 80CCC, else 30.60% /20.40% /10.20% Note : From the assessment year 2006 - 07, deduction under Sec 80 C, 80 CCC and 80 CCD cannot exceed Rs,1,00,000.

Other Conditions
• • • • • •

Minimum Entry age: Age 18 years last birthday Minimum age for vesting age (retirement): Age 45 years last birthday Maximum age for vesting age (retirement): Age 70 years last birthday Minimum Face amount: Rs. 50,000 Minimum premium Amount: Annualized premium of Rs. 4,000 (not inclusive of the Rider Premium) Minimum policy term of 10 years

Exclusions
•

In the event the Insured committing suicide, whether sane or insane at that time, within one year from the effective date of insurance cover or the date of the Policy or the date of the last reinstatement whichever is later, the benefit is restricted to the extent of refunding the premium(s) received without interest, if any, less any expenses incurred by us.

Met Advantage Plus - Unit-linked Pension Plan (Non Par) Met Advantage Plus is a Unit-linked Pension Plan that works hard for you when you stop working. And like the name suggests, it comes with the maximum number of advantages. For one, it ensures that you lead a comfortable lifestyle. Always. More importantly, it helps you plan ahead, keeping in mind the escalating cost of living. What’s more, unlike any other plan, Met Advantage Plus comes with six investment options, eight annuity options

Met Advantage Plus is now being made available to you with two options of death benefit.

Add Ons At MetLife, we want our customers to get maximum out of their lives. Be it in terms of making their dreams come true or getting the best out of their insurance plan. With this in mind, we created MetMore, which allows you to customize your life insurance plan. So that it can be tailored to meet the unique needs of you and your family members. MetMore offers you a choice of riders, which are optional contracts that allow you to enjoy additional benefits. They are always attached to the basic policy at the time of purchasing it, and cannot be bought separately or independently. Each rider comes with it’s own premium rates and separate policy conditions. The premium, nature and characteristics of the rider are based on the base policy to which the rider is attached. So go on, get more out of life. Here are all the riders you can choose under MetMore
• • • •

Accidental Death Benefit Term Rider Waiver of Premium Critical Illness

ACCIDENTAL DEATH BENEFIT (ADB) Provides for the payment of an additional amount should death occur as a result of an accident by outward violent and visible means before age 60 years.

Death of the life insured must occur within 180 days from the date of accident. Eligibility criteria
• • • • •

Minimum age at entry 15 years age last birthday Maximum age at entry 55 years age last birthday Maximum age at maturity 60 years age last birthday Minimum face amount Rs 50,000 Maximum face amount Rs 10,00,000 or base policy face amount which ever is lower

Termination of the Rider The rider will be terminated on the earlier of
• •

•

The end of the grace period of the first unpaid premium The policy anniversary on which the life assured is aged 60 years (as on last birthday) or the maturity date of the base policy which ever is earlier Death of the life assured

Exclusions for Accidental Death Benefit (ADB) The sum assured under this rider is not payable if Death is caused (or contributed to) by:
• • • • • • • •

Any infection, except infection caused by an external visible wound accidentally sustained Suicide Homicide Self inflicted injury; intentional self-inflicted injury by the life insured Drug abuse including alcohol or solvent abuse War, riot and civil commotion Criminal acts: committing an assault, a criminal offence, an illegal activity or any breach of law Aviation other than as a passenger in a commercially licensed aircraft or aboard a non-military flight for the purpose of descent from the aircraft while in flight

• •

Hazardous sports and pastimes Nuclear contamination

TERM RIDER The term rider allows the payment of an additional amount should death of the life insured occur before 60 years. You can match your changing needs (risk protection) and buy additional insurance at a low cost. Eligibility criteria
• • • • •

Minimum age at entry 15 years age last birthday Maximum age at entry 55 years age last birthday Maximum age at maturity 60 years age last birthday Minimum face amount Rs 50,000 Maximum face amount base policy face amount

Termination of the rider The rider will be terminated on the earlier of
• •

•

The end of the grace period of the first unpaid premium The policy anniversary on which the life assured is aged 60 years (as on last birthday) or the maturity date of the base policy which ever is earlier Death of the life assured

Exclusions for Term Rider No amount shall be payable under this benefit if death was caused due to
• • • • • •

• •

Suicide: within one year of the date of issue or reinstatement of the policy Self inflicted injury: intentional self-inflicted injury by the life insured Drug abuse: alcohol or solvent abuse War and civil commotion Criminal acts: committing an assault, a criminal offence, an illegal activity or any breach of law Aviation other than as a passenger in a commercially licensed aircraft or aboard a non-military flight for the purpose of descent from the aircraft while in flight Hazardous sports and pastimes Nuclear contamination

WAIVER OF PREMIUM In case of total and permanent disability of the life assured due to accident by outward, violent or visible means, this rider allows premium on base policy and attached riders, if any, to be waived. Total and permanent disability means that at the time at which disability starts or any time thereafter, the life assured can never be capable of doing something to earn wages, compensation or profits. The total disability should last for at least 6 consecutive months. There is no disability cover during the first 6 months of the policy. Eligibility criteria
• • •

Minimum age at entry 15 years age last birthday Maximum age at entry 55 years age last birthday Maximum age at maturity 60 years age last birthday

Termination of the Rider The rider will be terminated on the earlier of
• •

•

The end of the grace period of the first unpaid premium The policy anniversary on which the life assured is aged 60 years (as on last birthday) or the maturity date of the base policy which ever is earlier Death of the life assured

Exclusions for Waiver Of Premium (WOP) The premium shall not be waived for total permanent disability caused due to:
• • • • • •

Infection, except infection caused by an external visible wound accidentally sustained Homicide Diseases in presence of an HIV infection Self inflicted injury; intentional self-inflicted injury by the life insured Drug abuse including alcohol or solvent abuse War, riot and civil commotion

• •

• •

Criminal acts: committing an assault, a criminal offence, an illegal activity or any breach of law Aviation other than as a passenger in a commercially licensed aircraft or aboard a non military flight for the purpose of descent from the aircraft while in flight Hazardous sports and pastimes Nuclear contamination

CRITICAL ILLNESS Critical illness provides payment of an additional amount on diagnosis of as many as 10 critical conditions. You can have the money to pay for the illness when you need it rather than after the treatment is over, thus helping you protect yourself against any health or lifestyle risk. 1. Insured critical illness conditions 2. Heart attack 3. Stroke 4. Cancer 5. Surgery to coronary arteries 6. Kidney failure 7. Major organ transplant 8. Aorta surgery 9. Blindness 10.Heart valve replacement 11.Paraplegia Eligibility criteria
• • • • •

Minimum age at entry 18 years age last birthday Maximum age at entry 55 years age last birthday Maximum age at maturity 60 years age last birthday Minimum face amount Rs 50,000 Maximum face amount Rs 10,00,000 or base policy face amount which ever is lower

Waiting period No amount will be payable under this benefit in respect of critical illness diagnosed within a period of 90 days from the date of issue or reinstatement of the policy. Survival period The benefit amount under this rider is payable only if the insured survives for the period of at least 30 days from the date of diagnosis of the insured critical illness. Termination The riders will terminate on the earliest of any one of the four mentioned below
• • •

•

On diagnosis of the critical illness within 90 days from the issue date or reinstatement of the policy Lapse, surrender, conversion of the base policy into paid up insurance The policy anniversary on which the life assured is aged 60 years (as on last birthday) or the maturity date of the base policy which ever is earlier The date of first occurrence of the event on which benefit becomes payable

AGENCY SALES