METROPOLITAN LIFE INTRODUCES MEHFOOZ SARMAYA PLAN
A BRAND NEW AND STATE-OF-THE-ART INDIVIDUAL LIFE ASSURANCE PLAN
MAHEEN YUNUS, CPCU
Feb 04 - 10, 2008
The Metropolitan Life Assurance Company of Pakistan Limited was incorporated on 18th August 1992 after the Federal Government's decision to allow privately owned life insurance companies to operate in Pakistan. This was done to enable more and more Pakistani families to benefit from the protection and savings value of life insurance.
Metropolitan Life's vision is to be the best performing insurance company in Pakistan. Its mission is to ensure financial security for its policyholders and to provide them efficient and prompt service. The Company has adopted a customer centered approach and focuses on ethical behavior, profitability, employee development, teamwork, positive attitude, continuous improvement and innovation.
The company has an authorized capital of Rs. 500 Million, out of which Rs. 352 Million is paid-up to meet the statutory requirements and forms a solid financial base for the security of its policyholders. It has its Registered Office at Quetta, while the operational Head Office is at Karachi. It also has offices located in different cities throughout Pakistan. It is fully equipped to render prompt and efficient service to its policyholders and to the field force.
Metropolitan Life is part of a large financial group, including East West Insurance Company Limited, which is its sister concern specializing in selling general insurance throughout Pakistan. The group has substantial resources at its disposal to meet its financial requirements.
The company is a member of the Insurance Association of Pakistan (IAP) and duly listed at the Karachi Stock Exchange where our Rs. 10/- share is currently trading at a substantial premium, which clearly shows the confidence that the shareholders and general public have in our company.
Metropolitan Life has individual and group business re-insurance arrangements with several of the world's leading re-insurers, including Hannover Life Re (Hannover, Germany) and Mapfre Re (Madrid, Spain).
MEHFOOZ SARMAYA PLAN:
Life takes you in many directions
* Business ventures
And with each new pathway, a pro-active life insurance policy should accompany you at every step. Mehfooz Sarmaya Plan is a Universal Life Plan specifically designed to respond to changing needs. In addition to flexible death benefits and premiums, the policy offers cash value growth potential. This is a non-conventional and unbundled plan where savings growth can actually be seen.
The policyholder can set the amount of each premium having regard to their financial resources, policy's death benefits and financial objectives. The company's representative will assist prospective policyholders in this process.
The Mehfooz Sarmaya plan stipulates a separate individual account for each policyholder. The premiums paid less mortality charges and expenses will be credited to this account and invested. The investment income earned less investment management fee will also be credited to this account.
The sum assured and premiums will increase automatically by 5% each year, beginning from the second year. The escalation in sum assured can act as a cushion against inflation. However, if one does not wish to increase the premium each year by 5%, they may continue to pay a fixed premium. If the policy matures, or if the policyholder withdraws 100% of your cash value at an earlier age, one of the following options may be selected:
* Take a Single Lump Sum and terminate the policy
* Life Long Pension instead of a lump sum
* A combination of Lump Sum Payment and Life Long Pension
After two policy years have been completed, and provided at least two full policy year's premiums have been paid under the policy, the policyholder can make withdrawals from their account to meet cash needs as explained below.
After two policy years have been completed, and provided at least two full policy years' premiums have been paid under the policy, and also provided the policy has not lapsed, the policyholder can take a loan against the Net Cash Value of the policy. The amount of the loan will not be more than 90% of the said Net Cash Value.
TERMS AND CONDITIONS
* The minimum premium shall be Rs. 10,000 per annum.
* Premiums are payable yearly in advance.
* The policyholder can pay the premium within a grace period of 28 days after it falls due.
* The policy shall lapse when the Net Cash Value reduces to zero for any reason whatsoever.
* No claim whatsoever shall lie against the Company under a lapsed policy.
* After two policy years have been completed, and provided at least two full policy years' premiums have been paid under the policy, and also provided the policy has not lapsed, the policyholder may terminate (surrender) the policy.
* After the end of every calendar year, the Company will calculate the rate of investment income earned during that year on the funds generated by all Mehfooz Sarmaya policies. An investment management fee shall be deducted, being only 1.5% of the average amount of such funds during the year.
* Investment income at the net rate after this deduction, but subject to any other adjustments deemed fair and equitable, shall be credited in respect of the policy year which was completed during the said calendar year.
* Delays in premium payment after the due date will act to reduce the investment income credit appropriately.
The following supplementary riders can be attached to the policy:
* ACCIDENTAL DEATH BENEFIT (ADB)
* ACCIDENTAL INDEMNITY BENEFIT (AIB)
* FAMILY INCOME BENEFIT (FIB)
* TERM INSURANCE RIDER (TIR)
* MAJOR SURGICAL BENEFIT RIDER (MSB)
These riders can be explained in detail to any prospective policyholder by the company's representative.
* The policy will mature and terminate on the maturity date shown in the Policy Schedule. The benefit payable at maturity will be the Net Cash Value.
* The Policyholder will have option to take the maturity proceeds as a lump sum or as a monthly pension or a combination of both. The pension amount will be based on the annuity rates applicable at that time.
* On the death of the life insured, provided the policy has not lapsed, the benefit payable, subject to the terms, conditions and privileges of the Policy, will be either (a) or (b),
(a) The sum insured in respect of the policy year in which the death took place
(b) The Adjusted Opening Mathematical Reserve of the policy year in which the death took place
* Outstanding amounts for loans given shall be deducted from any death benefit.
The company has specifically designed this universal life insurance policy, i.e. the "Mehfooz Sarmaya Plan" for the benefit of citizens in all walks of life.
This new plan provides you with SECURITY, TRANSPARENCY,
FLEXIBILITY and LIQUIDITY.
Besides individual life insurance plan, Metropolitan Life also provides several corporate insurance plans to meet the corporate insurance need of the various public or private institutions. We are providing the following corporate products:
1. Group Life Insurance Policy for the employees
2. Group Life Insurance Policy for the Borrowers of any lending institution's Finance Schemes
3. Group Hospitalization Insurance Policy for employees and their dependents.
GROUP LIFE INSURANCE POLICY FOR THE EMPLOYEES
We have a separate division for management of group life insurance. This division is managed by some of the most experienced professionals in this business. Here are some major highlights of our Group Life Insurance Scheme:
* We provide statutory cover to the workmen and customized cover to the officers of the establishment at competitive rates.
* Free sum assured, i.e. Sum Assured without medical examination is allowed quite generously.
* Profit sharing for group life contracts of 3 years or more is provided. This could be as high as 80% of the premium paid after meeting claims and expenses.
* The following benefits are also available as an add-on to the Group Life Insurance Policy:
• Accidental Death Benefit (ADB),
• Accidental Total and Permanent Disability (TPD) benefit,
• Accidental Partial Disability benefit,
• Natural Total and Permanent Disability benefit,
• Natural Partial Disability benefit,
• Diagnosis of Terminal Illness benefit, and
• Post Retirement Benefit.
Claim settlement is very prompt and polite (within 24 hours in most cases).
GROUP LIFE INSURANCE FOR THE BORROWERS OF LENDING INSTITUTION'S FINANCE SCHEMES
We have an independent department for the handling of our group life insurance coverage for the borrowers of any lending institution. Since we are the pioneers in this field of insurance, we have the most experienced and competent persons in the life insurance industry. Here are certain highlights of our scheme:
* We provide death coverage to borrowers of all types of finance schemes, including:
* Consumer-Related Finance Schemes,
* Home Finance Schemes,
* Agricultural Finance Schemes,
* Etc, etc...
* Flexible age limits are usually provided to the borrowers of the bank according to the criteria of the finance scheme(s).
* High Sum Assured amounts are provided as per the requirement of the finance scheme(s).
* The following benefits are available as an add-on to the main policy:
* Accidental Total and Permanent Disability Benefit,
* Natural Total and Permanent Disability Benefit.
* Claim payment is extremely prompt after completion of documentation.
GROUP HOSPITALIZATION INSURANCE INFORMATION
We have an independent division for management of group hospitalization insurance. This division is managed by some of the most well trained and experienced persons in the health insurance business. Here are some major highlights of our Group Hospitalization Insurance Scheme:
* Group Hospitalization policy, which includes hospitalization and maternity expense coverage, is offered at excellent rates.
* Benefits included in the Group Hospitalization policy are very generous and customizable to meet the needs of our corporate client. Coverage is provided to all the employees (under varying limits) of the client, their spouses, parents and children.
* Our Group Hospitalization policy does not restrict the covered individual to visit only panel listed hospitals or laboratories. The patient is free to visit ANY hospital and laboratory. Moreover, we have several hospitals on our panel throughout the country, which allows our clients to get treatment without payment. We are continuously in the process of enlisting additional hospitals and laboratories on our panel in all major cities of the country.
* Major Medical Insurance coverage is provided as optional coverage under the Hospitalization Insurance section to be used in case the patient undergoes costly medical treatment.
* OPD Treatment under the company's "MetroCare" plan is also available as an optional coverage, under which employees and their dependents can obtain healthcare services from hundreds of panel consultants, laboratories and pharmacies on credit basis.
* Most importantly, we offer prompt and polite claim service.
EXCELLENT GROWTH IN GROUP LIFE AND HEALTH INSURANCE BUSINESS:
The table below provides the detailed information regarding the gross premium amount under the company's group life insurance scheme from 2004 to 2007:
Rs. 22.42 mil
Rs. 51.59 mil
Rs. 83.22 mil
Rs. 105.82 mil
It is also important to note that in 1999 the total gross premium amount under group life insurance was only Rs. 1 million while by the end of 2007 we are estimating GLI gross premium income exceeding Rs. 106 million, which is growth of over 100 times in just a short period of 8 years.
Similarly, the company has also achieved remarkable growth in its gross premium amount under the company's group health insurance scheme from 2004 to 2007:
Rs. 1.35 mil
Rs. 5.54 mil
Rs. 18.14 mil
Rs. 43.36 mil
With total corporate premium of nearly Rs. 149 million in 2007, the company is estimating its 2008 corporate gross premium to reach Rs. 200 million (Inshallah)!
Now after being in the life and health insurance business for fifteen years, we reaffirm our commitment to care for all of our individual and corporate policyholders' needs and to make their life and future completely safe and secure while providing excellent investment and insurance opportunities.