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MetLife Endowment
MetLife
MetLife Endowment-Growth and MetLife Endowment-Secure
MetLife Endowment - Growth is only suitable for applicants with higher risk-return appetite. These forms of insurance are useful for the opportunity of receiving higher maturity value, but come with greater risks – you may get back significantly less than you have invested, especially if you cash in during the early years.
A portion of the fund of MetLife Endowment – Growth will be invested in equity. Bonus rates are non-guaranteed and may reduce, increase, or remain same to reflect the variability of the market performance . MetLife shall preserve the right to invest in fund based on the market performance..
Reversionary bonus is GUARANTEED ONCE DECLARED by MetLife. The Terminal Bonus is NOT GUARANTEED and payable only at Maturity or death claim.
The Bonus rates are NOT GUARANTEED, Bonus rate may vary which will affect Projected Benefit Amountof the Endowment Policies.
There will be no Cash Surrender Value during the first 2 years if you surrender the Policy. If the policy is surrendered before maturity period, the surrender value will be less than the total amount of premium paid. The difference is higher during the early years of the Policy.
The bonus mentioned consists of both Reversionary and Terminal bonus.
IMPORTANT INFORMATION REGARDING YOUR PARTICIPATING POLICY
WHAT IS PARTICIPATING POLICY?
A participating policy enables one to share in the profits of the participating life fund. Profits are shared by adding bonuses to the policy. The actual payment of these bonuses is not guaranteed and can reduce (or increase) to reflect the operating performance of the participating life fund.
What are the different types of bonuses payable on this policy?
Reversionary Bonus
This is a non-guaranteed bonus which is allocated and added to the Face Amount of a participating policy, usually on an annual basis. Once allocated, their values are guaranteed provided the policy owner continue to pay the premiums as stated in the policy contract. However, if the policy owner chooses to surrender the policy, policy owner may not receive the full amount of the allocated bonuses.
For surrenders, the surrender value of the bonuses payable may be significantly lower compared to those payable if the policy owner keeps the policy until maturity, or on earlier death.
Terminal Bonus
This is a non-guaranteed bonus which may only be payable when the policy ends - upon death or maturity, provided the policy is then in force and all due premiums have been paid. The Terminal bonus does not have any surrender value and previous declarations does not form any entitlement for subsequent declarations.
How are the bonuses determined?
These bonuses which are not guaranteed, are determined by the Company based on the participating life fund's actual operating and investment performance. For example, if the investments have performed well over the past year, the Company may be able to pay a higher bonus. If the investments have performed poorly, the Company may pay a lower bonus, or it may not be able to pay a bonus at all.
Please also note that the investment performance is not the only factor that will affect the bonuses the policy owner will receive. Other factors such as expenses incurred to meet the direct distribution cost, agency related expenses and Company's expenses, as well as the actual level of death and disability claims on the fund, will also affect the bonuses that the policy owner will receive.
In addition to actual operating performance, bonuses may also be adjusted if there is expected persistent deterioration in future investment environment or operating conditions to maintain the long-term sustainability of the fund.
You are advised to discuss with your Financial Associate or contact the Company directly for more information on your participating policy.
MetLife Endowment: Frequently Asked Questions
MetLife Endowment combines life insurance protection with long-term financial planning through two Policy options: MetLife Endowment-Growth and MetLife Endowment-Secure. MetLife Endowment-Growth offers the possibility of a higher maturity value through equity-based fund management, while MetLife Endowment-Secure focuses on financial protection by paying the Face Amount with applicable bonuses upon death or maturity.
MetLife Endowment-Growth includes equity-based fund management, while MetLife Endowment-Secure focuses on life insurance protection and long-term financial security.
MetLife invests a portion of the Endowment-Growth fund in equity, creating the possibility of a higher maturity value along with greater investment risk. Professional fund managers make the investment and post-investment decisions for this Policy.
MetLife Endowment-Secure pays the Face Amount with applicable accrued bonuses if the Insured dies while the Policy remains in force or when the Policy reaches maturity.
MetLife Endowment-Growth is suitable for applicants who have a higher risk-return appetite and can maintain a long-term Policy. A portion of the participating fund is invested in equity, which creates the possibility of a higher maturity value but also exposes the Policy to market-related variability.
The Policyowner may receive significantly less than the total amount invested if the Policy is surrendered before maturity, particularly during the early Policy years. Applicants should therefore consider their risk tolerance and long-term financial goals before choosing MetLife Endowment-Growth.
MetLife Endowment-Growth invests a portion of the participating fund in equity to provide the possibility of financial growth. Professional fund managers make investment and post-investment decisions based on market conditions and the long-term objectives of the participating life fund.
MetLife retains the right to determine how the fund is invested according to market performance. As a result, the Policy’s bonus rates and projected benefits may increase, decrease or remain unchanged over time.
A participating life insurance Policy allows the Policyowner to share in the profits of the participating life fund through bonuses added to the Policy. MetLife determines the bonuses based on the fund’s actual operating and investment performance and other relevant factors.
Participation does not guarantee a specific bonus rate. MetLife may increase, reduce or maintain the bonus rate depending on the performance and long-term sustainability of the participating life fund
MetLife Endowment Policies may provide two types of bonuses: Reversionary Bonus and Terminal Bonus. These bonuses are not guaranteed before MetLife declares or allocates them.
A Reversionary Bonus is generally allocated to a participating Policy and calculated on the Face Amount. Once MetLife declares and allocates a Reversionary Bonus, its value becomes guaranteed if the Policyowner continues to pay all Premiums according to the Policy contract.
A Terminal Bonus is not guaranteed and may become payable only when the Policy ends because of maturity or the death of the Insured, provided the Policy remains in force and all due Premiums have been paid.
No, the bonus rates of MetLife Endowment Policies are not guaranteed and may change over the Policy term. MetLife may increase, reduce or maintain the bonus rate based on the participating life fund’s actual operating and investment performance.
Once MetLife declares and allocates a Reversionary Bonus, the allocated value becomes guaranteed as long as the Policyowner continues paying Premiums according to the Policy contract. A Terminal Bonus remains non-guaranteed and is payable only upon death or maturity, if applicable.
MetLife determines Endowment Policy bonuses by reviewing the participating life fund’s investment performance, operating results, expenses and claims experience. Strong investment performance may support a higher bonus, while weak performance may result in a lower bonus or no bonus.
Other factors can also affect the bonus rate. These factors include distribution costs, agency-related expenses, company expenses, and the actual level of death and disability claims paid from the fund. MetLife may also adjust bonuses if it expects a persistent decline in future investment conditions or operating performance.
A MetLife Endowment Policy has no Cash Surrender Value during the first two Policy years. If the Policyowner surrenders the Policy after that period but before maturity, the surrender value may remain lower than the total Premiums paid. The difference is generally greater during the early years of the Policy.
The Policyowner may also receive less than the full value of the allocated Reversionary Bonuses upon surrender. The Terminal Bonus has no surrender value because it may become payable only upon maturity or the death of the Insured.
A MetLife Endowment Policy pays the applicable Policy benefit with eligible bonuses upon maturity or the death of the Insured. Under MetLife Endowment-Secure, MetLife pays the Face Amount with accrued bonuses, if declared, when the Policy reaches maturity or if the Insured dies while the Policy remains in force.
MetLife Endowment-Growth may pay the applicable benefit with declared Reversionary Bonus and Terminal Bonus upon maturity or a valid death claim. The Terminal Bonus depends on factors such as market performance, investment yield and the performance of the participating life fund, so the Terminal Bonus is not guaranteed.