This version of MetLife Endowment 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.
Please note carefully, in the above scenarios for MetLife Endowment - Growth and MetLife Endowment - Secure , Projected Benefit Amounts are calculated on Basic Face Amount (FA) using the bonus rates mentioned in the respective table per 1,000 Face Amount (FA) and these tables are for purely illustrative purpose to show the variability of the non-guaranteed benefits under the different investment scenarios.
The bonus rates used in the scenarios, do not represent upper and lower limits in the investment performance of the participating life fund, and are not the returns earned on the actual premiums paid.
The Bonus rates shown in this illustration tables are NOT GUARANTEED, Bonus rate may vary which will affect Projected Benefit Amount shown in the above table. And the Projected Benefit Amounts shown in this illustration are not indicative of actual benefit amount to be received.
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.
Disclaimer
This document is intended for your general information only, it does not contain exhaustive information relating to the subject matter.