Investments, Mutual Fund Investment
MetLife in UAE has launched Investor Advantage - a unique Investment Plan.
It offers both Lump-sum or Regular Premium Investment options.
It is the only savings plan in UAE with the premium payment term as low as one year...
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The Investor Advantage Plan aims to help expats save and invest during the current times of uncertainty, where they are not sure if they can continue investing for the long term.
The following are the highlights of the features and benefits of the plan, followed by my summary and review.
Premium Options
This plan has the following five premium payment options;
- Lump-sum Investment (Minimum Investment $30,000)
- 12 months - Regular Investment (Minimum Investment $2,500/month)
In addition to the above premium payment options, it is also possible to invest additional lump sum premiums at any point (Minimum Investment $250)
The wide choice of premium options helps investors with different investment needs and cash flow situation to invest on their own terms.
For Eg: You can invest in this plan by paying only 12 months premiums with a maturity term of 5 years only...
Which means you can pay 12 monthly premiums only and average his unit buying cost over a period of 12 months.
Investment Options
MetLife offers more than 180 direct funds for investing
- Low-cost Index funds from iShares one of world's largest ETF companies
- Equity Funds from leading fund houses like Fidelity, Franklin Templeton, Schroders, Invesco, Kotak, Blackrock and others
- Bond Funds from leading fund houses
- Money Market funds
- Commodity Funds
This wide range of investment funds helps you create a robust portfolio of low-cost index funds & Mutual Funds depending on your investment goals and horizon.
Plan Features
|
Contribution period
|
12, 24, 36 or 48 months
|
|
Payment Modes
|
Single/Annual/Monthly
|
|
Currency
|
USD, GBP, EUR
|
|
Maturity
|
Age 95
|
|
Death Benefit
|
101% of the account value
|
|
Payout Option
|
Lumpsum or annuity
|
|
Partial Withdrawals
|
Four free partial withdrawals per year subject to maximum withdrawal limits
|
|
Fund Switching
|
Unlimited and free
|
The Insurance Advantage
Investor Advantage has built-in life insurance. In the event of the policy holder’s death, 101% of the account value will go directly to the beneficiary. It helps avoid unnecessary inheritance challenges and implication of Sharia Law.
Charges
Premium Charge
The charges of this plan are based on the planned premium or the first year premium.
|
Policy Year
|
Premium Payment Term
|
|||
|
1 year
|
2 years
|
3 years
|
4 years
|
|
|
1
|
2%
|
2%
|
2%
|
2%
|
|
2
|
2%
|
4%
|
4%
|
4%
|
|
3
|
1%
|
3%
|
5%
|
5%
|
|
4
|
1%
|
2%
|
4%
|
6%
|
|
5
|
1%
|
2%
|
3%
|
5%
|
|
6
|
-
|
1%
|
2%
|
3%
|
|
7
|
-
|
-
|
1%
|
2%
|
|
8
|
-
|
-
|
-
|
1%
|
|
9+
|
-
|
-
|
-
|
-
|
The following table shows you the charges payable each year for an investment of $30,000 for different premium payment terms;
|
Policy Year
|
Premium Payment Term
|
|||
|
1 year
|
2 years
|
3 years
|
4 years
|
|
|
1
|
$600
|
$600
|
$600
|
$600
|
|
2
|
$600
|
$1200
|
$1200
|
$1200
|
|
3
|
$300
|
$900
|
$1500
|
$1500
|
|
4
|
$300
|
$600
|
$1200
|
$1800
|
|
5
|
$300
|
$600
|
$900
|
$1500
|
|
6
|
-
|
$300
|
$600
|
$900
|
|
7
|
-
|
-
|
$300
|
$600
|
|
8
|
-
|
-
|
-
|
$300
|
|
9+
|
-
|
-
|
-
|
-
|
|
Total Investment
|
$30,000
|
$60,000
|
$90,000
|
$120,000
|
|
Total Charges
|
$2100
|
$4200
|
$6300
|
$8400
|
|
Total Charge during the contract period.
|
7.00%
|
7.00%
|
7.00%
|
7.00%
|
The charges are based on the contract term (between 5 - 8 years for different premium options). There are no premium charges after the contract period.
Also, there are no surrender charges after the contract period.
Management and Expense Charge (M&E)
|
Policy
year
|
Account Value (USD)
|
||||
|
0 to
49,999
|
50,000 to 149,999
|
150,000 to 249,999
|
250,000 to 449,999
|
450,000 +
|
|
|
1
|
1.00%
|
1.00%
|
1.00%
|
1.00%
|
1.00%
|
|
2+
|
1.00%
|
0.80%
|
0.60%
|
0.50%
|
0.40%
|
While the premium charge is taken only during the contract term, the M&E charge continues throughout the period the investment is held with MetLife.
Early Surrender
Given the short term contract of the Investor Advantage(5 to 8 years) surrenders are better avoided. In the event of early surrender, the charges for early withdrawal are a lot.
However, partial withdrawal is free four times a year.
Summary & Review
- Given the lower minimum investment threshold, shorter contract terms and lower charges in comparison to other regular investment plans; the MetLife Investor Advantage Plan is the right choice for investing your savings.
- You can remain invested in the plan as long as you want, even after the contract term by only paying the M&E charges, which makes the equation more attractive.
- The 1, 2 and three-year premium payment options would be useful for expats looking at maximizing the investment opportunity in the short term.
- All in all, this is a fresh & new approach among offshore investment plans, providing access to some of the best investment funds from leading fund houses around with world.
Free Unbiased Consultation
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