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MetLife Investor Advantage | Review | Financial Planning in Dubai

MetLife in UAE has launched Investor Advantage; a unique Investment Plan offering Lump sum or Regular Premium options.

It is the only savings plan in UAE with the premium payment term as low as 1 year...

MetLife Investor Advatage

The Investor Advantage Plan is directly aimed at helping expats save and invest during the current times of uncertainty, where they are not sure if they can continue investing for a long term.

The following are the highlights of features and benefits of the plan, followed by my summary and review.

Premium Options

This plan has the following 5 premium payment options;

  1. Lump sum Investment (Minimum Investment $30,000)
  2. 12 months - Regular Investment (Minimum Investment $2,500/month)
  3. 24 months - Regular Investment (Minimum Investment $1,250/month)
  4. 36 months - Regular Investment (Minimum Investment $1,000/month)
  5. 48 months - Regular Investment (Minimum Investment $1,000/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 within this plan, which include;

  1. Low-cost Index funds from VanguardVanguard - Metlife UAE
  2. Equity Funds from leading fund houses like Fidelity, Franklin Templeton, Schroders, Invesco, Kotak, Blackrock and others
  3. Bond Funds from leading fund houses
  4. Money Market funds
  5. Commodity Funds

This wide range of investment funds help you create a robust portfolio of low cost index funds and or managed equity / bond funds depending in 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 account value

Payout Option

Lump sum or annuity

Partial Withdrawals

4 free partial withdrawals per year subject to maximum withdrawal limits

Fund Switching

Unlimited and free

 

The Insurance Advantage

Investor Advantage has a built-in life insurance, in the event of policy holder’s death, 101% of the account value will go directly to the beneficiary as opposed to the policy holder’s estate and the bureaucracy of inheritance law.

The Annuity Advantage

This again is a very unique feature with MetLife Savings/Investment Plans in UAE. You can convert the corpus saved into an annuity anytime after the contract period. This feature is very useful for expats looking to save for income during retirement.

 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 a partial withdrawal is free 4 times a year. 

Summary & Review

Considering the lower minimum investment threshold, shorter contract terms and lower charges in comparison to other regular investment plans, the MetLife Investor Advantage Plan is good choice for investing your savings.

You can remain invested in the plan as long as you want beyond the contract term by only paying the M&E charges, which makes the equation more attractive.

The 1, 2 and 3 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 plan, providing access some of the best investment funds from leading fund houses around with world.

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Damodhar_Mata_01_roundAs an Independent Financial Advisor, I am able to help you set up a Holistic Financial Plan and choose the most suitable investment / protection plans available in UAE.

My professional qualifications include certifications in Financial Planning, Investments and Insurance from CII - The Chartered Insurance Institute - UK - the premier professional organization in the insurance and financial services industry.

You can view the testimonials of my clients here.

 

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