International Savings Plan Review

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International Savings Plan

Metlife Alico  is one of the largest international insurance companies operating in the UAE, and the Gulf. They have recently launched a new regular savings product in 2012 called International Savings Plan. Since there is a lot of demand for METLIFE ALICO International savings plan amongst my clients, I decided to review this product for the benefit of my readers as well.

As with other regular savings products in the UAE, the International Savings Plan from Metlife Alico can be used for the usual purposes of Children’s higher education planning or retirement planning for expats. Some of my clients also use it for home ownership planning or just wealth accumulation.

International Savings Plan is an exciting investment opportunity that can help you optimize your hard-earned savings and reach your financial goals and aspirations. It helps you achieve a systematic and disciplined approach to wealth creation while also providing you with an insurance protection you and your loved ones need.

Some benefits of the International Savings Plan

  1. No Initial Contribution Period – This product does not have any initial contribution period in the plan, the account values will start from DAY 1 with an upfront Bonus given by Metlife.
  2. Upfront Bonus – (Annual Premium x Premium Payment Term x Bonus rate) – If you invest an amount of USD 2000 per month for a payment term of 20 years, MetLife Alico will invest on your behalf an additional amount of USD 14400 on Day 1, irrespective of the payment mode.
  3. Persistency Bonus – Metlife Alico also starts paying a Monthly Persistency Bonus from the 2nd year onwards as long as the plan is in force even if the client is no longer contributing to the plan. It’s a calculated on Account Value and added every month.
  4. Annuity Benefit – The most unique thing about the Metlife Alico International Savings Plan is that an annuity option is available to the client at maturity which is guaranteed for Life. In the event of death of the insured in first 20 years, beneficiaries will continue to receive the money for remaining period. Annuity can also be availed as an INCOME FOR LIFE FOR A CHILD
  5. Direct Funds – Another good benefit to clients is the access to 180 Direct funds to choose with unlimited switches and premium redirection. The funds available are direct funds just like Generali International’s Vision product or Royal London’s Quantum.
  6. Riders – The International Savings Plan also offers benefits such as the ability to enhance the plan with additional Insurance protection such as Critical Illness Waiver of Premium, Partial and Permanent Total Disability due to Accident, and more…
  7. Free Accidental Death Benefit – In the event of death due to accident the client will get additional 50% of the account value (upto a max of $ 200,000).

Some Product Details of the International Savings Plan

  1. Age of Eligibility                – 1 month to 85 Years
  2. Payment Term                    – 5 Years to 20 Years
  3. Minimum Premium          – $ 200
  4. Maturity                               – At age 100

Summary of International Savings Plan

In summary, the International Savings Plan from Metlife Alico is a good product, intended for Children’s Education Planning and Retirement planning. It is designed as a wealth accumulation product with access to 180+ direct funds and online fund switching. Some of the unique points of this product are that it offers an annuity option at maturity and clients can also pay their premiums online through the secure login dedicated to each client.

What has been your experience with Metlife Alico International Savings Plan?, How would you rate it? There is a review box below the ‘Ask Amit’ button. So please feel free to add your own review or comments below the post.

As with any regular savings product like the International Savings Plan, the choice of product is just the preliminary step. Clients should always consult a qualified independent financial planner to decide about the choice of funds and design a proper portfolio.

Ask Amit

About the author

Amit is an Independent Financial Advisor, based in Dubai since 1997. He is part of the prestigious ‘Million Dollar Round Table’ (MDRT), which is an elite club of the best financial advisors worldwide.

He has authored the ‘6-Step Financial Success Guide’, and the book ‘Creating, Preserving, Distributing Wealth’.

He helps business owners and professionals ‘Create A Second Income’ through investments.

Amit Mitbawkar

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