Product Lines of Metlife Alico Essay Example

the perspectives of target customers, cosmetic companies combine chemicals to create lipsticks, vitamin manufacturers produce small pills, and watchmakers fabricate mechanical devices that measure time. Ultimately, marketers enhance their products for their target markets. Lipstick becomes synonymous with beauty and hope, vitamins are associated with hope or a healthier life, and watches represent status symbols. Therefore, a product encompasses both physical and logical attributes - tangible and intangible - that have the potential to satisfy current and future customer desires. Additionally, factors like warranty, installation, after-sales service, accessories,and packaging also play crucial roles alongside the physical goods themselves. For instance,a product with a warranty differs from an identical one without such coverage.Intangible products are directly exchanged between producers and users; they cannot be transported or stored easilyand perish quickly.

According to the American Marketing Association, services are activities, benefits, and satisfactions that are sold or provided in association with goods sales. Examples of services that could be viewed as products include lawyer services, beautician services, banking services, and insurance services. These types of services are also considered intangible products.

Insurance service is the process of transferring risk from one entity to another in exchange for payment. It is a method of managing potential loss obtained by individuals or companies, known as the insured or policyholder, from an insurance company (the insurer). The premium, which determines the cost of insurance, varies based on the desired coverage amount.

The insured will provide the insurer with a specified amount of money in return for financial reimbursement in case of a loss. The insurance policy outlines the conditions and terms for this reimbursement. It is essential

to understand that insurance does not involve physical goods as it is intangible.

Insurance contracts, such as policies or policy booklets, are acquired by paying a premium instead of purchasing a physical item. These agreements involve the insurance company's responsibility to provide compensation as specified in the contract. Insurance services have market value and are in demand like products, coming in different types with varying conditions and package options.

MetLife offers a range of packages and services, which include insurance schemes with different products. The terms and conditions vary depending on the package and product to cater to the needs of various customers. MetLife Alico is a subsidiary of MetLife, Inc., a well-known provider of global insurance and employee benefit programs. Together with its subsidiaries and affiliates, MetLife serves over 90 million customers worldwide.

The company offers a wide range of insurance options for Life, Accident, and Health. These options cater to the needs of individuals, local corporations, and multinational corporations. The coverage includes personal, group, and credit protection plans that assist customers in recovering from financial difficulties caused by death, disability, accidents, illnesses, and unemployment. Along with insurance plans, the company also provides savings and pension products for both individuals and groups. These products enable customers to save money for various purposes such as education or retirement. Customers can access these products directly through agents, brokers or financial institutions. Additionally,the company holds the distinction of being the largest life insurer in the U.

MetLife is a strong competitor in Japan and Mexico, as well as having advantageous positions in Europe. It also ranks among the top five in many high-growth

markets of Central and Eastern Europe, the Middle East, and Latin America. Since 1952, MetLife Alico has been providing insurance solutions to individuals and businesses in Bangladesh. With a focus on meeting the unique needs of people, families, and businesses of all sizes, it has established itself as one of the leading insurance companies in the country. Currently, it has close to 1 million insured members and over 12,000 agents.

MetLife Alico in Bangladesh provides a variety of insurance products. These include life insurance, saving and retirement plans, accidents and health insurance for individuals, as well as employee benefits, credit life insurance, and insurance for non-employees for corporations. These six categories offer different services with varying terms and durations. Figure 1 demonstrates that MetLife Alico offers a total of six types of insurance services in Bangladesh. Within these services, there are three types of solutions available for both individual and corporate customers.

The company offers various services including Life insurance, Savings & Retirement insurance plan, Accident & Health Insurance, Employee Benefits, Credit Life Insurance, and Insurance for Non-Employees. For simplicity, we will focus on individual solutions. In the following section, we will provide a brief overview of these Individual services. MetLife Alico categorizes its services into two main groups: Individual solutions and corporate solutions. The Individual solutions are customized to meet personal requirements.

The various services provided cater to the diverse insurance needs of individuals. These services include life insurance plans, savings and retirement plans (known as DPS schemes), and accident and health insurance plans. Life insurance guarantees financial security for the insured's family, enabling them to maintain their standard of living

in unforeseen circumstances. It can also cover any outstanding loans or mortgages, support a child's education, or offer benefits for family members. There are two choices available for life insurance: Education Protection Plan (EPP) Plus and Three Payment Plan (3PP) Plus.

The Education Protection Plan (EPP) Plus offers reassurance and financial protection for parents looking to provide the best education for their children. Planning ahead is crucial in light of rising education costs. The EPP Plus provides flexibility with terms ranging from 10 to 25 years. When the plan matures, the insured person's child receives the full face amount of the plan along with a bonus. In case of sudden death, the plan ensures the child's financial future by providing a monthly sum equal to 1% of the face amount until policy maturity. The policy also includes a waiver of future premiums to keep it active and in-force. Additionally, individuals have the option to add a disability protection rider for coverage in case of illness or accident-induced disability. Paid premiums are tax deductible as per prevailing laws. Furthermore, personal accident coverage secures loved ones' financial future in case of death, disability, or injury due to an accident.
The Three Payment Plan (3PP) Plus is an innovative policy that combines protection and regular payouts effectively meeting insured individuals' financial needs.
This plan offers both security like a life insurance policy and flexibility like a savings policy.The Three Payment Plan (3PP) Plus is a flexible plan with multiple features. This plan allows for different terms and payments are made at specific intervals throughout the term. At one-third of the term, 25% of the face amount is paid, followed by another

25% at two-thirds of the term. The remaining 50% along with a bonus is paid at maturity. In case of death during the term, loved ones receive the entire face amount plus bonuses without any deductions for previous partial payments. Loans up to 85% of cash value can be availed if required. Premiums for this plan, like other life policies, are tax deductible based on prevailing tax laws and rules.

Furthermore, the 3PP Plus provides Personal Accident Coverage in cases of accidental death, disability or injury. Additionally, there are three distinct plans available in the Savings & Retirement category: Income Growth Plan, DPS Super and Lifeline Pension Plan.

The details of the plans are as follows:

Income Growth Plan:
- This plan is unique in that it combines protection and savings.
- It allows for a maximum premium payment term of up to 30 years, providing flexibility for smaller payments based on budgetary needs.
- The plan consists of 2 phases: the first phase lasts for 7 years, and the second phase starts from the 8th year and continues until the end of the term.
- Savings accumulate and grow during the initial 7-year period, with a dividend declared at its conclusion.

The policy offers a dividend that can represent up to 40% of the cash value. In the second phase, both the cash value and dividend are transferred to the Investment Protection Account (IPA). Flexible options become available starting from the 8th year, allowing changes in premium amounts and insurance coverage based on policy terms and conditions. Upon maturity, policy owners have the option to withdraw the account value or convert it into a lifetime pension. Paid premiums

can be deducted for tax purposes (subject to tax laws & rules). Additionally, Income Growth includes Personal Accident Coverage for death, disability, or injury under DPS Super. It is crucial for individuals to find opportunities that offer reasonable returns while ensuring protection for themselves and their family members. MetLife Alico’s DPS Super plan is one such opportunity.

MetLife Alico's DPS Super is a savings and protection plan that offers an attractive Maturity Value and a substantial Accidental Benefit. There are three types of services in this category: DPS Super - Gold, DPS Super - Silver, and DPS Super - Bronze. Table 1 below provides an overview of the MetLife Alico DPS plans.

The DPS Super - Gold Plan offers an attractive Maturity Value to meet financial planning needs. It also includes Life Insurance coverage equivalent to the policy Face Amount. In addition, there is a Double Benefit for Accidental Death (AD) and Accidental Permanent & Total Disability (PTD), providing a total coverage of 3 times the Face Amount in case of AD. If there is Accidental Dismemberment, the additional Accidental Benefit can reach up to 2 times the Face Amount, depending on the type and extent of loss. Furthermore, if diagnosed with 8 Critical Illnesses, there is a Lump Sum payment equal to 100% or 50% of the Face Amount. Lastly, there is a Waiver of Premium in case of Permanent Total Disability due to Accident or Sickness.

The DPS Super Silver Plan offers an attractive maturity value to meet financial planning needs. It also provides life insurance coverage equivalent to the policy face amount. There is a double benefit for accidental death and

accidental permanent total disability (PTD), resulting in a total coverage of three times the face amount in the event of accidental death. If there is accidental dismemberment, additional accidental benefits may be paid up to two times the face amount, depending on the type and extent of loss.

On the other hand, the DPS Super Bronze Plan also offers an attractive maturity value for financial planning needs. The death benefit is equal to the account value or premiums paid for the basic policy, whichever is higher. There is also an accidental benefit that pays two times the face amount in the event of accidental death or accidental permanent total disability (PTD). Like the Silver Plan, additional accidental benefits for accidental dismemberment can reach up to two times the face amount, depending on the type and extent of loss.

Additionally, there is the Lifeline Pension Plan.

The Lifeline Pension Plan offers individuals the opportunity to earn income during retirement. It is a pension scheme where individuals save money while working and receive earnings after they retire. This product includes several key features: savings and protection combined, the option to choose a payment term between 10 and 20 years, the ability to withdraw the face amount and accumulated bonuses after the premium payment term ends, the option to start receiving pension payments one year after the premium payment term ends or delay them and accumulate income with MetLife Alico, pension payments continuing until age 100, a minimum guaranteed return of 4% with potential additional returns from investment performance.

In case of death, loved ones will receive the full face amount and accrued bonuses. Similar to other life policies, paid premiums are

tax deductible (subject to tax laws). Additionally, this plan provides personal accident coverage for financial protection in case of death, disability, or injury due to accidents. MetLife offers accident and health insurance products that secure clients in unexpected health hazards and accidents. There are eight types of Accidental and Health Insurance solutions available in this category. The features and details of these services are provided below, including Critical Care.
While no one wishes to think about the chance of a severe illness, it is an ever-present concern.

Estimates suggest that around 1 in 8 people aged 30 today will develop cancer before they turn 65. The Critical Care plan is an insurance policy created to provide protection for both the insured and their family in any health crisis, regardless of when or where it happens. Critical Care ensures that necessary medical assistance is received and can also offer income replacement if the insured person cannot work, ensuring bills are paid and loved ones are cared for. The terms and conditions for Critical Care include a lump sum payment of up to BDT 500,000 upon diagnosis and submission of proof for one specific critical illness. It's important to note that this insurance complements existing life insurance coverage. MetLife offers various plan options so individuals can choose the most suitable one for their needs. The lump sum payment for critical illnesses will only be provided after appropriate diagnostics and proof of one of the listed 25 illnesses, with no deductible amount required. Hospital Care covers expenses related to hospital admissions, addressing the associated stress.

Traditional insurance products may not cover all the additional expenses incurred or

the loss of income suffered if hospitalized. The Hospital Care supplementary policy provides added finances to cover important expenses and allows individuals to focus on recovery. It pays a chosen cash amount when the insured or their family members are hospitalized, even in a free hospital. Cash income begins on the first day of hospitalization and continues for up to 52 weeks per confinement. The product terms and conditions include:

• These benefits are payable in addition to any existing insurance plan.
• Choose the plan that best suits personal and family needs from the available options.
• Daily Cash income continues for up to 52 weeks starting from the first day of hospitalization.
• Cash Income is paid directly to the insured and can be used however they prefer.
• Cash income is payable regardless of expenses, even in a free hospital.
• No deductible amount or waiting period is required.

The Lifetime Income Policy is designed to offer total security for individuals who may become incapable of fulfilling their daily family responsibilities due to an unexpected accident. This policy ensures that a monthly benefit cheque will be provided for the lifetime of the policyholder's spouse, children, or even themselves. A minimum of 240 monthly benefit cheques is guaranteed. The Lifetime Income Policy is a special plan that consistently provides monthly cheques to cover family expenses, demonstrating the same level of reliability one provides to their own family.

The details terms and conditions of the product are provided below: * This is a specialized accident insurance product designed specifically for the Bangladesh market, where the rate of road traffic accidents

is among the highest in the world. * It provides coverage for accidental loss of life, permanent partial disability due to accident, and permanent total disability due to accident. * There are multiple units available under this policy, and individuals can select the number of units that suits them best. * No health questionnaire or medical examination is required. * This plan offers 24 hour, 365 day worldwide coverage. The premiums paid are income tax deductible (subject to prevailing tax laws and rules). * 20% of the Premium paid will be refunded as a 'No Claim Bonus' after 3 years, provided that no claim has been made. Circles of Protection With Circles of Protection, individuals can customize their ideal protection from a range of options; they only choose the ones that are most suitable for them. The details of the terms and conditions are provided below: * Circle 1 offers protection against accidental death, permanent total and partial disability, double indemnity-common carrier, and guaranteed cash payments to oneself or loved ones while flying. * Circle 2 offers a weekly accident indemnity income for up to two years, replacing lost income due to disability as a result of an accident. This option is only available if Circle 1 is chosen.

Circle 3 provides coverage for reasonable accident medical expenses both in and out of the hospital, but it is only available if Circle 1 is also taken out. Circle 4 offers Hospital Health Care, which provides income for the insured and their family if they are hospitalized due to an accident or illness. Circle 5 offers a monthly income for life, with a guaranteed minimum of 240

monthly benefits to cover expenses such as food, clothing, rent, school and university fees, medical and health expenses, mortgage and taxes. The minimum monthly income for Circle 5 is BDT 3,000 and the maximum is BDT 20,000. Four additional services, My Child Special, Good Health Special, Executive 5 Special, and Medi-Guard, are currently unavailable in Bangladesh but will be offered soon. In addition to these individual insurance offers, MetLife Alico provides some value-added services.

MetLife is providing a health card that gives insured individuals and their family members a 15% discount on physical diagnostics at approved hospitals and diagnostics centers. In addition to the health card, each client is given a dedicated customer care officer who deals with all insurance-related matters and inquiries. The monthly payment can be easily made through an auto debit system, saving clients from having to make manual payments. Furthermore, the company's website provides detailed information about its services and enables convenient communication with customer care officers.

The report's limitations are based on its excessive dependence on company websites and online resources, while disregarding customer opinions and feedback. To enhance the report's credibility and genuineness, it should include customer opinions, feedback, interviews with customer relation officers, case studies, and current statistics.

Insurance services have become popular globally as a means of managing risks and saving money in unforeseen emergencies. Nevertheless, there is a lack of awareness about insurance policies offered by companies in our country. To tackle this problem, it is essential to carry out campaigns that focus on raising awareness and increasing the popularity of insurance services. Moreover, given that a significant portion of our population lives

below the poverty line, it is vital for insurance companies to create terms and policies that are more accessible and suitable for their requirements.

Ironically, insurance companies mainly prioritize corporate individuals instead of making their services more user-friendly and treating them as profitable products. MetLife should consider these factors when developing their new services. Appendix A: Personal Accident Coverage offers extra benefits for eligible individuals in case of death, disability, or injury resulting from an accident during the premium paying period.

The Personal Accident Coverage provides a maximum cover of Tk. 20,00,000 and the proportional amounts are listed below:

A. ACCIDENTAL DEATH BENEFIT: 100% of FA
B. PERMANENT TOTAL DISABILITY BENEFIT: 100% of FA
C. PERMANENT PARTIAL DISABILITY for the following losses:
- Both Hands or Feet or Sights of eyes: 100% of FA
- One Hand and One Foot: 100% of FA
- Either Hand / Foot and Sight of One Eye: 100% of FA
- Hearing of Both Ears: 100% of FA
- Speech: 100% of FA
- Either Hand or Foot: 50% of FA
- Sight of one Eye: 50% of FA
- Thumb and Index fingers: 25% of FA

D. MEDICAL EXPENSES REIMBURSEMENT: Maximum of 15% of FA

Appendix B: Critical Care Insurance packages and benefits
Appendix C: Diseases covered under critical care
1. Stroke
2. Cancer (Except Skin Cancer)
3. First Heart Attack
4. Coronary Artery Surgery
5. Other Serious Coronary Artery Diseases
6. Heart Valve Replacement
7. Major Burns
8. Blindness
9. Pulmonary Arterial Hypertension (Primary)
10.

End-stage Lung Disease 11. Kidney Failure 12. Surgery To Aorta 13. Aplastic Anemia 14. Major Organ Transplant 15. Loss

Of Hearing 16. Loss Of Speech 17. Muscular Dystrophy 18. Alzheimer’s Disease / Irreversible Organic Degenerative Brain Disorders 19. Motor Neuron Disease 20. Parkinson’s Disease 21. Coma 22. Benign Brain Tumor 23. Major Head Trauma 24. Bacterial Meningitis 25. Paralysis|
Appendix D: Hospital Care packages and benefits
Appendix E: Diseases covered under Hospital care package

The hospital care packages include coverage for nine diseases that are considered dreadful. These diseases are Heart Attack, Cancer (Except Skin Cancer), Coronary Artery Disease, Stroke, Renal Failure, Blindness due to Sickness, Paralysis, Major Burns, and Major Organ Transplantation. The information and data used for these packages are collected from various sources such as:

1. http://www.metlifealico.com.bd/en/Individual/index.html
2. Principles of Marketing by Philip J. Kotler; Gary Armstrong
3. http://www.adv-ins.com/
4. http://www.marketing91.com/product-concept/