How MetLife Funding Agreements Work

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Stable Value

How MetLife Funding Agreements Work 

Dec 01, 2021

Funding agreements are general account investment contracts that provide a guarantee of principal and accumulated interest. Contracts can be individually negotiated with specific terms tailored for each institutional investor’s needs.1,2

Flexibility Offered by Funding Agreements

Plan sponsors have a range of options with funding agreements.

  • Guarantee of principal and interest3
  • May be funded by the purchaser with either a lump sum payment or installment payments
  • Minimum contract size = $1,000,000
  • Choice of maturities:
  • Rolling maturities — floating rate, reset quarterly and typically against a pre-determined index
  • Fixed maturities 1 to 10 years
  • Payout at maturity — either a single lump sum or scheduled installment payments

Benefits to Plan Sponsors and Participants

  • Strong financial strength ratings
  • Guarantee of principal and interest3
  • Attractive yields
  • Predictable returns
  • Customization
  • Can be matched to specific liabilities

Typical Funding Agreement Uses

  • Health Savings Accounts (HSA)
  • 529 Plans
  • Construction financing
  • Fund expenses
  • Money market funds
  • Securities lending cash collateral portfolios
  • Municipalities, government pools
  • Short-term investment funds
  • Corporate cash pools
  • Nuclear decommissioning trusts
  • Foundations and endowments
  • Financial institutions

To learn more about our stable value solutions please contact our team at (833) 948-2275

Download This Slipsheet

    1 Funding agreements are generally pre-approved in the state of issue. They generally require filing and approval by the relevant state insurance regulator before a contract can be issued.

    2 Funding agreements may not be available in all jurisdictions. In addition, they are backed solely by the financial strength of the issuing company.

    3 Guarantees are subject to the financial strength and claims-paying ability of the issuing MetLife company.