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PROFILE
Preference Plus(R) Account
Profile
May 1, 1998
As Supplemented
November 9, 1998
Plus
Preference
Tax Sheltered Annuities
Public Employee Deferred Compensation
Keogh
Qualified Annuity Plans under
Section 403(a) of
the Internal Revenue Code
MetLife
Retirement & Savings Center
<PAGE>
METROPOLITAN LIFE INSURANCE COMPANY
METROPOLITAN LIFE SEPARATE ACCOUNT E
PROFILE OF THE PREFERENCE PLUS(R) ACCOUNT DEFERRED GROUP AND INDIVIDUAL TAX
SHELTERED ANNUITIES ("TSAS"), QUALIFIED ANNUITY PLANS UNDER SECTION 403(A) OF
THE INTERNAL REVENUE CODE, PUBLIC EMPLOYEE DEFERRED COMPENSATION ("PEDC") AND
KEOGH VARIABLE ANNUITY CONTRACTS ("CONTRACTS")
................................................................................
This Profile is a summary of the more important points that you should know and
consider before purchasing a Contract or investing under a Contract. The Con-
tracts are more fully described in the full prospectus which accompanies this
Profile. Please read the prospectus carefully.
1. THE ANNUITY CONTRACT
After you or your employer or the trustee makes the first purchase payment
on your behalf, an account is set up for you under the Contract. You will
receive a contract which is a legal agreement between you and Metropolitan
Life Insurance Company (MetLife) or a certificate which summarizes the
relevant provisions of a group contract between MetLife and the employer
or trustee. (If you invest under the PEDC Contract or most Keogh Con-
tracts, only your employer or the trustee will receive a Contract. In
these situations you do not receive a certificate.) If purchase payments
are made under a retirement plan, the Contract may provide that all or
some of your rights described in this Profile are subject to the terms of
the plan. The Contract consists of two phases: the accumulation or "pay-
in" phase and the annuity or "pay-out" phase. By making one or more pur-
chase payments, you accumulate money in your account during the pay-in
phase. MetLife will hold your money and credit any investment returns as
long as the money remains in your account. The pay-out phase begins when
you either take all of your money out of the account or elect to receive
"income" payments that MetLife makes using the money from your account.
The number and the amount of the income payments you receive depend on the
pay-out option you choose and the amount used to provide your income pay-
ments.
The Contract is called an "annuity" because you can elect income payments.
The Contract is a "variable annuity" because, based on the performance of
the investment options you choose, your account value may go up or down.
Since the investment performance is not guaranteed, your money is at risk.
The degree of risk will depend on the investment options you choose. There
is also a fixed interest rate option called the Fixed Interest Account.
The Fixed Interest Account provides interest rates guaranteed by MetLife
and is not described in this Profile. While there is a possible loss of
principal in the investment options, they offer the opportunity for
greater returns than the interest rate guaranteed under the Fixed Interest
Account.
You may transfer money in your account among the investment options and
between the investment options and the Fixed Interest Account as often as
you like. There is no minimum amount required to make a transfer nor is
there a charge for transfers.
2. ANNUITY PAYMENTS
The pay-out phase begins when you elect either to take out all the money
in your account or you start to receive income payments that MetLife makes
using the money from your account. You can choose income payments that are
fixed, variable or both. If the payments are fixed, MetLife guarantees the
amount of each payment. If the payments are variable, the amount is not
guaranteed and can go up or down based upon the performance of the invest-
ment options you have chosen. Income payments can be received monthly,
quarterly, semi-annually or
THE DATE OF THIS PROFILE IS MAY 1, 1998, AS SUPPLEMENTED NOVEMBER 9, 1998.
<PAGE>
annually. MetLife can guarantee income payments to last for a fixed period
of time, for your lifetime, or for as long as either you or a person you
choose is living. Other pay-out choices are available.
3. PURCHASE
You, your employer or other group purchaser or the trustee of a retirement
plan can purchase a contract through your MetLife representative or a rep-
resentative of other firms MetLife has selected. You must indicate that
you want to invest under a contract by filling out the appropriate forms.
There is no minimum purchase payment amount. (MetLife may cancel the con-
tract or certificate if the account value falls below certain minimums.)
You can put more money in your account, but MetLife may reject purchase
payments over $500,000.
WHO SHOULD INVEST? This investment is appropriate for individuals saving
for retirement. Because purchase payments are made under qualified retire-
ment plans or arrangements, all purchase payments are made on a tax-de-
ductible or pre-tax basis.
4. INVESTMENT OPTIONS
The investment options are:
. State Street Research Income
. Scudder Global Equity
. State Street Research Diversified
. Calvert Social Balanced . Santander International Stock
.Harris Oakmark Large Cap Value
. MetLife Stock Index
.Lehman Brothers Aggregate Bond Index
. State Street Research Growth
. Janus Mid Cap .Morgan Stanley EAFE Index
.Neuberger&Berman Partners Mid Cap Value
. Loomis Sayles High Yield Bond
.Russell 2000 Index
. State Street Research Aggressive Growth
.T. Rowe Price Large Cap Growth
. T. Rowe Price Small Cap Growth
Money in the investment options is invested in the Metropolitan Series
Fund, Inc. or Calvert Variable Series, Inc., underlying mutual funds that
invest in stocks, bonds and other investments. Not all options are avail-
able in all states or under all Contracts.
5. EXPENSES
There are two types of charges you pay while you have money in an invest-
ment option. The first is an insurance-related charge that on an annual
basis will not exceed 1.25% of the average daily value of the amount you
have in each investment option. This charge is used to pay MetLife for
general administrative expenses and for mortality and expense risks of the
Contract. MetLife guarantees that the insurance-related charge will never
increase while you have a contract or certificate. The second charge is
investment-related. It pays the investment manager for managing amounts in
the investment options and pays for investment operating expenses. For the
State Street Research Income, State Street Research Diversified, MetLife
Stock Index,
PROFILE 2
<PAGE>
State Street Research Growth, State Street Research Aggressive Growth,
Loomis Sayles High Yield Bond, Janus Mid Cap, T. Rowe Price Small Cap
Growth, Scudder Global Equity, Santander International Stock (formerly
known as State Street Research International Stock), Harris Oakmark Large
Cap Value, Lehman Brothers Aggregate Bond Index, Morgan Stanley EAFE In-
dex, Neuberger&Berman Partners Mid Cap Value, Russell 2000 Index, T. Rowe
Price Large Cap Growth and Calvert Social Balanced investment options, the
investment-related charges range on an annual basis from .33% to 1.12% of
the average daily value of the amount you have in an investment option,
depending on the options you select.
If you decide to take all or part of a purchase payment out of your ac-
count within seven years of when you made it, a withdrawal charge of up to
7% of the purchase payment withdrawn may also be imposed as follows:
DURING PURCHASE
PAYMENT/CONTRACT YEAR
<TABLE>
<CAPTION>
1 2 3 4 5 6 7 8 & Later
<S> <C> <C> <C> <C> <C> <C> <C>
7% 6% 5% 4% 3% 2% 1% 0
</TABLE>
There are no annual Contract charges. (For all contracts except the Keogh
Contract and certain TSA contracts, there is a $20 charge applied against
any amounts in the Fixed Interest Account only if your account value is
less than $10,000 and if you fail to make purchase payments during the
year for all Contracts. The Keogh Contract with individual participant re-
cordkeeping has the $20 charge applied against any amounts in the Fixed
Interest Account; the Keogh Contract with no individual participant re-
cordkeeping has no such charge. There is no charge for certain TSA Con-
tracts.)
The table below summarizes the Contract expenses described on the previous
page for the year ending December 31, 1997,
. The first two columns are the insurance-related and investment-re-
lated charges per investment option and the third column is the to-
tal. The total annual investment related charges column reflects all
expense reimbursements and fee waiver arrangements. The total annual
investment-related charges in the second column are estimated for the
year ending December 31, 1998 for the Harris Oakmark Large Cap Value,
Lehman Brothers Aggregate Bond Index, Morgan Stanley EAFE Index,
Neuberger&Berman Partners Mid Cap Value, Russell 2000 Index and T.
Rowe Price Large Cap Growth.
. The last two columns indicate the amount you would pay, including any
withdrawal charges, on a hypothetical $1,000 investment in each in-
vestment option if you took your money out of the account as of the
end of the first year or as of the end of the tenth year. (There are
no numbers for some of the options for the "10 years" example, be-
cause the investment options are new.)
. These examples also assume a 5% investment return each year and that
10% of the account value is free of withdrawal charges. The table as-
sumes that annuity taxes are 0%.
PROFILE 3
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<TABLE>
<CAPTION>
TOTAL ANNUAL TOTAL ANNUAL TOTAL ANNUAL EXAMPLES: TOTAL
INSURANCE INVESTMENT- CHARGES ANNUAL EXPENSES
CHARGE RELATED CHARGES AS OF THE END OF
INVESTMENT
OPTION 1 YEAR 10 YEARS
................................................................................
<S> <C> <C> <C> <C> <C>
State Street Research
Income 1.25% .43% 1.68% $80 $200
State Street Research
Diversified 1.25% .50% 1.75% $81 $208
Calvert Social Balanced 1.25% .81% 2.06% $84 $241
MetLife Stock Index 1.25% .33% 1.58% $79 $189
State Street Research
Growth 1.25% .56% 1.81% $81 $214
Janus Mid Cap 1.25% .89% 2.14% $85 --
Loomis Sayles High Yield
Bond 1.25% .90% 2.15% $85 --
State Street Research
Aggressive Growth 1.25% .79% 2.04% $84 $239
T. Rowe Price Small Cap
Growth 1.25% .73% 1.98% $83 --
Scudder Global Equity 1.25% 1.12% 2.37% $87 --
Santander International
Stock 1.25% 1.03% 2.28% $86 $264
Harris Oakmark Large Cap
Value 1.25% .95% 2.20% $ 85 --
Lehman Brothers
Aggregate Bond Index 1.25% .45% 1.70% $ 80 --
Morgan Stanley EAFE In-
dex 1.25% .55% 1.80% $ 81 --
Neuberger&Berman Part-
ners Mid Cap Value 1.25% .90% 2.15% $ 85 --
Russell 2000 Index 1.25% .45% 1.70% $ 80 --
T. Rowe Price Large Cap
Growth 1.25% .90% 2.15% $ 85 --
</TABLE>
The complete Table of Expenses can be found in the prospectus for the Con-
tracts.
6. TAXES
Generally, you will not be taxed until you make a withdrawal from your ac-
count. Withdrawals are generally subject to ordinary income taxes. Gener-
ally, tax law prohibits most payments from TSAs before age 59 1/2. Distri-
butions under a PEDC arrangement are not available until the earlier of
(1) the year you reach 70 1/2; (2) the year you separate from service; or
(3) the year you are faced with an unforeseeable emergency. If you take
money out of your account under a TSA, Keogh plan, or 403(a) annuity be-
fore age 59 1/2, you may also have to pay a 10% Federal income tax penal-
ty.
Income payments are subject to different tax rules. Some jurisdictions may
also tax amounts in annuities. MetLife does not deduct annuity taxes from
your account until the pay-out phase of the Contract. Annuity taxes cur-
rently range up to 5%.
7. ACCESS TO YOUR MONEY
When you want to take money out of your account, you may request a with-
drawal of at least $500 or your account value, if less. Withdrawals are
restricted for TSA Contracts and Texas Optional Retirement Program partic-
ipants. A withdrawal charge of 7% that declines to zero over a seven year
period applies to each purchase payment and may be deducted from your ac-
count. The amount of the withdrawal charge depends upon how long the with-
drawn purchase payments were in your account. Whether or not a contract
withdrawal charge applies, withdrawals may be subject to income taxes, as
well as to a 10% tax penalty if you are age 59 1/2 or less.
PROFILE 4
<PAGE>
You do not pay a contract withdrawal charge if:
A. The withdrawal is up to 10% or 20% (depending on the Contract) of
the value of your account. For the TSA Contract and the Keogh Con-
tract with no individual participant recordkeeping, this percentage
may be taken in an unlimited number of partial withdrawals during
the contract year. For all others, it applies only to the first
withdrawal during the contract year. However, beginning on or about
December 15, 1998 and if approved in your state, this percentage may
be taken in an unlimited number of partial withdrawals during the
contract year for all Contracts.
B. The amount withdrawn is from purchase payments made over seven years
ago.
C. You elect to purchase a lifetime income option or an income that
will be paid for at least five years without the right to cancel the
payment method.
D. You die during the pay-in phase of the Contract.
E. You notify us in writing that you want to cancel the Contract within
10 days of receipt of your Contract. (Your rights to cancel may vary
in some states.)
F. The withdrawal is required to avoid Federal income tax penalties or
to satisfy Federal income tax rules or Department of Labor regula-
tions that apply to the Contract.
G. You are disabled as defined by Federal Social Security law or as de-
fined in the plan.
H. A total withdrawal is taken in annual installments over five years.
(Certain Keogh and TSA Contracts only.)
I. You retire or terminate employment under certain circumstances. Min-
imum contract participation requirements may apply. Withdrawal
charges may apply to amounts transferred into contracts from other
investment vehicles on a tax-free basis.
J. The TSA or Keogh plan terminates and is rolled over into another an-
nuity contract MetLife issues.
K. You suffer a hardship. (Certain Keogh, PEDC and TSA Contracts only.)
L. You make a direct transfer out of a Keogh Contract to another in-
vestment that MetLife has preapproved or you are a restricted par-
ticipant under the Keogh Contract and you roll over your account to
another MetLife contract.
Transfers from certain MetLife contracts "rolled over" to these Contracts
have different withdrawal charges.
8. PERFORMANCE HISTORY
The following chart shows the percentage change in unit values (total re-
turn) for the investment options for certain time periods. (Unit values
are the bookkeeping measure MetLife uses to track account values.) The
unit values reflect the insurance-related charges and investment-related
charges. The total return history below does not reflect withdrawal
charges. If they were included, the total return figures would have been
lower. Past performance does not guarantee future results.
PROFILE 5
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<TABLE>
<CAPTION>
INVESTMENT OPTION 1/1/91- 1/1/92- 1/1/93- 1/1/94- 1/1/95- 1/1/96- 1/1/97-
12/31/91 12/31/92 12/31/93 12/31/94 12/31/95 12/31/96 12/31/97
................................................................................
<S> <C> <C> <C> <C> <C> <C> <C>
State Street Research
Income 15.94% 5.61% 9.94% -4.34% 18.10% 2.30% 8.49%
State Street Research
Diversified 23.42% 8.09% 11.42% -4.24% 25.46% 13.06% 19.09%
Calvert Social
Balanced 14.37% 6.28% 6.61% -4.38% 28.15% 11.19% 18.63%
MetLife Stock Index 28.11% 6.11% 8.21% -0.07% 35.18% 21.11% 30.54%
State Street Research
Growth 31.48% 10.25% 12.98% -4.47% 31.48% 20.67% 26.81%
State Street Research
Aggressive Growth 64.38% 9.00% 21.09% -3.11% 27.93% 6.35% 5.38%
Santander Interna-
tional Stock -11.31% 46.01% 3.71% -0.42% -2.96% -3.56%
</TABLE>
Prior to May 16, 1993, MetLife paid all expenses of the Metropolitan Se-
ries Fund, Inc., other than management fees, brokerage commissions, taxes,
interest and any extraordinary or non-recurring expenses.
9. DEATH BENEFIT
If you or the person whose life determines when income payments are to be
made, if different, die before the pay-out phase begins, MetLife will pay
a death benefit that equals the greatest of: (1) your account value, (2)
your highest account value on December 31 of any fifth anniversary of your
purchase of the contract, less any later withdrawals and fees and (3) the
total of all purchase payments you made less withdrawals. In all cases,
the death benefit would also be reduced by outstanding loans. The amount
of the death benefit for the Keogh Contract with individual participant
recordkeeping is deemed to be the account value under your plan. There is
no death benefit for the Keogh Contract with no individual participant re-
cordkeeping.
10. OTHER INFORMATION
A. All the Contracts described in this Profile are group contracts ex-
cept for the TSA and Keogh Contracts which may be either group or
individual.
B. Metropolitan's Easy Telephone Service: Account information is avail-
able 24 hours a day on our toll-free line. Requests may also be made
during business hours.
C. Payroll deduction: You may be able to make purchase payments conve-
niently by authorizing deductions from your salary.
PROFILE 6
<PAGE>
D. MetLife's Automated Investment Strategies: Although no investment
strategy can guarantee a profit or protect against loss, you can se-
lect an automated investment strategy to help make investing easy.
When you choose an automated investment strategy, MetLife will make
scheduled transfers among the Fixed Interest Account and the invest-
ment options that help you follow the strategies described below:
THE EQUITY GENERATOR SM: An amount equal to the interest earned in
the Fixed Interest Account is transferred monthly to the MetLife
Stock Index or State Street Research Aggressive Growth investment
option.
THE EQUALIZER SM: Amounts in the Fixed Interest Account and in the
MetLife Stock Index or State Street Research Aggressive Growth in-
vestment options are transferred quarterly from one to the other
in order to make the amounts in each equal.
THE REBALANCER SM: Amounts in the investment options and the Fixed
Interest Account are transferred each quarter in order to bring
the percentage of your account value in each option back to the
original allocation that you choose.
THE ALLOCATOR SM: A dollar amount you choose is transferred
monthly from the Fixed Interest Account into any of the investment
options. You select the day of the month and the period during
which the transfers will occur.
THE INDEX SELECTOR SM: Amounts in the Lehman Brothers Aggregate
Bond Index, MetLife Stock Index, Morgan Stanley EAFE Index and
Russell 2000 Index investment options and the Fixed Interest Ac-
count are transferred each quarter in order to bring the percent-
age of your account value in each of these options back to the
current allocation of your choice of one of several asset alloca-
tion models.
The strategies are not available under all Contracts.
11. INQUIRIES
Please contact MetLife at:
Metropolitan Life Insurance Company
One Madison Avenue
New York, NY 10010
Attention: Retirement & Savings Center
1-800-553-4459
PROFILE 7
