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PROFILE
Preference Plus(R) Account
Profile
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May 1, 1998
As Supplemented
November 9, 1998
Plus
Preference
PROFILE
Individual Retirement Annuities
Roth Individual Retirement Annuities
SIMPLE Individual Retirement Annuities
Non-Qualified Annuities
Simplified Employee Pensions
[LOGO OF METLIFE RETIREMENT & SAVINGS CENTER APPEARS HERE]
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METROPOLITAN LIFE INSURANCE COMPANY
METROPOLITAN LIFE SEPARATE ACCOUNT E
PROFILE OF THE PREFERENCE PLUS(R) ACCOUNT DEFERRED INDIVIDUAL AND GROUP
INDIVIDUAL RETIREMENT ANNUITIES ("IRAS"), ROTH INDIVIDUAL RETIREMENT ANNUITIES
("ROTH IRAS"), SIMPLE INDIVIDUAL RETIREMENT ANNUITIES ("SIMPLE IRAS"), NON-
QUALIFIED ANNUITIES AND SIMPLIFIED EMPLOYEE PENSIONS ("SEPS") VARIABLE ANNUITY
CONTRACTS ("CONTRACTS").
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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-
tract is 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 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 purchase 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 ac-
count. 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 payments.
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 annually. MetLife can guarantee income pay-
ments 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.
THE DATE OF THIS PROFILE IS MAY 1, 1998, AS SUPPLEMENTED NOVEMBER 9, 1998.
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3. PURCHASE
You, your employer, or the trustee of a retirement plan can purchase a
contract through your MetLife representative or a representative of other
firms MetLife has selected. You must indicate that you want to invest un-
der a contract by filling out the appropriate forms.
There is no minimum purchase payment amount. (MetLife may cancel the Con-
tract if your 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 BUY A CONTRACT? Contracts are appropriate for individuals sav-
ing for retirement. The Non-Qualified Contract is called "non-qualified"
because it does not meet the requirements or "qualify" under the Federal
income tax laws for retirement plans or IRAs. Purchase payments for Non-
Qualified Contracts are not tax-deductible. Purchase payments for the
other Contracts qualify under the Federal income tax laws for retirement
plans or are IRAs. For the IRA Contract, purchase payments may be totally,
partially, or not tax-deductible, depending on your situation. Purchase
payments made under qualified retirement plans or arrangements under SIM-
PLE IRAs or SEP Contracts are generally fully tax-deductible or made on a
pre-tax basis. Purchase payments for a Roth IRA are not tax deductible. If
certain requirements are met, withdrawals of earnings under Roth IRAs are
tax free.
4. INVESTMENT OPTIONS
The investment options are:
. State Street Research Income
. Scudder Global Equity
. State Street Research Diversified
. Santander International Stock
. MetLife Stock Index
. Harris Oakmark Large Cap Value
. State Street Research Growth
. Lehman Brothers Aggregate Bond Index
. Janus Mid Cap
. Morgan Stanley EAFE Index
. Loomis Sayles High Yield Bond
. Neuberger & Berman Partners Mid Cap Value
. State Street Research Aggressive Growth
. Russell 2000 Index
. T. Rowe Price Small Cap Growth
. T. Rowe Price Large Cap Growth
Money in the investment options are invested in the Metropolitan Series
Fund, Inc., an underlying mutual fund that invests in stocks, bonds and
other investments. Not all options are available in all states.
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, State Street Research Growth, State Street Research Aggres-
sive Growth, Loomis Sayles High Yield Bond, Janus Mid Cap, T. Rowe Price
Small Cap Growth, Scudder Global Equity, Santan -
PROFILE 2
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der International Stock (formerly known as State Street Research Interna-
tional Stock), 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 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 invest-
ment 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 YEAR
1 2 3 4 5 6 7 8 & Later
7% 6% 5% 4% 3% 2% 1% 0
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There are no annual Contract charges. (For the IRA, Non-Qualified, Roth
IRA and SEP Contracts, there is a $20 charge applied against any amounts
in the Fixed Interest Account only if your account value is less than
$20,000 and you are not enrolled in MetLife's payroll deduction or bank
authorization programs. For the SIMPLE IRA Contract, there is a $20 charge
applied against any amounts in the Fixed Interest Account only if your ac-
count value is less than $20,000 and if you fail to make purchase payments
during the year.)
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
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 Aggre-
gate Bond Index 1.25% .45% 1.70% $ 80 --
Morgan Stanley EAFE In-
dex 1.25% .55% 1.80% $ 81 --
Neuberger&Berman
Partners 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 on any earnings from your account until
you make a withdrawal. If you take money out of your account before age 59
1/2, you may also have to pay a 10% (or 25%) Federal income tax penalty on
the portion of the withdrawal which is taxable. (The Federal income tax
penalty is 25% for the first two years of a SIMPLE IRA and 10% for all
other withdrawals.)
For tax purposes, withdrawals from the Non-Qualified Contract are normally
treated as coming from taxable earnings first and then from non-taxable
purchase payments.
For the IRA Contract, the tax treatment of a withdrawal will depend on
whether your purchase payment was tax-deductible or not deductible and the
number and size of any other IRAs you own.
If all of your purchase payment under the IRA, SEP or SIMPLE IRA Contract
was fully tax-deductible or made on a pre-tax basis, all withdrawals will
be subject to ordinary income tax.
Roth IRA contributions are not deductible and may be limited depending
upon your adjusted gross income. Generally, withdrawals of earnings from a
Roth IRA are tax free if certain requirements are met. If withdrawals of
earnings do not meet the requirements, the earnings
PROFILE 4
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will be subject to income tax and an additional 10% tax penalty may apply.
Conversions from existing IRAs to Roth IRAs are permitted if you meet cer-
tain requirements, however, your money will be subject to income tax on
all converted amounts which were not previously taxed.
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. A withdrawal
charge of up to 7% that declines to zero over a seven year period applies
to each purchase payment and may be deducted from your account. The amount
of the withdrawal charge depends upon how long the withdrawn purchase pay-
ments were in your account. Whether or not a contract withdrawal charge
applies, withdrawals may be subject to income taxes, as well as a 10% tax
penalty if you are age 59 1/2 or less. (The tax penalty is 25% for the
first two years of a SIMPLE IRA, and 10% for all other withdrawals.) Under
proposed legislation, additional tax penalties may apply to individuals
under certain circumstances for Roth IRAs.
You do not pay a contract withdrawal charge if:
A. The withdrawal is the first in a contract year and is up to 10% of
the value of your account. 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.
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. You or your spouse (i) is a resident in certain nursing home facili-
ties for at least 90 consecutive days or (ii) has been diagnosed as
terminally ill and is expected to die within 12 months. (May not be
available in all states.)
G. 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 IRA, SIMPLE IRA or SEP Contracts.
H. You accept an amendment to your IRA Contract approved in your state,
which converts your total account value to a Roth IRA Contract.
Transfers from certain MetLife contracts "rolled over" to these Contracts
have different withdrawal charges.
PROFILE 5
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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.
<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%
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.
10. OTHER INFORMATION
A. The Non-Qualified, IRA and Roth IRA Contracts described in this Pro-
file are individual contracts. You, as purchaser of the contract,
have all rights under the contract. The SEP Contract is a group con-
tract. The SIMPLE IRA Contract may be either an individual or group
contract.
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/bank authorization: You may be able to make pur-
chase payments conveniently by authorizing deductions from your sal-
ary or transfers from your bank account.
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.
PROFILE 6
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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.
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
