LIC Samridhi Plus is a unit linked plan that will protect your investment from any market fluctuations to ensure that your investments are safeguarded even in financially capricious times. Under this plan, you will receive the payment of the Fund Value at the end of your policy term. This payment will be based on the NAV or the Net Asset Value over the period of the first 100 months of your policy OR the NAV applicable on the maturity date, depending on whichever is earlier.
Eligibility Conditions for LIC Samridhi Plus
|Minimum Entry Age||8 years (age as of the last birthday)|
|Maximum Entry Age||65 years (age closer to birthday)|
|Policy Term||10 years|
Premium Payments Offered by LIC Samridhi Plus
You have the option for paying the premiums under this policy either by making a lump sum payment or for a limited premium where you make payments over a term of 5 years.
Find below the Premium Paying Policies for a 5 year term -
|Instalment Premium||Minimum Premium|
|Yearly||Rs. 15, 000|
|Half – Yearly||Rs. 8000|
For a single premium, find below the mode and the minimum payment required -
|Monthly (through ECS only)||Rs. 1500|
|Single Premium Policy||Rs. 30, 000|
Find below the maximum premium for Paying Policies for a 5 year term and for a single premium -
|Paying Policy for a 5 year term||Rs. 1, 00, 000 per annum|
|Single Premium Policy||No Limit|
Basic Plan – Sum Assured
Minimum Sum Assured
|Paying Policy for a 5 year term||
|Single Premium Policy||
Maximum Sum Assured
|Paying Policy for a 5 year term||
|Single Premium Policy||
Note the following -
- If the Minimum Sum Assured is not in multiples of Rs. 5000, in that case that it will be rounded off to the nearest multiple of Rs. 5000
- Annualized Premiums must be paid in multiples of Rs. 1000 (does not include ECS monthly)
- For monthly ECS, the premium must be paid in multiples of Rs. 250
Key Features of LIC Samridhi Plus
|Type of Plan||A unit linked plan based on NAV (Net Asset Value) to protect your investments from market fluctuations|
|Types of Policies Offered||Single Premium, Limited Premium Contract|
|Policy Payment Options||Single lump sum payment OR paying through intervals over a period of 5 years|
|Premium Payment options||Yearly, Half – Yearly, Quarterly, Monthly(only through the ECS mode)|
|Net Asset Value (NAV)||NAV of your Fund is subject to a minimum of Rs. 10 and is available for sale for a maximum of 3 months from the launch date|
|Increase of Risk Covers||Not allowed|
|Decrease of Risk Covers||Not allowed|
|Cooling off period||Within 15 days|
|Reinstatement||A surrendered policy cannot be reinstated|
Charges for LIC Samridhi Plus
Premium Allocation Charge
This will be deducted for the charges from the premium received. The deduction is based on a percentage.
Find below the Premium Allocation Charges for Single and Regular Premium policies –
|Premium Type||Allocation Charge|
|Single Premium Policies||3.3 percent|
|Regular Premium Policies||
Risk Cover Charges
This charge is derived from the cost of your life insurance cover that will be taken each month and is based on age.
Life Insurance Cover = Sum Assured under Basic Plan – Fund Value (after deducting all other charges)
The charges per Rs. 1000 for each life insurance cover for some ages with respect of healthy lives are as follows -
Age 25 years 35 years 45 years 55 years 1.42 1.73 3.89 10.76
Accident Benefit Charge (if opted for)
This is the cost of the Accident Benefit Rider which will be levied each month at the rate of 0.50 per 1000 Accident Benefit Sum Assured per policy year
|Policy Administration Charge||
|Fund Management Charge||NAV will be adjusted at 0.90% per annum of the Fund Value. It will be levied at the time when NAV is computed and will be done everyday|
|Guarantee Charge||0.40% per annum of the Fund Value will be levied as investment guarantee cost. It will be levied at the time when NAV is computed and will be done everyday|
|Bid / Offer Spread||No charge|
|Miscellaneous Charge||Rs. 50|
Discontinuance Charge for a 5 Year Premium paying policy
|Policy discontinued during the policy year||Discontinuance charge for the policies with annualized premium of up to Rs. 25,000/-||Discontinuance charge for the policies with annualized premium above Rs. 25,000/-|
|1st Year||Lower of 10 percent * (Annualized Premium or Fund Value) subject to a maximum amount of Rs. 2500/-||Lower of 6 percent * (Annualized Premium or Fund Value) subject to maximum of Rs. 6000/-|
|2nd Year||Lower of 7 percent * (Annualized Premium or Fund Value) subject to a maximum of Rs. 1750/-||Lower of 4 percent * (Annualized Premium or Fund Value) subject to maximum of Rs. 5000/-|
|3rd Year||Lower of 5 percent * (Annualized Premium or Fund Value) subject to a maximum of Rs. 1250/-||Lower of 3 percent * (Annualized Premium or Fund Value) subject to maximum of Rs. 4000/-|
|4th Year||Lower of 3 percent * (Annualized Premium or Fund Value) subject to a maximum of Rs. 750/-||Lower of 2 percent * (Annualized Premium or Fund Value) subject to maximum of Rs. 2000/-|
|5th Year and onwards||No Charge||No Charge|
Note the following –
- Fund Value – The Policyholder’s Fund Value is taken as per the date of discontinuance
- There is no discontinuance charge for Single Premiums
Right to Revise Charge
This implies that the corporation has the right to revise any or all of the aforementioned charges (excluding Premium Allocation Charge, Mortality Charge and Accident Benefit Charge) to a maximum limit mentioned below (excluding the service tax) –
Find below the maximum limit for charges –
|Policy Administration Charge||
|Fund Management Charge||The maximum charge for the fund is 1.30% per annum of the Fund Value|
|Guarantee Charge||The charge cannot exceed 0.60% per annum of the Fund Value|
|Miscellaneous Charge||Rs. 100|
Benefits of LIC Samridhi Plus
Guaranteed NAV -
This guarantee implies that at the end of the policy term, the payment will be based on the NAV or the Net Asset Value that was recorded over the first 100 months from the commencement of the policy or the NAV as applicable on the maturity date, depending on whichever is higher. Note that this guarantee is only applicable for units that are available in the fund at the end of your policy term.
Death Benefit -
In case of the death of the Life Assured under this LIC ULIP policy, if the cover is in full force then the nominee will get higher of the Sum Assured under the Basic Plan and the Policyholder’s Fund Value. In case a partial has been made in the last 2 years from the date of death, the Sum Assured under the Basic Plan will be reduced by deducting the amount of the partial withdrawal made. The Policyholder’s Fund Value will be determined on the basis of the prevailing NAV as per the date on which the intimation of death receipt is received.
Maturity Benefit -
If the policyholder survives at the end of the maturity period, then an amount equal to their Fund Value will be payable. The Policyholder’s fund at the end of the term will be based on the NAV or the Net Asset Value that was recorded over the first 100 months from the commencement of the policy or the NAV as applicable on the maturity date, depending on whichever is higher.
Accident Benefit Option
You can opt for Accident Benefit that is equal to the amount of your life cover if you are between the ages of 18 years and 60 years old and for a minimum of Rs. 25, 000 and a maximum of Rs. 50, 00, 000. In case of death due to an accident, an additional amount that is equal to the Accident Benefit Sum Assured will be payable.
Investment of Funds
During the period where the product goes for sale, all premiums received will be invested in Money Market Instruments from the date of the sale and up to the date of closure of the respective plans. Upon the date of closure of the respective plans, the investment pattern mentioned below will be followed -
|Fund Type||Investment in Corporate Debt / Government / Government Guaranteed Securities /||Short-term investments – e.g. money market instruments||Investment in Listed Equity Shares||Objective of the fund for risk / return|
|Samridhi Plus Fund||0 percent to 100 percent||0 percent to 100 percent||0 percent to 100 percent||Medium Risk|
The surrender value (if any) will be payable as follows –
If the policy is surrendered within 5 years from the commencement date of the policy
If you apply for the surrender of your policy within 5 years from the commencement date, then your (policyholder’s) Fund Value after deducting any Discontinuance Charge will be converted into monetary terms. This monetary amount will be credited to your Discontinued Policy Fund and no further charges thereafter will be deducted. However, the proceeds of your Discontinued Policy will be payable only after the completion of 5 years from the commencement date.
In case of your death (life assured) after the date of the surrender but prior to completing 5 years from the commencement date of your policy, the proceeds of your Discontinued Policy will be payable to your nominee or your legal heir immediately.
If the policy is surrendered after 5 years from the commencement date of the policy
If you apply for the surrender of your policy after 5 years from the commencement date, in that case, your (policyholder’s) Fund Value, as of the surrender date will be payable. There will be no Discontinuance Charge deducted.
Other features of LIC Samridhi Plus
Guaranteed interest rate for Discontinued Policy Fund -
A guaranteed minimum rate of interest of 3.5% per annum will be credited to the Discontinued Policy Fund that is constituted by the fund value of all discontinued policies.
Partial Withdrawals -
You can encash the units partially following the 5th anniversary of your policy if you have paid all due premiums and subject to the following conditions -
- Partial withdrawals are allowed twice in a policy year
- For minors, policy withdrawals are allowed from the anniversary of your policy coinciding with or next following the date when you, the life assured attain majority (on or after your 18th birthday)
- Partial withdrawals will be in the form of fixed amount or in the form of fixed number of units. The minimum amount is Rs. 2000
- For a 2 year period from the date of the partial withdrawal, the Sum Assured under the Basic Plan will be reduced to the amount of the partial withdrawal made
- For a 5 Year Premium Paying policy, partial withdrawals will only be allowed if a minimum balance of at least 1 annualized premium is maintained in your (policyholder’s) Fund Value
- For a Single Premium policy, partial withdrawal will only be allowed if a minimum balance of 25% of your single premium is maintained your (policyholder’s) Fund Value
Increase and Decrease of Risk Covers
Increase and decrease of risk covers are NOT allowed under this plan
The grace period for Yearly, Half – Yearly and Quarterly premiums is 30 days. The grace period for monthly (only through the ECS mode) premium is 15 days. If the premium is not paid within the mentioned the days of grace, you will receive a notice within 15 days from the expiry date for you to exercise your option for revival within this period. If you choose to exercise this option, in that case, you will have to pay the arrears of premium without interest.
If a policy has been surrendered, it cannot be reinstated.
Cooling Off Period
If you are unsatisfied with the “Terms and Conditions” of the policy, you have the option to return the policy within 15 days. The amount paid will be refunded in case you return the policy within the cooling off period and will determined as per the following -
Value of Units in the Policyholder’s Fund + Unallocated Premium + Deducting Policy Administration Charges
No loan is available under this plan
Assignment has been made available under this plan
Discontinuance of Premiums
If the premiums have not been paid within the grace period under the policy, a notice will be sent to your listed address within 15 days from the expiry date of the grace period where you will be given the option to either one of the following options within a period of 30 days of the receipt –
- Revival of your policy
- Complete withdrawal of your policy
During the 30 day notice period, the policy will continue to be treated as in force and additional charges including Mortality charge and Accident Benefit cover will be taken by cancelling respective number of units from the policyholder’s Fund Value. This cover will continue until the discontinuance date of your policy (date when intimation is received from your end regarding the complete withdrawal of your policy or until the expiry of your notice period).
In case no option is exercised by you within the period of 30 days, you will be deemed to have exercised the option for complete withdrawal of your policy.
Compulsory Termination of policy
If the balance on your (policyholder’s) Fund Value at any given point in time after partial withdrawal of units is insufficient to recover any relevant charges, your policy will be compulsorily terminated and the balance any amount in your Fund Value will be refunded to you, the policyholder.