LIC Samridhi Plus policy Plan no – 804 Review
Lic samridhi plus plan was INTRODUCED ON: 25/2/2011 and WITHDRAWN ON: 25/5/2011.
Lic samridhi plus policy is a unit linked plan where PPT (Premium Paying Term) is either single or limited to 5 years only. The premium payable in 5 years will be same for all years.
This policy offers payment of fund value at the end of the policy term based on the highest NAV (net asset value) over the first 100 months of the policy or the NAV (net asset value) as applicable at the end of the policy term, whichever is more.
Lic Samridhi Plus Plan Parameters
Age at entry: Minimum: 8 years LBD (Last birthday)
Maximum: 65 years (nearer birthday)
Age at Maturity: Minimum: 18 years LBD (Last birthday)
Maximum: 75 years NBD (Nearer birthday)
Policy term: Minimum / Maximum : 10 years
Mode of premium
payment: Yearly, Half-yearly, Quarterly, ECS- monthly, Single
Premium paying term: 5 years or single premium
Minimum premium: Regular,Other than ECS-monthly : Yearly – Rs. 15,000
Half-yearly – Rs. 8000
Quarterly – Rs. 4000
(annualized premium should
be multiple of Rs. 1000)
ECS monthly : Rs. 1500/- per month, in multiple of Rs. 250/-
Single premium : Rs. 30,000/- , in multiple of Rs. 1000/-
Maximum premium: Regular premium : Rs. 1 lakh per annum
( per policy) Single premium : No limit.
Minimum Sum Assured:
|5 years PPT (Premium Paying Term)||For age at entry below 45 years : 10 times of annual premiumFor age at entry 45 and more : 7 times of annual premium|
|Single premium||For age at entry below 45 years : 1.25 times of single premiumFor age at entry 45 and more : 1.10 times of single premium|
Maximum Sum Assured:
|5 years PPT (Premium Paying Term)||For age at entry below 45 years : 20 times of annual premium For age at entry 45 and more : 10 times of annual premium|
|Single premium||For age at entry up to 55 years : 5 times of single premium For age at entry 56 to 65 years : 1.10 times of single premium|
Sum assured in multiples: Rs. 5000
Where the minimum sum assured is not in the multiples of Rs. 5000/-, it will be rounded off to the next multiple of Rs. 5000/-
Lic Samridhi Plus Plan Benefits
Maturity Benefit and Guaranteed NAV :
On survival of the policyholder till the maturity date, then
Maturity claim = amount equal to the value of the units held in the policyholder’s fund
However, the bid value as on maturity date will be based on the highest NAV (Net Asset value) over the first 100 months of the policy or the NAV as applicable at the maturity, whichever is higher.
Under Samridhi plan, the Guaranteed NAV will be applicable only for the units available in the policyholder’s fund at the end of policy term.
This will not be applicable for the payment of death claim, surrender and partial withdrawals.
On the death of policyholder when the policy is in force, the death claim payable will be, HIGHER OF ,
1) sum assured (SA) under the basic plan
2) or the fund value of units held in the policyholder’s fund value as at the booking date of the liability.
sum assured + unit value is not payable, since mortality charges are recovered on sum assured – unit value.
If partial surrender has been made during last 2 years before the death date, the sum assured under the basic plan shall be reduced to the extent of the amount of partial surrender made.
If death occurs due to accident, then DAB (double accident benefit) sum assured will be payable.
If policy is in discontinued status, then
Death claim = outstanding surrender value credited in this account as on date of
intimation of death
Options under Lic Samridhi Plus Plan
Eligibility conditions for Accident Benefit:
Accident benefit is an optional rider which can be availed by paying an additional premium of Rs. 0.50 paise for every 1000 Accident benefit SA (sum assured) per policy, every month by cancellation of appropriate no. of units out of policyholders unit account.
If policyholder is employed in any high risk job like in police organization and he wish to have DAB with police duty, then the rate of premium for DAB will be Rs 0.75 per 1000 sum assured.
PDB / EPDB is not included in accident benefit.
|Sum assured||Minimum : Rs. 50,000Maximum : Rs. 50 lakh, taking all existing policies of the LICand other Insurance companies taken together.|
|Age at entry||Minimum : 18 years
Maximum : 60 years
|Maximum maturity Age||70 years|
|Policy term||10 years|
|Accident benefit sum assured in multiple||Rs. 5000/-|
Other benefits of Lic Samridhi Plus Plan
Investment Fund Types and Switching over of fund:
Under Lic Samridhi plus plan, there is only one fund type namely wealth plus fund or Samridhi plus fund.
|SAMRIDHI PLUS (804)||Launch Date: 25/02/2011|
The Net Asset Value (NAV) will be computed on daily basis from launching date of the plan.
For this plan NAV (Net asset value) is not fixed for one month at the rate of Rs.10/- per unit.
Allocation of premium:
The total premium received is divided into unit fund and non-unit fund. This allocation is done
as per percentage given below in PPT – 5 years and single premium policies.
Unit fund premium is utilized for arriving at the no. of units by dividing it by the applicable NAV (Net Asset Value) rate. Number of units are to be rounded off up to 3 decimals. Further unit capital will be always 10 times the no. of units.
Premium paying term-5 years :
|1st year||6% nil|
|2nd to 5th year||4.50% nil|
Single premium policies:
|for policyholder CEIS POLICIES|
Top up premium:
Under Lic Samridhi plus policy, there is no provision to pay top-up premium.
Recovery of charges and frequency of charges:
After premium receipt and further deduction of allocation charge, from balance amount, total no. of units available in policyholder’s unit capital account will be calculated.
The total no of units to be deducted will be calculated as,
= Total amount of charges to be recovered
Applicable NAV rate as per time applicable
Charges under Lic Samridhi Plus Plan
Mortality (life cover) charge:
Mortality (life cover) charge is the cost of life insurance cover. It will be taken by canceling appropriate number of units out of the Policyholder’s Fund Value every month.
During a policy year, mortality charge will be based on the age NBD (nearer birthday) of the Policyholder as at the policy anniversary coinciding with the due date of cancellation of units and hence may increase every year on each policy anniversary.
At the time of revival, the mortality charge shall be based on the age nearest birthday as on the revival date.
Accident Benefit Charges:
If accident benefit cover is chosen, then charge of Rs. 0.50 paise per 1000 sum assured of
accident benefit per policy year by monthly cancellation of appropriate no. of units will be
If policyholder is employed in high-risk jobs like in police organization and he/she wish to have DAB with police duty, then
rate of premium for DAB will be Rs 0.75 per 1000 sum assured.
Policy Administration charges:
The policy administration charge of Rs.30/- per month during the first year and at the rate of Rs.30/- per month increasing rapidly at 3% p.a. thereafter throughout the policy term will be deducted by canceling appropriate no. of units out of policyholder’s fund value on monthly basis.
Service Tax Charge:
service tax shall be charged on all or any of the charges applicable to this plan as per the prevailing service tax laws as issued by Government of India from time to time. For information about Tax on Life Insurance Policies www.taxqueries.in
Fund Management Charge:
Under Samridhi plan fund management charge at 0.90 % of fund value will be deducted from fund before declaring NAV (net asset value), hence separate deduction will not be required. Also under this plan, flat fee and policy charge will not be deducted.
Guarantee charge is deductible on the computation date of NAV at 0.40% of fund value for the cost of investment guarantee. Guarantee charge will also be deducted from fund before declaring NAV, hence separate deduction will not be required.
This charge for alteration, like change in mode from higher to lower frequency within the premium paying term (PPT), grant of accident benefit after issue of policy will be rs. 50/-. These charges will be deducted by cancelling the policyholder’s fund value appropriately.
Additional Information about Lic Samridhi Plus Plan
Days of Grace:
A grace period of 1 month but not less than 30 days will be allowed for payment of premiums. If premium is not paid within days of grace, policy will lapse according to provisions of discontinuance of policy.
For ECS monthly mode, grace period will be 15 days.
Discontinuance of premium:
If premiums have not been paid within the grace period, a notice shall be sent to the policyholder within a period of 15 days from the expiry date of grace period to exercise one of the following options within a period of 30 days of receipt of such notice. The options are,
1) Revival of the policy (paying the outstanding premium).
2) Complete withdrawal from the policy.
Revival of policy:
If the policyholder exercises the option to revive the policy, the outstanding premiums without interest shall be required to be paid. Evidence of health will not be required.
Commencement of risk under minor’s life:
Under Samridhi plus plan, risk on minor life will commence immediately from date of FPR (Family Parent Rider). There is no need to wait for 2 years from date of commencement of policy.
Assignment / change of nomination will be allowed under Samridhi plus policy.
Partial withdrawal / surrender:
A policyholder after paying at least 5 full years premiums under regular premium policies and also completion of 5 policy years, can partially withdraw the units.
If the balance in the policyholder’s fund value is not sufficient to recover the relevant charges, the policy shall be compulsorily terminated and the balance amount in the policyholder’s fund value , if any, shall be refunded to the policyholder.
Full surrender value and surrender charge:
If policy is surrendered within 5 years from the commencement date of policy, then the Policyholder’s Fund Value after deducting the Discontinuance Charge, if any, shall be converted into monetary terms. This monetary amount shall be credited to the Discontinued Policy Fund and no charges shall be deducted thereafter.
If policy is surrendered after 5 years from the commencement date of policy, then the Policyholder’s Fund Value, as at the surrender date, shall be payable.Discontinuance Charge will not be there.
Benefit illustration of Lic Samridhi Plus Plan
PRODUCT FEATURES :
Name of the Product: LIC Samridhi Plus
Service Tax Rate:10.30%
Sum Assured: 200000
Policy Term : 10
Premium Paying Term:5
Mode of Premium Payment : Yearly
Amount of Instalment Premium:20000
Funds opted for: Samridhi Plus
Fund Combination: Basic Plan With Life Cover
FMC Rate : 0.90%p.a.
Statement of Various charges along with growth of the fund expected over the duration of the policy with assumed rate of interest as mentioned
(All charges are in Rupees)
Assuming Gross Interest of 6% p.a.
Assuming Gross Interest of 10% p.a.