LIC SAMRIDHI PLUS (Plan No. 804)
LIC Samridhi Plus (Plan No. 804) a close-ended plan which would be open for sale for a maximum period of 3 months.
This is a unit-linked plan with a policy term of 10 years that offers payment of Fund Value at the end of the policy term based on the highest Net Asset Value (NAV) over the first 100 months of the policy or the NAV as applicable at the end of the policy term, whichever is higher. This Guarantee will be applicable only for payment to be made at the end of the policy term (i.e. 10 years).
The premium payment under LIC Samridhi Plus is limited to single or 5 years. The policyholder can choose the level of cover within the limits, depending on his/her age, the amount of premium payable, and whether the premium is payable one time or regularly during the premium paying term. The allocated premium will be utilized to purchase units. There is no Bid-Offer spread (both the Bid price and Offer price of units will be equal to the NAV). The NAV will be computed on a daily basis and will be based on the investment performance, Fund Management Charges (FMC), Guarantee Charge, and whether the fund is expanding or contracting. Other details of this plan are as follows.
INVESTMENT FUND TYPES:
The premiums allocated to purchase units will be invested according to the investment pattern committed for the fund. The investment pattern will be as under Fund Investment in Government / Government Guaranteed Securities / Corporate Debt Short-term investments such as money market instruments/Investment in Listed Equity Shares
CHARGES AND FREQUENCY OF CHARGES:
Premium Allocation Charge: This is the percentage of the premium appropriated towards charges from the premium received. The balance known as allocation rate constitutes that part of the premium which is utilized to purchase (Investment) units for the policy.
The allocation charges are:
For Single premium policies: 3.3%
For Regular Premium policies: First Year 6.00%, 2nd to 5th Year 4.50%
Mortality Charge: This is the cost of life insurance cover. Mortality Charge will be taken every month by canceling appropriate number of units out of the Policyholder’s Fund Value.
Accident Benefit Charge: Charges for Accident Benefit rider, if any, will be taken every month by canceling appropriate number of units out of the Policyholder’s Fund Value as per the rate prevalent at the time of issue of policy.
A level charge, at present, is at the rate of Rs.0.50 per thousand Accident Benefit Sum Assured per policy year and will be made for Accident Benefits cover by the cancellation of an appropriate number of units out of the Policyholder’s Fund Value every month along with the Mortality charge. Charges for Accident Benefit rider shall be deducted only if this rider has been opted for.
POLICY ADMINISTRATION CHARGE -The Policy Administration charge of Rs. 30/-per month during the first policy year and Rs 30/-per month escalating at 3% p.a. thereafter, throughout the term of the policy will be deducted on a monthly basis by canceling an appropriate number of units out of Policyholder’s Fund Value.
FUND MANAGEMENT CHARGE – Fund Management Charges (FMC) are deductible on the date of computation of NAV at 0.90% p.a. of Fund Value.
GUARANTEE CHARGES– Guarantee Charge is deductible on the date of computation of NAV at 0.40% p.a. of Fund Value for the cost of investment guarantee.
BID/OFFER SPREAD – Nil.
DISCONTINUANCE CHARGES – This is a charge levied, under 5-year premium paying term policies, if a policy is surrendered or discontinued. This charge will be levied by canceling appropriate number of units out of Policyholder’s Fund Value on the date of
surrender/date of discontinuance of the policy.
SERVICE TAX CHARGE – A service tax charge shall be levied on all or any of the charges applicable to this plan as per the prevailing service tax laws/notifications etc. as issued by the Government of India from time to time in this regard without any reference to the
policyholder. At present, the service tax charge under this plan is based on 10.30% of maximum Fund Management Charge (i.e. 1.35% p.a.) allowed by IRDA in terms of circular Ref: 055/IRDA/Actl/ULIP/2009-10 dated 24th September 2009. In all the other cases, service tax will be based on the actual charges deducted under the plan.
MISCELLANEOUS CHARGE – This is a charge levied for an alteration within the contract, such as a change in premium mode to higher frequency and Grant of Accident Benefit after the issue of the policy, and shall be a flat amount of Rs. 50/-which will be deducted by
canceling appropriate number of units out of the Policyholder’s Fund Value and the deduction shall be made on the date of alteration in the policy. The alteration will be effective from the policy anniversary coincident with or following the alteration.
The alteration from regular premium mode to single premium mode or vice versa shall not be allowed.
BENEFITS:
Benefits payable on death:
In case of death of the policyholder when the risk cover is in full force, the nominee shall be eligible to get higher of Sum Assured under the Basic Plan and the Policyholder’s Fund Value as at the date of booking the liability. The liability shall be booked after receipt of intimation along with a death certificate. Further, if partial withdrawal has been made during the last two years from the date of death the Sum Assured under the Basic plan shall be reduced to the extent of the amount of partial withdrawals made.
The policyholder’s Fund on death shall be determined at the prevailing NAV as on the date of booking of the liability.
Benefits payable on maturity:
On the policyholder surviving at the end of policy term an amount equal to the Policyholder’s Fund Value based on the highest NAV over the first 100 months of the policy or the NAV as applicable at the end of the policy term, whichever is higher, shall be payable.
Accident Benefit Rider Option:
Accident Benefit (AB) can be availed of as an optional Rider benefit by paying an additional charge of Rs.0.50 for every Rs.1,000/-of the Accident Benefit Sum Assured per policy year by cancellation of an appropriate number of units out of the Policyholder’s Fund every month. On Accidental death of the Policyholder during the term of the policy, a sum equal to the Accident Benefit Sum Assured will become payable, provided the Accident benefits cover is opted for and is in force. Further, it will be available up to the Sum Assured under the Basic Plan, subject to an overall limit of Rs.50 lakh taking all existing policies of the Life Assured under
individual as well as group schemes taken from Life Insurance Corporation of India and other insurance companies and the Accident Benefit Rider Sum Assured under the new proposal into consideration.
If the age at entry of the Life Assured is less than 18 years, then Accident Benefit Rider can be opted for from the policy anniversary coinciding with or immediately following the completion of 18 or more years of age.
DISCONTINUANCE OF PREMIUMS:
If premiums under the LIC Samridhi Plus policy have not been paid within the days of grace, a notice shall be sent to the policyholder within a period of fifteen days from the date of expiry of grace period to exercise one of the following options within a period of thirty days of receipt of such notice:
i) A revival of the policy, or
ii) Complete withdrawal from the policy.
During the notice period of 30 days, the policy shall be treated as in force and the charges for Mortality and Accident Benefit cover, if any, shall be taken, as usual, in addition to other charges, by canceling appropriate number of units out of the Policyholder’s Fund Value. Insurance cover shall continue till the date of discontinuance of the policy (i.e. till the date on which the intimation is received from the policyholder for the complete withdrawal of the policy or till the expiry of the notice period).
The benefits payable under the LIC Samridhi Plus policy during the notice period shall be the same as that under an in-force policy, except Partial Withdrawal, which shall not be allowed if all due premiums have not been paid.
The benefits payable when the policyholder exercises the option for complete withdrawal or does not exercise any option during the notice period shall be as under:
If policyholder exercises the option for complete withdrawal from the policy or does not exercise the option within the period of 30 days of receipt of the notice, then the policy shall be compulsorily terminated. The Policyholder’s Fund Value as on the date of discontinuance of policy after deducting the discontinuance charge shall be converted into monetary terms and Proceeds of the discontinued policy shall be payable after completion of 5 years from the date of commencement of the policy.
COMPULSORY TERMINATION:
If the balance in the Policyholder’s Fund Value, at any time after the partial withdrawal of units, is not sufficient to recover the relevant charges, the policy shall compulsorily be terminated and the balance amount in the Policyholder’s Fund Value, if any, shall be refunded to the policyholder.
SURRENDER VALUE AND SURRENDER CHARGE:
If all due premium has been paid and the policy is surrendered, the surrender value, if any, is payable as under:
i) If the LIC Samridhi Plus policy is Surrendered within 5 years from the date of commencement of the policy:
If a policyholder applies for surrender of the policy within 5 years from the date of commencement of policy, then the Policyholder’s Fund Value after deducting the Discontinuance Charge shall be converted into monetary terms. This monetary amount shall be credited to the Discontinued Policy Fund and no charges shall be deducted thereafter. The Proceeds of the discontinued policy shall be payable on completion of 5 years from the date of commencement of policy.
In case of death of the life assured after the date of surrender but before the completion of 5 years from the date of commencement of the policy, the Proceeds of the discontinued policy shall be payable to the nominee/ legal heir immediately.
ii) If the LIC Samridhi Plus policy is Surrendered after 5 years from the date of commencement of the policy:
If a policyholder applies for surrender of the policy after 5 years from the date of commencement of policy, then the Policyholder’s Fund Value as at the date of surrender shall be payable. There will no discontinuance charge under the policy.
Once a LIC Samridhi Plus policy is surrendered it cannot be reinstated. The guaranteed NAV will not apply in such a case.
GUARANTEED NAV:
In this product there is a guarantee of the highest NAV recorded on a daily basis, in the first 100 months of the policy, subject to a minimum of Rs. 10/-. The guarantee will be applicable only for units available in the policyholder’s fund at the end of the policy term. The period to be counted for a guarantee of NAV shall be 100 months from the date of commencement of the policy.
This Guaranteed NAV will not be applicable for the payment of death claim, surrender, and partial withdrawals.
ELIGIBILITY CONDITIONS AND FEATURES:
a) Minimum Basic Sum Assured:
5-year Premium paying term policies:
For age at entry below 45 years: 10 times the annualized premium
For age at entry 45 years and above: 7 times the annualized premium
Single-Premium:
For age at entry below 45 years: 1.25 times the single premium
For age at entry 45 years and above: 1.10 times the single premium
b) Maximum Basic Sum Assured:
5 years Premium paying term policies:
For age at entry below 45 years: 20 times the annualized premium
For age at entry 45 years and above: 10 times the annualized premium
Single-Premium Policies:
5 times the Single premium, if age at entry is up to 55 years.
1.25 times the Single premium, if age at entry is 56 to 65 years.
The Sum Assured shall be available in multiples of Rs. 5,000. Where the minimum Sum Assured is not in the multiples of Rs. 5,000, it will be rounded off to the next multiple of Rs. 5,000.
c) Minimum Premium: 5 years premium paying term policies: Mode Minimum Instalment Premium Yearly: Rs. [15,000],Half-Yearly Rs. [8,000], Quarterly Rs. [4,000], Monthly (ECS only) Rs. [1,500]
Single premium: Single Rs. [30,000]
d) Maximum Premium: 5 years premium paying term policies: Rs. [1, 00,000] p.a.
Single premium: No Limit
Annualized Premiums shall be payable in multiple of Rs. 1,000 for other than ECS monthly. For monthly (ECS), the premium shall in multiples of Rs. 250/-.
e) Minimum Entry Age: [8] last birthday (in years)
f) Maximum Entry Age: [65] nearest birthday (in years)
g) Policy Term : [10] years
h) Minimum Maturity Age: [18] years completed
i) Maximum Maturity Age: [75] years nearest birthday (in years)
Age at entry for the policyholder is to be taken as age nearest birthday except for the
minimum age at entry i.e. 8 years.
For Accident Benefit
a) Minimum Sum Assured: Rs. 25,000
b) Maximum Sum Assured:
Rs. 50,00,000 taking all existing policies of the Life Assured under individual as well as group schemes taken with Life Insurance Corporation of India and other insurance companies and the Accident Benefit Rider Sum Assured under the new proposal into
consideration. Under no circumstances Accident Benefit Sum Assured shall exceed the Sum Assured under the Basic Plan.
c) Minimum / Maximum Premium: No separate Limit
d) Minimum Entry Age: 18 years completed
e) Maximum Entry Age: 60 years nearest birthday
f) Policy Term: 10 years
g) Maximum Maturity Age: 70 years nearest birthday
Sum Assured shall be available in multiples of Rs. 5,000
ADDITIONAL FEATURES:
a) Top-up: No Top-up shall be allowed under the plan.
b) Increase / Decrease in Benefits: No increase or decrease in benefits will be allowed under the plan.
c)Flexibility in payment of premium: The policyholder has the choice either to pay Single premium (in one lump sum) or to pay a premium for the premium paying term of 5 years as selected at the time of proposal with Yearly, Half-yearly, Quarterly or Monthly (through ECS only) mode.
d) Partial withdrawals: A policyholder can partially withdraw the units at any time after the fifth policy anniversary and provided all due premiums till date of partial withdrawal have been paid, subject to the following:
i. In the case of minors, partial withdrawals shall be allowed from the policy anniversary coinciding with or next following the date on which the life assured attains majority (i.e. on or after 18th birthday).
ii. Partial withdrawals will be allowed twice in a policy year.
iii. Partial withdrawals may be in the form of a fixed amount or in the form of a fixed number of units subject to a minimum amount of Rs. 2000/-.
MODE OF PREMIUM PAYMENT
The policyholder has the choice either to pay Single premium (in one lump sum) or to pay a premium for the premium paying term of 5 years as selected, at the time of proposal, either in Yearly, Half-yearly, Quarterly or Monthly (through ECS only) installments.
There will be no mode-specific charges/ rebates.
DAYS OF GRACE:
Under LIC Samridhi Plus a grace period of 30 days will be allowed for payment of yearly or half-yearly or quarterly premiums and 15 days for monthly (through ECS) premiums. If the death of Life Assured occurs within the grace period but before the payment of premium then due, the policy will still be valid and the death benefits shall be paid after deduction of all the relevant charges, if not recovered. If premiums are not paid within the days of grace, the benefits shall be paid as per details given in Para 6 under the Discontinuance of premiums.
ASSIGNMENTS / NOMINATION:
Notice of Assignment or Nomination should be submitted for registration to the office of the Corporation, where this policy is serviced. In registering an assignment or nomination the Corporation does not accept any responsibility or express any opinion as to its validity or legal effect.
