All of you may have seen the LIC Samridhi Plus Policy ad on television as well print - the ad simply carries a punchline called "Highest NAV guaranteed of first 100 months of the policy". The ad is small, short and does not provide much information in tv or print media.
LIC Samridhi Plus Policy: Review Analysis & Details
Let us see whether this LIC Samridhi Plus Policy worth any investment and who should consider it for investment as well as insurance.Basically, this is a kind of Unit Linked Plan, as NAV comes into valuation. This plan claims to pay a Fund Value (Return) at the end of policy term, based on highest Net Asset Value (NAV) over the first 100 months of the policy, or the NAV as applicable on the date of maturity, whichever is higher. So it appears that you will get the highest value of your investments - whatever highest is there in first 100 months.
One more important thing to note is that this is a limited period offer - it has a launch date and the offer for LIC Samridhi Plus will close after 3 months of launch date. Image sourced as screen-shot from LIC Site
How can I pay premium for LIC Samridhi Plus Policy
You have choices here - either single one time lump-sum amount or over a premium paying term of 5 years - annual, semi-annual, quarterly, monthly options available but through ECS mode only.
Where will my money (premium) be invested through LIC Samridhi Plus Policy?
You premium will be invested in purchasing units of the fund. Now since there is this fund business involved, there will be func charges and hence your NAV value will come down because of these.
Unfortunately, you as an investor or buyer of this policy will have no control over where your money is going. For you, it will only mean LIC Samridhi Plus Policy investment.
What is the duration term of LIC Samridhi Plus Policy?
The LIC Samridhi Plus Policy has a term of 10 years. Anyone between 8 to 65 years can invest in this policy.
What are the minimum & maximum sum assured in LIC Samridhi Plus Policy
The SA or sum assured in LIC Samridhi Plus Policy depends upon your premium and payment mode.
For single premium, for below 45 years age, the minimum & maximum sum assured is 1.25 to 5 times of single premium amount, while for more than 45 years of age, the SA is 1.1 to 1.25 times.
For 5 year premium payment mode, the minimum & maximum Sum Assured is 10 to 20 times AnnualIZED premium for less that 45 years age, and 7 to 10 times for more than 45 years of age.
So the elder you are, the less Sum Assured you have.
Charges of LIC Samridhi Plus Policy?
Appear to be a bit heavy:
For single premium, a flat 3.3% charge is deducted in the name of premium allocation.
For 5 year premium payment option, first year will take away 6% of your premium money in the name of premium allocation and rest 2 to 5 years will cost you 4.5%
As an investor of this LIC Samridhi Plus Policy, you need to be very careful about the no. of charges that will eat up your capital invested. There are
- Policy Administration charge : Rs. 30 per month
- Fund Management Charge: 0.9% of fund NAV
- Guarantee Charge: 0.4% of fund value
- Discontinuance Charge: If you discontinue your policy before 5 years. Not applicable for Single Premium Charge
Now, let's head on to Returns Calculations and example for LIC Samridhi Plus Policy
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