Smridhi Plus

LIC’s Samridhi Plus is a unit linked plan that safeguards your investment from market fluctuations, so that your investments are protected in financially volatile times. This plan offers payment of Fund Value 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. NAV of the fund will be subject to a minimum of ` 10/-. This plan is available for sale for a maximum period of 3 months from the date of launch.

You can pay the premiums either in a single lump sum or for a limited premium paying term of 5 years. You can choose the level of cover within the limits, which will depend on your age, whether the policy is a Single premium or Limited premium contract and on the level of premium you agree to pay.

Premiums paid after allocation charge will purchase units of the Fund. The Unit Fund is subject to various charges and value of units may increase or decrease, depending on the NAV.

Payment of Premiums: You may pay premiums regularly at yearly, half-yearly, quarterly or monthly (through ECS mode only) intervals over the premium paying term of 5 years. Alternatively, a single premium can be paid.

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.

Eligibility Conditions And Other Restrictions:

(a) Minimum Age at entry       -           8 (age last birthday)
(b) Maximum Age at entry     -           65 years (age nearer birthday)
(c) Policy Term                         -         10 years
(d) Minimum Premium           -            

              5 years Premium Paying policies: Mode                             Minimum 
Instalment Premium
Yearly:                            ` [15,000]
Half-Yearly                    ` [8,000]
Quarterly                        ` [4,000]
                                                             Monthly (ECS only)   ` [1,500]
       Single premium:                              Single                          ` [30,000]

 (e) Maximum Premium            -   
5 years Premium Paying Term          -           ` [1,00,000] p.a.
Single premium                                   -           No Limit  

(f) Sum Assured under the Basic Plan           -
Minimum Sum Assured:
5 years Premium Paying Term policies: 
For age at entry below 45 years: 10 times the annualised premium
For age at entry 45 years and above: 7 times the annualised premium

Single Premium policies:  
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

                                    Maximum 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 upto 55 years.
1.25 times the Single premium, if age at entry is 56 to 65 years.

Where the minimum Sum Assured is not in the multiples of ` 5,000, it will be rounded off to the next multiple of ` 5,000. Annualized Premiums shall be payable in multiple of ` 1,000 for other than ECS monthly. For monthly (ECS), the premium shall in multiples of ` 250/-.

Method of Calculation of Unit price: Units will be allotted based on the Net Asset Value (NAV) of the respective fund as on the date of allotment.  There is no Bid-Offer spread (the Bid price and Offer price of units will both be equal to the NAV).  The NAV will be computed on daily basis and will be based on investment performance, Fund Management Charge, Guarantee Charge and whether fund is expanding or contracting under each fund type and shall be calculated as under:

                                                                                                                                     
Appropriation price is applied (when fund is expanding):
Market value of investment held by the fund plus the expenses incurred in the purchase of the assets plus the value of any current assets plus any accrued income net of fund management charges including Guarantee Charge less the value of any current liabilities less provisions, if any divided by the number of units existing at the valuation date (before any new units are allocated).

Expropriation price is applied (when fund is contracting):
Market value of investment held by the fund less the expenses incurred in the sale of assets plus the value of any current assets plus any accrued income net of fund management charges including Guarantee Charge less the value of any current liabilities less provisions, if any divided by the number of units existing at the valuation date (before any units redeemed).

Applicability of Net Asset Value (NAV):
The premiums received up to a particular time (presently 3 p.m.) by the servicing branch of the Corporation through ECS or by way of a local cheque or a demand draft payable at par at the place where the premium is received, the closing NAV of the day on which premium is received shall be applicable. The premiums received after such time by the servicing branch of the corporation through ECS or by way of a local cheque or a demand draft payable at par at the place where the premium is received, the closing NAV of the next business day shall be applicable.

Similarly, in respect of the valid applications received for surrender, partial withdrawal, death claim and in case of complete withdrawal etc up to such time by the servicing branch of the Corporation closing NAV of that day shall be applicable. For the valid applications received in respect of surrender, partial withdrawal, death claim and in case of complete withdrawal etc after such time by the servicing branch of the Corporation the closing NAV of the next business day shall be applicable

In case of discontinuance, as specified in Para 10 below, wherein the policyholder does not exercise the option within the period of 30 days of receipt of notice then the NAV as on the date of expiry of notice period shall be applicable.

In respect of maturity claim, the Policyholders fund value shall be based on the highest NAV over the first 100 months of the policy or the NAV as applicable on the date of maturity, whichever is higher.

The timing (presently 3 p.m.) is as per the existing guidelines and changes in this regard shall be as per the instructions from IRDA.

Charges under the Plan:

A) Premium Allocation Charge: This is the percentage of the premium deducted towards charges from the premium received. The balance constitutes that part of the premium which is utilized to purchase (Investment) units for the policy. The allocation charges are as below:
For Single premium policies:             3.3%
For Regular premium policies:        

Premium	Allocation Charge
First Year	6.00%
2nd to 5th Year	4.50%

B) Charges for Risk Covers:
i) Mortality  Charge – This is the cost of life insurance cover which is age specific and will be taken every month. The life insurance cover is the difference between Sum Assured under Basic plan and the Fund Value after deduction of all other charges.
The charges per ` 1000/- life insurance cover for some of the ages in respect of healthy lives are as under:

Age	25	35	45	55
`	1.42	1.73	3.89	10.76

Accident Benefit charge - It is the cost of Accident Benefit rider (if opted for) and will be levied every month at the rate of ` 0.50 per thousand Accident Benefit Sum Assured per policy year.

C) Other Charges: The following charges shall be deducted during the term of the policy:

Policy Administration charge ` 30/- per month during the first policy year and ` 30/- per month escalating at 3% p.a. thereafter, throughout the term of the policy shall be levied.

Fund Management Charge – It is a charge levied as a percentage of the value of assets and shall be appropriated by adjusting the Net Asset Value (NAV) at 0.90% p.a. of Fund Value.

This is a charge levied at the time of computation of NAV, which will be done on daily basis.

Guarantee Charge – A charge of 0.40% p.a. of the Fund Value shall be levied for the cost of investment guarantee.

This is a charge levied at the time of computation of NAV, which will be done on daily basis.

Bid/Offer Spread – Nil.

Discontinuance Charge –  The discontinuance charge for 5 years premium paying term policies is as under:

Where the policy is discontinued during the policy year	Discontinuance charges for the policies having annualized premium up to ` 25,000/-	Discontinuance charges for the policies having annualized premium above ` 25,000/-
1	Lower of 10% * (AP or FV) subject to a maximum of ` 2500/-	Lower of 6% * (AP or FV) subject to maximum of ` 6000/-
2	Lower of 7% * (AP or FV) subject to a maximum of ` 1750/-	Lower of 4% * (AP or FV) subject to maximum of ` 5000/-
3	Lower of 5% * (AP or FV) subject to a maximum of ` 1250/-	Lower of 3% * (AP or FV) subject to maximum of ` 4000/-
4	Lower of 3% * (AP or FV) subject to a maximum of ` 750/-	Lower of 2% * (AP or FV) subject to maximum of ` 2000/-
5 and onwards	NIL	NIL

AP – Annualised Premium
FV – Policyholder’s Fund Value on the date of discontinuance

There shall not be any discontinuance charge under Single Premium.

1. Service Tax Charge – 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 Government of India from time to time in this regard without any reference to the policyholder.

1. Miscellaneous Charge – This is a charge levied for an alteration within the contract, such as change in premium mode and grant of Accident Benefit after the issue of the policy. An alteration may be allowed subject to a charge of ` 50/-.

D)  Right to revise charges: The Corporation reserves the right to revise all or any of the above charges except the Premium Allocation charge, Mortality charge and Accident Benefit charge. The modification in charges will be done with prospective effect with the prior approval of IRDA.

Although the charges are reviewable, they will be subject to the following maximum limit:

Policy Administration Charge

` 60/- per month during the first policy year and ` 60/- per month escalating at 3% p.a. thereafter, throughout the term of the policy

Fund Management Charge: The Maximum for Fund will be 1.30% p.a. of Fund Value

-    Guarantee Charge shall not exceed 0.60% p.a. of the Fund Value.

-   Miscellaneous Charge shall not exceed ` 100/- each time when an alteration is requested.
In case the policyholder does not agree with the revision of charges the policyholder shall have the option to withdraw the Policyholder’s Fund Value.

Discontinuance of Premiums:

If you fail to pay premiums under the policy within the days of grace, a notice shall be sent to you 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:

Revival of the policy, or
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, Accident Benefit cover, if any, shall be taken in addition to other charges, by canceling an appropriate number of units out of the Policyholder’s Fund Value. The 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 complete withdrawal of the policy or till the expiry of the notice period).

If you do not exercise any option within the stipulated period of 30 days, you shall be deemed to have exercised the option of complete withdrawal from the policy.

The benefits payable under the policy during the notice period shall be 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 you exercise the option for complete withdrawal or you do not exercise any option during the notice period shall be as under:
If you exercise the option for complete withdrawal from the policy, or you do not exercise the option within the period of 30 days of receipt of 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, if any, shall be converted into monetary terms as specified below and Proceeds of the discontinued policy as specified below shall be payable after completion of 5 years from the date of commencement of the policy.

Method of calculation of Monetary amount and Proceeds of the Discontinued Policy:

The conversion to monetary amount shall be as under:
The NAV on the date of application for surrender or as on the date of discontinuance of the policy (in case of complete withdrawal of the policy), as the case may be, multiplied by the number of units in the Policyholder’s Fund Value as on that date will be the monetary amount.

The Proceeds of the Discontinued Policy shall be calculated as under:
The monetary amount calculated as above shall be transferred to the Discontinued Policy Fund. This Fund will earn a minimum interest rate of 3.5% compounded annually from the date of discontinuance of the policy to the date of completion of 5 years from the commencement of the policy. In case of death of the life assured, the interest shall accrue from the date of discontinuance of the policy to the date of booking of liability. The Proceeds of the discontinued policy shall be the monetary amount plus the interest accrued on the Discontinued Policy Fund.

Compulsory termination:

If the balance in the Policyholder’s Fund Value, at any time after 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.

Other Features:

Guarantee of interest rate on Discontinued Policy Fund: A guaranteed minimum interest rate of 3.5% p.a. shall be credited to the Discontinued Policy Fund constituted by the fund value of all discontinued policies.

 Partial Withdrawals: Youmay en-cash the units partially after the fifth policy anniversary and provided all due premiums have been paid subject to the following:

In 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).

Partial withdrawals will be allowed twice in a policy year.

Partial withdrawals may be in the form of fixed amount or in the form of fixed number of units subject to a minimum amount of ` 2000/-.

For 2 years’ period from the date of withdrawal, the Sum Assured under the Basic plan shall be reduced to the extent of the amount of partial withdrawals made.

Under 5 years Premium Paying Term policies, partial withdrawal will be allowed subject to a minimum balance of at least one annualized premium in the Policyholder’s Fund Value.

Under Single Premium policies, the partial withdrawal will be allowed subject to a minimum balance of 25% of the single premium in the Policyholder’s Fund Value.

Increase / Decrease of risk covers:No increase or decrease of covers will be allowed under the plan.

Revival: If due premium is not paid within the days of grace, a notice shall be sent to you within a period of fifteen days from the date of expiry of grace period to exercise the option for revival within a period of thirty days of receipt of such notice. If you exercise the option to revive the policy, then the arrears of premium without interest shall be required to be paid.

The Corporation reserves the right to accept the revival at its own terms or decline the revival of a policy.

Irrespective of what is stated above, if the Policyholder’s Fund Value is not sufficient to recover the charges during the notice period, the policy shall terminate and thereafter revival will not be allowed.

Reinstatement:

A policy once surrendered cannot be reinstated.

Risks borne by the Policyholder:

1. LIC’s Samridhi Plus is a Unit Linked Life Insurance product which is different from the traditional insurance products and is subject to the risk factors.
2. The premium paid in Unit Linked Life Insurance policies are subject to investment risks associated with capital markets and the NAV of the units may go up or down based on the performance of fund and factors influencing the capital market and the insured is responsible for his/her decisions.
3. Life Insurance Corporation of India is only the name of the Insurance Company and LIC’s Samridhi Plus is only the name of the unit linked life insurance contract and does not in any way indicate the quality of the contract, its future prospects or returns.
4. Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document of the insurer.
5. The fund offered under this contract is the name of the fund and does not in any way indicate the quality of this plan, its future prospects and returns.
6. All benefits under the policy are also subject to the Tax Laws and other financial enactments as they exist from time to time.

Cooling off period:

If you are not satisfied with the “Terms and Conditions” of the policy, you may return the policy to us within 15 days. The amount to be refunded in case the policy is returned within the cooling-off period shall be determined as under:
Value of units in the Policyholder’s Fund
            Plus           unallocated premium
            Plus           PolicyAdministration charge deducted   
Less          charges @ ` 0.20per thousand Sum Assured under Basic plan
            Less          Actual cost of medical examination and special reports, if any.
Loan:

No Loan will be available under this plan.

Assignment:

Assignment will be allowed under this plan.

Benefits:

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 ` 10. This means the payment at the end of the policy term will be based on highest NAV recorded over the first 100 months of the policy, or the NAV as applicable on the date of maturity, whichever is higher. 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 guarantee of NAV shall be 100 months from the date of commencement of policy.

A) Death Benefit:
In case of death of the Life Assured within the policy term, when the cover is in full force, the nominee shall get higher of the Sum Assured under the Basic Plan and the Policyholder’s Fund Value. However, 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 receipt of intimation of death. 

B) Maturity Benefit:
On the policyholder surviving the date of maturity an amount equal to the Policyholder’s Fund Value is payable. The Policyholder’s Fund at the end of policy term shall be based on the 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.

2. Options:
   Accident Benefit Option:
If you are between 18 and 60 years of age, you may opt for Accident Benefit equal to the amount of life cover subject to minimum of ` 25,000 and maximum of ` 50 lakh (taken all policies with LIC of India and other insurers.) In case of death due to an accident, an additional sum equal to Accident Benefit Sum Assured shall be payable.
     
3. Investment of Funds: The fund detail is as under:

Fund Type	Investment in Government / Government Guaranteed Securities / Corporate Debt	Short-term investments such as money market instruments	Investment in Listed Equity Shares	Details and objective of the fund for risk / return
Samridhi Plus Fund	0% to 100%	0% to 100%	0% to 100%	Medium Risk

In the period during which this product is open for sale, all premiums received shall be invested in Money Market instruments of applicable duration i.e. the period from the date of sale to the date of closure of the plan. After the date of closure of the plan the above investment pattern shall be followed.

4.  Surrender:  The surrender value, if any, is payable as under:

If the policy is surrendered within 5 years from the date of commencement of the policy:
If you apply 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, if any, shall be converted into monetary terms as per para 11 below. This monetary amount shall be credited to the Discontinued Policy Fund and no charges shall be deducted thereafter. The Proceeds of the Discontinued Policy, as per para 11 below, shall be payable on completion of 5 years from the date of commencement of policy.

In case of death of life assured after the date of surrender but before the completion of 5 years from the date of commencement of policy the Proceeds of the Discontinued Policy shall be payable to the nominee/ legal heir immediately.

If the policy is surrendered after 5 years from the date of commencement of the policy:
If you apply 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 be no Discontinuance Charge