LIC Samridhi Plus ULIP

If you know LIC’s Wealth plus plan that was launched last year, you almost know about its new Unit linked plan, Samridhi plus. It basically safeguards your investment by assuring that the NAV of your funds will have a minimum of Rs.10 value. On the higher side, while deciding the maturity amount, your NAV can be either the highest value it reached in the first 100 months or the value at maturity, which ever is higher.

Policy Eligibility

Any one who is aged between 8 (LB) and 65 (NB) years is eligible to take this policy. The term of this plan is ten years and you have the choice of making premium payment regularly (for 5 years) or at once (single premium).

If you choose to pay yearly, the minimum premium should be Rs.15000 and maximum is Rs.100000. In case you select to pay premium only once, the minimum you should shed out is Rs.30000; there is no maximum.

Advice: Unless you have firm reason to invest all at once, investing in periods is most advised.

Minimum Sum Assured

For regular payment mode, 10 times the premium for holders less than 45 yrs of age (at entry) or 7 times the premium for others.

For single premium mode, 1.25 times premium for holders < 45 yrs and 1.10 times for others

Maximum Sum Assured

Regular payment, 20 times the premium for holders aged 45 years or less and 10 times for others

Single payment, 5 times the premium for holders < 45 yrs and 1.25 times for others.

Since this is a safeguarding policy, you can almost guarantee that the investments will be made in less riskier categories such as Government bonds, money markets, with little exposure to equity markets. This also means that the NAV value cannot blow above that Rs.10 value by a great margin.

The returns will be less but if you just want a insurance policy regardless of returns, you may consider Samridhi plus. Instead, if you are thinking of entering this plan for Tax benefits, you may want to be advised that once Direct Tax Code comes in, ULIP’s will get a (big) decrease in Tax benefits.