It was on 9 February 2010, just the time when people would start working on saving on their taxes, that LIC has launched its much hyped ‘Wealth Plus’ Unit linked policy. Half of ill-informed people would have entered its plan by seeing its name ‘Wealth (Money)’ and ‘Plus’ (hey, more money); and not to forget, it’s coming from country’s favourite insurer, LIC.
It’s over a year now from its starting date and the state of its NAV doesn’t look nice. On 28 February 2011, the NAV is at 9.9610. Everything’s not lost yet, since this offers a ‘Guaranteed NAV’ value of at least Rs.10 per unit. If at the time of maturity, the NAV is over Rs.10, you’ll get that or if it doesn’t get over Rs.10 at all, you’ll at least get Rs.10 per unit.
Not satisfied with Wealth Plus’ performance?
Well you can stay put in the policy in a hope that its NAV will go higher by years and continue paying premiums. Or, you can withdraw/ surrender your policy. Whether you want to withdraw or surrender your policy, this is only possible once the policy completes ‘3 years’ lock in period.
If you want, you can make a partial withdrawal after 3 years or completely surrender your policy. Your total number of units accumulated till date multiplied by the NAV as on surrender date is what you get.
Note: You can surrender the policy in the first 3 years too, but you’ll only get your funds after the policy completes 3 years.
Advice: It is a typical LIC stunt to introduce policies such as Wealth plus in the first quarter of a calendar year. This year, 2011, you have a policy called ‘Samridhi plus’, which is almost carbon copy of Wealth plus, only with few values changed. So think wisely, be an informed investor.
Update: As on 4 June 2013, its NAV is at 10.2963. It is among the weakest of the performers. Even pension plus, which is launched 7 months after Wealth Plus’ launch and with a profile of more secure (less risk) has a higher NAV of 12.7113 (the debt fund).