Gist of LIC’s Samridhi Plus (Plan no 804)

LIC has decided to introduce a new unit linked plan known LIC’s Samridhi Plus (Plan no 804) with a policy term of 10 years that offers payment of Fund Value at the end of the policy term 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.

NOTE: This Guarantee will be applicable only for payment to be made at the end of the policy term (i.e. 10 years).

Premium payment options: Single or 5 years.

Risk Cover: Policyholder can choose the level of cover within the limits, depending on his/her age, the amount of premium payable and whether premium is payable one time or regularly during the premium paying term. The allocated premium will be utilized to purchase units.

Allocation of units: Units will be allotted and cancelled based on the Net Asset Value (NAV) applicable to the date of allotment / cancellation. 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 daily basis and will be based on the investment performance, Fund Management Charges (FMC), Guarantee Charge and whether fund is expanding or contracting.

Investment fund types:

During the period of sale.

Premiums received shall be invested in Money Market instruments of applicable duration ie from the date of sale to the date of closure of the plan.

After the closure of plan

Calculation of NAV during the term of the plan.

Nav will be calculated daily on the basis of below.

Appropriation price (when fund is expanding):

Market value of investments held by the fund + the expenses incurred in the purchase of the assets + the value of any current assets + 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 (when fund is contracting):

Market value of investments 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).

Charges

Premium Allocation Charge:

For Single premium policies: 3.3%

For Regular premium policies:

Mortality Charge:

The Mortality charge shall depend upon the difference between the Sum Assured under the Basic plan and Policyholder’s Fund Value of units as on the date of deduction of charge, after deduction of all other charges and shall be deducted only if, the Basic Sum Assured is more than the Fund Value of the units on the date of deduction. Further, the charges will also depend on the underwriting decision at entry or subsequent revival of the policy. The Mortality charge per Rs.1,000/- Sum at Risk (i.e. Sum Assured under Basic plan minus Policyholder’s Fund value) per annum for standard lives. The Class I extra charge for Life Cover shall be 25% of the Mortality charge for standard

lives. Charge for higher EMR shall be multiples of the Class I extra charge as applicable in other plans. This extra charge will be included in the Mortality charges.

Charges for optional rider cover:

Accident Benefit Charge: If applicable it 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 Benefit cover by cancellation of 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.

Other Charges:

a) Policy Administration charge- 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 monthly basis by canceling appropriate number of units out of Policyholder’s Fund Value.

b) Fund Management Charges (FMC) – Deductible on the date of computation of NAV at 0.90% p.a. of Fund Value. The NAV, thus declared, will be net of FMC and Guarantee charge as mentioned in c) below.

c) Guarantee Charge- Deductible on the date of computation

of NAV at 0.40% p.a. of Fund Value for the cost of investment guarantee.

The NAV, thus declared, will be net of Guarantee Charge and FMC.

d) Bid/Offer Spread– Nil.

e) 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. The discontinuance charge for 5 year premium paying term policies is as under: