LIC of India recenly launched a new Plan SAMRIDHI PLUS.
Some key features of this plan are as follows:
1.Guaranteed Highest NAV of first 100 Months.
2.Policy term 10 Yrs.Premium payment term:5 Yrs.
3.Insurance protection.
Though this plan gives highest NAV guarantee,readers should not ignore the charges of this scheme.
Charges of this Plan are as follows:
Premium Allocation Charges:
For Single premium policies: 3.3%.
For regular Premium Policies:
First Year : 6%.
2nd Yr – 5th Yr : 4.5%
Other Charges:
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.
Fund Management Charges (FMC): 0.90% p.a
Guarantee Charge: 0.40% p.a
so I do not think there is anything worth to write anytning more after view of the charges.
Even if fund offers 10% CAGR returns in future(which is highly unlikely),,then also investors will not get back more than 3-4% of returns.
so if anyone wants for safer investment,they can likely to go for Bank Fixed deposits.
Insurance cover may not be worth as policy term is only 10 Yrs.So readers are required to assess their basic need of insurance and should prefer risk cover for the same amount and term.
