PNB Met Dhan Samriddhi Plan

Introduction/Overview

PNB Met Dhan Samriddhi Insurance policy is a Unit Linked Insurance Plan that maximizes its customer’s wealth through low charges on the paid premium and by the consistent performance of the chosen linked funds. Policyholders are offered a range of choices to invest their savings along with insurance cover to maximize the returns on their investments.

Key Features

• This policy is a ULIP that has the convenience of a single premium payment.
• The policyholder has a variety of options for building his investment portfolio; six funds are available for investment with this policy. The policyholder also has a choice of stocks, bonds and money market funds.
• The policyholders can maintain their investment portfolio and may switch from a range of investment options, free of charge online. He or she may also choose to manage asset location with the range of funds available through the policy.
• Liquidity options are available with the Partial Withdrawals or Surrender modes.

Benefits

• The policyholder has the option to receive the Maturity Benefit as a lump sum or as structured payments using the Settlement Option facility. A combination is also possible where part lump sum payment is taken as well as regular withdrawals are done. The Maturity Benefit for this policy is equal to the Fund Value.
• In the unfortunate event of the demise of the person insured, the nominee receives the Death Benefit. The Death Benefits payable is higher of the following:
  (1) The Single Premium Fund Value, or 
  (2) The Sum Assured less Partial Withdrawals or 
  (3) 105% of the Single Premium paid.
• Based on the customer’s propensity to take risks, there are 6 Unit Linked Funds for investment.
• Tax benefits are available under this policy as per the Income Tax Act under sections 80 (C) and 10(10D).
• Loyalty Additions are available with this policy. The Loyalty Addition would be 0.5% of the Average Single Premium Fund Value when the Single Premium is ten lakhs or more.
• Partial withdrawals are permitted after five years from the commencement of the policy. After five years, partial withdrawals can be made, subject to the condition that the withdrawal amount is a minimum of Rs. 5000.

Product Specification:

Details About Premium

Annual premium in Rupees

Policy Details

Grace Period: As the premium is paid only once on the purchase of the policy there is no Grace Period for this Policy.

Policy Termination or Surrender Benefit:

The customer may terminate his or her investment before maturity at any time during the plan year. If the policy is surrendered within the first five years from the start of the plan, then the fund value is transferred to what is called as the Discontinued Fund. A minimum Guaranteed Interest rate of 4% p.a. or as declared by the authority from time to time, will be earned. The Fund Management Charge on the Discontinued Policy Fund shall not exceed 0.5% per year on the Discontinued Fund. Benefits on death and accidental death shall cease to continue. The fund value is payable on the first working day of the sixth policy year. If the policy is surrendered after completing five years from the start of the policy, the fund value is then payable immediately to the policyholder. This fund value is subject to deductions based on any partial withdrawals that may have been made.

Free Look Period: The policy may be cancelled if the customer so wishes, within 15 days of receiving the policy document. The amount refunded is equivalent to non-allocated Premiums plus charges levied through cancellation of units plus Fund Value at the cancellation date. This amount is subject to deduction of expenses towards stamp duty and proportionate risk premium.

Additional Features or Riders

• Various charges apply to this policy. They are as follows:

1. Premium Allocation Charge which is deducted from the Premium paid by the customer. The balance is invested in the investments chosen by the policyholder. For a single premium, the Premium Allocation Charge is 3.5%.
2. Policy Administration Charge is deducted at the start of each month and is a flat charge of Rs. 100 per month.
3. Fund Management Charges are 1.25% for Flexi Cap, Multiplier II and Virtue II funds. The Fund Management Charges are 1.15% for Balancer II fund and 1.00% for Protector II and Preserver II funds.
4. At the beginning of each month, Mortality Charges are deducted by cancellation of units from the fund value.
5. Switching Charge – If switching is done online, there is no charge. Otherwise, there is a limit of four switches allowed in a single policy year. Subsequently each switch is charged at Rs. 250.
6. Partial Withdrawal Charge – This policy allows twelve partial withdrawals free of cost in a policy year. For subsequent withdrawals, there is a charge Rs. 250 per withdrawal.
7. Miscellaneous Charge in which Rs.250 is levied for various alterations such as a change in the Base Sum Assured, Premium Redirection, etc.

Documents Required

The policyholder has to fill up an ‘Application form ’with identity proof, bank account proof, address proof and a recent photograph. Select cases may require income proof.