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MetLife Dhan Samriddhi Plan

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MetLife Dhan Samriddhi Plan Review

MetLife Dhan Samriddhi Plan is a Unit Linked Insurance Plan which provides market-linked growth on the premium invested. The plan is also a Single Premium Plan which does not require regular premiums throughout the plan tenure.


Highlights of the MetLife Dhan Samriddhi Plan

  • This is a Unit Linked Plan where premium is paid only at the plan commencement through the Single Premium feature of the plan.
  • There are 6 funds to choose from and the policyholder can choose to invest his premium in any of the available funds.
  • Loyalty Additions are added on plan maturity which enhances the Fund Value.


Working of the MetLife Dhan Samriddhi Plan

  • The policyholder decides on the amount of single premium he wants to pay, the fund in which the premiums are to be invested and the Sum Assured of the plan.
  • After deduction of the applicable charges, the premium is invested in the policyholder’s chosen fund. 
  • There are 6 fund options to choose from which are:
    • Protector II
    • Preserver II
    • Balancer II
    • Flexi Cap
    • Virtue II
    • Multiplier II
  • If the policyholder dies during the tenure of the plan the death benefit is paid.
  • If the plan attains maturity, the maturity benefit is paid.


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Benefits and Features of MetLife Dhan Samriddhi Plan

  • Maturity Benefit – On maturity, the Fund Value would be paid to the policyholder. The policyholder can choose to receive the Maturity Benefit in a lump sum or in structured instalments through the Settlement Option feature available in the plan.
  • Death Benefit – If the insured dies, the death benefit paid would be higher of the following:
    • Sum Assured net of any partial withdrawals made
    • Single Premium Fund Value
    • 105% of the Single Premium paid under the plan.
      For calculation of Sum Assured net of partial withdrawals, withdrawals made in the last two years would be deducted if the policyholder is aged below 60 years. If the policyholder is above 60 years of age, partial withdrawals made after attaining 60 years of age would be deducted from the Sum Assured.
  • Bonus – Being a ULIP plan, bonus is not declared.
  • Loyalty Additions – For Single Premiums which are higher than Rs.10 lakhs, Loyalty Additions are added to the Fund Value upon maturity. The additions are expressed as 0.5% of the average Single Premium Fund Value in the last 36 months of the policy.
  • Loan –Loan is not available under the plan.
  • Tax benefit – Premiums paid under the plan would be exempt from tax under Section 80C up to a limit of Rs.1.5 lakhs. The death benefit or the maturity benefit received would also be tax exempt under Section 10(10D) of the Income Tax Act.


Eligibility Criteria of MetLife Dhan Samriddhi Plan

The plan can be bought only by Resident Indians. The other eligibility criteria of the plan includes:
  Minimum Maximum
Entry age (Last Birthday) 8 years 65 years
Plan tenure 10 years
Premium payable Rs.2 lakhs No limit
Premium Paying Term Single premium
Sum Assured 10 or 1.25 times the single premium if age is lower than 40 years
1.25 times the single premium if the age is 40 years and above
Premium payment mode Single Premium



Applicable charges in MetLife Dhan Samriddhi Plan

Being a ULIP plan, there are certain charges applicable. The charges include the following:
  • Premium Allocation Charge – A charge of 3.50% of the Single Premium paid is deducted from the premium as Premium Allocation Charge.
  • Policy Administration Charge – A monthly charge of Rs.100 is deducted from the fund value at the start of each month.
  • Fund management Charge – These charges depend on the type of fund selected and are charged on a daily basis. The applicable charges are:
Fund Type Charge
Flexi Cap 1.25% per annum
Multiplier II 1.25% per annum
Virtue II 1.25% per annum
Balancer II 1.15% per annum
Protector II 1.00% per annum
Preserver II 1.00% per annum
 
  • Miscellaneous Charges – A charge of Rs.250could be levied as miscellaneous charge for any service offered.
  • Discontinuance Charge – There is no discontinuance charge applicable.
  • Mortality charge – This charge is deducted on the first day of each month based on the Sum at Risk and the policyholder’s age


Additional Benefits of MetLife Dhan Samriddhi Plan

  • Riders – There are no riders under this plan.
  • Partial Withdrawals – Partial withdrawals are allowed in the plan after a completion of 5 policy years. The minimum amount of the withdrawal should be Rs.5000 and the Fund Value should not fall below Rs.50, 000 after the withdrawal. Twelve free partial withdrawals are allowed after which a charge of Rs.250 per withdrawal is applicable.
  • Switching – This facility enables the policyholder to change between funds whenever desired. Four free switches are allowed in one policy year after which a charge of 0.1% of the amount switched to a maximum of Rs.200 would be levied. Online switches are free but switches through other mediums are chargeable. The first four switches which are not done online are free. Thereafter, a charge of Rs.250 per switch is levied.
  • Grace Period – Being a single premium plan, grace period is not applicable.
  • Free Look Period – A cooling off period or a free look period of 15 days is granted to the policyholder after the policy issuance to review the policy terms and conditions. If found unsatisfactory, the plan can be cancelled within this period and the premium paid would be refunded after deducting the relevant mortality charge, service tax, cess and stamp duty paid


Exclusions in MetLife Dhan Samriddhi Plan

  • If the policyholder commits suicide anytime during the plan tenure, the available Fund Value would be paid to the nominee.


Surrendering the policy

The plan cannot be surrendered in the first 5 years. After completion of the first 5 years, the policyholder can choose to surrender the plan and avail the Surrender Value. The Surrender Value payable would be the applicable Fund Value as on the date of surrender of the plan.

 
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