Can a regular income combined with insurance protection provide financial security for women?

Can a well-structured financial plan help women achieve their long-term financial goals?

Can regular income and insurance protection help women plan for future financial milestones?

This article examines the ABSLI Akshaya – Her Assurance Plan while highlighting the importance of adequate insurance coverage and financial planning for women.

Table of Contents

1. What is the ABSLI Akshaya – Her Assurance?
2. What are the features of the ABSLI Akshaya – Her Assurance?
3. Who is eligible for the ABSLI Akshaya – Her Assurance?
4. What are the benefits of the ABSLI Akshaya – Her Assurance?
   • Death Benefit
   • Survival Benefit
   • Maturity Benefit
   • Bonus
5. Grace Period, Discontinuance and Revival of the ABSLI Akshaya – Her Assurance
6. Free Look Period for the ABSLI Akshaya – Her Assurance
7. Surrendering the ABSLI Akshaya – Her Assurance
8. What are the advantages of the ABSLI Akshaya – Her Assurance?
9. What are the disadvantages of the ABSLI Akshaya – Her Assurance?
10. Research Methodology of ABSLI Akshaya – Her Assurance
    • Benefit Illustration – IRR Analysis of ABSLI Akshaya – Her Assurance
11. ABSLI Akshaya – Her Assurance Vs. Other Investments
    • ABSLI Akshaya – Her Assurance Vs. Pure-term + Equity Mutual Fund
12. Final Verdict on ABSLI Akshaya – Her Assurance

1. What is the ABSLI Akshaya – Her Assurance?

ABSLI Akshaya – Her Assurance is a Non-Linked Participating Individual Savings Life Insurance Plan.

It provides the benefit of a comprehensive life insurance cover along with a regular source of income.

The product offers the flexibility to take the Cash Bonus (if declared) or to accumulate the Cash Bonus (if declared) in the policy, instead of receiving the payouts.

2. What are the features of the ABSLI Akshaya – Her Assurance?

• Choice of Two Benefit Options: Offers two benefit options—Long-Term Income and Whole-Life Income (up to age 100 or age 85)—to meet your family’s financial needs at different stages of life.
• Flexible Bonus Payouts: Provides the option to receive cash bonuses, if declared, for immediate financial needs or accumulate them until policy maturity to support long-term savings.
• Financial Security for Loved Ones: Offers life insurance coverage for an extended period, potentially up to age 100, subject to the policy terms.
• Flexible Premium and Policy Terms: Allows you to choose from different premium payment periods and policy terms based on your financial requirements.
• Customizable Insurance Protection: Provides the option to enhance coverage through additional riders at an extra cost.

3. Who is eligible for the ABSLI Akshaya – Her Assurance?

Benefit Option	1. Long-Term Income 2. Whole Life Income
	Once chosen at inception, it can’t be changed.
Premium paying term	6 /8 /10 /12 / 15 Years
Policy term	Life-term income option: 25 / 30 / 35 / 40 Years
	Whole Life income: Till the age of 100 or 85 years
Premium paying Mode	Annual / Semi-Annual / Quarterly / Monthly
	Minimum	Maximum
Age at Entry	30 days	55 Years
Maturity Age	Lifelong income: 18 years	Lifelong income: 84 years
	Whole life income: 85 years	Whole life income: 100 or 85 years
Annualised premium	24,000	No Limit
Sum Assured	1,54,560	No Limit
Premium Band	Premium Bands	Annualised premium
	Band 1	24,000 – 49,999
	Band 2	50,000 – 99,999
	Band 3	1,00,000 – 1,99,999
	Band 4	2,00,000 – 2,99,999
	Band 5	3,00,000 – 4,99,000
	Band 6	5,00,000 +

4. What are the benefits of the ABSLI Akshaya – Her Assurance?

i. Death Benefit

In the event of the death of the Life Insured during the ABSLI Akshaya – Her Assurance Policy Term, provided that the Policy is in force, the following benefits are given to your nominee(s):

• Sum Assured on Death; and
• Accumulated Cash Bonus (if declared); and
• Terminal Bonus (if declared)

Sum Assured on Death shall be defined as the higher of the following:

• Sum Assured
• 11 times the Annualised Premium
• 105% of Total Premiums paid till the date of death

ii. Survival Benefit

Provided the policy is in force, and all due premiums under the policy have been paid, the company will pay the Cash Bonus (if declared) at the start of the year in case of Annually in Advance frequency and at the end of the year for Annually in Arrears, Semi-Annual, Quarterly or Monthly, as the case may be, starting from the first policy year until Policy Maturity.

You shall have the flexibility to defer the declared Cash Bonus (if declared) and accrue it instead in the form of Accumulated Cash Bonus (if declared).

iii. Maturity Benefit

On survival of the Life Insured till the end of the ABSLI Akshaya – Her Assurance Policy Term, provided the Policy is in force, the following will be payable:

• Sum Assured; and,
• Accumulated Cash Bonus (if declared); and
• Terminal Bonus (if declared)

iv. Bonus

a. Cash Bonus:

The cash bonus rate is declared as per 1000 sum assured on 1st July every year.

It is payable at the end of the policy year starting from the first year till maturity, provided all premiums have been paid.

It is received at a chosen frequency – Annual, Semi-annual, Quarterly or Monthly.

There is flexibility to defer the declared Cash Bonus and accrue it.

The deferred cash bonus can be withdrawn at the time of termination of the policy, or it can be withdrawn at any time during the policy term.

b. Interim Bonus:

Interim Bonus (if declared) may be payable in case of death of the Life Insured, surrender, survival, or maturity happens before the latest declared bonus rates would have come into effect.

c. Terminal Bonus:

If declared, the terminal bonus may be paid out before the life insured’s death, surrender, or maturity.

5. Grace Period, Discontinuance and Revival of the ABSLI Akshaya – Her Assurance

i. Grace Period

You will be given a Grace Period of thirty (30) days from the due date for payment of each premium for all premium paying modes except for monthly mode, where a Grace Period of only fifteen (15) days will be allowed.

ii. Discontinuance

Discontinuance of Payment of Premium before the policy has acquired Surrender Value: If you don’t pay the due premium during the Grace Period, on expiry of the Grace Period, the ABSLI Akshaya – Her Assurance Policy shall lapse w.e.f. the due date of unpaid premium, and all benefits under the policy, including the insurance cover, shall cease and no benefits shall be payable.

Discontinuance of Payment of Premium after the policy has acquired Surrender Value: If you don’t pay the due premium during the Grace Period, on expiry of the Grace Period, the policy s

iii. Revival

You will have the option to revive the Policy within 5 years from the due date of first unpaid premium.

6. Free Look Period for the ABSLI Akshaya – Her Assurance

The ABSLI Akshaya – Her Assurance policyholder will have the right to return the policy within 30 days from the date of receipt of the policy, in case he/she disagrees with the terms & conditions of the policy.

ABSLI will refund the premium paid upon receipt of written notice of cancellation (along with reasons thereof), together with the original Policy document from the policyholder.

7. Surrendering the ABSLI Akshaya – Her Assurance

You can surrender the policy any time during the Policy Term once the policy has acquired a Surrender Value.

Your ABSLI Akshaya – Her Assurance policy will acquire a Surrender Value after all due premiums for at least the first full policy year are paid.

Where One Full Year Premium for the first Policy Year has been received, and the Policyholder opts to surrender the Policy, the Surrender Value payable will be equal to the Special Surrender Value.

The Surrender Value will be payable only at the end of the first Policy Year.

However, where all the due Instalment Premiums for the first two Policy Years have been received, the Surrender Value payable will be equal to the higher of Guaranteed Surrender Value and Special Surrender Value.

8. What are the advantages of the ABSLI Akshaya – Her Assurance?

• Additional Rider Benefits: Riders can be added to the base policy to enhance insurance coverage, subject to applicable terms and conditions.
• Loan Facility: A loan can be availed against the policy, up to 80% of the applicable surrender value at the time of borrowing.
• Additional Bonus for Higher Premiums: Policyholders in higher premium bands may receive an additional cash bonus, calculated as a percentage of the annualised premium, subject to the policy terms.
• Cash Bonus Accumulation: Cash bonuses, if declared, can be deferred and accumulated for future financial needs.

9. What are the disadvantages of the ABSLI Akshaya – Her Assurance?

• Inadequate Life Cover: The sum assured may be insufficient to provide adequate financial protection for your family and meet their long-term financial needs.
• Risk of Unplanned Spending: Regular survival benefits may encourage discretionary spending rather than disciplined savings towards long-term financial goals.
• Uncertain Cash Flow: The annual cash bonus may vary from year to year, making it difficult to rely on the payouts for consistent income planning.

10. Research Methodology of ABSLI Akshaya – Her Assurance

The ABSLI Akshaya – Her Assurance Plan offers regular income payouts, maturity benefits, and bonuses.

While these features may appear attractive, it is essential to evaluate the plan’s actual returns before considering it as a financial solution.

To assess its investment potential, let us calculate the Internal Rate of Return (IRR) based on the benefit illustration provided in the policy brochure.

Benefit Illustration – IRR Analysis of ABSLI Akshaya – Her Assurance

Consider a 35-year-old woman opting for the ABSLI Akshaya – Her Assurance Plan with a sum assured of ₹7.10 lakhs.

The policy term is 25 years, with a premium payment term of 6 years and an annual premium of ₹1,00,000. She chooses the Long-Term Income option.

Female	35 years
Sum Assured	₹ 7,10,000
Policy Term	25 years
Premium Paying Term	6 years
Annualised Premium	₹ 1,00,000

Benefits: The plan provides survival benefits from the end of the first policy year, along with a final maturity benefit that includes applicable bonuses at the end of the policy term.

The benefit illustration presents two assumed return scenarios: 4% p.a. and 8% p.a.

These rates are illustrative and not guaranteed.

		At 4% p.a.		At 8% p.a.
Age	Year	Annualised premium / Maturity benefit	Death benefit	Annualised premium / Maturity benefit	Death benefit
35	1	-1,00,000	7,10,000	-1,00,000	7,10,000
36	2	-91,480	7,10,000	-76,996	7,10,000
37	3	-91,480	7,10,000	-76,996	7,10,000
38	4	-91,480	7,10,000	-76,996	7,10,000
39	5	-91,480	7,10,000	-76,996	7,10,000
40	6	-91,480	7,10,000	-76,996	7,10,000
41	7	8,520	7,10,000	23,004	7,10,000
42	8	8,520	7,10,000	23,004	7,10,000
43	9	8,520	7,10,000	23,004	7,10,000
44	10	8,520	7,10,000	23,004	7,10,000
45	11	8,520	7,10,000	23,004	7,10,000
46	12	8,520	7,10,000	23,004	7,10,000
47	13	8,520	7,10,000	23,004	7,10,000
48	14	8,520	7,10,000	23,004	7,10,000
49	15	8,520	7,10,000	23,004	7,10,000
50	16	8,520	7,10,000	23,004	7,10,000
51	17	8,520	7,10,000	23,004	7,10,000
52	18	8,520	7,10,000	23,004	7,10,000
53	19	8,520	7,10,000	23,004	7,10,000
54	20	8,520	7,10,000	23,004	7,10,000
55	21	8,520	7,10,000	23,004	7,10,000
56	22	8,520	7,10,000	23,004	7,10,000
57	23	8,520	7,10,000	23,004	7,10,000
58	24	8,520	7,10,000	23,004	7,10,000
59	25	8,520	7,10,000	23,004	7,10,000
60		8,03,720		8,96,304
	IRR	2.70%		5.65%

• At a 4% assumed return: The annual cash bonus is ₹8,520, and the maturity benefit is ₹7.95 lakhs as per the ABSLI Akshaya – Her Assurance maturity calculator. The resulting IRR is just 2.70%, indicating poor returns over the long term.
• At an 8% assumed return: The annual cash bonus is ₹23,004, and the maturity benefit is ₹8.73 lakhs as per the ABSLI Akshaya – Her Assurance maturity calculator. The resulting IRR is 5.65%, which may be less attractive than alternative investment options, depending on prevailing interest rates, taxation, and risk.

The ABSLI Akshaya – Her Assurance Plan has several limitations that may affect its suitability for long-term financial planning.

The low illustrated returns make it less appealing for wealth creation, while the long policy term limits access to the money invested.

Furthermore, the sum assured of ₹7.10 lakhs may be insufficient to provide adequate financial protection for the family in the event of the policyholder’s untimely demise.

Overall, the ABSLI Akshaya – Her Assurance Plan may fall short of meeting both investment and protection needs.

Its limited returns and potentially inadequate life cover make it less suitable for individuals seeking to build long-term wealth while ensuring sufficient financial security for their families.

A more effective approach would be to obtain adequate life insurance through a suitable term insurance policy and invest separately in instruments aligned with specific financial goals, investment horizons, and risk tolerance.

11. ABSLI Akshaya – Her Assurance Vs. Other Investments

The ABSLI Akshaya – Her Assurance Plan offers limited investment returns and may not provide adequate life coverage, as it combines insurance with investment.

Instead of committing the entire premium to this plan, allocating the same amount between pure-term insurance and a separate investment can potentially deliver better results.

ABSLI Akshaya – Her Assurance Vs. Pure-term + Equity Mutual Fund

A pure-term insurance policy with a sum assured of ₹7.50 lakhs costs approximately ₹13,900 annually for a 25-year policy term, with a premium payment term of 5 years.

This leaves ₹86,100 annually available for investment over the first five years.

In the sixth year, the entire ₹1 lakh can be invested, as no further term insurance premium is payable.

Pure Term Life Insurance Policy
Sum Assured	₹ 7,50,000
Policy Term	25 years
Premium Paying Term	5 years
Annualised Premium	₹ 13,900
Investment	₹ 86,100

The amount saved is invested in an equity mutual fund, with withdrawals made to replicate the survival benefits under the ABSLI Akshaya – Her Assurance Plan.

At the end of the sixth year, the remaining mutual fund units are redeemed, and the proceeds are invested in an instrument earning 7% interest per annum.

Capital gains tax is considered at final redemption after accounting for the applicable annual LTCG exemption of ₹1.25 lakh, subject to prevailing tax rules.

		Term insurance + Equity Mutual Fund
Age	Year	Term Insurance premium + Equity Mutual Fund	Death benefit
35	1	-1,00,000	7,10,000
36	2	-76,996	7,10,000
37	3	-76,996	7,10,000
38	4	-76,996	7,10,000
39	5	-76,996	7,10,000
40	6	-76,996	7,10,000
41	7	23,004	7,10,000
42	8	23,004	7,10,000
43	9	23,004	7,10,000
44	10	23,004	7,10,000
45	11	23,004	7,10,000
46	12	23,004	7,10,000
47	13	23,004	7,10,000
48	14	23,004	7,10,000
49	15	23,004	7,10,000
50	16	23,004	7,10,000
51	17	23,004	7,10,000
52	18	23,004	7,10,000
53	19	23,004	7,10,000
54	20	23,004	7,10,000
55	21	23,004	7,10,000
56	22	23,004	7,10,000
57	23	23,004	7,10,000
58	24	23,004	7,10,000
59	25	23,004	7,10,000
60		13,83,979
	IRR	7.12%

This alternative strategy provides regular withdrawals comparable to those illustrated under the 8% return scenario of the ABSLI Akshaya – Her Assurance Plan.

It delivers an estimated IRR of 7.12% and a maturity value of ₹13.83 lakhs—nearly double the plan’s illustrated maturity benefit of ₹8.73 lakhs.

In addition to the potential for better returns, this approach offers greater flexibility to access and manage investments according to changing financial needs.

Equity Mutual Fund Tax Calculation
Maturity value after 6 years	6,34,454
Purchase price	5,30,500
Long-Term Capital Gains	1,03,954
Exemption limit	1,25,000
Taxable LTCG	-21,046
Tax paid on LTCG	-2,631
Maturity value after tax	6,37,085

The ABSLI Akshaya – Her Assurance Plan may fall short because of its low illustrated returns, limited liquidity, and potentially inadequate life cover.

Separating insurance from investment through a combination of pure-term insurance and goal-oriented investments can be a more efficient approach to long-term financial planning.

However, the outcome depends on actual market performance, applicable taxes, and investment discipline; the projected returns are not guaranteed.

12. Final Verdict on ABSLI Akshaya – Her Assurance

The ABSLI Akshaya – Her Assurance Plan is an endowment plan marketed to women.

However, it is essentially a standard endowment plan rather than a product specifically designed to address women’s unique financial needs.

It combines survival benefits, a maturity benefit, and life insurance coverage.

The survival benefits begin from the first policy year and depend on bonuses, which are not guaranteed.

As a result, the annual payouts may vary, making cash flow planning difficult.

This uncertainty makes it challenging to earmark the payouts for specific financial goals and may encourage discretionary spending rather than disciplined savings.

In essence, the plan functions much like a traditional money-back policy, offering relatively low returns and a potentially inadequate sum assured.

Its investment component may not contribute meaningfully to long-term wealth creation, while its insurance coverage may fall short of providing sufficient financial protection and it also has a high agent commission.

For women, financial security begins with adequate life insurance coverage.

A pure-term insurance policy can provide substantial financial protection at a comparatively affordable premium.

Alongside this, building a well-diversified investment portfolio based on individual financial goals, investment horizon, and risk tolerance can offer a more effective approach to long-term wealth creation.

The key takeaway is to separate insurance from investment.

Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?

Choosing suitable financial products for protection and wealth creation independently can help build a stronger financial foundation.

Consulting a Certified Financial Planner (CFP) can also help you develop a structured, goal-based financial plan tailored to your needs.