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Can the ABSLI Anmol Akshaya Plan truly provide lasting financial security, or are its benefits less attractive than they initially appear?
Does the ABSLI Anmol Akshaya Plan offer meaningful long-term value, or are there better insurance alternatives available?
Is the ABSLI Anmol Akshaya Plan a smart financial choice, or could its features and limitations outweigh its advantages?
This article examines the plan’s key features, benefits, and drawbacks, supported by a detailed illustration to assess its suitability as a financial planning tool.
Table of Contents:
What is the ABSLI Anmol Akshaya?
What are the features of the ABSLI Anmol Akshaya?
Who is eligible for the ABSLI Anmol Akshaya?
What are the benefits of the ABSLI Anmol Akshaya?
Grace Period, Discontinuance and Revival of the ABSLI Anmol Akshaya
Free Look Period for the ABSLI Anmol Akshaya
Surrendering the ABSLI Anmol Akshaya
What are the advantages of the ABSLI Anmol Akshaya?
What are the disadvantages of the ABSLI Anmol Akshaya?
Research Methodology of ABSLI Anmol Akshaya
Benefit Illustration – IRR Analysis of ABSLI Anmol Akshaya
ABSLI Anmol Akshaya Vs. Other Investments
ABSLI Anmol Akshaya Vs. Pure-term + PPF/Equity Mutual Fund
Final Verdict on ABSLI Anmol Akshaya
What is the ABSLI Anmol Akshaya?
ABSLI Anmol Akshaya is a Non-Linked Participating Individual Savings Life Insurance Plan.
It is a protection- and savings-oriented participating life insurance plan designed to cater to diverse needs by offering benefits at key milestones. It offers the flexibility to choose from 2 plan options.
What are the features of the ABSLI Anmol Akshaya?
- Offers flexibility to choose between two plan options: My Savings and My Child.
- Provides life cover throughout the ABSLI Anmol Akshaya Plan policy term, with an option to select Extended Life Cover (ELC).
- Offers exclusive benefits for women life insured under the ‘HER’ Benefits feature.
- Allows enhanced protection through optional riders.
- Provides an option to continue policy benefits through the Policy Continuance Benefit (PCB).
- Offers tax benefits, subject to prevailing tax laws and applicable conditions.
Who is eligible for the ABSLI Anmol Akshaya?
| Premium Payment Term (PPT) | My Savings: | My Child: |
| 6 years | 7 years | 8 years | 10 years | 12 years | Regular Pay | 6 years | 7 years | 8 years | 10 years | 12 years | |
| Policy Term (PT) | Premium Payment Term | Policy Term |
| 6 years | 15 to 25 & 30/35/40 years | |
| 7 years | ||
| 8 years | ||
| 10 years | 16 to 25 & 30/35/40 years | |
| 12 years | 18 to 25 & 30/35/40 years | |
| Regular Pay | 15 to 25 & 30/35/40 years | |
| Age of the Life Insured at Entry (age as on last birthday) | Minimum | 30 days* (My Savings) 21 years* (My Child) |
| Maximum | 60 years* (My Savings) 55 years* (My Child) |
|
| Maturity Age of the Life Insured (age as on last birthday) | Minimum | My Savings:18 years My Child: 36 years |
| Maximum | 85 years | |
| Minimum Annualised Premium | Rs. 12,000 | |
| Maximum Annualised Premium | No Limit (subject to Board-approved Underwriting Policy) | |
| Premium Payment Frequency and Frequency Loadings | Annual | Semi-Annual | Quarterly | Monthly | |
| Minimum Sum Assured | Rs. 84,000 | |
| Maximum Sum Assured | No Limit (subject to Board-approved Underwriting Policy) | |
What are the benefits of the ABSLI Anmol Akshaya?
Option 1 – My Savings
Maturity benefit
Under this option, on survival of the Life Insured till the end of the ABSLI Anmol Akshaya Plan policy term, a lump sum benefit at maturity shall be paid, which will be a sum of:
- Guaranteed Maturity Benefit (GMB); plus
- Accrued Compound Revisionary Bonus, if any; plus
- Terminal Bonus (TB), if any
Death benefit
In the event of death of the Life Insured during the Policy Term, the Death Benefit payable shall be:
- Sum Assured on Death; plus
- Accrued Compound Revisionary Bonus till date of death, if any; plus
- Terminal bonus, if any
On payment of the above Death benefit, the ABSLI Anmol Akshaya Plan policy shall terminate, and no future benefits shall be payable.
Option 2 – My Child
Survival benefit
Under this option, the Income Benefit shall be paid as per the chosen Income Payout option at inception; the income benefit will comprise:
- Guaranteed Maturity Benefit (GMB); plus
- Accrued Compound Revisionary Bonus, if any
The above benefit shall be paid as income in equal instalments, as per the Income Payout option chosen at policy inception.
Maturity benefit
At maturity, along with the final income benefit payout, a terminal bonus, if any, shall be payable at the end of the ABSLI Anmol Akshaya Plan Policy Term.
Death benefit
In the event of death of the Life Insured within 2 years of policy issuance:
In the event of non-accidental death of the Life Insured within 2 years of policy issuance, the Death Benefit payable shall be:
- Sum Assured on Death; plus
- Accrued Compound Revisionary Bonus, if any till date of death; plus
- Terminal bonus, if any
On payment of the above Death Benefit, the ABSLI Anmol Akshaya Plan policy shall terminate, and no future benefits shall be payable
In the event of accidental death/non-accidental death of the Life Insured within 2 years of policy issuance, the Death Benefit payable shall be:
Sum Assured on Death
On payment of the Death Benefit, all future premiums shall be waived, and the ABSLI Anmol Akshaya Plan policy shall continue to remain in force, with all applicable benefits payable as per the Income Payout Option chosen.
Sum Assured on Death: The Sum Assured on Death is the highest of:
- 105% of the Total Premiums Paid up to the date of death
- Sum Assured
Where, Sum Assured shall be 7 times the Annualised Premium for Band 1 and 2 and 11 times the Annualised Premium for all other Bands.
Grace Period, Discontinuance and Revival of the ABSLI Anmol Akshaya
Grace Period
The Policyholder will have a Grace Period of 30 days (15 days in case of monthly mode frequency) from the premium due date to pay premiums
Discontinuance
If less than one full year’s premium has been paid, then the policy will lapse, and all benefits will cease immediately.
If the premium due is not received before the end of the Grace Period and if the premiums have been paid for at least one full policy year, then such policy shall continue on a Reduced Paid-Up (RPU) basis.
Revival
On non-payment of premium, a policy will either be treated as lapsed with no benefit payable or made RPU.
Such a policy can be revived to its full value within five years from the due date of the first unpaid premium by paying all due and unpaid policy premiums (along with the interest) to date as per the Board-approved underwriting policy.
Free Look Period for the ABSLI Anmol Akshaya
Policyholder will have the right to return the ABSLI Anmol Akshaya Plan policy within 30 days from the date of receipt of the policy, in case he/she disagrees with the terms & conditions of the policy.
Surrendering the ABSLI Anmol Akshaya
Policyholder can surrender the Policy on completion of one policy year provided one full Policy Year’s Premiums are paid. Prior to receipt of one full year’s Premium, no Surrender Value is payable.
The Policy can be surrendered only after it has acquired a Surrender Value. Where one full year’s premium for the first policy year has been received and the Policyholder opts to surrender the policy after one year, where the policy has acquired surrender value, the Surrender Value payable will be equal to the Special Surrender Value (SSV).
Where the ABSLI Anmol Akshaya Plan Policyholder opts to surrender the policy in the first policy year, the Surrender Value will be payable only at the end of the first policy year.
What are the advantages of the ABSLI Anmol Akshaya?
- Under Option 1: My Savings, the policyholder can opt for Extended Life Cover, which continues life insurance protection beyond the policy term.
- The Policy Continuance Benefit (PCB) is automatically activated when the Extended Life Cover option is selected.
- The ‘HER’ Benefits are available for policies with a minimum annual premium of ₹75,000.
- Policy loans can be availed with a minimum loan amount of ₹5,000, subject to a maximum of 80% of the applicable surrender value at the time of availing the loan.
- Optional riders can be added to the base policy to enhance insurance protection.
What are the disadvantages of the ABSLI Anmol Akshaya?
- As the plan’s benefits depend partly on bonuses, the final maturity benefits may not be fully guaranteed.
- The potential returns may be lower than those available through other investment avenues.
- The life cover provided under the plan may be inadequate to meet your family’s financial protection needs.
- Under Option 2: My Child, the survival benefits may be used for discretionary spending rather than being directed towards essential financial goals.
Research Methodology of ABSLI Anmol Akshaya
The ABSLI Anmol Akshaya Plan is a savings-cum-insurance product that combines life cover with potential investment returns.
While it offers both benefits under a single policy, its effectiveness as an investment needs to be assessed through an Internal Rate of Return (IRR) analysis. Let’s examine an illustration from the official brochure.
Benefit Illustration – IRR Analysis of ABSLI Anmol Akshaya
Case Example: A 35-year-old male opts for a sum assured of ₹11 lakh, with a policy term of 20 years and a premium payment term of 20 years.
He pays an annual premium of ₹1 lakh and receives maturity benefits, including bonuses, if declared, at the end of the policy term.
He chooses option 1: My Savings.
| Male | 35 years |
| Sum Assured | ₹ 11,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 20 years |
| Annualised Premium | ₹ 1,00,000 |
The brochure illustrates two potential return scenarios. These projections are not guaranteed and depend on future performance.
| 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 | 11,00,000 | -1,00,000 | 11,00,000 |
| 36 | 2 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 37 | 3 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 38 | 4 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 39 | 5 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 40 | 6 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 41 | 7 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 42 | 8 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 43 | 9 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 44 | 10 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 45 | 11 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 46 | 12 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 47 | 13 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 48 | 14 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 49 | 15 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 50 | 16 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 51 | 17 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 52 | 18 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 53 | 19 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 54 | 20 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 55 | 27,42,915 | 42,84,624 | |||
| IRR | 2.92% | 6.80% | |||
- At a 4% assumed return: The projected maturity value is ₹27.42 lakh, translating into an IRR of just 2.92% per annum as per the ABSLI Anmol Akshaya Plan maturity calculator.
- At an 8% assumed return: The projected maturity value is ₹42.84 lakh, resulting in an IRR of 6.80% per annum as per the ABSLI Anmol Akshaya Plan maturity calculator.
These figures indicate that the potential returns may be modest compared with those available from alternative investment avenues.
Furthermore, the sum assured of ₹11 lakh may be inadequate to meet the family’s financial protection needs.
From both an insurance and investment perspective, the ABSLI Anmol Akshaya Plan may fall short of expectations.
The life cover may not provide adequate financial security, while the returns may be insufficient to support long-term financial goals.
For investors focused on goal-based financial planning, it may be worth evaluating pure-term insurance for adequate life protection and separate investments aligned with their financial goals.
This approach allows insurance coverage and investment decisions to be assessed independently, based on individual needs and risk tolerance.
ABSLI Anmol Akshaya Vs. Other Investments
An IRR analysis of the ABSLI Anmol Akshaya Plan suggests that it may not be an effective option for long-term wealth creation.
A more efficient approach is to separate insurance from investments, allowing the premium outlay to be utilised more effectively.
ABSLI Anmol Akshaya Vs. Pure-term + PPF/Equity Mutual Fund
A pure-term insurance policy with a sum assured of ₹11 lakh costs approximately ₹4,500 per year for a 20-year policy term and premium payment term.
This leaves ₹95,500 annually available for investment, which can be allocated based on the investor’s risk appetite and financial goals.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 11,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 20 years |
| Annualised Premium | ₹ 4,500 |
| Investment | ₹ 95,500 |
| Term Insurance + PPF | Term insurance + Equity Mutual Fund | ||||
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 36 | 2 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 37 | 3 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 38 | 4 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 39 | 5 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 40 | 6 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 41 | 7 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 42 | 8 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 43 | 9 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 44 | 10 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 45 | 11 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 46 | 12 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 47 | 13 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 48 | 14 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 49 | 15 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 50 | 16 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 51 | 17 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 52 | 18 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 53 | 19 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 54 | 20 | -1,00,000 | 11,00,000 | -1,00,000 | 11,00,000 |
| 55 | 42,39,110 | 69,97,763 | |||
| IRR | 6.71% | 10.85% | |||
Alternative Investment Options
1. Conservative Approach – PPF
Investing the annual surplus in the Public Provident Fund (PPF) could build a maturity corpus of ₹42.39 lakh, with an IRR of 6.71%, based on the assumed returns.
2. Growth-Oriented Approach – Equity Mutual Fund
Investing the surplus in an equity mutual fund over 20 years could grow the corpus to ₹77.06 lakh before tax.
After accounting for capital gains tax, the projected maturity value is ₹69.97 lakh, delivering a post-tax IRR of 10.85%, based on the assumed returns and applicable tax treatment.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 20 years | 77,06,729 |
| Purchase price | 19,10,000 |
| Long-Term Capital Gains | 57,96,729 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 56,71,729 |
| Tax paid on LTCG | 7,08,966 |
| Maturity value after tax | 69,97,763 |
This alternative approach combines life protection through term insurance with the potential for inflation-beating returns through disciplined investing. It also provides greater flexibility to align investments with individual financial goals and risk tolerance.
In comparison, the ABSLI Anmol Akshaya Plan may offer neither adequate life cover nor attractive investment growth.
Therefore, separating insurance and investments may be a more suitable strategy for individuals focused on long-term financial planning and wealth creation.
Final Verdict on ABSLI Anmol Akshaya
The ABSLI Anmol Akshaya Plan is a traditional life insurance policy designed to promote disciplined savings.
It offers a lump-sum benefit under Option 1: My Savings and survival benefits under Option 2: My Child, with additional benefits linked to bonuses. However, the plan may fall short in delivering satisfactory financial outcomes.
Inflation gradually erodes the purchasing power of money, and the plan’s potential returns may not be sufficient to keep pace with inflation.
This could leave you with a shortfall in achieving your target corpus. Furthermore, the sum assured may be inadequate to meet your family’s financial protection needs.
Given its limited wealth-creation potential and potentially insufficient life cover, the plan may not be an effective choice for long-term financial planning and it also has a high agent commission.
Relying on traditional bundled insurance products could hinder wealth accumulation and put your future financial goals at risk.
A more effective approach is to secure your family’s financial future through an adequate pure-term insurance plan and invest the surplus separately in instruments aligned with your financial goals.
Diversifying investments across asset classes can help build a balanced portfolio suited to your risk tolerance and investment horizon.
By separating insurance from investments and choosing financial products based on your specific objectives, you can make more informed decisions and improve your chances of achieving your goals.
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