ABSLI Fortune Wealth Plan: Good or Bad? A Detailed ULIP Review

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Can the ABSLI Fortune Wealth Plan ensure a financially stable future for your loved ones while maximising your wealth potential?

Can the ABSLI Fortune Wealth Plan control your financial future with a plan designed for long-term prosperity?

Is investing in the ABSLI Fortune Wealth Plan a wise choice? Will it help you reach your goals?

In this detailed review, we will analyze the features, advantages, disadvantages, costs involved, and returns through IRR analysis. This review aims to provide insights on making wise financial decisions.

What is the ABSLI Fortune Wealth Plan?

ABSLI Fortune Wealth Plan is a ULIP Plan meticulously crafted to empower you in maximizing the potential of your hard-earned money. ABSLI Fortune Wealth Plan not only safeguards the future of your loved ones but also plays a pivotal role in growing your wealth.

What are the features of the ABSLI Fortune Wealth Plan?

Flexibility to choose from a wide range of policy terms and premium paying terms
5 investment strategies & 18 fund options to choose from
Guaranteed additions in the form of additional units
Flexibility to choose from 2 plan options to suit your aspirations: Classic Option and Assured Option
Flexibility of partial withdrawals to meet any emergency fund requirements

Who is eligible for the ABSLI Fortune Wealth Plan?

	Classic Option	Assured Option
Entry Age	Minimum – 30 days Maximum – For 5 Pay: 50 years For 6 Pay & 7 Pay: 55 years For 8 Pay and above: 65 years	Minimum -18 years Maximum -For 5 to 8 Pay: 45 years For 9 Pay and above: 50 years
Maturity Age	Minimum: 18 years Maximum: For 5 to 7 Pay: 70 years For 8 Pay and above: 75 years	Minimum: 28 years Maximum: 60 years
Premium Payment Mode	Annual, Semi-Annual, Quarterly and Monthly
Minimum Annualized Premium	40,000 p.a. for annual mode 45,000 p.a. for semi-annual mode 50,000 p.a. for quarterly and monthly mode 5,00,000 p.a. if the age at entry is between 61 to 65 years, both inclusive
Maximum Annualized Premium	No Limit
Minimum Sum Assured	4,00,000
Premium Payment Term (PPT)	Limited Pay: 5 to 19 years Regular Pay: 10 to 20 years
Minimum Policy Term	10 years (PPT+1)
Maximum Policy Term	20 years

What are the benefits of the ABSLI Fortune Wealth Plan?

1.) Death benefit

Classic Option

In the unfortunate event, that the life insured dies while the ABSLI Fortune Wealth Plan policy is in effect, the nominee will get the higher of:

Fund Value as on date of intimation of death; or
Sum Assured

Assured Option

In the unfortunate event, that the life insured dies while the ABSLI Fortune Wealth Plan policy is in force, the nominee will get higher of:

Sum Assured on the date of death; or
105% of the Annualized Premiums paid (excluding GST, if any)

Further any mortality charges recovered subsequent to the date of death shall be added back to the fund value as available on the date of intimation of death.

The ABSLI Fortune Wealth Plan policy will not terminate once this death benefit is paid to the nominee and it continues till the policy maturity date.

2.) Maturity benefit

Under both Options, at the end of the ABSLI Fortune Wealth Plan Policy Term, the Fund Value in a lump sum is payable to you.

3.) Guaranteed Additions

On the 6^th policy anniversary (11^th policy anniversary for Band 1) and every policy anniversary thereafter, Guaranteed Addition as a percentage of the average Policy Fund Value in the last 12 months will be added to your ABSLI Fortune Wealth Plan policy.

On the 10^th policy anniversary and on every 5^th policy anniversary thereafter, an Extra Guaranteed Addition is added to the fund value.

Investment Strategies and Fund Options in ABSLI Fortune Wealth Plan

Under ABSLI Fortune Wealth Plan, you can choose to invest your premiums in one of the five investment options.

i.) Systematic Transfer Option

Your premium shall be first allocated to the Liquid Plus fund option and thereafter monthly 1/12th or weekly 1/48th of the allocated amount shall be transferred to a segregated fund(s) of your choice.

The percentage allocated to chosen fund(s) is in increments of 1%, ranging from 5% to 100%. The total allocation across all funds must be 100%. This option is available only if you have opted for a policy taken with annual mode as their Premium Payment mode

You can choose up to a maximum of four segregated funds out of;

Enhancer
Maximiser
Super 20
Capped Nifty Index
Multiplier
Value & Momentum
Creator
Income Advantage
MNC
ESG Fund
Small Cap Fund

ii.) Return Optimiser Investment Option

Basic premiums are invested in the Maximiser fund and it will be tracked every day for any gains. The gain from the Maximiser fund reaches 10% or more of the net invested amount, the amount equal to the appreciation will be transferred to the Income Advantage fund.

Thus, the gains are protected from future market volatility.

iii.) Self-Managed Option

The ABSLI Wealth Smart Plus Plan policyholder has the full freedom to control & switch from one segregated fund to another among 18 segregated funds.

The only requirement is that the percentage allocated to any fund be in increments of 1%, ranging from 5% to 100%. The total allocation across all funds must be 100%.

S.no	Fund Name	Risk Profile	Asset Allocation
			Debt	Money market	Equities
1	Liquid plus	Very low	20-100%	0-80%	–
2	Income Advantage	Very low	60-100%	0-40%	–
3	Assure	Very low	20-100%	0-80%	–
4	Protector	Low	90-100%	0-40%	0-10%
5	Builder	Low	80-100%	0-40%	10-20%
6	Enhancer	Medium	25-80%	0-40%	20-35%
7	Creator	Medium	50-70%	0-40%	30-50%
8	Asset Allocator	High	10-80%	0-40%	10-80%
9	Magnifier	High	10-50%	0-40%	50-90%
10	Maximiser	High	0-20%	0-20%	80-100%
11	Multiplier	High	0-20%	0-20%	80-100%
12	Super 20	High	0-20%	0-20%	80-100%
13	Pure equity	High	0-20%	0-20%	80-100%
14	Value & Momentum	High	0-20%	0-20%	80-100%
15	Capped Nifty index	High	0-10%	0-10%	90-100%
16	MNC	High	0-20%	0-20%	80-100%
17	ESG Fund	High	0-20%	0-20%	80-100%
18	Small-cap Fund	High	0-20%	0-20%	80-100%
			Govt Sec	Money market	Equities
	Linked discontinued policy fund	Very low	60-100%	0-40%	–

iv.) Smart Investment option

Your portfolio will be structured as per your maturity date and risk profile (Conservative, Moderate, Aggressive). Your Annualized Premium (net of premium allocation charge) is allocated between the two funds – Maximiser (equity fund) and Income Advantage (debt fund) in a predetermined proportion.

Over time the allocation is managed such that it will automatically switch from riskier assets to safer assets progressively as your ABSLI Wealth Smart Plus Plan approaches maturity.

The proportion invested in Maximiser (equity fund) and Income Advantage (debt fund) will be according to the schedule given below:

Outstanding Term to Maturity	Aggressive		Moderate		Conservative
	Maximiser	Income Advantage	Maximiser	Income Advantage	Maximiser	Income Advantage
21 & above	90%	10%	70%	30%	50%	50%
16 to 20	80%	20%	60%	40%	40%	60%
8 to 15	65%	35%	50%	50%	30%	70%
4 to 7	50%	50%	25%	75%	15%	85%
0 to 3	20%	80%	10%	90%	5%	95%

Your portfolio will be structured as per your age and risk profile – you need to decide on your risk profile – Conservative, Moderate or Aggressive. The funds will be shifted from riskier assets to safer assets progressively with your age.

v.) Life Cycle Investment Option

Your Annualized Premium (net of premium allocation charge) is allocated between the two funds, Maximiser (Equity Fund) and Income Advantage (Debt Fund) in a predetermined proportion based on the selected risk profile and your age when the premium is invested.

The percentage allocation to Maximiser according to age and risk profile is as given below:

Age Group	Aggressive	Moderate	Conservative
1 to 30	90%	70%	50%
31 to 40	80%	60%	50%
41 to 50	70%	50%	30%
51 to 60	55%	35%	15%
61 to 70	40%	20%	0%
71 +	25%	5%	0%

Various charges under the ABSLI Fortune Wealth Plan

A. Premium Allocation Charge

A Premium Allocation Charge is levied on the Annualized Premium

B. Fund Management Charge

1.00% p.a. for Liquid Plus, Income Advantage, Assure, Protector and Builder

1.25% p.a. for Enhancer, Creator, Capped Nifty Index, Asset Allocation

1.35% p.a. for MNC, Magnifier, Maximiser, Multiplier, Super 20, Pure Equity, ESG Fund and Small Cap Fund and Value & Momentum

0.50% p.a. for Linked Discontinued Policy Fund

C. Policy Administration Charge

Policy Year	Band 1	Band 2 & 3
Year 1 to 5	₹ 450 p.a.	1.2% of Annualized Premium p.a.
Year 6 and subsequent years	₹ 600 p.a. inflating @5% thereafter	NIL

D. Mortality charge

It is based on the sum at risk and is deducted at the start of each month by the proportionate cancellation of units from each fund under the ABSLI Wealth Smart Plus Plan policy at the time. The charge per 1000 of Sum at Risk will depend on the gender and attained age of the Life Insured.

Attained Age	Age 25	Age 35	Age 45	Age 55	Age 65
Male	0.74	0.96	2.06	6.01	12.75
Female	0.75	0.83	1.58	4.44	10.26

E. Miscellaneous Charges

NIL

F. Surrender Charges

The charge on discontinuance or surrender of the ABSLI Fortune Wealth Plan policy will be based on the year of discontinuance/surrender, the premium amount and the fund value.

Inference from the charges – The charges under the ABSLI Fortune Wealth Plan are substantial for a market-linked product.

These high charges will impact the returns, as the net premium, after deducting these fees, goes into the investment. Consequently, this will affect your final proceeds over the long term.

Grace period, Discontinuance and Revival of the ABSLI Fortune Wealth Plan

Grace Period

You will be given a Grace Period of 30 days (15 days in case the premium paying mode is monthly) to make the payment of due instalment premium(s).

Policy Discontinuance

Discontinuance during the first five policy years: the Fund Value after deducting the applicable discontinuance /surrender charges shall be credited to the Linked Discontinued Policy Fund and the risk cover, if any, shall cease immediately.

The proceeds in the Linked Discontinued Policy Fund shall be paid to you at the end of the revival period or lock-in period whichever is later.

Discontinuance after the first five policy years: your policy shall be converted into a reduced paid-up policy with the Reduced paid-up Sum Assured i.e. original Sum Assured multiplied by the total number of Annualized Premiums paid to the original number of Annualized Premiums payable as per the terms and conditions of the policy.

Revival

You can revive the ABSLI Fortune Wealth Plan policy within the revival period of three years.

Free Look period of ABSLI Fortune Wealth Plan

You will have the right to return your ABSLI Fortune Wealth Plan Policy within 30 days from the date of receipt of the Policy, in case you disagree with the terms and conditions of your ABSLI Fortune Wealth Plan Policy.

Surrendering ABSLI Fortune Wealth Plan

Surrendering during the first five policy years: you will have the option to surrender the ABSLI Fortune Wealth Plan policy anytime but, the proceeds in the Linked Discontinued Policy Fund shall be payable at the end of the lock-in period or date of surrender whichever is later.

Surrendering after the first five policy years: you will have an option to surrender the policy anytime and the Fund Value shall be payable upon receipt of such request of surrender.

What are the advantages of the ABSLI Fortune Wealth Plan?

There is no limit on the number of switches (Self-managed/Systematic Transfer Investment Option) that can be made in a policy year, and all switches are free of charge.
After the first policy year, you can change from one investment option to another.
Under the Self-Managed option, you can choose to redirect future premiums.
After completing the first five policy years, you have the option to decrease the sum assured and premium by up to 50% of the original amount.
Unlimited partial withdrawals from the fund value are allowed at any time after five complete policy years, provided the ABSLI Fortune Wealth Plan policyholder is at least 18 years old.
For the maturity benefit, you may opt for a Settlement Option, where the company will continue to manage the funds and make periodic payments for up to 5 years.

What are the disadvantages of the ABSLI Fortune Wealth Plan?

Policy loans are not permitted under this ABSLI Fortune Wealth Plan.
There is no liquidity available during the first policy years.
The sum assured is inadequate.

Research Methodology of ABSLI Fortune Wealth Plan

The purpose of investing in the market is to achieve better yields over the long term. To assess the potential return of the ABSLI Fortune Wealth Plan, we examine a case study from the policy brochure.

The following analysis, including Internal Rate of Return (IRR) calculations, will help decode the plan’s effectiveness and allow for comparison with other investments.

Benefit Illustration of ABSLI Fortune Wealth Plan

Consider a 35-year-old male who purchases the ABSLI Fortune Wealth Plan with a sum assured of ₹10 Lakhs. The policy term is 20 years, with a premium paying term of 10 years and an annualized premium of ₹1 Lakh. He opts for the Classic Option.

Male	35 years
Sum Assured	₹ 10,00,000
Policy Term	20 years
Premium Paying Term	10 years
Annualised Premium	₹ 1,00,000

If he consistently pays the premium, he will receive the fund value as a maturity benefit. The illustrations show two assumed rates of future investment returns: 8% p.a. and 4% p.a. These rates are not guaranteed and do not represent the upper or lower limits of potential returns.

		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	10,00,000	-1,00,000	10,00,000
36	2	-1,00,000	10,00,000	-1,00,000	10,00,000
37	3	-1,00,000	10,00,000	-1,00,000	10,00,000
38	4	-1,00,000	10,00,000	-1,00,000	10,00,000
39	5	-1,00,000	10,00,000	-1,00,000	10,00,000
40	6	-1,00,000	10,00,000	-1,00,000	10,00,000
41	7	-1,00,000	10,00,000	-1,00,000	10,00,000
42	8	-1,00,000	10,00,000	-1,00,000	10,00,000
43	9	-1,00,000	10,00,000	-1,00,000	10,00,000
44	10	-1,00,000	10,00,000	-1,00,000	10,00,000
45	11	0	10,00,000	0	10,00,000
46	12	0	10,00,000	0	10,00,000
47	13	0	10,00,000	0	10,00,000
48	14	0	10,00,000	0	10,00,000
49	15	0	10,00,000	0	10,00,000
50	16	0	10,00,000	0	10,00,000
51	17	0	10,00,000	0	10,00,000
52	18	0	10,00,000	0	10,00,000
53	19	0	10,00,000	0	10,00,000
54	20	0	10,00,000	0	10,00,000
55		13,67,290		25,08,919

	IRR	2.03%		6.02%

In the 4% scenario, the fund value is ₹13.67 Lakhs with an IRR of 2.03%. In the 8% scenario, the fund value is ₹25.08 Lakhs with an IRR of 6.02% as per the ABSLI Fortune Wealth Plan maturity calculator.

These maturity proceeds are unlikely to meet the inflated costs of future goals. The long policy term increases the required corpus for achieving these goals, and the low returns make investing in the ABSLI Fortune Wealth Plan detrimental to your financial plan.

ABSLI Fortune Wealth Plan Vs Other Investments

The ABSLI Fortune Wealth Plan is a market-linked product, but its returns are lower than those of debt instruments, making it unfavourable for investors.

Let’s compare the ABSLI Fortune Wealth Plan with other investments using the same metrics as in the previous illustration. This time, we’ll separate the insurance and investment aspects instead of combining them.

ABSLI Fortune Wealth Plan Vs Pure Term + ELSS

A pure-term life insurance policy with a sum assured of ₹10 Lakhs costs an annual premium of ₹8,700. The policy term is 20 years, and the premium paying term is 10 years. From the ₹1 Lakh annual premium, after paying for life insurance, you are left with ₹91,300 for wealth accumulation.

Pure Term Life Insurance Policy
Sum Assured	₹ 10,00,000
Policy Term	20 years
Premium Paying Term	10 years
Annualised Premium	₹ 8,700
Investment	₹ 91,300

Risk-averse investors can choose debt instruments, while those with a higher risk appetite can opt for equity instruments. In this analogy, we’ll consider a market-linked product—an ELSS fund—which also offers tax deductions on investments.

		Term insurance + ELSS
Age	Year	Term Insurance premium + ELSS	Death benefit
35	1	-1,00,000	10,00,000
36	2	-1,00,000	10,00,000
37	3	-1,00,000	10,00,000
38	4	-1,00,000	10,00,000
39	5	-1,00,000	10,00,000
40	6	-1,00,000	10,00,000
41	7	-1,00,000	10,00,000
42	8	-1,00,000	10,00,000
43	9	-1,00,000	10,00,000
44	10	-1,00,000	10,00,000
45	11	0	10,00,000
46	12	0	10,00,000
47	13	0	10,00,000
48	14	0	10,00,000
49	15	0	10,00,000
50	16	0	10,00,000
51	17	0	10,00,000
52	18	0	10,00,000
53	19	0	10,00,000
54	20	0	10,00,000
55		50,06,415

	IRR	10.65%

However, the maturity proceeds of the ELSS fund are subject to capital gains tax. The pre-tax value of the ELSS fund is ₹55.73 Lakhs, and the post-tax value is ₹50.06 Lakhs. The IRR for a pure-term life insurance policy combined with an ELSS investment is 10.65% (post-tax return).

ELSS Tax Calculation
Maturity value after 20 years	55,73,331
Purchase price	9,13,000
Long-Term Capital Gains	46,60,331
Exemption limit	1,25,000
Taxable LTCG	45,35,331
Tax paid on LTCG	5,66,916
Maturity value after tax	50,06,415

This substantial corpus is double the value of the 8% scenario in the ABSLI Fortune Wealth Plan. Additionally, the IRR outpaces the inflation rate, demonstrating that insurance and investment work best when not combined.

Therefore, the combination of life cover and market-linked investment in the ABSLI Fortune Wealth Plan is not a worthwhile consideration.

Final Verdict on ABSLI Fortune Wealth Plan

The ABSLI Fortune Wealth Plan is a standard ULIP with two variants. Its investment aspect offers equity allocation in the portfolio, appealing to investors aiming for substantial long-term goals.

Given the significant role of equity investment in achieving such goals, this might attract you to the ABSLI Fortune Wealth Plan.

However, an analysis of the returns reveals that they are low for a long-term investment. The plan’s charges reduce returns over time, and the sum assured is insufficient to meet future family needs.

Low returns and inadequate life coverage make the ABSLI Fortune Wealth Plan unsuitable for your equity allocation and also it has a high agent commission.

Your equity investment portfolio needs a higher-yielding product to achieve your goals. Therefore, opt for a pure-term policy for adequate life cover and build an investment portfolio based on your risk appetite, life goals, and time horizon.

When it comes to financial advice, are Quora, Facebook, and Twitter the final word?

Consulting a professional financial planner is advisable if you need guidance. They can help you create a custom financial plan that incorporates all your requirements.

ABSLI Fortune Wealth Plan: Good or Bad? A Detailed ULIP Review

Table of Contents:

What is the ABSLI Fortune Wealth Plan?

What are the features of the ABSLI Fortune Wealth Plan?

Who is eligible for the ABSLI Fortune Wealth Plan?