Is the financial future of you and your family secure?
Are you someone who works hard to earn and satisfy your loved ones’ dreams?
Are you looking for an insurance plan that might protect the future of your family in your absence?
As an option, you came across Aditya Birla Sun Life Insurance Guaranteed Milestone Plan.
But you’re worried about this plan’s competence?
Well, you’ve landed in the right place.
1.) ABSLI Guaranteed Milestone Plan: Plan Eligibility and Key Features
2.) ABSLI Guaranteed Milestone Plan – Review Methodology
3.) ABSLI Guaranteed Milestone Plan: Review of Key Benefits
4.) Other Benefits of ABSLI Guaranteed Milestone Plan
5.) ABSLI Guaranteed Milestone Plan: Benefit Illustration
6.) ABSLI Guaranteed Milestone Plan: Disadvantages
7.) Is the ABSLI Guaranteed Milestone Plan good or bad?
8.) ABSLI Guaranteed Milestone Plan Returns Vs PPF and Term Insurance Plan
9.) ABSLI Guaranteed Milestone Plan Returns Vs ELSS Mutual Fund and Term Insurance Plan
10.) Is the ABSLI Guaranteed Milestone Plan better than PPF and ELSS mutual funds?
11.)How to Surrender/Cancel your ABSLI Guaranteed Milestone Plan?
12.)Final Takeaway: Should you buy ABSLI Guaranteed Milestone Plan?
This article will provide you with an honest and in-depth assessment of the plan’s worthiness.
Before jumping on to the review part of this plan, let’s start the ABSLI Guaranteed Milestone review with…
Individuals between the age group of 30 days to 60 years can purchase this policy. It also offers a range of policy terms, starting from 12 years to 26 years.
The table below shows the eligibility conditions of the ABSLI Guaranteed Milestone Plan.
The ABSLI Guaranteed Milestone Plan, also known as the Aditya Birla Sun Life Insurance Guaranteed Milestone Plan, is positioned as a long-term guaranteed return plan for milestone-based financial planning.
i) It is a traditional non-participating endowment policy that helps secure your life goals (milestones).
ii) Fully guaranteed benefits on both death or maturity.
iii) Guaranteed Additions that boost your corpus year after year.
iv) Flexibility to cover your spouse by paying an additional premium for Joint Life Protection.
v) Flexibility to choose the policy term & premium paying term.
vi)By paying an additional premium, you can enhance your insurance coverage with appropriate rider options.
Note: Joint life protection option does not include Riders.
Download ABSLI Guaranteed Milestone Policy Brochure here to get more information.
You can also refer to the ABSLI Guaranteed Milestone Plan brochure PDF issued by Aditya Birla Life Insurance Plans to understand detailed policy terms and benefit structure.
In the previous sections, we have seen all the key features and eligibility of this plan.
However, this information is incomplete to get a 360-degree perspective of this plan.
Now we will conduct a detailed review ABSLI Guaranteed Milestone Plan.
Let’s discuss the benefits and returns of this plan with other alternative options.
This will help us discover whether ABSLI Guaranteed Milestone Plan is good or bad for your needs.
This ABSLI Guaranteed Milestone Plan review also evaluates how it compares with other Aditya Birla guaranteed return plans and traditional savings policies.
Single Life:
On Death, the Sum assured will be paid to the nominee in 10 equal annual instalments.
If the nominee wants to get a lump sum payment instead of the annual instalments, the discounted value (@ 8.25%) of the outstanding annual installment will be paid as a lump sum.
The Sum Assured on Death will be the highest of
This structure is similar to other Aditya Birla insurance plans designed to offer fixed protection with guaranteed pay-outs.
Joint life
The sum assured applicable for your spouse shall be equal to 20% of your applicable sum assured (subject to the attained age of primary life insured & secondary life insured being less than or equal to 50 years).
a) Death of primary policyholder
b) Death of the secondary life insured before the primary life insured
Joint life protection under the ABSLI Milestone Plan can be useful for couples seeking milestone insurance reviews focused on family income continuity.
In the event, that the life insured survives to the end of the policy term, the maturity benefit is:
Maturity Sum Assured + Accrued guaranteed addition
In the later section of this article, we’ll look at an illustration that determines the ABSLI Guaranteed Milestone Plan’s actual maturity benefit.
The ABSLI Guaranteed Milestone maturity calculator can help estimate this pay-out based on premium, age, and chosen term.
Guaranteed Additions will accrue to the policy every month until maturity, provided all due premiums have been paid.
It will be payable in the event of the life insured’s death or policy maturity, whichever comes first.
Guaranteed Addition depends on many factors such as the premium amount you commit to paying, premium band, sum assured, entry age, Joint Life Protection option, and the policy term chosen.
The ABSLI Guaranteed Milestone 2019 variant, including T12 P06 options, follows a similar guaranteed addition structure across premium bands.
As part of Aditya Birla Sun Life Insurance benefits, the policy qualifies for applicable tax deductions subject to prevailing regulations.
Let’s take an illustration to understand this
Mr. Varun who is 35 years old purchases the ABSLI Guaranteed Milestone Plan with the policy term of 20 years.
He is paying an annual premium of Rs. 50,000 for 10 years.
The sum assured in this case is Rs.7,50,000.
When the policy matures, Karan will receive ₹5,00,000 as the Sum Assured on Maturity plus ₹6,24,000 as Guaranteed Additions.
The total guaranteed maturity benefit will be ₹11.24 lakhs.
While receiving guaranteed benefits and additions seems appealing, the rate of return on this policy is unknown.
If only you have an annual rate of return, can you compare this policy to better options?
The illustration table below shows the calculation of IRR from the ABSLI Guaranteed Milestone plan.
After paying a total premium of 5 lakhs over 10 years, you would receive a maturity benefit of Rs.11.24 lakhs after 20 years.
Also, the plan offers an IRR or actual return of around 5%.
When compared with other Aditya Birla investment plans or traditional endowment products, this IRR reflects the typical return range of guaranteed milestone savings plans.
The return of 5-6% might look attractive to you today, but it might not be the same in the future.
With the help of the ABSLI Guaranteed Milestone Plan Calculator, you can easily calculate the premium, Money-Back amount, and maturity amount as per your age, policy term, and sum assured.
Before purchasing, reviewing the ABSLI Guaranteed Milestone Plan brochure and using the ABSLI calculator tools can provide clarity on long-term pay-out expectations.
Now, let’s look at some of the disadvantages of this plan to evaluate this plan better.
Under the ABSLI Guaranteed Milestone Plan 2019 variant, including structures like T12 P06, the surrender value in early years remains significantly lower than total premiums paid.
These disadvantages ultimately contradict the purpose of investing in this Plan.
Moreover, the projected pros of the ABSLI Guaranteed Milestone Plan overshadow its cons.
Will the guaranteed benefits of this plan guarantee financial security to you and your family?
When comparing ABSLI Guaranteed Milestone Plan review insights with other Aditya Birla Life Insurance plans, the limitation on long-term wealth growth becomes more evident.
If you opt for this plan just because of its guaranteed returns or better returns.
In that case, it is always better to explore better plans before making any financial decision.
Exploring other alternatives will help you discover better plans with higher returns with the same or lesser risk.
So, we will evaluate and compare ABSLI Guaranteed Milestone Plan with PPF and ELSS Mutual Fund.
Also, it will be prudent to compare this plan’s insurance component to term insurance.
Why Term Insurance?
With Term Insurance you can get the same or higher life cover at a very lesser premium.
For example, under Aditya Birla term plan review comparisons such as ABSLI Digi Shield Plan review or ABSLI Super Term Plan, pure protection plans offer significantly higher coverage at lower premiums.
For example, ABLSI Guaranteed Milestone Plan offers you a Maturity Benefit of 11.24 lakhs with an annual premium of Rs. 50,000.
But with Term Insurance you can get a life cover of approximately 1 crore just by paying an annual premium of around Rs. 10,600 – 12600.
Let’s compare the ABSLI Guaranteed Milestone plan against PPF + Term Insurance followed by an even better alternative choice.
PPF is a well-known investment instrument that provides guaranteed profits. Since the ABSLI Guaranteed Milestone Plan also offers guaranteed returns, it would be good to compare its performance against PPF.
Let’s calculate the actual returns (IRR) from PPF by investing the same amount for the same period as we did in the Guaranteed Milestone illustration above.
The only change is that Rs.4200 goes towards the Term Insurance premium.
Note: A portion of the investment capital—Rs.4200—is removed to pay for a separate 20-year Term Life Insurance policy.
Nonetheless, the figure shows that the PPF plan provides about 20.32 lakhs for the same investment as the ABSLI Guaranteed Milestone plan.
Its returns are approximately 9.08 lakhs higher than the ABSLI Guaranteed Milestone Plan.
Even when compared to other guaranteed milestone plans such as Reliance Milestone Plan or Reliance Nippon Milestone Policy, the PPF plus term strategy demonstrates stronger long-term capital accumulation.
The PPF, in combination with a term insurance plan, is a better option for a conservative investor looking for guaranteed returns than the ABSLI Guaranteed Milestone Plan.
Not to mention the tax-free status of PPF investments, interest, and maturity amounts.
You should read 15 facts you may not know about PPF to learn more about the scheme.
However, if you have a long-term financial goal and are willing to take calculated investment risk, there is an even better alternative.
ELSS mutual funds are investment plans that invest in the stock market.
Because this is a market-linked investment, there is some risk involved. However, ELSS mutual funds provide a better return on investment as risk and return are linked.
We’ve chosen the ELSS fund for comparison because it gives tax exemption on investments up to 1.5 lakh under section 80C. They also have a 3-year lock-in period.
Consider investing the same amount in an ELSS fund as shown in the previous illustration. A portion of the initial capital—Rs.4500—is deducted to offer life cover with a term plan.
The returns from ELSS mutual fund schemes are presented below, assuming a cautious 12 percent CAGR.
Despite the huge investment risk, the ELSS Mutual Fund has generated a far better return even after assuming a conservative return rate.
Whereas, as you can see, the return on ABSLI Guaranteed Milestone is even lesser than 5.3% after a long period of 20-year!!
The return of 36.96 lakhs from the ELSS Fund is more than 3 times that of the ABSLI Guaranteed Milestone plan.
Compared to traditional savings products like ABSLI Assured Savings Plan, ABSLI Platinum Gain Plan, or ABSLI Wealth Aspire Plan, equity-linked ELSS strategies historically deliver superior inflation-adjusted growth over long horizons.
ELSS funds are also eligible for tax benefits under Section 80C of the Income Tax Act, 1961, with a maximum tax deduction of Rs. 1.5 lakh.
If an investor’s risk tolerance is high, an ELSS fund should be considered instead of the ABSLI Guaranteed Milestone plan.
A detailed ABSLI Guaranteed Milestone Plan review indicates that separating insurance through a Birla term plan and investing through diversified assets can improve financial efficiency.
If you have already purchased this plan, you can still course-correct your investments in the appropriate direction.
Start by surrendering your policy.
You can return your policy to the corporation within a free look-up period of 15 days from the date of receipt of the policy.
If the policy is purchased online or through telemarketing, the free-look period is 30 days.
You will have to provide the written notice of cancellation stating the reason thereof along with your original policy documents.
The Corporation will then terminate the policy and refund the premium deposited upon receipt of the same.
They may deduct the proportionate risk premium (for Base Policy and any Riders, if applicable) for the term of coverage, as well as charges for medical examinations, special reports, and stamp duty.
You can still surrender your policy anytime during the policy term.
However, you will only receive the surrender value benefit if at least two full years’ premiums have been paid
The Guaranteed Surrender Value will be a percentage of the total premiums paid plus the percentage of Guaranteed Additions that have accrued.
The Guaranteed Surrender Value is determined by the policy’s surrender year.
You may use the ABSLI surrender value calculator to estimate the payable amount before making an exit decision.
A Special Surrender Value will also be available for your policy. The highest Guaranteed Surrender Value or Special Surrender Value will be paid as the surrender value.
As a result, before surrendering or cancelling your policy, we recommend consulting with your financial counsellor.
They can help you make the most informed financial decision possible.
While the ABSLI Guaranteed Milestone Plan offers fixed benefits and structured pay-outs, it may not be suitable for every type of investor.
1) Investors Seeking High Returns
If your primary objective is long-term wealth creation with inflation-beating returns, this plan may fall short.
With an IRR typically in the 5–6% range, it may not match the growth potential of equity-oriented investments over long durations.
2) Individuals Needing High Insurance Coverage
Those whose priority is pure life protection should consider a term insurance plan instead.
Traditional savings insurance plans like this allocate a significant portion of the premium toward savings, limiting the actual life cover.
A standalone term plan can offer substantially higher coverage at a much lower premium.
3) Young Investors with Higher Risk Appetite
If you are in your 20s or early 30s and have a long investment horizon, locking funds into a long-term guaranteed plan may reduce your wealth-building potential.
Market-linked instruments may be more aligned with long-term financial growth objectives.
4) Investors Who Require Liquidity Flexibility
Although the policy allows surrender after two years (subject to conditions), early exits can result in capital loss.
Those who may need flexibility or access to funds in the medium term should evaluate liquidity constraints carefully.
5) Individuals Comfortable Managing Insurance and Investments Separately
Financially disciplined individuals who prefer clarity and cost-efficiency often benefit from separating insurance and investment.
Combining both in a single product may reduce transparency and return efficiency.
In summary, the ABSLI Guaranteed Milestone Plan may suit conservative
investors prioritizing capital stability over growth.
However, for individuals focused on maximizing returns, flexibility, or high protection coverage, alternative strategies may be more appropriate.
Another disadvantage of this plan is that some of the funds are dedicated to term insurance while the majority of the funds are assigned to savings plans.
As a result, you do not reap the full benefits of both insurance and investing.
When evaluating Aditya Birla insurance plans, including guaranteed milestone plan Aditya Birla variants, it is important to assess whether long-term guaranteed returns align with your real wealth creation objectives.
Keep your money secure by avoiding low-return “savings insurance” schemes.
Also, feel free to leave your thoughts or questions about this plan in the comments section below.
We hope that this review has assisted you in determining if ABSLI Guaranteed Milestone Plan is a good or bad investment for your financial needs.
By clicking the link below, you can also schedule a FREE Complimentary Consultation Call for guidance on the appropriate investment and insurance coverage for your needs:
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