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Can the ABSLI Param Suraksha – Her Growth Plan truly help women build long-term wealth while securing their financial future, or do its charges and conditions limit its potential?
Does the ABSLI Param Suraksha – Her Growth Plan offer the right balance between market-linked growth and life insurance protection, or are there better alternatives available?
Is the ABSLI Param Suraksha – Her Growth Plan a smart choice for women’s financial independence, or would separating insurance and investments provide greater flexibility?
This article examines the plan’s features, benefits, limitations, and returns to evaluate whether it is a suitable choice for long-term financial planning.
Table of Contents:
What is the ABSLI Param Suraksha – Her Growth?
What are the features of the ABSLI Param Suraksha – Her Growth?
Who is eligible for the ABSLI Param Suraksha – Her Growth?
What are the benefits of the ABSLI Param Suraksha – Her Growth?
What are the investment strategies and fund options in the ABSLI Param Suraksha – Her Growth?
What are the charges of the ABSLI Param Suraksha – Her Growth?
Grace period, Discontinuance, and Revival of the ABSLI Param Suraksha – Her Growth
Free Look Period for the ABSLI Param Suraksha – Her Growth
Surrendering the ABSLI Param Suraksha – Her Growth
What are the advantages of the ABSLI Param Suraksha – Her Growth?
What are the disadvantages of the ABSLI Param Suraksha – Her Growth?
Research Methodology of ABSLI Param Suraksha – Her Growth
Benefit Illustration – IRR Analysis of ABSLI Param Suraksha – Her Growth Plan
ABSLI Param Suraksha – Her Growth Vs. Other Investments
ABSLI Param Suraksha – Her Growth Vs. Pure-term + Equity Mutual Fund
Final Verdict on ABSLI Param Suraksha – Her Wealth
What is the ABSLI Param Suraksha – Her Growth?
ABSLI Param Suraksha – Her Growth is a Unit-Linked Non-Participating Individual Life Insurance Savings Plan. It offers the dual advantage of a robust term plan cover that protects your loved ones and the growth opportunities of a ULIP.
What are the features of the ABSLI Param Suraksha – Her Growth?
- Life Cover: Option to choose life insurance coverage of up to 30 times, depending on the age and policy term selected at inception.
- Return of Premium Allocation Charges: 2X of the premium allocation charges returned from the end of the 10th policy year through the 13th policy year, intended to enhance the fund value.
- Return of Mortality Charges: 2X of the mortality charges returned from the 11th policy year until the end of the policy term.
- Systematic Withdrawal Facility: Enables regular withdrawals from the fund value during the policy term to meet recurring financial needs, subject to the plan’s terms and conditions.
- Investment Choices: Offers five investment strategies and 21 funds to suit different investment preferences.
- Tax Benefits: Tax benefits may be available on premiums paid and benefits received, subject to prevailing tax laws and applicable conditions.
Who is eligible for the ABSLI Param Suraksha – Her Growth?
| Minimum | Maximum | |
| Entry Age | 18 years | 50 years |
| Minimum Maturity age | 75 years | |
| Premium | ₹ 1,00,000 if paid annually | No Limit |
| ₹ 50,000 if paid semi-annually | ||
| ₹ 25,000 if paid quarterly | ||
| ₹ 8,333 if paid monthly | ||
| Sum assured | ₹ 7 Lakhs | No Limit |
| Premium paying term | 6/8/10/12 years | |
| Policy term | 15/20/25/26/27/28/29/30 years | |
| Premium Payment Mode | Annual/Semi-annually/Quarterly/Monthly | |
What are the benefits of the ABSLI Param Suraksha – Her Growth?
1. Death benefit
In case of Death of the Life Insured anytime during the ABSLI Param Suraksha Plan Policy Term, the nominee will receive the higher of:
- Fund Value as on the date of intimation of death of the Life Insured; or
- Sum Assured (reduced by partial withdrawals made, if any) or
- 105% of the Total Annualised Premiums received up to the date of death, less any partial withdrawals made
The death benefit structure is a standard ULIP feature and is often assessed while doing an ABSLI Param Suraksha Plan review or a broader Aditya Birla Sun Life Insurance review.
2. Maturity benefit
The ABSLI Param Suraksha Plan Policyholder will receive the Fund Value as a lump sum unless the policyholder has opted for the settlement option.
At maturity, the fund value depends entirely on ULIP fund performance, NAV movement, and charges deducted during the ABSLI Param Suraksha – Her Growth policy term.
Return of charges
2 times the total Premium Allocation Charges (excluding taxes) collected shall be added back to the fund at the end of each of the years between 10 and 13 years
2 times the mortality charges starting from policy year 11 are added to the fund
What are the investment strategies and fund options in the ABSLI Param Suraksha – Her Growth?
Under ABSLI Param Suraksha, you can choose to invest your premiums in one of the five investment strategies.
The availability of multiple strategies and funds is a major factor for investors tracking ABSLI Param Suraksha fund performance and long-term fund value growth.
A. 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%. You can choose up to a maximum of four segregated funds out of;
- Income Advantage
- Enhancer
- Maximiser
- Super 20
- Capped Nifty Index
- Multiplier
- Value & Momentum
- Creator
- MNC
- ESG Fund
- Small Cap Fund
- Nifty Alpha 50 Index Fund
- Dividend Yield Fund and
- Flexicap Fund
Funds such as ABSLI Maximiser Fund, Super 20 Fund ABSLI, Value & Momentum Fund ABSLI, and Pure Equity Fund ABSLI are commonly reviewed for risk and volatility in ULIP portfolios.
B. 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, an amount equal to the appreciation will be transferred to the Income Advantage fund. Thus, the gains are protected from future market volatility.
C. Self-Managed Investment Option
Self-Managed Investment Option gives you access to our well-established suite of 21 funds, complete control over how to invest your premiums and full freedom to switch from one fund to another.
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% |
| 19 | Nifty Alpha 50 Index Fund | High | 0-20% | 0-20% | 80-100% |
| 20 | Dividend Yield Fund | High | 0-20% | 0-20% | 80-100% |
| 21 | Flexicap Fund | High | 0-20% | 0-20% | 80-100% |
| Govt Sec | Money market | Equities | |||
| Linked discontinued policy fund | Very low | 60-100% | 0-40% | – | |
D. Smart Investment option
Your portfolio will be structured as per your maturity date and risk profile (Conservative, Moderate, Aggressive).
Your Annualised 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 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 | 0.9 | 0.1 | 0.7 | 0.3 | 0.5 | 0.5 |
| 16 to 20 | 0.8 | 0.2 | 0.6 | 0.4 | 0.4 | 0.6 |
| 8 to 15 | 0.65 | 0.35 | 0.5 | 0.5 | 0.3 | 0.7 |
| 4 to 7 | 0.5 | 0.5 | 0.25 | 0.75 | 0.15 | 0.85 |
| 0 to 3 | 0.2 | 0.8 | 0.1 | 0.9 | 0.05 | 0.95 |
E. Life Cycle Investment Option
Your Annualised 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% |
What are the charges of the ABSLI Param Suraksha – Her Growth?
i. Premium allocation charge
A Premium Allocation Charge is levied on the Annualised Premium received before it is allocated in the funds. This charge is guaranteed for the entire ABSLI Param Suraksha – Her Growth policy term.
The Premium Allocation Charge(p.a.) is as follows:
| Policy Year | % of the annualised premium received |
| 1 | 12% |
| 2 | 6% |
| 3 | 4% |
| 4 | 3% |
| 5+ | NIL |
ii. 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, Nifty Alpha 50 Index Fund and Value & Momentum, Dividend Yield Fund and Flexicap Fund
0.50% p.a. for Linked Discontinued Policy Fund
iii. Policy Administration charge
There is no policy administration charge in the first 4 policy years, and from year 5 onwards, 0.32% per month of the annualised premium increases at 5% per annum on each policy anniversary.
iv. 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 Param Suraksha 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 | 0.84 | 1.09 | 2.34 | 6.83 | 14.49 |
| Female | 0.85 | 0.94 | 1.79 | 5.05 | 11.67 |
v. Miscellaneous charge
NIL
vi. Surrender Charges
The charge on discontinuance or surrender of the policy will be based on the year of discontinuance/surrender, the premium amount and the fund value.
Inference from the Charges: The charges associated with the ABSLI Param Suraksha Plan are significant for a market-linked investment product. These charges reduce the amount available for investment and can adversely affect overall returns. Although certain charges are returned in later policy years, the delayed credit limits the amount available for compounding during the intervening period. Consequently, the impact of these charges can affect the fund value and the final maturity proceeds over the long term.
Grace period, Discontinuance, and Revival of the ABSLI Param Suraksha – Her Growth
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 ABSLI Param Suraksha Plan policy 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 ABSLI Param Suraksha Plan 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 Annualised Premiums paid to the original number of Annualised Premiums payable as per the terms and conditions of the policy.
Revival
You can revive the ABSLI Param Suraksha – Her Growth policy within the revival period of three years.
Free Look Period for the ABSLI Param Suraksha – Her Growth
You will have the right to return your Policy within 30 days from the date of receipt of the Policy, in case you disagree with the terms and conditions of your ABSLI Param Suraksha – Her Growth Policy.
Surrendering the ABSLI Param Suraksha – Her Growth
Surrendering during the first five policy years: you will have the option to surrender the 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 policy fund Value shall be payable upon receipt of such request for surrender.
What are the advantages of the ABSLI Param Suraksha – Her Growth?
- Free Switches: Unlimited free switches are permitted under the Self-Managed and Systematic Transfer Investment Options.
- Investment Option Changes: Policyholders can switch from one investment option to another after the completion of the first policy year.
- Risk Profile Switching: Available only under the Smart Investment and Life Cycle Investment Options.
- Premium Redirection: Future premiums can be redirected among funds under the Self-Managed Option.
- Premium Reduction: Premiums can be reduced by up to 50% of the original annualised premium after completing the first five policy years, subject to the plan’s terms and conditions.
- Partial Withdrawals: Unlimited partial withdrawals are permitted after five policy years, provided the policyholder is at least 18 years old.
- Settlement Option: A settlement option is available to receive maturity benefits in instalments, subject to the policy terms.
- Rider Benefits: Additional riders can be opted for to enhance the coverage of the base policy, subject to eligibility and applicable conditions.
What are the disadvantages of the ABSLI Param Suraksha – Her Growth?
- No Loan Facility: The plan does not offer a policy loan facility.
- Limited Initial Liquidity: Access to funds is restricted during the initial policy years due to the applicable lock-in period.
- Inadequate Life Cover: The sum assured may be insufficient to meet the family’s financial protection needs.
- Charges Reduce Investment: Only the premium remaining after deducting applicable charges is invested, which can affect long-term returns.
Research Methodology of ABSLI Param Suraksha – Her Growth
Evaluating the potential returns of the ABSLI Param Suraksha – Her Growth Plan is essential to determine whether it aligns with an investor’s financial goals.
While its market-linked investment component may appear attractive, calculating the Internal Rate of Return (IRR) provides a clearer picture of the actual returns. Let us examine a sample illustration from the insurer’s portal.
Benefit Illustration – IRR Analysis of ABSLI Param Suraksha – Her Growth Plan
A 35-year-old woman opts for a sum assured of ₹30 lakhs, a policy term of 20 years, and a premium payment term of 6 years.
She pays an annual premium of ₹1 lakh for six years and receives the accumulated fund value at the end of the policy term, subject to the policy terms.
| Female | 35 years |
| Sum Assured | ₹ 30,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 6 years |
| Annualised Premium | ₹ 1,00,000 |
The insurer illustrates two projected return scenarios: 4% p.a. and 8% p.a. These rates are not guaranteed and do not represent the minimum or maximum possible returns. Actual fund performance will depend on market movements and the performance of the underlying funds.
| 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 | 30,00,000 | -1,00,000 | 30,00,000 |
| 36 | 2 | -1,00,000 | 30,00,000 | -1,00,000 | 30,00,000 |
| 37 | 3 | -1,00,000 | 30,00,000 | -1,00,000 | 30,00,000 |
| 38 | 4 | -1,00,000 | 30,00,000 | -1,00,000 | 30,00,000 |
| 39 | 5 | -1,00,000 | 30,00,000 | -1,00,000 | 30,00,000 |
| 40 | 6 | -1,00,000 | 30,00,000 | -1,00,000 | 30,00,000 |
| 41 | 7 | 0 | 30,00,000 | 0 | 30,00,000 |
| 42 | 8 | 0 | 30,00,000 | 0 | 30,00,000 |
| 43 | 9 | 0 | 30,00,000 | 0 | 30,00,000 |
| 44 | 10 | 0 | 30,00,000 | 0 | 30,00,000 |
| 45 | 11 | 0 | 30,00,000 | 0 | 30,00,000 |
| 46 | 12 | 0 | 30,00,000 | 0 | 30,00,000 |
| 47 | 13 | 0 | 30,00,000 | 0 | 30,00,000 |
| 48 | 14 | 0 | 30,00,000 | 0 | 30,00,000 |
| 49 | 15 | 0 | 30,00,000 | 0 | 30,00,000 |
| 50 | 16 | 0 | 30,00,000 | 0 | 30,00,000 |
| 51 | 17 | 0 | 30,00,000 | 0 | 30,00,000 |
| 52 | 18 | 0 | 30,00,000 | 0 | 30,00,000 |
| 53 | 19 | 0 | 30,00,000 | 0 | 30,00,000 |
| 54 | 20 | 0 | 30,00,000 | 0 | 30,00,000 |
| 55 | 8,20,133 | 30,00,000 | 16,61,609 | 30,00,000 | |
| IRR | 1.80% | 5.96% | |||
Projected Returns:
- At a 4% return scenario: Fund value of ₹8.20 lakhs, with an IRR of 1.80% as per the ABSLI Param Suraksha – Her Growth plan maturity calculator.
- At an 8% return scenario: Fund value of ₹16.61 lakhs, with an IRR of 5.96% as per the ABSLI Param Suraksha – Her Growth plan maturity calculator.
Even under the higher return scenario, the IRR of 5.96% may be comparable to or lower than the returns available from certain traditional debt instruments.
For a market-linked product with long-term investment potential, investors would reasonably expect returns that can outpace inflation.
However, the illustrated returns raise questions about the plan’s ability to generate sufficient wealth for long-term financial goals.
The concerns extend beyond returns. The sum assured of ₹30 lakhs may be inadequate to protect the family’s financial interests, while the plan’s charges can reduce the amount available for investment.
The combination of limited life cover, investment-related costs, and the need to evaluate the underlying fund options carefully makes this plan less compelling as a long-term wealth-creation solution.
From a financial planning perspective, separating life insurance and investments may be a more effective approach.
Adequate term insurance can provide financial protection, while suitable investment instruments can be selected independently based on the investor’s goals, time horizon, and risk tolerance.
ABSLI Param Suraksha – Her Growth Vs. Other Investments
A key limitation of ULIPs, such as the ABSLI Param Suraksha – Her Growth Plan, is that the returns may not adequately compensate investors for the market risk undertaken. The life cover offered may also fall short of the family’s actual protection needs.
A more effective approach is to separate insurance from investment, allowing each to be evaluated independently.
ABSLI Param Suraksha – Her Growth Vs. Pure-term + Equity Mutual Fund
Using the same parameters as the earlier illustration, let us examine an alternative strategy. A pure-term insurance policy providing a sum assured of ₹30 lakhs for a 20-year term costs an annual premium of ₹24,500.
Instead of paying ₹1 lakh annually towards the ULIP, the investor can purchase term insurance and invest the remaining ₹75,500 each year according to their risk appetite.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 30,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 5 years |
| Annualised Premium | ₹ 24,500 |
| Investment | ₹ 75,500 |
Investors with a higher risk tolerance may consider equity-oriented investments, while conservative investors may prefer debt instruments.
For this illustration, we assume that the annual surplus of ₹75,500 is invested in an equity mutual fund.
| Term insurance + Equity Mutual Fund | |||
| Age | Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -1,00,000 | 30,00,000 |
| 36 | 2 | -1,00,000 | 30,00,000 |
| 37 | 3 | -1,00,000 | 30,00,000 |
| 38 | 4 | -1,00,000 | 30,00,000 |
| 39 | 5 | -1,00,000 | 30,00,000 |
| 40 | 6 | -1,00,000 | 30,00,000 |
| 41 | 7 | 0 | 30,00,000 |
| 42 | 8 | 0 | 30,00,000 |
| 43 | 9 | 0 | 30,00,000 |
| 44 | 10 | 0 | 30,00,000 |
| 45 | 11 | 0 | 30,00,000 |
| 46 | 12 | 0 | 30,00,000 |
| 47 | 13 | 0 | 30,00,000 |
| 48 | 14 | 0 | 30,00,000 |
| 49 | 15 | 0 | 30,00,000 |
| 50 | 16 | 0 | 30,00,000 |
| 51 | 17 | 0 | 30,00,000 |
| 52 | 18 | 0 | 30,00,000 |
| 53 | 19 | 0 | 30,00,000 |
| 54 | 20 | 0 | 30,00,000 |
| 55 | 31,27,084 | 30,00,000 | |
| IRR | 9.81% | ||
Projected Investment Outcome:
- Pre-tax maturity value: ₹34.87 lakhs
- Post-tax maturity value: ₹31.27 lakhs
- Post-tax IRR: 9.81%
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 20 years | 34,87,738 |
| Purchase price | 4,77,500 |
| Long-Term Capital Gains | 30,10,238 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 28,85,238 |
| Tax paid on LTCG | 3,60,655 |
| Maturity value after tax | 31,27,084 |
Under these assumptions, the term insurance-plus-equity-mutual-fund strategy delivers a substantially higher projected corpus than the ABSLI Param Suraksha – Her Growth Plan.
It also separates the need for financial protection from the objective of wealth creation, allowing the investor to choose investments based on their financial goals and risk tolerance.
Final Verdict on ABSLI Param Suraksha – Her Wealth
The ABSLI Param Suraksha – Her Growth Plan is a ULIP designed for women seeking market-linked wealth creation along with life insurance coverage.
However, investors taking market-related risks generally expect returns that can outpace inflation over the long term.
The plan’s illustrated returns raise concerns about whether the potential rewards adequately compensate for the risks undertaken and it also has a high agent commission.
Despite being positioned as a wealth-creation solution, the plan’s relatively low illustrated returns, potentially inadequate life cover, and restrictions on accessing funds during the initial policy years may limit its effectiveness in achieving long-term financial goals.
Adequate life insurance is essential to safeguard your family’s financial future. A pure-term insurance policy can provide substantial life cover at a relatively affordable premium.
By separating insurance from investment, you can choose an appropriate level of protection and build a diversified investment portfolio based on your financial goals, investment horizon, and risk tolerance.
Wealth creation is not about choosing a single financial product; it is about following a well-structured financial plan.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
A diversified portfolio, aligned with your goals and reviewed periodically, can help you work towards long-term financial security. Consider consulting a Certified Financial Planner (CFP) to develop a personalised strategy that balances risk, protection, and wealth creation.
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