ABSLI Vision Life Secure Plan: Good or Bad? A Detailed Review

ABSLI Vision Life Secure Plan: Good or Bad? A detailed Review

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Can Aditya Birla Sun Life Secure Your Vision Life Secure Plan secure you from an uncertain future?

Can the Aditya Birla Sun Life Insurance Vision Life Secure Plan offer both protection and long-term savings?

Is investing in the Aditya Birla Sun Life Insurance Vision Life Secure Plan a way to secure your future?

Let’s explore the features, advantages, disadvantages, and internal rate of return (IRR) of the ABSLI Vision Life Secure Plan in detail. Let’s get started.

What is the ABSLI Vision Life Secure Plan?

Aditya Birla Sun Life Insurance Vision Life Secure Plan is a traditional participating whole life insurance plan.

Aditya Birla Sun Life Insurance Vision Life Secure Plan is designed to provide long-term financial security for you and your family. It provides comprehensive financial protection to your family up to age 100.

What are the features of the ABSLI Vision Life Secure Plan?

Enhance your savings with regular bonuses throughout the Aditya Birla Sun Life Insurance Vision Life Secure Plan policy term starting from the first policy year
Comprehensive financial protection for you and your family up to age 100
Maturity benefit at the end of the policy term

Who is eligible for the ABSLI Vision Life Secure Plan?

Entry Age	30 days – 60 years
Policy Term	15 to 35 years
Minimum	The attained age at the end of the policy term is 18 years or more
Maximum	The attained age at the end of the policy term is 75 years or less
Premium paying term	Regular pay
Minimum Sum assured	₹ 2 Lakhs
Minimum premium	₹ 12,000 p.a.
Premium frequency	Annual, Semi-annual, Quarterly and Monthly

What are the benefits of the ABSLI Vision Life Secure Plan?

i.) Maturity benefit

In the event the life insured survives till the end of the policy term, the following will be payable.

Sum Assured; plus
Accrued regular bonuses; plus
Terminal bonus; if any

The policy continues even after the Maturity Benefit is paid.

ii.) Death benefit

In the unfortunate event of death of the life insured during the policy term, the death benefit payable shall be

Sum Assured on Death; plus
Accrued regular bonuses as of date of death; plus
Terminal Bonus; if any

Sum Assured on Death shall always be higher of Sum Assured or 10 times of Annualized Premium.

In case of death, after the Aditya Birla Sun Life Insurance Vision Life Secure Plan policy term but before the age of 100, then the Sum Assured on Death shall be payable.

Grace Period, Reduced paid-up and Revival of ABSLI Vision Life Secure Plan

Grace period

If you are unable to pay your premium by the due date, you will be given a grace period of 30 days

Reduced paid-up

In case you have not paid premiums for two full years, then all benefits under your Aditya Birla Sun Life Insurance Vision Life Secure Plan policy will cease immediately.

In case you have paid premiums for at least two full years, then your Aditya Birla Sun Life Insurance Vision Life Secure Plan policy will continue on a Reduced Paid-Up basis.

Revival

You can revive your Aditya Birla Sun Life Insurance Vision Life Secure Plan policy for its full coverage within five years from the due date of the first unpaid premium.

Free Look Period of ABSLI Vision Life Secure Plan

You will have the right to return your Aditya Birla Sun Life Insurance Vision Life Secure Plan policy within 15 days (30 days in case the policy is issued under Distance Marketing) from the date of receipt of the policy.

Surrendering ABSLI Vision Life Secure Plan

Your Aditya Birla Sun Life Insurance Vision Life Secure Plan policy will acquire a surrender value after all due premiums for at least two full policy years are paid. The Guaranteed Surrender Value is a percentage of Total premiums paid plus the surrender value of accrued regular bonuses less maturity benefit already paid.

What are the advantages of the ABSLI Vision Life Secure Plan?

You may take a loan against your Aditya Birla Sun Life Insurance Vision Life Secure Plan policy, with a maximum of 85% of the surrender value.
Premium rebate for higher Sum Assured
The plan offers tax benefits under Section 80C and Section 10(10D) of the Income Tax Act, 1961.

What are the disadvantages of the ABSLI Vision Life Secure Plan?

Though it is a whole-life policy, the death benefit does not include the bonuses after the policy term.
Your funds get locked for an extended period.

Research Methodology of ABSLI Vision Life Secure Plan

The ABSLI Vision Life Secure Plan offers a maturity benefit at the end of the policy term and extends life cover protection for the entire lifetime.

In the event of death after the ABSLI Vision Life Secure Plan policy term, both the maturity benefit at the end of the policy term and the death benefit at the time of death are payable.

To understand the cash flow, we will analyse the benefit illustration provided in the ABSLI Vision Life Secure Plan policy brochure. The calculation of the Internal Rate of Return (IRR) helps in evaluating and comparing this ABSLI Vision Life Secure Plan with other investments.

Benefit Illustration – IRR Analysis of ABSLI Vision Life Secure Plan

Consider a 35-year-old male who opts for the ABSLI Vision Life Secure Plan with a sum assured of ₹5 Lakhs. The policy term and the premium paying term are both 25 years, with an annual premium of ₹25,870.

At the end of the policy term, i.e., at the age of 60, he will receive the maturity benefit. The policy continues for the rest of his life, and for illustration purposes, we assume a life expectancy of 85 years. Thus, the death benefit would be payable at age 85.

Male	35 years
Sum Assured	₹ 5,00,000
Policy Term	25 years
Premium Paying Term	25 years
Annualised Premium	₹ 25,870

The maturity benefit includes bonuses, and the illustration shows two assumed rates of future investment returns: 8% p.a. and 4% p.a. These assumed rates are not guaranteed and do not represent the maximum or minimum 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	-25,870	5,00,000	-25,870	5,00,000
36	2	-25,870	5,00,000	-25,870	5,00,000
37	3	-25,870	5,00,000	-25,870	5,00,000
38	4	-25,870	5,00,000	-25,870	5,00,000
39	5	-25,870	5,00,000	-25,870	5,00,000
40	6	-25,870	5,00,000	-25,870	5,00,000
41	7	-25,870	5,00,000	-25,870	5,00,000
42	8	-25,870	5,00,000	-25,870	5,00,000
43	9	-25,870	5,00,000	-25,870	5,00,000
44	10	-25,870	5,00,000	-25,870	5,00,000
45	11	-25,870	5,00,000	-25,870	5,00,000
46	12	-25,870	5,00,000	-25,870	5,00,000
47	13	-25,870	5,00,000	-25,870	5,00,000
48	14	-25,870	5,00,000	-25,870	5,00,000
49	15	-25,870	5,00,000	-25,870	5,00,000
50	16	-25,870	5,00,000	-25,870	5,00,000
51	17	-25,870	5,00,000	-25,870	5,00,000
52	18	-25,870	5,00,000	-25,870	5,00,000
53	19	-25,870	5,00,000	-25,870	5,00,000
54	20	-25,870	5,00,000	-25,870	5,00,000
55	21	-25,870	5,00,000	-25,870	5,00,000
56	22	-25,870	5,00,000	-25,870	5,00,000
57	23	-25,870	5,00,000	-25,870	5,00,000
58	24	-25,870	5,00,000	-25,870	5,00,000
59	25	-25,870	5,00,000	-25,870	5,00,000
60	26	5,87,500	5,00,000	12,37,500	5,00,000
61	27	0	5,00,000	0	5,00,000
62	28	0	5,00,000	0	5,00,000
63	29	0	5,00,000	0	5,00,000
64	30	0	5,00,000	0	5,00,000
65	31	0	5,00,000	0	5,00,000
66	32	0	5,00,000	0	5,00,000
67	33	0	5,00,000	0	5,00,000
68	34	0	5,00,000	0	5,00,000
69	35	0	5,00,000	0	5,00,000
70	36	0	5,00,000	0	5,00,000
71	37	0	5,00,000	0	5,00,000
72	38	0	5,00,000	0	5,00,000
73	39	0	5,00,000	0	5,00,000
74	40	0	5,00,000	0	5,00,000
75	41	0	5,00,000	0	5,00,000
76	42	0	5,00,000	0	5,00,000
77	43	0	5,00,000	0	5,00,000
78	44	0	5,00,000	0	5,00,000
79	45	0	5,00,000	0	5,00,000
80	46	0	5,00,000	0	5,00,000
81	47	0	5,00,000	0	5,00,000
82	48	0	5,00,000	0	5,00,000
83	49	0	5,00,000	0	5,00,000
84	50	0	5,00,000	0	5,00,000
85	51	5,00,000	5,00,000	5,00,000	5,00,000

	IRR	2.25%		5.38%

In the 4% scenario, the IRR is 2.25% as per the Aditya Birla Sun Life Insurance Vision Life Secure Plan maturity calculator. In the 8% scenario, the IRR is 5.38% as per the Aditya Birla Sun Life Insurance Vision Life Secure Plan maturity calculator.

Despite being a long-term investment spanning approximately 50–60 years, the returns are significantly lower than the inflation rate, making the ABSLI Vision Life Secure Plan a less suitable option for your portfolio.

ABSLI Vision Life Secure Plan Vs. Other investments

The ABSLI Vision Life Secure Plan offers life cover even after the maturity benefit is paid out. While this feature may seem advantageous, in personal finance, it’s generally recommended to have life cover only until the end of your working life.

Extending life cover beyond this period results in higher premium costs, contributing to the poor returns of the ABSLI Vision Life Secure Plan.

ABSLI Vision Life Secure Plan Vs. Pure Term + PPF / ELSS

Let’s consider an alternative: a pure-term life insurance policy up to the age of 60 with a sum assured of ₹5 Lakhs and an annual premium of ₹3,200.

This allows for an additional annual investment of ₹22,670. We will use the Public Provident Fund (PPF) and Equity Linked Savings Scheme (ELSS) as the investment vehicles.

Pure Term Life Insurance Policy
Sum Assured	₹ 5,00,000
Policy Term	25 years
Premium Paying Term	25 years
Annualised Premium	₹ 3,200
Investment	₹ 22,670

At the end of 25 years, the maturity proceeds are withdrawn. To match the maturity benefit of the ABSLI Vision Life Secure Plan, an amount equal to the 8% scenario is withdrawn from these proceeds.

The remaining balance is then invested in an instrument yielding 7% p.a., which is redeemed at age 85 to match the death benefit.

		Term Insurance + PPF		Term insurance + ELSS
Age	Year	Term Insurance premium + PPF	Death benefit	Term Insurance premium + ELSS	Death benefit
35	1	-25,870	5,00,000	-25,870	5,00,000
36	2	-25,870	5,00,000	-25,870	5,00,000
37	3	-25,870	5,00,000	-25,870	5,00,000
38	4	-25,870	5,00,000	-25,870	5,00,000
39	5	-25,870	5,00,000	-25,870	5,00,000
40	6	-25,870	5,00,000	-25,870	5,00,000
41	7	-25,870	5,00,000	-25,870	5,00,000
42	8	-25,870	5,00,000	-25,870	5,00,000
43	9	-25,870	5,00,000	-25,870	5,00,000
44	10	-25,870	5,00,000	-25,870	5,00,000
45	11	-25,870	5,00,000	-25,870	5,00,000
46	12	-25,870	5,00,000	-25,870	5,00,000
47	13	-25,870	5,00,000	-25,870	5,00,000
48	14	-25,870	5,00,000	-25,870	5,00,000
49	15	-25,870	5,00,000	-25,870	5,00,000
50	16	-25,870	5,00,000	-25,870	5,00,000
51	17	-25,870	5,00,000	-25,870	5,00,000
52	18	-25,870	5,00,000	-25,870	5,00,000
53	19	-25,870	5,00,000	-25,870	5,00,000
54	20	-25,870	5,00,000	-25,870	5,00,000
55	21	-25,870	5,00,000	-25,870	5,00,000
56	22	-25,870	5,00,000	-25,870	5,00,000
57	23	-25,870	5,00,000	-25,870	5,00,000
58	24	-25,870	5,00,000	-25,870	5,00,000
59	25	-25,870	5,00,000	-25,870	5,00,000
60	26	12,37,500	5,00,000	12,37,500	5,00,000
61	27	0	0	0	0
62	28	0	0	0	0
63	29	0	0	0	0
64	30	0	0	0	0
65	31	0	0	0	0
66	32	0	0	0	0
67	33	0	0	0	0
68	34	0	0	0	0
69	35	0	0	0	0
70	36	0	0	0	0
71	37	0	0	0	0
72	38	0	0	0	0
73	39	0	0	0	0
74	40	0	0	0	0
75	41	0	0	0	0
76	42	0	0	0	0
77	43	0	0	0	0
78	44	0	0	0	0
79	45	0	0	0	0
80	46	0	0	0	0
81	47	0	0	0	0
82	48	0	0	0	0
83	49	0	0	0	0
84	50	0	0	0	0
85	51	17,38,866	0	1,01,82,055	0

	IRR	6.42%		9.05%

The final maturity value at the end of 25 years for PPF and ELSS (post-tax) is ₹15.57 Lakhs and ₹31.3 Lakhs respectively. ₹12.37 Lakhs is withdrawn and the balance is invested in an instrument yielding 7% p.a. The final value at the end is then withdrawn from the respective investment.

ELSS Tax Calculation
Maturity value after 25 years	33,85,400
Purchase price	5,66,750
Long-Term Capital Gains	28,18,650
Exemption limit	1,00,000
Taxable LTCG	27,18,650
Tax paid on LTCG	2,71,865
Maturity value after tax	31,13,535

The IRR for the pure term plus PPF combo is 6.42%, while the IRR for the pure term plus ELSS combo is 9.05%. This strategy provides better returns and greater liquidity compared to the ABSLI Vision Life Secure Plan.

Final Verdict on ABSLI Vision Life Secure Plan

The primary objective of the ABSLI Vision Life Secure Plus plan is to provide comprehensive financial protection for your family up to age 100.

ABSLI Vision Life Secure Plan offers a maturity benefit, including bonuses, at the end of the policy term and extends life cover beyond the policy term. This selling point makes the whole life policy seem appealing to investors.

However, a deeper analysis reveals that extended coverage until age 100 is often unnecessary. Additionally, this extension increases the mortality charge, thereby reducing your returns.

Your funds remain locked for an extended period without significant value addition and also this policy has a high agent commission

Life cover until retirement is usually sufficient to mitigate uncertainty. A strong investment plan helps in accumulating the necessary retirement corpus. The alternative investment strategy demonstrates effective insurance and investment planning.

When it comes to financial advice, do Quora, Facebook, and Twitter have the final say?For appropriate insurance and investment planning, consult a Certified Financial Planner. They can provide professional guidance tailored to your specific needs.