ABSLI Wealth Infinia Plan: Good or Bad? An Insightful ULIP Review
Is ABSLI Wealth Infinia Plan designed to maximize your wealth and provide peace of mind?
Can the ABSLI Wealth Infinia Plan provide flexibility and life cover in one comprehensive package?
Is the ABSLI Wealth Infinia Plan the key to your investment success?
This article explores the features, advantages, disadvantages, and returns through an Internal Rate of Return analysis. Our goal is to provide a detailed understanding of the plan, aiding you in making informed investment decisions.
What is the ABSLI Wealth Infinia Plan?
What are the features of the ABSLI Wealth Infinia Plan?
Who is eligible for the ABSLI Wealth Infinia Plan?
What are the benefits of the ABSLI Wealth Infinia Plan?
Loyalty additions and Wealth Boosters
Investment strategies and Fund options in ABSLI Wealth Infinia
What are the charges under the ABSLI Wealth Infinia Plan?
Grace period, Policy Discontinuance and Revival of ABSLI Wealth Infinia Plan
Free Look period of ABSLI Wealth Infinia Plan
Surrendering ABSLI Wealth Infinia Plan
What are the advantages of the ABSLI Wealth Infinia Plan?
What are the disadvantages of the ABSLI Wealth Infinia Plan?
Research Methodology of ABSLI Wealth Infinia Plan
Benefit Illustration – IRR Analysis of ABSLI Wealth Infinia Plan
ABSLI Wealth Infinia Plan Vs. Other Investments
ABSLI Wealth Infinia Plan Vs. Pure-term + ELSS
Final Verdict on ABSLI Wealth Infinia Plan
Aditya Birla Sun Life Insurance Wealth Infinia is a unit-linked non-participating individual life insurance savings plan. ABSLI Wealth Infinia Plan provides you risk coverage during the Policy Term and offers the flexibility to choose from 18 fund options and 5 investment strategies thereby giving you complete control over your savings.
| Legacy Variant | Milestone variant | |
| Minimum Entry Age | 30 days | |
| Minimum Maturity Age | 100 years | 18 years |
| Maximum Entry Age | 5 Pay: 45 years 6 Pay: 55 years 7 Pay: 60 years Other Premium Paying Term options: 65 years | 65 years |
| Maximum Maturity Age | 100 years | 85 years |
| Minimum Premium | Single Premium: ₹ 5,00,000 Limited Premium/ Regular Premium: ₹ 2,00,000 | |
| Maximum Premium | No Limit | |
| Minimum Sum Assured | Single Premium: ₹ 6,25,000 Limited Premium/ Regular Premium: ₹ 14,00,000 | |
| Maximum Sum Assured | No Limit | |
| Premium paying term | Single Pay Limited Pay: 5 to 20 years | Single Pay Limited Pay: 5 to 12 years Regular Pay: 10 to 30 years |
| Minimum policy term | 100 years minus entry age | 10 years |
| Maximum policy term | 100 years minus entry age | 30 years |
| Premium payment mode | Annual, Semi-Annual, Quarterly, Monthly, Single | |
For both the Variants
In case of Death of the Life Insured anytime during the ABSLI Wealth Infinia Plan Policy Term, the nominee will receive the higher of:
Upon survival of the Life Insured up to the end of the ABSLI Wealth Infinia Plan Policy Term, he will receive the Fund Value in a lump sum or as a structured payout using the Settlement Option.
Additionally, all the Premium Allocation charges and Mortality charges collected, excluding GST, over the entire ABSLI Wealth Infinia Plan Policy Term will be returned to You.
Loyalty Additions are benefits added in the form of additional units to the policy which shall be credited only if the Life Insured has paid all due premiums under the ABSLI Wealth Infinia Plan policy. Loyalty Addition will be calculated as a percentage of Fund Value.
Wealth Boosters will be calculated as a percentage of Fund Value and will be allocated as additional units to your Fund starting from the end of the 10th policy year and every 5 years thereafter provided all due premiums under the ABSLI Wealth Infinia Plan policy have been paid.
Under ABSLI Wealth Infinia, you can choose to invest your premiums in one of the five investment strategies.
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;
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.
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% | – | |
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.
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% |
A Premium Allocation Charge is levied on the Annualized Premium and it is as follows:
| % of the single / Annualized premium received | |||
| Policy Year | Single pay | Milestone variant | Legacy Variant |
| 1 | 4% | 6% | 6% |
| 2 to 3 | NIL | 5% | 5% |
| 4 to 10 | NIL | 4% | 5% |
| 11+ | NIL | NIL | NIL |
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
NIL
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 |
NIL
The charge on discontinuance or surrender of the ABSLI Wealth Infinia Plan policy will be based on the year of discontinuance/surrender, the premium amount and the fund value.
Inference from the charges: The charges mentioned above are additional costs to the investor. In general, other market-linked products do not impose substantial charges, which makes the ABSLI Wealth Infinia Plan unattractive.
You will be given a Grace Period of 30 days to make the payment of the due instalment premium(s).
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.
You can revive the ABSLI Wealth Infinia Plan policy within the revival period of three years.
You will have the right to return your ABSLI Wealth Infinia Plan Policy within 30 days from the date of receipt of the Policy, in case you disagree with the terms and conditions of your Policy.
You will have an option to surrender your ABSLI Wealth Infinia Plan policy any time during the lock-in period of five years from the date of inception of the policy.
Upon receipt of the request for surrender, your Fund Value, after deducting the applicable discontinuance /surrender charges, shall be credited to the Linked Discontinued Policy Fund which is payable at the end of the lock-in period.
Discontinuance after the first five policy years: You will have an option to surrender the ABSLI Wealth Infinia Plan policy at any time during the policy term. Upon receipt of the request for surrender, the Fund Value as on the date of surrender shall be paid to you
Surrendering during the first five policy years: you will have an 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 ABSLI Wealth Infinia Plan policy anytime and the Fund Value shall be payable upon receipt of such request of surrender.
After analysing the plan’s features, as an investor you need to evaluate the performance of the plan. Estimating the potential returns will allow us to compare the returns with other similar investments. Let us work out the Internal Rate of Return using the figures given in the policy brochure.
A 35-year-old male buys ABSLI Wealth Infinia Plan with a sum assured of ₹ 20 Lakhs. The policy term is 20 years and the premium paying term is 10 years. The premium amount is ₹ 2 Lakhs. He chooses the Mile-stone variant.
| Male | 35 years |
| Sum Assured | ₹ 20,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 2,00,000 |
On payment of the regular premium, he will get 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 | -2,00,000 | 20,00,000 | -2,00,000 | 20,00,000 |
| 36 | 2 | -2,00,000 | 20,00,000 | -2,00,000 | 20,00,000 |
| 37 | 3 | -2,00,000 | 20,00,000 | -2,00,000 | 20,00,000 |
| 38 | 4 | -2,00,000 | 20,00,000 | -2,00,000 | 20,00,000 |
| 39 | 5 | -2,00,000 | 20,00,000 | -2,00,000 | 20,00,000 |
| 40 | 6 | -2,00,000 | 20,00,000 | -2,00,000 | 20,00,000 |
| 41 | 7 | -2,00,000 | 20,00,000 | -2,00,000 | 20,00,000 |
| 42 | 8 | -2,00,000 | 20,00,000 | -2,00,000 | 20,00,000 |
| 43 | 9 | -2,00,000 | 20,00,000 | -2,00,000 | 20,00,000 |
| 44 | 10 | -2,00,000 | 20,00,000 | -2,00,000 | 20,00,000 |
| 45 | 11 | 0 | 20,00,000 | 0 | 20,00,000 |
| 46 | 12 | 0 | 20,00,000 | 0 | 20,00,000 |
| 47 | 13 | 0 | 20,00,000 | 0 | 20,00,000 |
| 48 | 14 | 0 | 20,00,000 | 0 | 20,00,000 |
| 49 | 15 | 0 | 20,00,000 | 0 | 20,00,000 |
| 50 | 16 | 0 | 20,00,000 | 0 | 20,00,000 |
| 51 | 17 | 0 | 20,00,000 | 0 | 20,00,000 |
| 52 | 18 | 0 | 20,00,000 | 0 | 20,00,000 |
| 53 | 19 | 0 | 20,00,000 | 0 | 20,00,000 |
| 54 | 20 | 0 | 20,00,000 | 0 | 20,00,000 |
| 55 | 30,88,332 | 20,00,000 | 55,82,791 | 20,00,000 | |
| IRR | 2.82% | 6.73% | |||
At a 4% return scenario, the fund value is ₹30.88 lakhs with an IRR of 2.82%, essentially providing no value addition. At an 8% return scenario, the fund value is ₹55.82 lakhs with an IRR of 6.73% as per the ABSLI Wealth Infinia Plan maturity calculator.
The returns of the ABSLI Wealth Infinia Plan are not on par with other market-linked investments. The risk is high but the returns are similar to debt instruments, making it unworthy of the risk taken. This risk-return aspect is lacking in the ABSLI Wealth Infinia Plan.
The ABSLI Wealth Infinia Plan does not effectively support long-term wealth accumulation. Additionally, the sum assured is too low.
To achieve comprehensive coverage and accumulate a substantial corpus, an alternative investment strategy, where insurance and investment are handled separately, should be considered. Using the previous example, we will compare the returns of this strategy.
A pure-term life insurance policy with a sum assured of ₹20 lakhs costs ₹16,600 p.a. The policy term is 20 years, with a premium paying term of 10 years.
Under the ABSLI Wealth Infinia Plan, this would cost ₹2 lakhs in premiums. By opting for a pure-term life insurance policy, you save ₹1,83,400 p.a., which can be invested for wealth accumulation.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 20,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 16,600 |
| Investment | ₹ 1,83,400 |
Investment vehicles should be selected prudently based on your risk profile. Here, we choose a market-related investment – an ELSS fund. These investments are eligible for tax deductions, though redemptions are subject to capital gains tax.
| Term insurance + ELSS | |||
| Age | Year | Term Insurance premium + ELSS | Death benefit |
| 35 | 1 | -2,00,000 | 20,00,000 |
| 36 | 2 | -2,00,000 | 20,00,000 |
| 37 | 3 | -2,00,000 | 20,00,000 |
| 38 | 4 | -2,00,000 | 20,00,000 |
| 39 | 5 | -2,00,000 | 20,00,000 |
| 40 | 6 | -2,00,000 | 20,00,000 |
| 41 | 7 | -2,00,000 | 20,00,000 |
| 42 | 8 | -2,00,000 | 20,00,000 |
| 43 | 9 | -2,00,000 | 20,00,000 |
| 44 | 10 | -2,00,000 | 20,00,000 |
| 45 | 11 | 0 | 20,00,000 |
| 46 | 12 | 0 | 20,00,000 |
| 47 | 13 | 0 | 20,00,000 |
| 48 | 14 | 0 | 20,00,000 |
| 49 | 15 | 0 | 20,00,000 |
| 50 | 16 | 0 | 20,00,000 |
| 51 | 17 | 0 | 20,00,000 |
| 52 | 18 | 0 | 20,00,000 |
| 53 | 19 | 0 | 20,00,000 |
| 54 | 20 | 0 | 20,00,000 |
| 55 | 1,00,40,935 | 20,00,000 | |
| IRR | 10.67% | ||
The pre-tax value of the ELSS fund is ₹1.11 crore. After accounting for capital gains tax, the maturity value is ₹1 crore. The IRR for the ELSS investment combined with a pure-term life insurance policy is 10.67% (post-tax return).
| ELSS Tax Calculation | |
| Maturity value after 20 years | 1,11,95,498 |
| Purchase price | 18,34,000 |
| Long-Term Capital Gains | 93,61,498 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 92,36,498 |
| Tax paid on LTCG | 11,54,562 |
| Maturity value after tax | 1,00,40,935 |
This accumulated corpus can help you comfortably achieve your life goals, as the returns are higher than the economic inflation rate.
This investment strategy is more effective because both the insurance and investment components operate at their best when not combined. The low risk-adjusted return and inadequate sum assured make the ABSLI Wealth Infinia Plan less suitable.
The ABSLI Wealth Infinia Plan fails to effectively serve both investment and insurance purposes. The return analysis shows it rarely helps in achieving the necessary corpus to meet life goals. High charges reduce your investment amount, adversely affecting returns.
The insurance coverage provided is inadequate, lacking proper backup for eventualities. A robust safety net is crucial in financial planning, which the ABSLI Wealth Infinia Plan does not offer.
Essentially, this plan falls short in every aspect, making it unworthy of the associated risk and also it has a high agent commission.
For effective life cover and wealth accumulation, it’s better to opt for a pure-term life insurance policy and build a diversified investment portfolio. This approach works well, as it avoids the complications of combining insurance and investment.
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Always assess any investment thoroughly before proceeding. Consult a Certified Financial Planner for assistance in building a resilient investment portfolio based on your risk appetite, time horizon, and life goals.
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