INL Guaranteed Earnings for Milestone Plan: Good or Bad? A Detailed Review

IIs the INL Guaranteed Earnings for Milestone Plan a reliable income solution?

Can the INL Guaranteed Earnings for Milestone Plan help you achieve your financial milestones?

What are the features, benefits, and drawbacks of the INL Guaranteed Earnings for Milestone Plan?

Should you invest in the INL Guaranteed Earnings for Milestone Plan for guaranteed income?

In this review, we take an in-depth look at the plan’s features and the different variants it offers. We also analyse its benefit illustration to evaluate whether the promised benefits translate into meaningful financial value.

Table of Contents

1. What is the INL Guaranteed Earnings for Milestone?

2. What are the Features of the INL Guaranteed Earnings for Milestone?

3. Who is Eligible for the INL Guaranteed Earnings for Milestone?

4. What are the Benefits of the INL Guaranteed Earnings for Milestone?

Death Benefit

Survival Benefit

Maturity Benefit

5. Grace Period, Discontinuance and Revival of the INL Guaranteed Earnings for Milestone

6. Free Look Period for the INL Guaranteed Earnings for Milestone

7. Surrendering the INL Guaranteed Earnings for Milestone

8. What are the Advantages of the INL Guaranteed Earnings for Milestone?

9. What are the Disadvantages of the INL Guaranteed Earnings for Milestone?

10. Research Methodology of INL Guaranteed Earnings for Milestones

Benefit Illustration – IRR Analysis of INL Guaranteed Earnings for Milestones

11. INL Guaranteed Earnings for Milestone Vs. Other Investments

INL Guaranteed Earnings for Milestone Vs. Pure-Term + Equity Mutual Fund

12. Final Verdict on INL Guaranteed Earnings for Milestone

1. What is the INL Guaranteed Earnings for Milestone?

INL Guaranteed Earnings for Milestone is a Non-Linked Non-Participating Individual Savings Life Insurance Plan.

It offers both financial protection and assured income stability.

This INL Guaranteed Earnings for Milestone plan helps you meet immediate needs such as your child’s education or lifestyle expenses, while also building a secure foundation for future milestones like retirement.

2. What are the features of the INL Guaranteed Earnings for Milestone?

• Provides life insurance coverage throughout the policy term to help protect your family’s financial future.
• Offers a Flexi Wallet facility, allowing you to withdraw your accumulated income benefits whenever required, subject to the INL Guaranteed Earnings for Milestone plan’s terms.
• Provides flexibility to choose a limited premium payment term of 5, 6, 7, 8, 10, 11, or 13 years.
• Rewards policyholders with Loyalty Income, equal to one Annualised Premium, payable during specified policy years based on the chosen premium payment term.
• Offers a choice between two variants: Income Option and Moneyback Option, enabling you to select the one that best suits your financial needs.
• Pays a lump sum maturity benefit at the end of the policy term.
• Eligible for tax benefits under the prevailing tax laws, subject to applicable conditions.

3. Who is eligible for the INL Guaranteed Earnings for Milestone?

Premium Payment Term (PPT) (in years)	Income Option: 7, 8, 10, 11 and 13 years
	Moneyback Option: 5, 6, 7, 8 and 10 years
Policy Term (PT) (in years)	Income Option: 30, 35 and 40 years
	Moneyback Option: 20 and 25 years
Minimum Age at Entry (in years)	30 days
Maximum Age at Entry (in years)	Income Option: 50 years
	Moneyback Option:
	PPT 5: 45 years
	PPT 6: 50 years
	PPT 7, 8 and 10: 55 years
Minimum Annualised Premium	₹ 1,00,000
Maximum Annualised Premium	No limit, subject to Board-approved Underwriting Policy
Premium Payment Frequency	Yearly

4. What are the benefits of the INL Guaranteed Earnings for Milestone?

Death Benefits

(For Both Options)

In the event of the death of the Life Assured during the INL Guaranteed Earnings for Milestone Policy Term, provided the Policy is in force, i.e. all due premiums have been paid, the following benefits shall be payable to the Claimant(s) as a lump sum, and the Policy shall terminate. Higher of the following:

• Sum Assured on Death
• 105% of Total Premiums Paid as on the date of Death of the Life Assured

Where, Sum Assured on Death is the higher of Sum Assured on Maturity or 11 times the Annualised Premium.

Survival Benefit

Income Option

Loyalty Income: The Policyholder will receive Loyalty Income, equal to 100% of annualised premium, within 7 working days from the date of realisation of Premium for corresponding Policy Year by the Company.

The Loyalty Income shall be payable starting from the Loyalty Income Start Year and continuing for the remaining Premium Payment Term.

Premium Payment Term	Loyalty Income start year	Loyalty Income paid for
7 years	6th Policy Year	2 Policy Years
8 years	7th Policy Year	2 Policy Years
10 years	8th Policy Year	3 Policy Years
11 years	9th Policy Year	3 Policy Years
13 years	11th Policy Year	3 Policy Years

Guaranteed Income: The Policyholder will receive Guaranteed Income starting from the Policy Year following completion of the Premium Payment Term and continuing till the Policy Term.

The Guaranteed Income is calculated as Guaranteed Income Rate multiplied by Annualised Premium.

Money Back Option

Loyalty Income: The Policyholder will receive Loyalty Income, equal to 100% of annualised premium, within 7 working days from the date of realisation of Premium for corresponding Policy Year by the Company.

The Loyalty Income shall be payable starting from the Loyalty Income Start Year and continuing for the remaining Premium Payment Term.

Premium Payment Term	Loyalty Income start year	Loyalty Income paid for
5 years	4th Policy Year	2 Policy Years
6 years	5th Policy Year	2 Policy Years
7 years	6th Policy Year	2 Policy Years
8 years	7th Policy Year	2 Policy Years
10 years	8th Policy Year	3 Policy Years

Moneyback: The Policyholder will receive Moneyback at the beginning of each Policy Year. Moneyback is equal to 100% of the Annualised Premium.

Policy Term	Moneyback Policy Year
20 years	15th and 20th Policy Year
25 years	15th, 20th and 25th Policy Year

Maturity Benefit

On survival of the Life Assured till the end of the Policy Term, provided the Policy is in force, and all due premiums have been paid, Sum Assured on Maturity shall be payable, plus outstanding balance, if any, in the Flexi Wallet and the Policy shall terminate.

Where the Sum Assured on Maturity is equal to Annualised Premium multiplied by Premium Payment Term multiplied by Maturity Benefit Factor.

Maturity Benefit Factor varies by the Premium Payment Term chosen at policy inception.

5. Grace Period, Discontinuance and Revival of the INL Guaranteed Earnings for Milestone

Grace Period

There is a grace period of 30 days from the due date of payment of premium for premium payment frequencies other than monthly.

Discontinuance

Lapse: If all due premiums have not been paid in full for at least the first policy year, your INL Guaranteed Earnings for Milestone policy will lapse at the end of the grace period, and the death benefit and rider benefit, if any, will cease immediately, and no benefits will be paid when the policy is in lapsed status.

Paid-up Benefits: If a policyholder discontinues the premium payment after paying the premium for at least the first policy year in full, they can continue the policy with reduced benefits as a paid-up (or reduced paid-up) policy.

Revival

A policy in Lapsed or Paid-up state can be revived within the revival period of five years from the due date of the first unpaid premium, but before the policy maturity date

6. Free Look Period for the INL Guaranteed Earnings for Milestone

You are provided with a Free Look Period of 30 days beginning from the date of receipt of the Policy Document, whether received electronically or otherwise, to review the terms and conditions stipulated in the Policy Document.

In the event You disagree with any of the Policy terms or conditions, or otherwise and have not made any claim, you shall have the option to return the INL Guaranteed Earnings for Milestone Policy.

7. Surrendering the INL Guaranteed Earnings for Milestone

The INL Guaranteed Earnings for Milestone Policy shall acquire a Surrender Value after completion of the first Policy Year provided one full year premium has been paid.

The Surrender Value payable during the Policy Term is the higher of [Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV)] as defined below, plus the outstanding balance in Flexi Wallet, if any.

8. What are the advantages of the INL Guaranteed Earnings for Milestone?

• Offers the flexibility to pay premiums through different payment frequencies, allowing you to choose the mode that best suits your financial planning.
• Provides a Flexi Wallet option, enabling you to accumulate survival benefits instead of receiving them as periodic payouts during the INL Guaranteed Earnings for Milestone policy term. The accumulated amount can be withdrawn as per the plan’s terms.
• Allows you to avail of a policy loan of up to 70% of the surrender value, subject to the insurer’s prevailing terms and conditions.
• Gives you the option to enhance your life insurance coverage by purchasing additional rider benefits.

9. What are the disadvantages of the INL Guaranteed Earnings for Milestone?

• The life insurance cover offered under the plan is relatively low and may not provide adequate financial protection for your family’s long-term needs.
• The regular survival benefit payouts can encourage spending rather than allowing the invested amount to remain invested and grow over time, potentially affecting long-term wealth creation.
• Since a portion of the benefits is paid out from the early policy years, the remaining corpus has less time to compound. This reduces the overall wealth accumulation potential and may result in lower long-term returns.

10. Research Methodology of INL Guaranteed Earnings for Milestones

The INL Guaranteed Earnings for Milestone Plan provides guaranteed income, which may appeal to individuals seeking a predictable cash flow.

However, while regular payouts can be attractive, they should not be the sole factor when evaluating an investment.

It is equally important to assess the plan’s return on investment.

To understand its actual earning potential, let us calculate the Internal Rate of Return (IRR) using the benefit illustration provided in the policy brochure.

Benefit Illustration – IRR Analysis of INL Guaranteed Earnings for Milestones

Consider a 35-year-old male who purchases the plan with a sum assured of ₹13.65 lakh.

He chooses a policy term of 40 years, a premium payment term of 13 years, and pays an annual premium of ₹1 lakh under the Income Option.

Male	35 years
Sum Assured	₹ 13,65,000
Policy Term	40 years
Premium Paying Term	13 years
Annualised Premium	₹ 1,00,000

Under this illustration, he receives a Loyalty Income of ₹1 lakh per year during the last three years of the premium payment term.

After completing the premium payments, he starts receiving an annual guaranteed income of ₹80,590, which continues until the end of the policy term.

Along with the final annual payout, he also receives a guaranteed maturity benefit of ₹13 lakh.

Age	Year	Annualised premium / Maturity benefit	Death benefit
35	1	-1,00,000	13,65,000
36	2	-1,00,000	13,65,000
37	3	-1,00,000	13,65,000
38	4	-1,00,000	13,65,000
39	5	-1,00,000	13,65,000
40	6	-1,00,000	13,65,000
41	7	-1,00,000	13,65,000
42	8	-1,00,000	13,65,000
43	9	-1,00,000	13,65,000
44	10	-1,00,000	13,65,000
45	11	-1,00,000	13,65,000
46	12	0	13,65,000
47	13	0	13,65,000
48	14	1,00,000	13,65,000
49	15	80,590	13,65,000
50	16	80,590	13,65,000
51	17	80,590	13,65,000
52	18	80,590	13,65,000
53	19	80,590	13,65,000
54	20	80,590	13,65,000
55	21	80,590	13,65,000
56	22	80,590	13,65,000
57	23	80,590	13,65,000
58	24	80,590	13,65,000
59	25	80,590	13,65,000
60	26	80,590	13,65,000
61	27	80,590	13,65,000
62	28	80,590	13,65,000
63	29	80,590	13,65,000
64	30	80,590	13,65,000
65	31	80,590	13,65,000
66	32	80,590	13,65,000
67	33	80,590	13,65,000
68	34	80,590	13,65,000
69	35	80,590	13,65,000
70	36	80,590	13,65,000
71	37	80,590	13,65,000
72	38	80,590	13,65,000
73	39	80,590	13,65,000
74	40	80,590	13,65,000
75		13,80,590
	IRR	4.95%

Based on these cash flows, the Internal Rate of Return (IRR) works out to 4.95% per annum as per the INL Guaranteed Earnings for Milestone Plan maturity calculator.

The regular income payouts begin relatively early, reducing the amount that remains invested and limiting the benefits of long-term compounding.

As a result, the overall return generated by the plan remains modest.

Although the plan offers guaranteed annual income, the relatively low return reduces its effectiveness as a long-term wealth creation vehicle, making it a less compelling investment option for investors seeking inflation-beating growth.

11. INL Guaranteed Earnings for Milestone Vs. Other Investments

Comparing a plan with alternative investment strategies provides a clearer perspective on its value and helps investors make informed decisions.

To understand the opportunity cost, let us compare the INL Guaranteed Earnings for Milestone Plan with a strategy that separates insurance from investment while using the same assumptions as the previous benefit illustration.

INL Guaranteed Earnings for Milestone Vs. Pure-Term + Equity Mutual Fund

Instead of purchasing the plan, consider buying a pure term life insurance policy with a sum assured of ₹14 lakh, a policy term of 35 years, and an annual premium of ₹21,200 payable for 10 years.

This leaves ₹78,800 available each year for investment.

Pure Term Life Insurance Policy
Sum Assured	₹ 14,00,000
Policy Term	35 years
Premium Paying Term	10 years
Annualised Premium	₹ 21,200
Investment	₹ 78,800

The surplus amount is invested in an equity mutual fund to build a long-term corpus. At the end of 13 years, the accumulated units are redeemed.

After accounting for capital gains tax, the post-tax corpus grows to approximately ₹21.78 lakh.

This amount is then invested in an instrument earning 7% per annum, from which an annual withdrawal of ₹80,590 is made—matching the guaranteed income offered under the plan.

At the end of the 40-year period, the remaining corpus is fully withdrawn, mirroring the plan’s maturity benefit.

		Term insurance + Equity Mutual Fund
Age	Year	Term Insurance premium + Equity Mutual Fund	Death benefit
35	1	-1,00,000	14,00,000
36	2	-1,00,000	14,00,000
37	3	-1,00,000	14,00,000
38	4	-1,00,000	14,00,000
39	5	-1,00,000	14,00,000
40	6	-1,00,000	14,00,000
41	7	-1,00,000	14,00,000
42	8	-1,00,000	14,00,000
43	9	-1,00,000	14,00,000
44	10	-1,00,000	14,00,000
45	11	-1,00,000	14,00,000
46	12	0	14,00,000
47	13	0	14,00,000
48	14	1,00,000	14,00,000
49	15	80,590	14,00,000
50	16	80,590	14,00,000
51	17	80,590	14,00,000
52	18	80,590	14,00,000
53	19	80,590	14,00,000
54	20	80,590	14,00,000
55	21	80,590	14,00,000
56	22	80,590	14,00,000
57	23	80,590	14,00,000
58	24	80,590	14,00,000
59	25	80,590	14,00,000
60	26	80,590	14,00,000
61	27	80,590	14,00,000
62	28	80,590	14,00,000
63	29	80,590	14,00,000
64	30	80,590	14,00,000
65	31	80,590	14,00,000
66	32	80,590	14,00,000
67	33	80,590	14,00,000
68	34	80,590	14,00,000
69	35	80,590	14,00,000
70	36	80,590	14,00,000
71	37	80,590
72	38	80,590
73	39	80,590
74	40	80,590
75		69,93,410
	IRR	7.48%

Based on these cash flows, the Internal Rate of Return (IRR) works out to 7.48% per annum, significantly higher than the return generated by the INL Guaranteed Earnings for Milestone Plan.

Moreover, if the corpus is allowed to remain invested instead of making annual withdrawals, the overall returns could be even higher due to the power of compounding.

Equity Mutual Fund Tax Calculation
Maturity value after 13 years	23,16,419
Purchase price	10,88,000
Long-Term Capital Gains	12,28,419
Exemption limit	1,25,000
Taxable LTCG	11,03,419
Tax paid on LTCG	1,37,927
Maturity value after tax	21,78,491

Another key advantage of this approach is flexibility. The accumulated corpus remains accessible, allowing investors to increase, decrease, postpone, or even skip withdrawals based on their financial needs.

In contrast, the INL Guaranteed Earnings for Milestone Plan offers limited flexibility, as the payout structure is largely predetermined by the policy terms.

12. Final Verdict on INL Guaranteed Earnings for Milestone

The INL Guaranteed Earnings for Milestone Plan is a traditional savings-cum-insurance plan that requires you to pay premiums for a limited period in exchange for guaranteed annual income or periodic money-back benefits, depending on the variant chosen.

While these guaranteed payouts may appeal to investors seeking predictable cash flows, they come at the cost of lower long-term wealth creation, as a portion of the investment is paid out before it has sufficient time to compound.

Our analysis indicates that the plan delivers a relatively modest return, offers limited flexibility, and provides a low life insurance cover.

Although the guaranteed payouts may suit investors with specific income requirements, these limitations make the plan less effective for achieving long-term financial goals and building inflation-beating wealth and it also has a high agent commission.

A more efficient strategy is to separate insurance from investment by purchasing an adequate pure term life insurance policy for financial protection and investing the remaining amount in goal-based investment products.

This approach has the potential to generate higher long-term returns while offering greater liquidity and flexibility to adapt your investments and withdrawals as your financial needs evolve.

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Since every investor’s financial situation and objectives are unique, consulting a Certified Financial Planner (CFP) can help you build a personalised financial plan that aligns your investments with your life goals, risk profile, and time horizon.