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