INL Guaranteed Money Back Plus Plan
Can the INL Guaranteed Money Back Plus Plan truly provide the financial security and guaranteed returns it promises, or is it just another traditional savings insurance plan?
Does the INL Guaranteed Money Back Plus Plan offer the right balance between guaranteed payouts and long-term wealth creation, or are there better alternatives available?
Is the INL Guaranteed Money Back Plus Plan a smart choice for conservative investors, or do its guaranteed benefits come at the cost of lower returns?
This article provides a comprehensive analysis of the plan’s features, benefits, and limitations. A detailed illustration is also included to help you understand how the plan works and determine whether it aligns with your long-term financial objectives.
What is the INL Guaranteed Money Back Plus?
What are the features of the INL Guaranteed Money Back Plus?
Who is eligible for the INL Guaranteed Money Back Plus?
What are the benefits of the INL Guaranteed Money Back Plus?
Grace Period, Discontinuance and Revival of the INL Guaranteed Money Back Plus
Free Look Period for INL Guaranteed Money Back Plus
Surrendering the INL Guaranteed Money Back Plus
What are the advantages of the INL Guaranteed Money Back Plus?
What are the disadvantages of the INL Guaranteed Money Back Plus?
Research Methodology of INL Guaranteed Money Back Plus
Benefit Illustration – IRR Analysis of INL Guaranteed Money Back Plus
INL Guaranteed Money Back Plus Vs. Other Investments
INL Guaranteed Money Back Plus Vs. Pure-term + Equity Mutual Fund
Final Verdict on the INL Guaranteed Money Back Plus
INL Guaranteed Money Back Plus is a Non-Linked, Non-Participating, Individual Savings Life Insurance Plan.
The plan provides increasing annual payouts that help you grow your savings, along with a lump-sum benefit at maturity. These benefits are totally guaranteed under the plan.
| Parameters | Minimum | Maximum |
| Entry Age (years) | 18 | 55 |
| Maturity Age (years) | 33 | 75 |
| Annualised Premium (Rs.) | Rs. 24,000 | No limit (Subject to Board-approved Underwriting Policy) |
| Premium Payment Term and Policy Term (years) | Premium Payment Term | Policy Term |
| 5, 7, 8 and 10 | 15 to 25 | |
| 12 | 17 to 25 | |
| 15 | 20 to 25 | |
| Premium payment frequency | Yearly, Half-yearly, Quarterly and Monthly | |
In case of the unfortunate death of the life assured during the INL Guaranteed Money Back Plus Plan 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) immediately on death of the life assured: Higher of:
Where, Sum Assured on Death is the higher of 10 times the Annualised Premium and Base Sum Assured.
Money Back Benefit as a percentage of Base Sum Assured, as mentioned below, will be payable on survival of the life assured at the end of the last four policy years immediately prior to the last policy year, provided the INL Guaranteed Money Back Plus Plan policy is in force, i.e. all due premiums have been paid under the policy.
| Policy Year | Money Back Benefit (% of Base Sum Assured) |
| Policy Term – 4 | 10% |
| Policy Term – 3 | 15% |
| Policy Term – 2 | 20% |
| Policy Term – 1 | 25% |
On survival of the life assured till the end of the INL Guaranteed Money Back Plus Plan policy term, provided the policy is in force, i.e. all due premiums have been paid, the following benefits will be payable:
Where Sum Assured on Maturity is equal to 50% of the Base Sum Assured. The INL Guaranteed Money Back Plus Plan policy shall terminate on payment of Maturity Benefit in full.
Guaranteed Loyalty Addition (GLA) will accrue at the end of every policy year during the policy term, provided all due premiums have been paid under the policy.
GLA is expressed as a percentage of the Base Sum Assured and would increase by a simple rate of 2% every four (4) policy years during the INL Guaranteed Money Back Plus Plan policy term
Grace period
If you are unable to pay your premium by the due date, you will be given a grace period of 30 days (15 days for monthly frequency).
Premium discontinuance
Lapse: The policy shall lapse at the end of the grace period if the due premium has not been paid for the first policy year in full and the policy has not acquired a surrender value.
The policy status will be altered to lapse, and the death benefit and rider benefit, if any, will cease immediately. No benefit shall be paid when the INL Guaranteed Money Back Plus Plan policy is in lapsed status.
Reduced Paid-up: If the policy has acquired a surrender value and no future premiums are paid, the policy may continue as a Reduced Paid-up Policy. For a Reduced Paid-up Policy, the benefits under the policy will be reduced proportionately.
Revival
A policy in lapsed or paid-up status 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 INL Guaranteed Money Back Plus Plan 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 policy.
The 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 INL Guaranteed Money Back Plus Plan policy term is the higher of Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV).
The policy shall acquire a Guaranteed Surrender Value if all due premiums have been paid for at least the first two consecutive policy years in full.
Special Surrender Value shall become payable after completion of the first policy year provided one full year premium has been received.
An investment should be evaluated not only based on its cash flow but also on the returns it generates. While the INL Guaranteed Money Back Plus provides guaranteed payouts, the key factor for any long-term investment decision is the effective rate of return.
The following Internal Rate of Return (IRR) analysis is based on the benefit illustration provided in the INL Guaranteed Money Back Plus Plan policy brochure.
For illustration, consider a 30-year-old male who purchases the INL Guaranteed Money Back Plus with a policy term of 21 years and a premium payment term of 10 years.
He pays an annual premium of ₹1,00,000, resulting in a base sum assured of ₹7,64,175.
| Male | 30 years |
| Sum Assured | ₹ 7,64,175 |
| Policy Term | 21 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 1,00,000 |
After completing the premium payments, he begins receiving Money Back Benefits from the end of the 17th policy year.
These payouts increase each year, and on maturity, he receives the Sum Assured on Maturity along with the accrued Guaranteed Loyalty Addition as the final payout.
| Age | Year | Annualised premium / Maturity benefit | Death benefit |
| 30 | 1 | -1,00,000 | 10,00,000 |
| 31 | 2 | -1,00,000 | 10,00,000 |
| 32 | 3 | -1,00,000 | 10,00,000 |
| 33 | 4 | -1,00,000 | 10,00,000 |
| 34 | 5 | -1,00,000 | 10,00,000 |
| 35 | 6 | -1,00,000 | 10,00,000 |
| 36 | 7 | -1,00,000 | 10,00,000 |
| 37 | 8 | -1,00,000 | 10,00,000 |
| 38 | 9 | -1,00,000 | 10,00,000 |
| 39 | 10 | -1,00,000 | 10,00,000 |
| 40 | 11 | 0 | 10,00,000 |
| 41 | 12 | 0 | 10,00,000 |
| 42 | 13 | 0 | 10,00,000 |
| 43 | 14 | 0 | 10,00,000 |
| 44 | 15 | 0 | 10,00,000 |
| 45 | 16 | 0 | 10,00,000 |
| 46 | 17 | 0 | 10,00,000 |
| 47 | 18 | 76,418 | 10,00,000 |
| 48 | 19 | 1,14,626 | 10,00,000 |
| 49 | 20 | 1,52,835 | 10,00,000 |
| 50 | 21 | 1,91,044 | 10,00,000 |
| 51 | 13,90,799 | ||
| IRR | 4.17% |
Based on these cash flows, the Internal Rate of Return (IRR) works out to 4.17% per annum as per the INL Guaranteed Money Back Plus Plan maturity calculator.
Although the plan offers guaranteed benefits, the effective return is lower than the long-term inflation rate, which may limit its ability to preserve purchasing power over time.
In addition, the life insurance cover provided under the plan is relatively modest and may not be sufficient to meet the family’s long-term financial needs.
Overall, the plan delivers certainty of benefits but falls short in terms of wealth creation potential and adequate insurance protection.
Comparing the returns of the INL Guaranteed Money Back Plus with those of alternative investment strategies provides useful context for evaluating its overall effectiveness.
While the plan offers guaranteed periodic payouts, it is important to assess whether these benefits are sufficient to achieve long-term financial goals.
For a meaningful comparison, the same assumptions used in the previous illustration have been applied.
To replicate the two key features of the plan—life insurance protection and periodic payouts—a separate investment strategy is considered.
Instead of combining insurance and investment in a single product, a pure term life insurance policy with a sum assured of ₹10 lakhs is purchased. For a 30-year-old male, a 21-year policy with a 10-year premium payment term costs approximately ₹6,000 per year.
Compared with the annual premium of ₹1,00,000 under the INL Guaranteed Money Back Plus, this leaves approximately ₹94,000 available each year for investment.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 7,64,175 |
| Policy Term | 21 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 6,000 |
| Investment | ₹ 94,000 |
During the first 10 years, after paying the term insurance premium, the remaining amount is invested in an equity mutual fund.
At the end of the 16th year, the accumulated corpus is redeemed. To reduce market risk while generating regular cash flows, the post-tax proceeds are then transferred to an investment earning 7% per annum for the remaining five years.
| Term insurance + Equity Mutual Fund | |||
| Age | Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 30 | 1 | -1,00,000 | 10,00,000 |
| 31 | 2 | -1,00,000 | 10,00,000 |
| 32 | 3 | -1,00,000 | 10,00,000 |
| 33 | 4 | -1,00,000 | 10,00,000 |
| 34 | 5 | -1,00,000 | 10,00,000 |
| 35 | 6 | -1,00,000 | 10,00,000 |
| 36 | 7 | -1,00,000 | 10,00,000 |
| 37 | 8 | -1,00,000 | 10,00,000 |
| 38 | 9 | -1,00,000 | 10,00,000 |
| 39 | 10 | -1,00,000 | 10,00,000 |
| 40 | 11 | 0 | 10,00,000 |
| 41 | 12 | 0 | 10,00,000 |
| 42 | 13 | 0 | 10,00,000 |
| 43 | 14 | 0 | 10,00,000 |
| 44 | 15 | 0 | 10,00,000 |
| 45 | 16 | 0 | 10,00,000 |
| 46 | 17 | 0 | 10,00,000 |
| 47 | 18 | 76,418 | 10,00,000 |
| 48 | 19 | 1,14,626 | 10,00,000 |
| 49 | 20 | 1,52,835 | 10,00,000 |
| 50 | 21 | 1,91,044 | 10,00,000 |
| 51 | 40,42,074 | ||
|
| IRR | 9.60% | |
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 16 years | 36,46,698 |
| Purchase price | 9,40,000 |
| Long-Term Capital Gains | 27,06,698 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 25,81,698 |
| Tax paid on LTCG | 3,22,712 |
| Maturity value after tax | 33,23,986 |
Based on these assumptions, the equity mutual fund accumulates to approximately ₹36.46 lakhs by the end of the 16th year. After accounting for capital gains tax, the post-tax value is approximately ₹33.23 lakhs.
This corpus is invested in the 7% instrument, from which annual withdrawals are made to broadly match the Money Back Benefits provided under the INL Guaranteed Money Back Plus.
The remaining balance is withdrawn in the final year to replicate the plan’s maturity benefit.
The Internal Rate of Return (IRR) of this alternative strategy is approximately 9.60% per annum, which is substantially higher than the 4.17% IRR generated by the INL Guaranteed Money Back Plus in the earlier illustration.
A higher long-term return improves the likelihood of building a larger investment corpus and maintaining purchasing power after inflation.
While the INL Guaranteed Money Back Plus offers the certainty of guaranteed benefits, the alternative approach demonstrates that separating insurance from investments can potentially provide significantly higher long-term returns, greater wealth accumulation, and increased financial flexibility.
Investors should evaluate whether the certainty of guaranteed payouts justifies the lower return potential, particularly when the objective is long-term wealth creation or achieving major financial goals.
The INL Guaranteed Money Back Plus is a traditional money-back insurance plan that provides increasing guaranteed payouts over a specified period while also offering life insurance coverage throughout the policy term.
The plan is designed for individuals seeking predictable cash flows after a limited premium payment period.
However, the life insurance cover provided under the plan is relatively modest and may not be sufficient to meet a family’s long-term financial protection needs and it also has a high agent commission.
Although the payouts are guaranteed, their timing and amount are fixed in advance and may not always align with the policyholder’s actual financial requirements.
The return analysis also indicates that the plan generates relatively low long-term returns, which may limit its effectiveness in achieving inflation-adjusted financial goals.
For investors whose primary objective is long-term wealth creation and goal-based investing, combining insurance and investment in a single product may not be the most efficient approach.
A strategy that separates life insurance from investments can potentially provide adequate financial protection, greater investment flexibility, and superior long-term return potential.
Consider purchasing a pure term life insurance policy to meet your protection needs and investing separately in suitable financial instruments based on your risk appetite, investment horizon, and financial goals.
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