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Can the INL Secure Shield Plan truly provide the financial protection your family needs, or are its benefits more limited than they initially appear?
Does the INL Secure Shield Plan offer the right balance between affordable premiums and comprehensive life coverage, or are there better insurance alternatives available?
Is the INL Secure Shield Plan a smart choice for securing your family’s financial future, or could its features and limitations leave important protection gaps?
This article examines the plan’s key features, advantages, and drawbacks to help you assess its suitability and make informed financial planning decisions.
Table of Contents:
What is the INL Secure Shield Plan?
What are the features of the INL Secure Shield Plan?
Who is eligible for the INL Secure Shield Plan?
What are the benefits of the INL Secure Shield Plan?
Grace Period, Discontinuance and Revival of the INL Secure Shield Plan
Free Look Period for the INL Secure Shield Plan
Surrendering the INL Secure Shield Plan
What are the advantages of the INL Secure Shield Plan?
What are the disadvantages of the INL Secure Shield Plan?
Research Methodology of the INL Secure Shield Plan
Benefit Illustration – IRR Analysis of INL Secure Shield Plan
INL Secure Shield Plan Vs. Other Investments
INL Secure Shield Plan Vs. Pure-term + PPF/Equity Mutual Fund
Final Verdict on the INL Secure Shield Plan
What is the INL Secure Shield Plan?
INL Secure Shield Plan is a Non-Linked, Non-Participating, Individual Savings Life Insurance Plan. It is a protection solution designed to help secure your family against life’s uncertainties.
The plan offers financial security through life cover along with a terminal illness benefit, helping provide support when it is needed the most.
What are the features of the INL Secure Shield Plan?
- Life Cover: Provides life insurance coverage to offer long-term financial protection for your family.
- Flexible Payout Options: Allows the death benefit to be received as a lump sum or through monthly income.
- Terminal Illness Benefit: Provides financial support upon diagnosis of a terminal illness, subject to the policy terms and conditions.
- Flexible Premium Payment Terms: Offers the choice of paying premiums for a limited period or throughout the policy term.
- Return of Premium: Refunds the premiums paid at maturity if no claims have been made, subject to the policy terms and conditions.
- Tax Benefits: Offers tax benefits as per the applicable income tax laws.
Who is eligible for the INL Secure Shield Plan?
| Minimum Entry Age (in years) | 18 | |
| Maximum Entry Age (in years) | 60 | |
| Maximum Maturity Age (in years) | 85 | |
| Minimum Sum Assured | 5 Lakhs | |
| Maximum Sum Assured | 75 Lakhs | |
| Premium Payment Frequency | Yearly, Half-Yearly, Quarterly, Monthly | |
| Policy Term (in years) | 15 to 67 | |
| Premium Payment Term (in years) | Regular Pay | Limited Pay |
| 15 to 67 | 5,7,10, 15, 20 | |
What are the benefits of the INL Secure Shield Plan?
1. Death Benefit
In the event of death or diagnosis of Terminal Illness (whichever occurs first) of the Life Assured during the INL Secure Shield Plan Policy Term, provided the Policy is in force as on the date of death prior to diagnosis of Terminal Illness or on the date of diagnosis of Terminal Illness, 100% of the Insured Amount shall be payable depending on the payout option chosen.
Up to the age of 75 years, the benefit is payable only once, and the policy shall terminate on the earlier of claim payout or expiry of the respective Policy Term. On settlement of claim, the policy shall terminate in its entirety.
Post age of 75 years, on diagnosis of Terminal Illness, the lower of Insured Amount and INR Forty Lakhs will be paid and any outstanding Insured Amount in excess of INR Forty Lakhs, if any, will be paid on subsequent death of Life Assured, provided death occurs before the expiry of the Policy Term.
2. Maturity Benefit
Return of Premium (ROP): At the end of the policy term, provided the policy is in-force as on the date of maturity, an amount equal to the total premiums paid (excluding any extra premium and taxes, if any) during the INL Secure Shield Plan policy term shall be payable on survival of the Life Assured at the end of the policy term, provided no claim has been paid during the policy term
Grace Period, Discontinuance and Revival of the INL Secure Shield Plan
Grace Period
There is a Grace Period of 30 days (15 days for monthly mode) from the due date of the first unpaid premium.
Discontinuance
Lapse: The Policy shall lapse at the end of the Grace Period if the due Premium for the first policy year has not been paid in full and the Policy has not acquired a Surrender Value. The Policy status will be altered to Lapse and the Benefits, if any, will cease immediately. If a Lapsed Policy is not revived within the Revival Period, the INL Secure Shield Plan Policy will terminate on expiry of the Revival Period.
Reduced Paid-up Benefit: If the Policy has acquired a Surrender Value and no future Premiums are paid, the Policy may continue as a Reduced Paid-up Policy. If premium for one complete policy year has been paid, and the policyholder voluntarily opts to discontinue paying the premium, the policy shall be converted into a reduced Paid-up policy.
Revival
A INL Secure Shield Plan policy in lapsed or paid-up conditions may be revived by the policyholder during the revival period of 5 years by paying the arrears of premium along with interest at the prevailing rate of interest.
Free Look Period for the INL Secure Shield Plan
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 INL Secure Shield Plan Policy Terms or conditions, or otherwise and have not made any claim, you shall have the option to return the Policy to the Company for cancellation, stating the reasons for the same.
Surrendering the INL Secure Shield Plan
The Surrender Value payable during the INL Secure Shield Plan Policy Term is the higher of [Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV)].
The Policy shall acquire a Guaranteed Surrender Value if all due premiums have been paid in full for at least the first two consecutive Policy Years.
Special Surrender Value shall become payable after completion of first Policy Year provided one full year’s premium has been received.
What are the advantages of the INL Secure Shield Plan?
- Flexible Premium Payment Frequency: Choose to pay premiums yearly, half-yearly, quarterly, or monthly.
- Policy Loan Facility: Avail a loan of up to 60% of the applicable surrender value, subject to the policy terms and conditions.
- Flexible Death Benefit Payout: Receive the death benefit as a lump sum or in the form of income.
What are the disadvantages of the INL Secure Shield Plan?
- The plan does not offer any loyalty additions or bonuses.
- The premiums paid are returned at maturity without any additional returns or value appreciation.
- The sum assured may be inadequate to meet your family’s financial needs in the event of your untimely demise.
Research Methodology of the INL Secure Shield Plan
The INL Secure Shield Plan provides life cover during the INL Secure Shield Plan policy term and returns the premiums paid if the policyholder survives until maturity.
However, the plan offers no additional value through bonuses or investment returns. Let’s calculate the Internal Rate of Return (IRR) using the figures provided in the policy brochure to assess its financial effectiveness.
Benefit Illustration – IRR Analysis of INL Secure Shield Plan
For example, consider a 40-year-old male who purchases the INL Secure Shield Plan with a sum assured of ₹40 lakh, a policy term of 40 years, and a premium payment term of 10 years. The annual premium is ₹85,822.
| Male | 40 years |
| Sum Assured | ₹ 40,00,000 |
| Policy Term | 40 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 85,822 |
Over the 10-year premium payment period, he pays a total of ₹8,58,220.
At the end of 40 years, he receives the same amount as the maturity benefit, provided he survives the policy term.
Since there is no additional value generated on the premiums paid, the IRR is Zero as per the INL Secure Shield Plan maturity calculator.
| Age | Year | Annualised premium / Maturity benefit | Death benefit |
| 40 | 1 | -85,822 | 40,00,000 |
| 41 | 2 | -85,822 | 40,00,000 |
| 42 | 3 | -85,822 | 40,00,000 |
| 43 | 4 | -85,822 | 40,00,000 |
| 44 | 5 | -85,822 | 40,00,000 |
| 45 | 6 | -85,822 | 40,00,000 |
| 46 | 7 | -85,822 | 40,00,000 |
| 47 | 8 | -85,822 | 40,00,000 |
| 48 | 9 | -85,822 | 40,00,000 |
| 49 | 10 | -85,822 | 40,00,000 |
| 50 | 11 | 0 | 40,00,000 |
| 51 | 12 | 0 | 40,00,000 |
| 52 | 13 | 0 | 40,00,000 |
| 53 | 14 | 0 | 40,00,000 |
| 54 | 15 | 0 | 40,00,000 |
| 55 | 16 | 0 | 40,00,000 |
| 56 | 17 | 0 | 40,00,000 |
| 57 | 18 | 0 | 40,00,000 |
| 58 | 19 | 0 | 40,00,000 |
| 59 | 20 | 0 | 40,00,000 |
| 60 | 21 | 0 | 40,00,000 |
| 61 | 22 | 0 | 40,00,000 |
| 62 | 23 | 0 | 40,00,000 |
| 63 | 24 | 0 | 40,00,000 |
| 64 | 25 | 0 | 40,00,000 |
| 65 | 26 | 0 | 40,00,000 |
| 66 | 27 | 0 | 40,00,000 |
| 67 | 28 | 0 | 40,00,000 |
| 68 | 29 | 0 | 40,00,000 |
| 69 | 30 | 0 | 40,00,000 |
| 70 | 31 | 0 | 40,00,000 |
| 71 | 32 | 0 | 40,00,000 |
| 72 | 33 | 0 | 40,00,000 |
| 73 | 34 | 0 | 40,00,000 |
| 74 | 35 | 0 | 40,00,000 |
| 75 | 36 | 0 | 40,00,000 |
| 76 | 37 | 0 | 40,00,000 |
| 77 | 38 | 0 | 40,00,000 |
| 78 | 39 | 0 | 40,00,000 |
| 79 | 40 | 0 | 40,00,000 |
| 80 | 8,58,220 | ||
| IRR | 0.00% |
Essentially, the plan provides life cover for 40 years but merely returns the premiums paid at maturity without any additional benefit.
From a financial planning perspective, this is an inefficient use of money. A pure-term insurance policy would be a more cost-effective way to secure life cover, allowing you to invest the premium savings separately towards your financial goals.
With the INL Secure Shield Plan, you pay a higher premium for the promise of getting your money back, but you earn no returns on it.
INL Secure Shield Plan Vs. Other Investments
Comparing alternatives helps highlight the advantages and limitations of the INL Secure Shield Plan.
Under a pure-term life insurance policy, you pay premiums solely for life cover and receive no maturity benefit if you survive the INL Secure Shield Plan policy term. However, the premium is significantly lower than that of a return-of-premium policy.
INL Secure Shield Plan Vs. Pure-term + PPF/Equity Mutual Fund
For instance, a pure-term policy with a sum assured of ₹40 lakh costs ₹53,100 annually for a 30-year policy term.
By choosing this option, you save ₹32,722 per year, which you can invest separately based on your risk appetite and financial goals.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 40,00,000 |
| Policy Term | 30 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 53,100 |
| Investment | ₹ 32,722 |
Conservative investors may prefer debt instruments, while investors willing to take higher risks may consider equity-oriented investments.
In this illustration, let’s examine two alternatives: investing the surplus in a Public Provident Fund (PPF) and an Equity Mutual Fund.
| Term Insurance + PPF | Term insurance + Equity Mutual Fund | ||||
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 40 | 1 | -85,822 | 40,00,000 | -85,822 | 40,00,000 |
| 41 | 2 | -85,822 | 40,00,000 | -85,822 | 40,00,000 |
| 42 | 3 | -85,822 | 40,00,000 | -85,822 | 40,00,000 |
| 43 | 4 | -85,822 | 40,00,000 | -85,822 | 40,00,000 |
| 44 | 5 | -85,822 | 40,00,000 | -85,822 | 40,00,000 |
| 45 | 6 | -85,822 | 40,00,000 | -85,822 | 40,00,000 |
| 46 | 7 | -85,822 | 40,00,000 | -85,822 | 40,00,000 |
| 47 | 8 | -85,822 | 40,00,000 | -85,822 | 40,00,000 |
| 48 | 9 | -85,822 | 40,00,000 | -85,822 | 40,00,000 |
| 49 | 10 | -85,822 | 40,00,000 | -85,822 | 40,00,000 |
| 50 | 11 | 0 | 40,00,000 | 0 | 40,00,000 |
| 51 | 12 | 0 | 40,00,000 | 0 | 40,00,000 |
| 52 | 13 | 0 | 40,00,000 | 0 | 40,00,000 |
| 53 | 14 | 0 | 40,00,000 | 0 | 40,00,000 |
| 54 | 15 | 0 | 40,00,000 | 0 | 40,00,000 |
| 55 | 16 | 0 | 40,00,000 | 0 | 40,00,000 |
| 56 | 17 | 0 | 40,00,000 | 0 | 40,00,000 |
| 57 | 18 | 0 | 40,00,000 | 0 | 40,00,000 |
| 58 | 19 | 0 | 40,00,000 | 0 | 40,00,000 |
| 59 | 20 | 0 | 40,00,000 | 0 | 40,00,000 |
| 60 | 21 | 0 | 40,00,000 | 0 | 40,00,000 |
| 61 | 22 | 0 | 40,00,000 | 0 | 40,00,000 |
| 62 | 23 | 0 | 40,00,000 | 0 | 40,00,000 |
| 63 | 24 | 0 | 40,00,000 | 0 | 40,00,000 |
| 64 | 25 | 0 | 40,00,000 | 0 | 40,00,000 |
| 65 | 26 | 0 | 40,00,000 | 0 | 40,00,000 |
| 66 | 27 | 0 | 40,00,000 | 0 | 40,00,000 |
| 67 | 28 | 0 | 40,00,000 | 0 | 40,00,000 |
| 68 | 29 | 0 | 40,00,000 | 0 | 40,00,000 |
| 69 | 30 | 0 | 40,00,000 | 0 | 40,00,000 |
| 70 | 31 | 0 | 40,00,000 | 0 | 40,00,000 |
| 71 | 32 | 0 | 0 | ||
| 72 | 33 | 0 | 0 | ||
| 73 | 34 | 0 | 0 | ||
| 74 | 35 | 0 | 0 | ||
| 75 | 36 | 0 | 0 | ||
| 76 | 37 | 0 | 0 | ||
| 77 | 38 | 0 | 0 | ||
| 78 | 39 | 0 | 0 | ||
| 79 | 40 | 0 | 0 | ||
| 80 | 38,04,750 | 1,69,16,327 | |||
| IRR | 4.26% | 8.67% | |||
PPF Investment: The PPF investment grows to ₹38.04 lakh at maturity. The combined IRR of the pure-term insurance policy and PPF investment is 4.26%.
Although this return is below the assumed inflation rate, it builds a larger corpus than the INL Secure Shield Plan, which merely returns the premiums paid without any additional value.
Equity Mutual Fund Investment: Equity mutual funds offer greater growth potential over the long term, although returns are market-linked and not guaranteed. After accounting for capital gains tax at redemption, the maturity corpus is ₹1.69 crore.
The combined IRR of the pure-term insurance policy and equity mutual fund investment is 8.67% post-tax.
This return exceeds the assumed inflation rate, helping you build a substantial corpus over the 40-year period, subject to market performance and applicable taxation.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 40 years | 1,92,68,343 |
| Purchase price | 3,27,220 |
| Long-Term Capital Gains | 1,89,41,123 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 1,88,16,123 |
| Tax paid on LTCG | 23,52,015 |
| Maturity value after tax | 1,69,16,327 |
Although the returns in the PPF illustration may appear modest, both alternatives demonstrate how separating insurance and investment can be more effective than choosing a return-of-premium policy.
By opting for affordable life cover and investing the premium savings in instruments aligned with your financial goals, you can improve your wealth-creation potential.
The key takeaway is that a return-of-premium policy charges a higher premium without generating additional returns on the premiums refunded at maturity.
Choosing a pure-term policy and investing the surplus separately offers greater flexibility and the potential to build a larger corpus over the long term.
Final Verdict on the INL Secure Shield Plan
The INL Secure Shield Plan provides life cover and returns the premiums paid at maturity, a feature often highlighted as its key advantage. However, this benefit comes at a higher premium without generating any additional returns.
Moreover, the sum assured may be inadequate to meet your family’s financial needs and it also has a high agent commission.
The IRR analysis reveals that the plan generates no returns on the premiums paid, while the comparison demonstrates the benefits of choosing a pure-term insurance policy for life protection.
The additional premium paid for the INL Secure Shield Plan could instead be invested towards wealth creation.
For adequate life protection, a pure-term insurance policy is a more cost-effective choice, offering higher coverage at an affordable premium.
For wealth creation, consider building a diversified investment portfolio aligned with your financial goals, investment horizon, and risk profile.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
Consulting a Certified Financial Planner (CFP) can further help you integrate insurance and investments into a comprehensive, goal-based financial plan, ensuring that your choices are suited to your family’s needs and long-term financial objectives.
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