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Can the INL Wealth Next Plan truly help you build long-term wealth while protecting your family’s financial future, or do its charges and conditions limit its potential?
Does the INL Wealth Next Plan offer the right balance between market-linked investment growth and life insurance protection, or are there better alternatives available?
Is the INL Wealth Next Plan genuinely a smart wealth-building solution, or would separating life insurance and investments offer greater flexibility and value?
Let us examine its features, benefits, and drawbacks to understand whether it is a suitable choice for your financial journey.
Table of Contents:
What are the features of the INL Wealth Next?
Who is eligible for the INL Wealth Next?
What are the benefits of the INL Wealth Next?
What are the investment strategies and fund options of the INL Wealth Next?
What are the charges of the INL Wealth Next?
Free Look Period for the INL Wealth Next
Surrendering the INL Wealth Next
What are the advantages of the INL Wealth Next?
What are the disadvantages of the INL Wealth Next?
Research Methodology of INL Wealth Next
Benefit Illustration – IRR Analysis of INL Wealth Next
INL Wealth Next Vs. Other Investments
INL Wealth Next Vs. Pure-term + Equity Mutual Fund
Final Verdict on INL Wealth Next
What is the INL Wealth Next?
INL Wealth Next is a Unit-Linked, Non-Participating, Individual Life Insurance Savings Plan.
By requiring only a one-time premium payment, the plan eliminates the need for future premium obligations while providing customers with continued market-linked growth potential along with life insurance protection.
What are the features of the INL Wealth Next?
- Single Premium Payment: A one-time premium payment eliminates the need for any future premium commitments.
- Affordable Entry Point: Start with a minimum investment of ₹35,000 to access market-linked investment opportunities along with life insurance cover.
- Low-Cost ULIP: No premium allocation charges apply to online purchases, employees of the company and its promoters’ group companies, and existing customers of the company.
- Loyalty Additions: Receive loyalty additions at the end of applicable policy years as a reward for remaining invested throughout the policy term.
- Partial Withdrawal Facility: Access your accumulated fund value to meet emergency financial requirements through partial withdrawals after completing five policy years.
- Life Insurance Protection: Choose an insurance cover based on your protection needs to provide financial security to your family.
Who is eligible for the INL Wealth Next?
| Parameters | Minimum |
Maximum |
|
Age at Entry (years) |
18 years (last birthday) | 65 years (last birthday) |
| Policy Term (years) |
5, 7, 10, 15, 20 |
|
|
Age at Maturity (years) |
23 years (last birthday) | 85 years (last birthday) |
| Premium Payment Term (years) |
One-time payment (Single Pay) |
|
|
Premium (Rs.) |
₹ 35,000 | As per BAUP |
| Sum Assured |
1.1x – Age >= 50 |
|
What are the benefits of the INL Wealth Next?
1. Maturity Benefit
On survival of the Life Assured till the end of the Policy Term, provided the INL Wealth Next Plan Policy is in force, the Maturity Benefit will be payable.
The Maturity Benefit payable shall be the Total Fund Value, which is the Base Fund Value valued at the applicable NAV on the date of maturity. The Total Fund Value payable as Maturity Benefit is inclusive of Loyalty Additions, if any.
Loyalty Additions
The Loyalty Addition as a percentage of Single Premium will be allocated to the unit funds or Segregated Funds, in proportion to the value of units in each fund, at the end of the applicable Policy Year. No Loyalty Addition will be given for Policy Term 5.
2. Death Benefit
In case of death of the life insured during the INL Wealth Next Plan policy term and while the Policy is in-force, the nominee will get the higher of the following:
- The Sum Assured net of all ‘Deductible Partial Withdrawals’, if any, or
- The Base Fund Value of this policy
What are the investment strategies and fund options of the INL Wealth Next?
IndusInd Nippon Life Wealth Next offers you a total of nine Fund options as described in the table below at commencement of the policy.
Where the Policy is surrendered during the Lock-in Period, the applicable Fund Value is transferred to the Discontinued Policy Fund. The details of the various investment funds are given in the table below:
|
S.no |
Fund Name | Risk Profile | Asset Allocation | ||
| Debt Securities | Money Market Instruments |
Equities and equity-related instruments |
|||
|
1 |
Life Large Cap Equity Fund | High | 0-10% | 0-40% | 60-100% |
| 2 | Life Equity Fund | High | 0 | 0-25% |
75-100% |
|
3 |
Life Pure Equity Fund | High | 0 | 0-40% | 60-100% |
| 4 | Make in India Fund | High | 0-20% | 0-20% |
60-100% |
|
5 |
Life Balanced Fund | Low to Moderate | 60-100% | 0-25% | 0-40% |
| 6 | Life Corporate Bond Fund | Low to Moderate | 75-100% | 0-25% |
0 |
|
7 |
Life Midcap Fund | High | 0-100% | 0 | 0-100% |
| 8 | Life Viksit Bharat Multifactor 50 Index Fund | High | 0-35% | 0 |
65-100% |
|
9 |
Life Bharat Value 50 Index Fund | High | 0-35% | 0 |
65-100% |
What are the charges of the INL Wealth Next?
A. Premium Allocation Charges
Before allocation of units, when the premium is received, the allocation charge is levied as a percentage of the single premium.
The Allocation charge will be 1% of the Single Premium
B. Policy Administration Charges
Under this product, 1.25% of the single premium, subject to a maximum of ₹6000, will be deducted per annum as Policy Administration Charge for the first five policy years.
C. Mortality Charges
The Mortality Charges will vary depending on the amount of life insurance cover, attained age, occupation, health of the Life Assured and the Fund Value.
The Mortality charges for ₹1000 Sum at risk per annum are as follows:
|
Age last birthday |
Mortality Charge | Age last birthday | Mortality Charge |
| 30 | 0.9159 | 45 |
2.4178 |
|
35 |
1.1269 | 50 | 4.1588 |
| 40 | 1.575 | 55 |
7.0434 |
D. Fund Management Charges (FMC)
|
Fund Name |
Annual Rate |
|
Life Large Cap Equity Fund |
1.35% |
| Life Equity Fund 3 |
1.35% |
|
Life Pure Equity Fund 2 |
1.35% |
| Make in India Fund |
1.35% |
|
Life Midcap Fund 2 |
1.35% |
| Life Viksit Bharat Multifactor 50 Index Fund |
1.35% |
|
Life Bharat Value 50 Index Fund |
1.35% |
| Life Balanced Fund 1 |
1.25% |
|
Life Corporate Bond Fund 1 |
1.25% |
| Discontinued Policy Fund (SFIN: ULIF05703/09/10DISCPOLF01121) |
0.50% |
E. Partial Withdrawal Charges
Two partial withdrawals in a policy year are free. On every subsequent Partial Withdrawal Charge, a Partial Withdrawal Charge of ₹100 will be deducted from the withdrawn fund.
Any unutilized partial withdrawal cannot be carried forward to another year.
F. Discontinuance Charges
It depends on the year of discontinuance and the premium amount. There is no discontinuance charge from the 5th policy year.
G. Switching Charges
There are 52 free switches during any policy year. Subsequent switches if any will have a fixed charge of ₹100 per switch.
This charge can be revised in future, subject to IRDAI approval, but will not exceed ₹500 per switch.
Inference from the Charges: The policy levies various charges at regular intervals throughout the INL Wealth Next Plan policy term. These recurring deductions gradually reduce the fund value, potentially impacting the overall investment corpus and long-term returns.
Free Look Period for the INL Wealth Next
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 Wealth Next 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 to the company for cancellation, stating the reasons for the same.
Surrendering the INL Wealth Next
Surrender of the Policy during the lock-in period: The surrender value, i.e. the Fund Value less applicable discontinuance charges as on the date of discontinuance, shall be credited to the ‘Discontinued Policy Fund’ as maintained by the Company. The ‘Proceeds of the Discontinued Policy Fund’ shall be paid to the policyholder only after completion of the lock-in period. No risk cover shall be available on such policy during the lock-in period.
Surrender of the Policy after the Lock-in Period: In case of surrender of the policy after the Lock-in Period, the total Fund Value as on the date of complete withdrawal shall be paid to the policyholder and, on such payment, the policy shall terminate.
What are the advantages of the INL Wealth Next?
- Hassle-Free Investment: A single-premium payment structure eliminates the need for recurring premium commitments.
- Flexible Maturity Payout: Choose to receive the maturity benefit either as a lump sum or in structured instalments through the Settlement Option.
- Partial Withdrawal Facility: Withdraw from the Base Fund Value after completing five policy anniversaries, provided the Life Assured has attained 18 years of age.
- Fund Switching Flexibility: Switch between the nine available fund options during the policy term to adjust your investment allocation based on your preferences.
What are the disadvantages of the INL Wealth Next?
- No Loan Facility: The policy does not provide a loan facility against the accumulated fund value.
- Limited Liquidity: Access to the invested funds is restricted during the first five policy years, limiting financial flexibility in case of emergencies.
- Inadequate Life Cover: The sum assured may be insufficient to meet a family’s essential financial protection needs.
- No Premium Payment Flexibility: The plan offers only a single-premium payment option, leaving no scope to choose a payment frequency or structure that better suits individual financial convenience.
Research Methodology of INL Wealth Next
A single-premium investment may offer convenience by eliminating recurring payment commitments. However, the actual returns generated determine whether the product is worth considering.
In this section, we analyse the Internal Rate of Return (IRR) of the INL Wealth Next Plan and compare its performance with alternative investment options.
Benefit Illustration – IRR Analysis of INL Wealth Next
Consider a 35-year-old male investing a single premium of ₹5,00,000 in the INL Wealth Next Plan for a policy term of 10 years.
The sum assured is ₹6.25 lakh, equivalent to 1.25 times the single premium.
|
Male |
35 years |
| Sum Assured |
₹ 6,25,000 |
|
Policy Term |
10 years |
| Premium Paying Term |
Single Pay |
|
Annualised Premium |
₹ 5,00,000 |
The maturity benefit is determined by the accumulated fund value, which depends on market performance. The illustrated returns of 4% and 8% are assumed rates of return for illustration purposes only.
They are neither guaranteed nor indicative of the minimum or maximum returns the policy may generate.
|
|
At 4% p.a. |
At 8% p.a. |
|||
|
Age |
Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -5,00,000 | 6,25,000 | -5,00,000 |
6,25,000 |
|
36 |
2 | 0 | 6,25,000 | 0 | 6,25,000 |
| 37 | 3 | 0 | 6,25,000 | 0 |
6,25,000 |
|
38 |
4 | 0 | 6,25,000 | 0 | 6,25,000 |
| 39 | 5 | 0 | 6,25,000 | 0 |
6,25,000 |
|
40 |
6 | 0 | 6,25,000 | 0 | 6,25,000 |
| 41 | 7 | 0 | 6,25,000 | 0 |
6,25,000 |
|
42 |
8 | 0 | 6,25,000 | 0 | 6,25,000 |
| 43 | 9 | 0 | 6,25,000 | 0 |
6,25,000 |
|
44 |
10 | 0 | 6,25,000 | 0 | 6,25,000 |
| 45 | 6,51,650 |
9,39,478 |
|||
| IRR | 2.68% | 6.51% | |||
IRR Analysis:
At 4% assumed returns: The maturity fund value works out to ₹6.51 lakh, translating into an IRR of just 2.68% as per the INL Wealth Next Plan maturity calculator. This indicates limited wealth creation, with returns falling well below the rate of inflation.
At 8% assumed returns: The maturity fund value increases to ₹9.39 lakh, generating an IRR of 6.51% as per the INL Wealth Next Plan maturity calculator. Even under this relatively optimistic assumption, the returns remain modest compared with the potential offered by several conventional debt investment options.
The IRR analysis highlights the limited return potential of the INL Wealth Next Plan.
Despite being a market-linked product, its ability to generate meaningful inflation-adjusted returns appears questionable.
For investors looking to deploy a lump sum, alternative investment avenues may offer better return potential, greater flexibility and more efficient wealth accumulation.
INL Wealth Next Vs. Other Investments
The IRR analysis highlights that the returns generated by the INL Wealth Next Plan are not commensurate with the market-related risks involved.
To understand this better, let us compare the plan with an alternative investment strategy using the same assumptions as those considered in the benefit illustration.
INL Wealth Next Vs. Pure-term + Equity Mutual Fund
A pure-term life insurance policy offering a cover of ₹6.50 lakh for a 10-year term can be purchased with an estimated single premium of ₹19,500. This leaves approximately ₹4.80 lakh available for investment.
Depending on the investor’s risk appetite and investment horizon, this surplus can be deployed across suitable asset classes.
For this comparison, we have considered an equity mutual fund.
|
Pure Term Life Insurance Policy |
|
|
Sum Assured |
₹ 6,50,000 |
| Policy Term |
10 years |
|
Premium Paying Term |
Single Pay |
|
Annualised Premium |
₹ 19,500 |
| Investment |
₹ 4,80,500 |
Under this alternative strategy, the investment grows to ₹14.92 lakh before tax. After accounting for applicable capital gains tax, the post-tax maturity value stands at ₹13.81 lakh.
The combined approach of pure-term insurance and equity mutual fund investment generates an IRR of 10.70%.
|
Term insurance + Equity Mutual Fund |
|||
|
Age |
Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -5,00,000 |
6,50,000 |
|
36 |
2 | 0 | 6,50,000 |
| 37 | 3 | 0 |
6,50,000 |
|
38 |
4 | 0 | 6,50,000 |
| 39 | 5 | 0 |
6,50,000 |
|
40 |
6 | 0 | 6,50,000 |
| 41 | 7 | 0 |
6,50,000 |
|
42 |
8 | 0 | 6,50,000 |
| 43 | 9 | 0 |
6,50,000 |
|
44 |
10 | 0 | 6,50,000 |
| 45 |
13,81,503 |
||
|
IRR |
10.70% |
||
|
Equity Mutual Fund Tax Calculation |
|
|
Maturity value after 10 years |
14,92,360 |
| Purchase price |
4,80,500 |
|
Long-Term Capital Gains |
10,11,860 |
| Exemption limit |
1,25,000 |
|
Taxable LTCG |
8,86,860 |
| Tax paid on LTCG |
1,10,858 |
|
Maturity value after tax |
13,81,503 |
The comparison reinforces the importance of keeping insurance and investments separate.
While the INL Wealth Next Plan offers limited return potential and restricts liquidity during the initial five policy years, combining pure-term insurance with an equity mutual fund provides significantly better wealth-creation potential and greater investment flexibility.
Final Verdict on INL Wealth Next
The INL Wealth Next Plan offers the convenience of a single-premium investment by combining life insurance coverage with market-linked investment opportunities.
However, the various charges associated with the policy eat into the investment returns, limiting its ability to build a meaningful corpus for achieving long-term financial goals.
The life insurance component is equally disappointing, as the sum assured is inadequate to meet a family’s essential financial protection needs and it also has a high agent commission.
Overall, the plan falls short on both insurance and investment fronts. Considering its limited return potential, inadequate life cover and liquidity restrictions, the INL Wealth Next Plan is best avoided.
Investing in market-linked products involves risk, and investors should evaluate their risk appetite and investment horizon before committing their money.
Diversifying investments across different asset classes can help manage portfolio risk. For life insurance protection, a pure-term insurance policy remains a more suitable choice.
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