Pramerica Life Assured Wealth Plus Plan: Good or Bad? An Insightful Review
Have you mapped out how you’ll fund major life goals like your child’s education, buying a home, or retirement?
While these milestones often require years of planning, choosing the right financial product to support them can be equally important.
Some investors prioritize market-linked growth, while others prefer greater certainty through guaranteed benefits and insurance protection.
Pramerica Life Assured Wealth Plus is one such plan that combines life insurance coverage with a guaranteed lump-sum maturity benefit.
But does the promise of certainty come at a cost?
And how does it compare with alternative investment options available today?
In this review, we take a closer look at the plan’s features, benefits, drawbacks, and overall suitability to help you make an informed decision.
What is the Pramerica Life Assured Wealth Plus?
What are the features of the Pramerica Life Assured Wealth Plus?
Who is eligible for the Pramerica Life Assured Wealth Plus?
What are the benefits of the Pramerica Life Assured Wealth Plus?
Grace Period, Discontinuance and Revival of the Pramerica Life Assured Wealth Plus
Free Look Period for the Pramerica Life Assured Wealth Plus
Surrendering the Pramerica Life Assured Wealth Plus
What are the advantages of the Pramerica Life Assured Wealth Plus?
What are the disadvantages of the Pramerica Life Assured Wealth Plus?
Research Methodology of Pramerica Life Assured Wealth Plus
Benefit Illustration – IRR Analysis of Pramerica Life Assured Wealth Plus
Pramerica Life Assured Wealth Plus Vs. Other Investments
Pramerica Life Assured Wealth Plus Vs. Pure-term + PPF/Equity Mutual Fund
Final Verdict on Pramerica Life Assured Wealth Plus
Pramerica Life Assured Wealth Plus is a Non-Linked Non-Participating Individual Savings Life Insurance Plan.
It provides a guaranteed lump sum benefit at maturity along with a comprehensive life insurance cover.
| Parameter | Minimum | Maximum |
| Age at Entry | 91 days | PPT 5: 55 years PPT 7&10: 60 years |
| Maturity Age | 18 years | 75 years |
| Premium Payment Term (PPT) | 5, 7, 10 years | |
| Policy Term (PT) | Premium Payment Term (PPT) | Policy Term (PT) |
| 5 years | 10, 15, 20 years | |
| 7 years | 15, 20 years | |
| 10 years | 15, 20 years | |
| Instalment Premium | Annual | ₹ 12,000 |
| Semi-annual | ₹ 6,120 | |
| Quarterly | ₹ 3,120 | |
| Monthly | ₹ 1,032 | |
| Sum Assured | ₹ 1,32,000 | No Limit, subject to Board-approved Underwriting Policy |
On survival of the Life Insured till the end of the policy term, while the policy is in force and all due premiums have been paid, you shall receive Sum Assured on Maturity in Lumpsum which is equal to the Guaranteed Maturity Benefit.
Guaranteed Maturity Benefit is defined as % of the total annualised premiums payable by the policyholder.
In the unfortunate event of the death of the Life Insured during the Policy Term while the policy is in force on the date of death, the beneficiary shall receive the death benefit, which shall be the highest of:
Grace Period
If you are unable to pay your premium by the due date, you will be given a grace period of 15 days for the monthly mode and 30 days for all other premium payment modes.
Discontinuance
The Policy will acquire Surrender Value after paying the premium for the first complete policy year & will become payable after completion of the first policy year.
If premiums are discontinued before the Policy has acquired a Surrender Value, i.e. before paying a premium for the first complete Policy year, the Policy shall lapse at the end of the grace period, the Death Benefit will cease immediately, and no benefits will be paid when the Policy is in lapsed status.
Revival
You can revive your lapsed/Paid-up policy for its full coverage within five years from the due date of the first unpaid premium but before policy maturity, by paying all outstanding premiums together with the interest, as applicable.
You will have a period of 30 days from the date of receipt of the Policy Document to review the terms and conditions of the Policy, and if you disagree with any of these terms and conditions, you have the option to return the Policy, stating the reasons for objection.
The policy will acquire Surrender value after paying the premium for the first complete policy year & will become payable after the completion of the first policy year.
Thereafter, if you decide not to pay further Premiums, you would have the option to either surrender the Policy or let the Policy continue with reduced benefits.
If you choose to discontinue your policy, you will be entitled to receive Surrender Value, which will be the higher of the Guaranteed Surrender Value (GSV), if applicable or the Special Surrender Value (SSV) of the Policy.
Multiple Premium Payment Modes: For added convenience, premiums can be paid annually, semi-annually, quarterly, or monthly, allowing you to choose a frequency that best matches your cash flow.
Special Benefit for Female Lives: The plan offers a female life rebate, where the premium rate applicable to a female policyholder is based on the premium rate of a male who is three years younger, resulting in lower premiums.
Policy Loan Facility: To meet unforeseen financial needs, you can avail a loan against the policy at any time, subject to a maximum of 75% of the policy’s surrender value and the insurer’s prevailing terms and conditions.
Limited Flexibility: The policy offers only predefined policy terms and premium payment options, leaving little room for customisation based on changing financial needs.
Modest Return Potential: While the maturity benefit is guaranteed, the overall returns are generally on the lower side compared to market-linked investment alternatives, which may impact long-term wealth creation.
Restricted Liquidity and Cash Flow: The plan follows a structured premium payment and benefit payout mechanism, limiting access to funds during the policy term and reducing financial flexibility.
To evaluate the Pramerica Life Assured Wealth Plus Plan, it is important to analyse the returns generated by the policy and determine whether it is capable of meeting long-term financial goals.
The Internal Rate of Return (IRR) calculation helps in making informed decisions.
Based on the illustration provided in the policy brochure, consider a 26-year-old male who invests ₹2,00,000 per year under the plan, opting for a 10-year Premium Payment Term and a 20-year Policy Term. The policy provides a sum assured of ₹22 lakhs.
| Male | 26 years |
| Sum Assured | ₹ 22,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 2,00,000 |
At the end of the 20-year policy term, the policyholder receives a Guaranteed Lump Sum Maturity Benefit of ₹45.65 lakh.
This works out to an Internal Rate of Return (IRR) of approximately 5.39% per annum.
| Age | Year | Annualised premium / Maturity benefit | Death benefit |
| 26 | 1 | -2,00,000 | 22,00,000 |
| 27 | 2 | -2,00,000 | 22,00,000 |
| 28 | 3 | -2,00,000 | 22,00,000 |
| 29 | 4 | -2,00,000 | 22,00,000 |
| 30 | 5 | -2,00,000 | 22,00,000 |
| 31 | 6 | -2,00,000 | 22,00,000 |
| 32 | 7 | -2,00,000 | 22,00,000 |
| 33 | 8 | -2,00,000 | 22,00,000 |
| 34 | 9 | -2,00,000 | 22,00,000 |
| 35 | 10 | -2,00,000 | 22,00,000 |
| 36 | 11 | 0 | 22,00,000 |
| 37 | 12 | 0 | 22,00,000 |
| 38 | 13 | 0 | 22,00,000 |
| 39 | 14 | 0 | 22,00,000 |
| 40 | 15 | 0 | 22,00,000 |
| 41 | 16 | 0 | 22,00,000 |
| 42 | 17 | 0 | 22,00,000 |
| 43 | 18 | 0 | 22,00,000 |
| 44 | 19 | 0 | 22,00,000 |
| 45 | 20 | 0 | 22,00,000 |
| 46 | 45,65,200 | ||
| IRR | 5.39% |
An IRR of 5.39% over a 20-year investment horizon is relatively low, as long-term investments should ideally generate inflation-beating returns to help investors accumulate an adequate corpus for their future goals.
At this rate of growth, the maturity proceeds may struggle to keep pace with the rising cost of education, home ownership, retirement, and other major financial objectives.
Further, the life insurance cover of ₹22 lakhs is unlikely to be sufficient for most families, especially when considering future expenses, income replacement needs, and outstanding liabilities.
Overall, the Pramerica Life Assured Wealth Plus Plan falls short on both key fronts—wealth creation and adequate life protection.
While the plan offers guaranteed benefits and certainty of returns, the low return potential and insufficient insurance coverage make it a less effective solution for achieving long-term financial goals and securing the family’s financial future.
The Pramerica Life Assured Wealth Plus Plan delivers returns that are even lower than many traditional debt instruments.
For long-term goals such as retirement, a child’s education, or wealth creation, investors generally require higher-returning investments that can comfortably outpace inflation.
Moreover, the life insurance coverage offered under the plan may not be adequate to meet the financial needs of a family.
A more effective approach is to separate insurance from investment.
Let us evaluate this strategy using the same assumptions from the earlier example.
A pure-term life insurance policy providing a sum assured of ₹22 lakh costs approximately ₹7,600 per year for a 20-year policy term with a 10-year premium payment term.
By choosing a term plan instead of the Pramerica Life Assured Wealth Plus Plan, the investor can free up ₹1,92,400 annually for investments aligned with their financial goals and risk profile.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 22,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 7,600 |
| Investment | ₹ 1,92,400 |
The choice of investment should depend on an individual’s risk appetite.
Investors willing to take higher risk may consider equity-oriented options such as Equity mutual funds, while conservative investors may prefer safer avenues like PPF.
| Term Insurance + PPF | Term insurance + Equity Mutual Fund | ||||
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 26 | 1 | -2,00,000 | 22,00,000 | -2,00,000 | 22,00,000 |
| 27 | 2 | -2,00,000 | 22,00,000 | -2,00,000 | 22,00,000 |
| 28 | 3 | -2,00,000 | 22,00,000 | -2,00,000 | 22,00,000 |
| 29 | 4 | -2,00,000 | 22,00,000 | -2,00,000 | 22,00,000 |
| 30 | 5 | -2,00,000 | 22,00,000 | -2,00,000 | 22,00,000 |
| 31 | 6 | -2,00,000 | 22,00,000 | -2,00,000 | 22,00,000 |
| 32 | 7 | -2,00,000 | 22,00,000 | -2,00,000 | 22,00,000 |
| 33 | 8 | -2,00,000 | 22,00,000 | -2,00,000 | 22,00,000 |
| 34 | 9 | -2,00,000 | 22,00,000 | -2,00,000 | 22,00,000 |
| 35 | 10 | -1,97,500 | 22,00,000 | -2,00,000 | 22,00,000 |
| 36 | 11 | -500 | 22,00,000 | 0 | 22,00,000 |
| 37 | 12 | -500 | 22,00,000 | 0 | 22,00,000 |
| 38 | 13 | -500 | 22,00,000 | 0 | 22,00,000 |
| 39 | 14 | -500 | 22,00,000 | 0 | 22,00,000 |
| 40 | 15 | -500 | 22,00,000 | 0 | 22,00,000 |
| 41 | 16 | 0 | 22,00,000 | 0 | 22,00,000 |
| 42 | 17 | 0 | 22,00,000 | 0 | 22,00,000 |
| 43 | 18 | 0 | 22,00,000 | 0 | 22,00,000 |
| 44 | 19 | 0 | 22,00,000 | 0 | 22,00,000 |
| 45 | 20 | 0 | 22,00,000 | 0 | 22,00,000 |
| 46 | 56,78,890 | 1,05,32,908 | |||
| IRR | 6.84% | 10.99% | |||
PPF Scenario
Assuming the available surplus is invested in PPF, with contributions structured in line with PPF regulations, the investment grows to approximately ₹56.78 lakh at maturity.
This translates into an IRR of around 6.84%, which is meaningfully higher than the return generated by the Pramerica Life Assured Wealth Plus Plan.
Equity Mutual Fund Scenario
If the same surplus is invested in an Equity mutual fund, the maturity corpus can grow to approximately ₹1.17 crore before tax.
After accounting for long-term capital gains tax at redemption, the post-tax corpus works out to around ₹1.05 crore, generating a post-tax IRR of approximately 10.99%.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 20 years | 1,17,44,895 |
| Purchase price | 19,24,000 |
| Long-Term Capital Gains | 98,20,895 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 96,95,895 |
| Tax paid on LTCG | 12,11,987 |
| Maturity value after tax | 1,05,32,908 |
Both alternatives generate substantially higher maturity values than the Pramerica Life Assured Wealth Plus Plan and offer a better chance of beating inflation, thereby improving the likelihood of achieving long-term financial goals.
The primary reason for this significant difference is the power of compounding.
When insurance and investment are separated, a larger portion of the money remains invested and continues to compound over long periods.
In bundled insurance-cum-investment products, a portion of the premium is diverted towards insurance costs and policy expenses, limiting the compounding potential and ultimately reducing wealth creation.
The Pramerica Life Assured Wealth Plus Plan offers certainty through its guaranteed maturity benefits.
However, the guaranteed pay-out is relatively modest and may not be sufficient to meet long-term financial goals after accounting for inflation.
The returns generated by the plan are lower than those available from several traditional debt-oriented investment avenues, reducing its effectiveness as a wealth-creation tool.
Furthermore, the life insurance coverage offered under the plan is unlikely to provide adequate financial protection for most families.
From a return perspective, the plan delivers an IRR that lags behind many conventional debt instruments.
As a result, it does not stand out as a compelling investment option.
At the same time, the insurance component is limited, making it less effective as a protection solution.
In essence, the plan attempts to combine insurance and investment but does not meaningfully excel at either objective.
Life insurance is a crucial pillar of financial planning, but it is generally more effective when purchased separately through a Pure-Term Life Insurance policy.
A term plan can provide substantially higher life cover at a fraction of the cost, ensuring better financial security for dependents.
Similarly, long-term financial goals are best addressed through a well-structured and diversified investment portfolio tailored to an individual’s risk appetite, time horizon, and objectives.
Such an approach provides greater flexibility, transparency, and the potential to generate inflation-beating returns.
Selecting the right mix of insurance and investment products is a key element of sound financial planning.
If you require assistance in evaluating financial products and building a goal-oriented investment strategy, consulting a Certified Financial Planner (CFP) can help you make informed decisions and create a more resilient financial future.
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