sud life century income
Does the SUD Life Century Income Plan truly guarantee a steady flow of income — or does it offer too little to beat inflation?
Is the SUD Life Century Income Plan a reliable way to secure lifetime cash flows — or just a conservative tool with modest payouts?
Is the SUD Life Century Income Plan flexible enough to adapt to changing financial needs — or is it rigidly designed for only a specific type of saver?
Let’s take a closer look at how the plan works and examine its features, benefits, and limitations.
What is the SUD Life Century Income Plan?
What are the features of the SUD Life Century Income Plan?
Who is eligible for the SUD Life Century Income Plan?
What are the benefits of the SUD Life Century Income Plan?
Grace Period, Discontinuance and Revival of the SUD Life Century Income Plan
Free Look Period for the SUD Life Century Income Plan
Surrendering the SUD Life Century Income Plan
What are the advantages of the SUD Life Century Income Plan?
What are the disadvantages of the SUD Life Century Income Plan?
Research Methodology of SUD Life Century Income
Benefit Illustration – IRR Analysis of SUD Life Century Income
SUD Life Century Income Vs. Other Investments
SUD Life Century Income Vs. Pure-term + Equity Mutual Fund
Final Verdict on SUD Life Century Income
SUD Life Century Income is a Non-Linked Non-Participating Individual Savings Life Insurance plan. It provides protection and a guaranteed income, along with a lump sum guaranteed maturity benefit to meet your future financial needs and goals.
This plan offers a range of income options that you can customise as per your needs.
| Parameters | Minimum | Maximum |
| Entry Age (Age last birthday) | 18 years | PPT 7 years: 50 years PPT 10 years: 55 years PPT 12 years: 60 years |
| Maturity Age | 33 Years | 85 Years |
| Annualised Premium | ₹ 50,000 | As per Board-approved Underwriting Policy |
| Sum Assured on Death | ₹ 5,00,000 | As per Board-approved Underwriting Policy |
| Policy Term (Years) | PPT 7 years: 15 & 20 years PPT 10 years: 20 & 25years PPT 12 years: 25 years | |
| Premium Payment Term (PPT) (Years) | 7/10/12 years | |
Plan Option: Immediate Income
In this plan option, Guaranteed Income (GI) will start from the end of the 1st policy year, which will be 10% of the annualised premium till the end of the SUD Life Century Income Plan policy term, provided the policy is in force.
In addition to Guaranteed Income (GI) payable every year, you are also eligible for Loyalty Income. Loyalty Income will start from the end of the 2nd policy year and will be paid till the end of the SUD Life Century Income Plan policy term.
Loyalty Income (% of Annualised Premium)
| PPT/Policy year | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 to PT |
| 7 | 0 | 3% | 6% | 9% | 12% | 15% | 18% | 18% | 18% | 18% | 18% | 18% | 18% |
| 10 | 0 | 3% | 6% | 9% | 12% | 15% | 18% | 21% | 24% | 27% | 27% | 27% | 27% |
| 12 | 0 | 3% | 6% | 9% | 12% | 15% | 18% | 21% | 24% | 27% | 30% | 33% | 33% |
In this plan option, Guaranteed Income (GI) from one year after the end of the Premium Payment Term (PPT), and it will be paid every year till the end of the policy term, provided the SUD Life Century Income Plan policy is in force.
Guaranteed Income as % of Annualised Premium
Plan Option: Twin Income
In this plan option, each Guaranteed Income would be 105% of the Annualised Premium.
| PPT – PT (Years) | 1st twin income (end of) | 2nd twin income (end of) | 3rd twin income (end of) | 4th twin income (end of) |
| 7 to 15 | 5th and 6th year | 10th and 11th year | ||
| 7 to 20 | 5th and 6th year | 10th and 11th year | 15th and 16th year | |
| 10 to 20 | 8th and 9th year | 13th and 14th year | 18th and 19th year | |
| 10 to 25 | 8th and 9th year | 13th and 14th year | 18th and 19th year | 23rd and 24th year |
| 12 to 25 | 10th and 11th year | 15th and 16th year | 20th and 21st year |
(For all three options)
On survival till the end of the SUD Life Century Income Plan policy term, the guaranteed maturity benefit will be paid, provided the policy is in force and the contract ceases immediately.
Guaranteed Maturity Benefit = Annualized Premium * GMB Factor * (1 + High Premium Benefit, if any)
(For all three options)
In case of the death of the Life assured during the SUD Life Century Income Plan policy term, provided the policy is in force, the death benefit will be paid out as a lump sum, and the policy will terminate.
Death Benefit is the highest of:
A Grace Period of 30 days in case of Quarterly/ Half-yearly or Yearly Premium Payment mode, and 15 days in case your Premium Payment mode is Monthly, to pay the due premium.
Lapse: If the due premiums for the first full policy year have not been paid within the grace period, then the SUD Life Century Income Plan policy will lapse. Life cover will cease, and no benefits shall become payable under the lapsed policy.
Reduced Paid Up: If all the due premiums have been paid for at least the first full policy year and subsequent premiums are not paid, then the Policy will acquire Reduced Paid-Up status.
You have an option to revive a lapsed policy and a Reduced Paid-Up policy within a period of 5 years from the due date of the first unpaid premium.
If you disagree with any of those terms or conditions in the SUD Life Century Income Plan policy, you have the option to return the policy to us within 30 days from the date of receipt of the policy document.
You can surrender your policy any time after completion of the first policy year during the Policy Term, provided it has acquired Surrender Value. Surrender Value payable would be the higher of “Guaranteed Surrender Value (GSV)” and “Special Surrender Value (SSV)”
Special Surrender Value will be acquired after the receipt of one full Policy Year’s premiums, whereas the Guaranteed Surrender Value will be acquired after the receipt of the first two consecutive full Policy Year premiums.
The SUD Life Century Income Plan promises regular income, which can begin as early as the end of the first policy year or after the premium payment term.
However, before committing, it is important to evaluate the actual returns. Let’s consider an example based on the benefit illustration provided in the policy brochure.
A 35-year-old male opts for the SUD Life Century Income Plan with a 20-year policy term and a 10-year premium-paying period, contributing an annual premium of ₹ 1 Lakh. The sum assured is ₹10,00,000. He chooses the Plan Option: Deferred Income.
| Male | 35 years |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 1,00,000 |
After completing 10 years of premium payments, the investor starts receiving annual survival benefits. At maturity, he receives the maturity benefit along with the final income payout.
| Age | Year | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -1,00,000 | 10,00,000 |
| 36 | 2 | -1,00,000 | 10,00,000 |
| 37 | 3 | -1,00,000 | 10,00,000 |
| 38 | 4 | -1,00,000 | 10,00,000 |
| 39 | 5 | -1,00,000 | 10,00,000 |
| 40 | 6 | -1,00,000 | 10,00,000 |
| 41 | 7 | -1,00,000 | 10,00,000 |
| 42 | 8 | -1,00,000 | 10,00,000 |
| 43 | 9 | -1,00,000 | 10,00,000 |
| 44 | 10 | -1,00,000 | 10,00,000 |
| 45 | 11 | 0 | 10,00,000 |
| 46 | 12 | 30,000 | 10,00,000 |
| 47 | 13 | 33,000 | 10,00,000 |
| 48 | 14 | 36,000 | 10,00,000 |
| 49 | 15 | 39,000 | 10,00,000 |
| 50 | 16 | 42,000 | 10,00,000 |
| 51 | 17 | 45,000 | 10,00,000 |
| 52 | 18 | 48,000 | 10,00,000 |
| 53 | 19 | 51,000 | 10,00,000 |
| 54 | 20 | 54,000 | 10,00,000 |
| 55 | 15,82,680 | ||
| IRR | 4.68% |
Survival Benefit: starts at ₹30,000 and increases annually
Maturity Value: ₹15.25 lakh
IRR (Internal Rate of Return): 4.68% as per the SUD Life Century Income Plan maturity calculator
Even after 20 years, the IRR is lower than bank fixed deposit rates.
In conclusion, while the plan offers structured income and maturity benefits, its low returns and limited life coverage make it less attractive as a long-term investment option.
The return analysis clearly shows that the SUD Life Century Income Plan delivers relatively low yields. The same premium can be better utilized to generate equivalent or even higher cash flows through more efficient strategies.
While this plan combines life insurance + investment, separating the two components can lead to significantly better outcomes. Let’s reallocate the same premium from the earlier example to see how.
A pure-term life insurance policy with a sum assured of ₹10 lakhs costs only ₹8,800 annually (20-year term, 10-year premium payment period). This leaves ₹91,200 per year available for investments.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 8,800 |
| Investment | ₹ 91,200 |
Low-risk investors can choose instruments like PPF. High-risk investors can opt for equity-based options such as Equity Mutual Funds. For this analysis, we’ll consider the Equity Mutual Fund route.
| Age | Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -1,00,000 | 10,00,000 |
| 36 | 2 | -1,00,000 | 10,00,000 |
| 37 | 3 | -1,00,000 | 10,00,000 |
| 38 | 4 | -1,00,000 | 10,00,000 |
| 39 | 5 | -1,00,000 | 10,00,000 |
| 40 | 6 | -1,00,000 | 10,00,000 |
| 41 | 7 | -1,00,000 | 10,00,000 |
| 42 | 8 | -1,00,000 | 10,00,000 |
| 43 | 9 | -1,00,000 | 10,00,000 |
| 44 | 10 | -1,00,000 | 10,00,000 |
| 45 | 11 | 0 | 10,00,000 |
| 46 | 12 | 30,000 | 10,00,000 |
| 47 | 13 | 33,000 | 10,00,000 |
| 48 | 14 | 36,000 | 10,00,000 |
| 49 | 15 | 39,000 | 10,00,000 |
| 50 | 16 | 42,000 | 10,00,000 |
| 51 | 17 | 45,000 | 10,00,000 |
| 52 | 18 | 48,000 | 10,00,000 |
| 53 | 19 | 51,000 | 10,00,000 |
| 54 | 20 | 54,000 | 10,00,000 |
| 55 | 28,19,287 | ||
| IRR | 7.97% |
The mutual fund investment grows to a pre-tax maturity value of ₹17.92 lakhs. After the capital gains tax, the post-tax value is ₹16.98 lakhs.
This is then shifted into an instrument offering 7% annual returns, from which withdrawals are made to mirror the payouts of the SUD Life Century Income Plan. At maturity, the balance is fully redeemed.
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 10 years | 17,92,498 |
| Purchase price | 9,12,000 |
| Long-Term Capital Gains | 8,80,498 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 7,55,498 |
| Tax paid on LTCG | 94,437 |
| Maturity value after tax | 16,98,061 |
The strategy generates an IRR of 7.97%, far higher than the 4.68% IRR of the SUD Life Century Income Plan. If annual withdrawals are avoided, the returns can be even higher, giving you greater flexibility to manage cash flows as per actual needs.
The SUD Life Century Income Plan falls short on both returns and flexibility when compared to a simple term plan + mutual fund strategy.
The SUD Life Century Income Plan offers three plan options, allowing you to choose one that matches your cash flow needs.
The income benefit can begin as early as the end of the first policy year or after the premium-paying term, with the maturity benefit paid alongside the final income payout.
However, regular withdrawals disrupt the compounding effect, reducing the plan’s overall returns. In addition, the sum assured is often inadequate to secure your family’s long-term financial needs and it also has a high agent commission.
With its limited life coverage and modest returns, the SUD Life Century Income plan is not ideal for individuals seeking a steady income.
A more effective strategy is to separate insurance and investments:
Relying on traditional life insurance plans for income is not advisable. Instead, focusing on goal-based investments ensures your evolving financial needs are met.
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For a customized financial plan, consulting a Certified Financial Planner (CFP) can help you identify the right products and strategies suited to your individual circumstances.
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