sud life century royale plan
Can the SUD Life Century Royale Plan help you secure wealth and protection for your family’s future?
Can the SUD Life Century Royale Plan provide you the peace of mind for a financially secure future?
Is the SUD Life Century Royale Plan the perfect choice for your future financial stability?
In this review, we will explore the features, advantages, disadvantages, and potential returns of the SUD Life Century Royale plan. By calculating the Internal Rate of Return (IRR) and comparing it with other investment options, this analysis will provide a clear understanding of how this plan stacks up.
What is the SUD Life Century Royale Plan?
What are the features of the SUD Life Century Royale Plan?
Who is eligible for the SUD Life Century Royale Plan?
What are the benefits of the SUD Life Century Royale Plan?
2. Guaranteed Maturity Benefit
Grace Period, Lapse & Reduced paid-up and Revival of SUD Life Century Royale Plan
Free Look period for SUD Life Century Royale Plan
Surrendering SUD Life Century Royale Plan
What are the advantages of the SUD Life Century Royale Plan?
What are the disadvantages of the SUD Life Century Royale Plan?
Research Methodology of SUD Life Century Royale Plan
Benefit Illustration – IRR Analysis of SUD Life Century Royale Plan
SUD Life Century Royale Plan Vs. Other Investment
SUD Life Century Royale Plan Vs. Pure-term + ELSS
Final Verdict on the SUD Life Century Royale Plan
SUD Life Century Royale is a Non-Linked Non-Participating Individual Savings Plan. SUD Life Century Royale Plan provides Guaranteed Life Cover throughout the policy term, along with Guaranteed Income during the policy term in addition to the Guaranteed Maturity Benefit at the end of the policy term.
| Parameters | 7 pay | 12 pay |
| Minimum Entry Age | 18 years | 18 years |
| Maximum Entry Age | 55 years | 50 years |
| Maximum Maturity Age | 95 years | |
| Premium paying term | 7 pay | 12 pay |
| Policy Term | 25, 30, 35, 40 years | 30, 35, 40, 45 years |
| Minimum Annualised Premium | ₹ 1 Lakh | ₹ 60,000 |
| Maximum Annualised Premium | As per Board approval | |
In case of death of the life assured, during the SUD Life Century Royale Plan policy term, the Sum Assured on Death will be paid in lumpsum immediately to the nominee.
Sum Assured on Death is the Highest of
On survival of the Life Assured till the end of the SUD Life Century Royale Plan Policy Term, Guaranteed Maturity Benefit shall be payable depending on the premium payment term.
Guaranteed Income (GI): On survival of the Life Assured, the Guaranteed Income (GI) as a percentage of the Guaranteed Maturity Benefit depending on the Age at the entry of the Life Assured, Premium Payment Term and Policy Term will be paid during the pay-out period till the end of the SUD Life Century Royale Plan policy term.
A grace period of fifteen days, where the policyholder pays the premium on a monthly basis and 30 days in cases of Yearly mode will be allowed.
If you have not paid the due premiums for the first full policy year within the grace period, the policy lapses. Life cover ceases and no benefits will be paid under the lapsed policy till the policy is revived.
If the premiums due under the SUD Life Century Royale Plan policy have been paid for at least the first full policy year and subsequent premiums are not paid, then the policy will not lapse, it will acquire Reduced Paid-Up status and will continue with reduced benefits
You can revive your Lapsed/Reduced Paid-up policy within five years from the due date of the first unpaid premium.
If you disagree with any of those terms or conditions in the policy, you have the option to return the SUD Life Century Royale Plan policy within 30 days from the date of the receipt of the policy document.
The SUD Life Century Royale Plan Policy will acquire Special Surrender Value provided one full Policy Year premiums are received. The policy will acquire Guaranteed Surrender Value provided the first two consecutive full Policy Year premiums are received.
The SUD Life Century Royale Plan is a limited premium policy that provides life coverage, survival benefits, and maturity benefits. While it offers regular cash flow, it’s important to assess the returns to determine its effectiveness.
To do this, we calculate the Internal Rate of Return (IRR) based on the figures provided in the SUD Life Century Royale Plan policy brochure, allowing for a comparison with other investment options.
Consider a 40-year-old male who selects the SUD Life Century Royale Plan with a sum assured of ₹10 lakhs. The policy term is 40 years, with a premium payment period of 7 years, paying an annual premium of ₹1 lakh.
| Male | 40 years |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 40 years |
| Premium Paying Term | 7 years |
| Annualised Premium | ₹ 1,00,000 |
Starting from the end of the 10th policy year, he receives an annual survival benefit of ₹44,260. Along with the final payout, he also receives a survival benefit of ₹8 lakhs. The calculated IRR for this cash flow is 4.61% as per the SUD Life Century Royale Plan maturity calculator.
| Age | Year | Annualised premium / Maturity benefit | Death benefit |
| 40 | 1 | -1,00,000 | 10,00,000 |
| 41 | 2 | -1,00,000 | 10,00,000 |
| 42 | 3 | -1,00,000 | 10,00,000 |
| 43 | 4 | -1,00,000 | 10,00,000 |
| 44 | 5 | -1,00,000 | 10,00,000 |
| 45 | 6 | -1,00,000 | 10,00,000 |
| 46 | 7 | -1,00,000 | 10,00,000 |
| 47 | 8 | 0 | 10,00,000 |
| 48 | 9 | 0 | 10,00,000 |
| 49 | 10 | 0 | 10,00,000 |
| 50 | 11 | 44,260 | 10,00,000 |
| 51 | 12 | 44,260 | 10,00,000 |
| 52 | 13 | 44,260 | 10,00,000 |
| 53 | 14 | 44,260 | 10,00,000 |
| 54 | 15 | 44,260 | 10,00,000 |
| 55 | 16 | 44,260 | 10,00,000 |
| 56 | 17 | 44,260 | 10,00,000 |
| 57 | 18 | 44,260 | 10,00,000 |
| 58 | 19 | 44,260 | 10,00,000 |
| 59 | 20 | 44,260 | 10,00,000 |
| 60 | 21 | 44,260 | 10,00,000 |
| 61 | 22 | 44,260 | 10,00,000 |
| 62 | 23 | 44,260 | 10,00,000 |
| 63 | 24 | 44,260 | 10,00,000 |
| 64 | 25 | 44,260 | 10,00,000 |
| 65 | 26 | 44,260 | 10,00,000 |
| 66 | 27 | 44,260 | 10,00,000 |
| 67 | 28 | 44,260 | 10,00,000 |
| 68 | 29 | 44,260 | 10,00,000 |
| 69 | 30 | 44,260 | 10,00,000 |
| 70 | 31 | 44,260 | 10,00,000 |
| 71 | 32 | 44,260 | 10,00,000 |
| 72 | 33 | 44,260 | 10,00,000 |
| 73 | 34 | 44,260 | 10,00,000 |
| 74 | 35 | 44,260 | 10,00,000 |
| 75 | 36 | 44,260 | 10,00,000 |
| 76 | 37 | 44,260 | 10,00,000 |
| 77 | 38 | 44,260 | 10,00,000 |
| 78 | 39 | 44,260 | 10,00,000 |
| 79 | 40 | 44,260 | 10,00,000 |
| 80 | 8,44,260 | 10,00,000 | |
| IRR | 4.61% |
Despite the guaranteed payouts, the return rate is lower than that of debt instruments. Additionally, the staggered payout structure often fails to align with real financial needs.
With poor returns, a rigid cash flow pattern, and an insufficient sum assured, the SUD Life Century Royale Plan proves to be an inefficient combination of insurance and investment.
The SUD Life Century Royale Plan offers limited benefits, with its rigid payout structure being a significant drawback. Combining insurance and investment in this plan results in lower returns.
By redirecting the same annual premium of ₹1 lakh into separate insurance and investment products, we can better compare the returns.
For life insurance, a pure-term policy with a sum assured of ₹10 lakhs comes with a premium of ₹30,800. The policy term is 30 years, with a 5-year premium payment term. Although the previous example used a 40-year policy term, pure-term policies typically cover only working years.
Similarly, the earlier scenario had a 7-year premium term, whereas this option reduces it to 5 years. During the first 5 years, the remaining amount after paying for insurance premiums is invested, and in the final 2 years, the full ₹1 lakh is available for investment.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 30 years |
| Premium Paying Term | 5 years |
| Annualised Premium | ₹ 30,800 |
| Investment | ₹ 69,200 |
Choosing the right investment is critical. High-risk investors may opt for equity-based instruments, while low-risk investors can choose debt options. In this case, we selected an Equity Linked Savings Scheme (ELSS) as the investment vehicle.
| Age | Year | Term Insurance premium + ELSS | Death benefit |
| 40 | 1 | -1,00,000 | 10,00,000 |
| 41 | 2 | -1,00,000 | 10,00,000 |
| 42 | 3 | -1,00,000 | 10,00,000 |
| 43 | 4 | -1,00,000 | 10,00,000 |
| 44 | 5 | -1,00,000 | 10,00,000 |
| 45 | 6 | -1,00,000 | 10,00,000 |
| 46 | 7 | -1,00,000 | 10,00,000 |
| 47 | 8 | 0 | 10,00,000 |
| 48 | 9 | 0 | 10,00,000 |
| 49 | 10 | 0 | 10,00,000 |
| 50 | 11 | 44,260 | 10,00,000 |
| 51 | 12 | 44,260 | 10,00,000 |
| 52 | 13 | 44,260 | 10,00,000 |
| 53 | 14 | 44,260 | 10,00,000 |
| 54 | 15 | 44,260 | 10,00,000 |
| 55 | 16 | 44,260 | 10,00,000 |
| 56 | 17 | 44,260 | 10,00,000 |
| 57 | 18 | 44,260 | 10,00,000 |
| 58 | 19 | 44,260 | 10,00,000 |
| 59 | 20 | 44,260 | 10,00,000 |
| 60 | 21 | 44,260 | 10,00,000 |
| 61 | 22 | 44,260 | 10,00,000 |
| 62 | 23 | 44,260 | 10,00,000 |
| 63 | 24 | 44,260 | 10,00,000 |
| 64 | 25 | 44,260 | 10,00,000 |
| 65 | 26 | 44,260 | 10,00,000 |
| 66 | 27 | 44,260 | 10,00,000 |
| 67 | 28 | 44,260 | 10,00,000 |
| 68 | 29 | 44,260 | 10,00,000 |
| 69 | 30 | 44,260 | 10,00,000 |
| 70 | 31 | 44,260 | 10,00,000 |
| 71 | 32 | 44,260 | 10,00,000 |
| 72 | 33 | 44,260 | 10,00,000 |
| 73 | 34 | 44,260 | 10,00,000 |
| 74 | 35 | 44,260 | 10,00,000 |
| 75 | 36 | 44,260 | 10,00,000 |
| 76 | 37 | 44,260 | 10,00,000 |
| 77 | 38 | 44,260 | 10,00,000 |
| 78 | 39 | 44,260 | 10,00,000 |
| 79 | 40 | 44,260 | 10,00,000 |
| 80 | 41,66,593 | 10,00,000 | |
| IRR | 7.00% |
The pre-tax maturity value of the ELSS is ₹12.01 lakhs, and the post-tax maturity value is ₹11.35 lakhs. This amount is then transferred to an instrument yielding a 7% annual return.
From this, an annual withdrawal of ₹44,260 is made to mirror the survival benefits of the SUD Life Century Royale Plan. In the final year, the remaining investment is fully withdrawn to match the maturity benefit of the SUD Life Century Royale Plan plan.
| ELSS Tax Calculation | |
| Maturity value after 10 years | 12,01,312 |
| Purchase price | 5,46,000 |
| Long-Term Capital Gains | 6,55,312 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 5,30,312 |
| Tax paid on LTCG | 66,289 |
| Maturity value after tax | 11,35,023 |
The IRR for this combined strategy of a pure-term life insurance policy and ELSS investment is 7%. The returns could be higher if the annual withdrawals were deferred. However, to match the cash flow pattern of the SUD Life Century Royale Plan, withdrawals are made annually.
This alternative approach provides full flexibility to design withdrawals based on personal financial needs—flexibility that the SUD Life Century Royale Plan lacks.
The SUD Life Century Royale Plan is a traditional endowment plan where you pay premiums for a limited period but receive life coverage for the entire SUD Life Century Royale Plan policy term.
SUD Life Century Royale Plan provides guaranteed survival and maturity benefits, which may appeal to some investors. However, the returns fall short of a long-term investment.
The survival benefits are fixed and insufficient to cover significant expenses. Additionally, with a policy term of 40 years, the returns fail to outpace inflation and it has a high agent commission.
The combination of a long investment horizon, low returns, inflexible payout structure, and inadequate sum assured makes the SUD Life Century Royale Plan unsuitable for both insurance and investment purposes.
As previously discussed, separating insurance from investment generally yields better results than endowment plans. Pure-term policies offer comprehensive life coverage with an adequate sum assured at affordable premiums.
For achieving life goals, building a diversified investment portfolio helps navigate financial risks more effectively.
When it comes to financial advice, are Quora, Facebook, and Twitter the final word?
Before investing, assess your risk tolerance, time horizon, and financial goals. For personalized guidance, consider consulting a Certified Financial Planner who can design a strategy tailored to your needs. Professional expertise ensures your plan is well-suited to your individual requirements.
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