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Does the SUD Life Guarantee Royale Plan “Royale” tag truly justify itself — or is it just a traditional plan with modest returns?
Is this SUD Life Guarantee Royale Plan a reliable choice for conservative savers — or does it fall short when compared to market-linked options?
Does the SUD Life Guarantee Royale Plan strike the right balance between savings and protection — or is it too rigid for evolving financial needs?
In this article, we’ll review the features, benefits, and drawbacks of the SUD Life Guarantee Royale to help you decide.
Table of Contents:
What is the SUD Life Guarantee Royale?
What are the features of the SUD Life Guarantee Royale?
Who is eligible for the SUD Life Guarantee Royale?
What are the benefits of the SUD Life Guarantee Royale?
Grace Period, Discontinuance and Revival of the SUD Life Guarantee Royale
Free Look Period for the SUD Life Guarantee Royale
Surrendering the SUD Life Guarantee Royale
What are the advantages of the SUD Life Guarantee Royale?
What are the disadvantages of the SUD Life Guarantee Royale?
Research Methodology of SUD Life Guarantee Royale
Benefit Illustration – IRR Analysis of the SUD Life Guarantee Royale
SUD Life Guarantee Royale Vs. Other Investments
SUD Life Guarantee Royale Vs. Pure-term + Equity Mutual Fund
Final Verdict on SUD Life Guarantee Royale
What is the SUD Life Guarantee Royale?
SUD Life Guarantee Royale is a Non-Linked, Non-Participating individual savings plan. This plan offers a combination of protection and savings benefits to safeguard family members from any unfortunate event and help the policyholders in their financial planning to receive a lump sum at maturity.
What are the features of the SUD Life Guarantee Royale?
- Flexible premium payments and policy term options
- Guaranteed lump sum benefit at the end of the SUD Life Guarantee Royale Plan policy term
- Maturity Loyalty Additions upon policy maturity
- Higher premiums lead to a higher sum assured at maturity
- Increasing maturity and death benefits through guaranteed additions
Who is eligible for the SUD Life Guarantee Royale?
| Parameters | Minimum | Maximum |
| Entry Age (Age last birthday) | 0 Years 91 days | 60 Years |
| Maturity Age (Age last birthday) | 20 Years | 85 Years |
| Annualized Premium | 36,000 | Board Approved Underwriting Policy (BAUP) |
| Sum Assured on Death | 3,78,000 | Board Approved Underwriting Policy (BAUP) |
| Premium Payment Term (PPT) | 7 / 10 Years | |
| Policy Term (PT) | 20 / 25 / 30 Years | |
What are the benefits of the SUD Life Guarantee Royale?
1. Maturity Benefit
On the survival of the Life Assured to the end of the SUD Life Guarantee Royale Plan policy term, provided the policy is in force, the Guaranteed Maturity Benefit (GMB) will be paid, and the contract will cease immediately.
Guaranteed Maturity Benefit = Sum Assured on Maturity + Accrued Guaranteed Additions (GA) + Maturity Loyalty Addition
Sum Assured on maturity is based on age, Premium Payment Term, Policy Term & Annualised Premium as chosen by the policyholder at inception of the policy, where the Sum Assured on Maturity (SAM) is calculated as SAM Factor multiplied by one Annualised Premium.
2. Additions
Guaranteed Additions (GA): This will accrue at the end of every policy year from the end of the first policy year till the end of the policy term, provided the SUD Life Guarantee Royale Plan policy is in force.
During PPT – 10% of One Annualised Premium
After PPT – 50% of One Annualised Premium
Maturity Loyalty Additions (MLA): This will be attached to the policy at maturity, provided the SUD Life Guarantee Royale Plan policy is in force as on the date of maturity.
20-year Policy Term – 200% of One Annualised Premium
25-year Policy Term – 300% of One Annualised Premium
30-year Policy Term – 400% of One Annualised Premium
3. Death Benefit
In case of the death of the Life assured during the SUD Life Guarantee Royale 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:
- Sum Assured on Death + Accrued Guaranteed Additions (GA) + GA for the year of death or
- Death Benefit Factor Guaranteed Maturity Benefit or
- 105% of Total Premium Paid
Grace Period, Discontinuance and Revival of the SUD Life Guarantee Royale
Grace Period
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.
Discontinuance
Lapse: If the due premiums for the first full policy year have not been paid within the grace period, then the policy will lapse. Life cover will cease, and no benefits shall become payable under the lapsed policy.
Reduced Paid-Up: If the premiums have been paid for the first full policy year and subsequent premiums are not paid, then the SUD Life Guarantee Royale Plan Policy will acquire Reduced Paid-Up status with reduced benefits.
Revival
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.
Free Look Period for the SUD Life Guarantee Royale
If you disagree with any of those terms or conditions in the SUD Life Guarantee Royale Plan policy, you have the option to return the policy to us within 30 days from the date of receipt of the policy document.
Surrendering the SUD Life Guarantee Royale
You can surrender your policy any time after completion of the first policy year. The surrender value payable would be the higher of Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV).
Special Surrender Value will be acquired after completion of 1st policy year, provided the receipt of one full policy year premium, whereas the Guaranteed Surrender Value will be acquired after the receipt of the first two consecutive full policy year premiums.
What are the advantages of the SUD Life Guarantee Royale?
- Women enjoy a 5% discount on the first year’s premium
- Online policies offer a higher sum assured at maturity
- Riders can be added to enhance the base policy
- Loans up to 70% of the surrender value can be availed
What are the disadvantages of the SUD Life Guarantee Royale?
- The policy term and premium payment term are fixed
- The returns may not be competitive compared to other options
Research Methodology of SUD Life Guarantee Royale
The key feature of the SUD Life Guarantee Royale Plan is its guaranteed benefits. Upon policy maturity, you’ll receive the Sum Assured, Accrued Guaranteed Additions (GA), and Maturity Loyalty Addition.
However, it’s essential to assess these guaranteed benefits based on their return percentages.
Benefit Illustration – IRR Analysis of the SUD Life Guarantee Royale
Let’s analyse the Internal Rate of Return (IRR) using a benefit illustration from the SUD Life Guarantee Royale Plan policy brochure. Consider a 35-year-old male who chooses the SUD Life Guarantee Royale Plan with a sum assured of ₹31.50 lakhs.
The policy term is 20 years, with a 7-year premium payment term and an annual premium of ₹3 lakhs.
| Male | 35 years |
| Sum Assured | ₹ 31,50,000 |
| Policy Term | 20 years |
| Premium Paying Term | 7 years |
| Annualised Premium | ₹ 3,00,000 |
In this case, the maturity benefits are as follows:
- Sum Assured on Maturity: ₹25.45 lakhs
- Accrued Guaranteed Additions (GA): ₹21.60 lakhs
- Maturity Loyalty Addition: ₹6 lakhs
This results in a total maturity benefit of ₹53.05 lakhs, yielding an IRR of 5.57% as per the SUD Life Guarantee Royale Plan maturity calculator.
| Age | Year | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -3,00,000 | 31,50,000 |
| 36 | 2 | -3,00,000 | 31,50,000 |
| 37 | 3 | -3,00,000 | 31,50,000 |
| 38 | 4 | -3,00,000 | 31,50,000 |
| 39 | 5 | -3,00,000 | 31,50,000 |
| 40 | 6 | -3,00,000 | 31,50,000 |
| 41 | 7 | -3,00,000 | 31,50,000 |
| 42 | 8 | 0 | 31,50,000 |
| 43 | 9 | 0 | 31,50,000 |
| 44 | 10 | 0 | 31,50,000 |
| 45 | 11 | 0 | 31,50,000 |
| 46 | 12 | 0 | 31,50,000 |
| 47 | 13 | 0 | 31,50,000 |
| 48 | 14 | 0 | 31,50,000 |
| 49 | 15 | 0 | 31,50,000 |
| 50 | 16 | 0 | 31,50,000 |
| 51 | 17 | 0 | 31,50,000 |
| 52 | 18 | 0 | 31,50,000 |
| 53 | 19 | 0 | 31,50,000 |
| 54 | 20 | 0 | 31,50,000 |
| 55 | 53,05,085 | ||
| IRR | 5.57% |
Given the 20-year policy term, this rate of return is not ideal for long-term investment, as inflation will erode the value of these returns over time, making it harder to meet the rising costs of your financial goals. Additionally, the insurance coverage provided is insufficient.
In conclusion, while the guaranteed benefits may seem attractive, the moderate returns and the inadequate sum assured in the SUD Life Guarantee Royale Plan make it less favourable for long-term financial growth.
SUD Life Guarantee Royale Vs. Other Investments
The combination of insurance and investment in the SUD Life Guarantee Royale plan does not deliver optimal results.
Let’s consider a more effective approach by splitting the same premium into two separate components: life coverage through a pure-term life plan and individual investment.
SUD Life Guarantee Royale Vs. Pure-term + Equity Mutual Fund
Using the same scenario from the previous illustration, we’ll allocate ₹17,800 for life coverage with a pure-term life insurance policy offering a sum assured of ₹50 lakhs (matching the sum assured and additions from the previous example).
The policy term is 20 years, with a premium payment term of 7 years. This leaves ₹2.82 lakhs from the ₹3 lakhs premium available for investment.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 50,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 7 years |
| Annualised Premium | ₹ 17,800 |
| Investment | ₹ 2,82,200 |
The investment can be tailored based on your risk profile. High-risk investors might lean toward equity investments, while more conservative investors may prefer debt instruments. In this case, we’ve chosen an equity mutual fund scheme.
| Age | Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -3,00,000 | 50,00,000 |
| 36 | 2 | -3,00,000 | 50,00,000 |
| 37 | 3 | -3,00,000 | 50,00,000 |
| 38 | 4 | -3,00,000 | 50,00,000 |
| 39 | 5 | -3,00,000 | 50,00,000 |
| 40 | 6 | -3,00,000 | 50,00,000 |
| 41 | 7 | -3,00,000 | 50,00,000 |
| 42 | 8 | 0 | 50,00,000 |
| 43 | 9 | 0 | 50,00,000 |
| 44 | 10 | 0 | 50,00,000 |
| 45 | 11 | 0 | 50,00,000 |
| 46 | 12 | 0 | 50,00,000 |
| 47 | 13 | 0 | 50,00,000 |
| 48 | 14 | 0 | 50,00,000 |
| 49 | 15 | 0 | 50,00,000 |
| 50 | 16 | 0 | 50,00,000 |
| 51 | 17 | 0 | 50,00,000 |
| 52 | 18 | 0 | 50,00,000 |
| 53 | 19 | 0 | 50,00,000 |
| 54 | 20 | 0 | 50,00,000 |
| 55 | 1,24,37,467 | ||
| IRR | 10.89% |
At maturity, the equity mutual fund investment grows to a pre-tax value of ₹1.39 crores. After accounting for capital gains tax, the post-tax value comes to ₹1.24 crores.
The combined return from the equity mutual fund and pure-term life insurance policy gives an IRR of 10.89% (post-tax return).
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 20 years | 1,39,14,191 |
| Purchase price | 19,75,400 |
| Long-Term Capital Gains | 1,19,38,791 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 1,18,13,791 |
| Tax paid on LTCG | 14,76,724 |
| Maturity value after tax | 1,24,37,467 |
This return substantially outperforms inflation. This comparison clearly shows that bundling insurance and investment, as in the SUD Life Guarantee Royale Plan, leads to moderate returns.
On the other hand, separating insurance and investment delivers higher returns and adequate life coverage, keeping you on track to meet your financial goals.
Final Verdict on SUD Life Guarantee Royale
The SUD Life Guarantee Royale Plan allows for systematic savings while offering guaranteed benefits and protection against unforeseen life events.
However, the guaranteed benefits may not be sufficient to meet the rising costs of your financial goals.
Additionally, the coverage provided is limited and might fall short of your needs and it also has a high agent commission.
The IRR analysis shows that the savings accumulated under this plan fail to grow into a substantial corpus due to the underwhelming returns. This reinforces the fact that the SUD Life Guarantee Royale Plan does not effectively address either life coverage or investment objectives.
Avoid being swayed by the allure of guaranteed returns. To truly meet your financial goals, it’s crucial to choose the right products based on your specific objectives, risk tolerance, and time horizon.
For life insurance, pure-term policies offer higher coverage at a lower premium, providing solid protection for your loved ones.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
A diversified investment portfolio can help manage risks more effectively. Seeking advice from a Certified Financial Planner can provide valuable guidance in securing your financial future, leveraging their expertise to create a tailored plan.
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