sud life guaranteed money back plan
Does the SUD Life Guaranteed Moneyback Plan truly offer financial relief at regular intervals — or are the payouts too small to make a real difference?
Is the SUD Life Guaranteed Moneyback Plan a smart way to combine insurance with liquidity — or does it simply lock you into long-term commitments with modest returns?
Can the SUD Life Guaranteed Moneyback Plan balance family protection and periodic income effectively — or does it dilute both aspects?
In this article, we break down its features, benefits, and drawbacks, supported by a detailed illustration.
What is the SUD Life Guaranteed Moneyback Plan?
What are the features of the SUD Life Guaranteed Moneyback Plan?
Who is eligible for the SUD Life Guaranteed Moneyback Plan?
What are the benefits of the SUD Life Guaranteed Moneyback Plan?
Grace Period, Discontinuance and Revival of the SUD Life Guaranteed Moneyback Plan
Free Look Period for the SUD Life Guaranteed Moneyback Plan
Surrendering the SUD Life Guaranteed Moneyback Plan
What are the advantages of the SUD Life Guaranteed Moneyback Plan?
What are the disadvantages of the SUD Life Guaranteed Moneyback Plan?
Research Methodology of SUD Life Guaranteed Moneyback Plan
Benefit Illustration – IRR Analysis of SUD Life Guaranteed Moneyback Plan
SUD Life Guaranteed Moneyback Plan Vs. Other Investments
SUD Life Guaranteed Moneyback Plan Vs. Pure-term + Equity Mutua Fund
Final Verdict on the SUD Life Guaranteed Moneyback Plan
SUD Life Guaranteed Money Back Plan is a non-linked, non-participating, money-back life insurance plan. The plan offers liquidity in the form of assured payouts at specified intervals, along with financial protection against the risk of premature demise.
| Parameter | |
| Age of the Life Assured at Entry | Minimum: 13 years Maximum: 50 years |
| Maximum Age of the Life Assured at Maturity | Policy term 15: 65 years Policy term 20: 70 years |
| Policy term | 15/20 years |
| Premium paying term | 10 years |
| Sum Assured | Minimum: ₹ 3,00,000 Maximum: ₹ 10,00,00,000 |
| Premium paying modes | Yearly, half-yearly, quarterly or monthly |
200% of the annualised premium will be paid on survival, up to the policy anniversaries specified below:
| Policy Term (in Years) | Policy Anniversaries |
| 15 | 5th, 10th |
| 20 | 5th, 10th, 15th |
Sum Assured (less survival benefits already paid), along with guaranteed additions accrued during the SUD Life Guaranteed Money Back Plan policy term, will be paid.
The entire sum assured, plus the guaranteed additions accrued till date, will be paid to the nominee, and the SUD Life Guaranteed Money Back Plan policy will terminate thereafter.
The death benefit will be reduced by the premium falling due and unpaid during the policy year in which death occurs.
Guaranteed additions will accrue every year, throughout the SUD Life Guaranteed Money Back Plan policy term. The accrued amount will be payable with the final benefit paid on maturity (or in case of death, if earlier).
| Policy Term (in Years) | Guaranteed Addition |
| 15 | 5% of Annualised premium |
| 20 | 6% of Annualised premium |
A grace period of 30 days will be allowed from the date of the unpaid premium. The grace period will be 15 days in the case of the monthly mode.
Lapse: If you have not paid the first full year’s premium within the grace period, your policy will lapse. Life cover ceases, and no benefits are paid under a lapsed policy.
Reduced Paid-up Insurance: If one full year of premiums is paid and thereafter at any point in time premiums are discontinued, the policy will acquire reduced paid-up status (after the grace period).
However, future guaranteed additions will cease & future survival benefits will not be paid after the policy is made paid-up.
You can revive your SUD Life Guaranteed Money Back Plan policy (Lapsed and Reduced Paid-Up) within five years from the date of the first unpaid premium.
If you disagree with any of those terms or conditions in the SUD Life Guaranteed Money Back Plan policy, you have the option to return the policy within 30 days from the date of receipt of the policy document.
Your policy will acquire Surrender Value if one full year of premiums is paid.
The Policy can be surrendered anytime during the SUD Life Guaranteed Money Back Plan Policy Term, provided the policy has acquired Surrender Value. Surrender Value payable will be the higher of Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV).
The SUD Life Guaranteed Moneyback Plan provides guaranteed regular payouts (survival benefits) along with a maturity benefit. While these periodic inflows may appear helpful, it is important to assess the plan’s overall return before committing.
To do this, we calculate the Internal Rate of Return (IRR) based on the benefit illustration given in the policy brochure.
Consider a 35-year-old male who chooses the SUD Life Guaranteed Moneyback Plan with a sum assured of ₹10 lakhs. The policy term is 20 years, with a premium paying term of 10 years and an annual premium of ₹69,640.
| Male | 35 years |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 69,640 |
| Age | Year | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -69,640 | 10,00,000 |
| 36 | 2 | -69,640 | 10,00,000 |
| 37 | 3 | -69,640 | 10,00,000 |
| 38 | 4 | -69,640 | 10,00,000 |
| 39 | 5 | -69,640 | 10,00,000 |
| 40 | 6 | 69,640 | 10,00,000 |
| 41 | 7 | -69,640 | 10,00,000 |
| 42 | 8 | -69,640 | 10,00,000 |
| 43 | 9 | -69,640 | 10,00,000 |
| 44 | 10 | -69,640 | 10,00,000 |
| 45 | 11 | 1,39,280 | 10,00,000 |
| 46 | 12 | 0 | 10,00,000 |
| 47 | 13 | 0 | 10,00,000 |
| 48 | 14 | 0 | 10,00,000 |
| 49 | 15 | 0 | 10,00,000 |
| 50 | 16 | 1,39,280 | 10,00,000 |
| 51 | 17 | 0 | 10,00,000 |
| 52 | 18 | 0 | 10,00,000 |
| 53 | 19 | 0 | 10,00,000 |
| 54 | 20 | 0 | 10,00,000 |
| 55 | 6,65,728 | 10,00,000 | |
| IRR | 4.04% |
The IRR analysis shows that this plan locks your money for the long term while delivering only minimal returns. With an IRR of just 4.04%, the SUD Life Guaranteed Moneyback Plan falls far short of helping you meet your financial goals.
The SUD Life Guaranteed Moneyback Plan suffers from two major drawbacks: Poor investment returns and Inadequate life cover. Due to the combined insurance-and-investment structure, the plan fails to meet your needs.
A more effective strategy is to separate insurance and investments, ensuring both higher returns and greater flexibility.
A pure term life insurance policy with a sum assured of ₹10 Lakhs costs ₹8,800 annually, with a 20-year term and a premium payment duration of 10 years.
This leaves ₹60,840 per year for 10 years available for investment based on your risk appetite. Here, we assume the savings are invested in an Equity Mutual Fund Scheme.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 8,800 |
| Investment | ₹ 60,840 |
| Age | Year | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -69,640 | 10,00,000 |
| 36 | 2 | -69,640 | 10,00,000 |
| 37 | 3 | -69,640 | 10,00,000 |
| 38 | 4 | -69,640 | 10,00,000 |
| 39 | 5 | -69,640 | 10,00,000 |
| 40 | 6 | 69,640 | 10,00,000 |
| 41 | 7 | -69,640 | 10,00,000 |
| 42 | 8 | -69,640 | 10,00,000 |
| 43 | 9 | -69,640 | 10,00,000 |
| 44 | 10 | -69,640 | 10,00,000 |
| 45 | 11 | 1,39,280 | 10,00,000 |
| 46 | 12 | 0 | 10,00,000 |
| 47 | 13 | 0 | 10,00,000 |
| 48 | 14 | 0 | 10,00,000 |
| 49 | 15 | 0 | 10,00,000 |
| 50 | 16 | 1,39,280 | 10,00,000 |
| 51 | 17 | 0 | 10,00,000 |
| 52 | 18 | 0 | 10,00,000 |
| 53 | 19 | 0 | 10,00,000 |
| 54 | 20 | 0 | 10,00,000 |
| 55 | 20,81,011 | 10,00,000 | |
| IRR | 10.23% |
To make the comparison fair, withdrawals are made from the mutual fund investment to replicate the survival benefits of the Guaranteed Moneyback Plan.
At the end of 20 years, the remaining units are redeemed, with long-term capital gains taxed only at final redemption (considering the annual LTCG exemption of ₹1.25 lakh).
IRR of Term Insurance + Equity Mutual Fund is 10.23% (post-tax), whereas the IRR of SUD Life Guaranteed Moneyback Plan is 4.04%
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 20 years | 22,73,526 |
| Purchase price | 6,08,400 |
| Long-Term Capital Gains | 16,65,126 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 15,40,126 |
| Tax paid on LTCG | 1,92,516 |
| Maturity value after tax | 20,81,011 |
Choosing the Guaranteed Moneyback Plan locks you into low returns and rigid payout structures while offering insufficient life cover.
In contrast, combining a pure term policy with equity mutual fund investments delivers higher returns, tax efficiency, and flexibility to withdraw based on actual needs.
The SUD Life Guaranteed Money Back Plan is designed to provide periodic liquidity along with life cover. However, it falls short on both fronts—delivering below-average returns and inadequate insurance coverage, making it incapable of meeting your family’s true financial needs.
The survival benefits are paid at fixed intervals, but these often don’t align with real-life requirements, leading either to unnecessary spending or failing to provide support during emergencies and it also has a high agent commission.
Ultimately, the SUD Life Guaranteed Moneyback plan offers little value as an insurance or investment product.
First, secure a pure term life insurance policy—affordable premiums give you higher coverage, ensuring your family’s protection. Next, based on your goals, time horizon, and risk profile, build a diversified investment portfolio that grows meaningfully over time.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
Avoid money-back plans for creating regular cash flow. For a structured financial roadmap, it is wise to consult a Certified Financial Planner (CFP) who can align investments with your unique goals and circumstances.
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