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Is the SUD Life Samriddhi Plan the perfect blend of savings and protection, or just another traditional insurance plan with limited benefits?
Is the SUD Life Samriddhi Plan the right choice for long-term financial stability, or should you explore better alternatives?
Can the SUD Life Samriddhi Plan help you achieve your financial goals, or will it hold you back from maximizing your potential returns?
In this article, we take a closer look at its features, benefits, and drawbacks.
Table of Contents
What is the SUD Life Samriddhi Plan?
What are the features of the SUD Life Samriddhi Plan?
Who is eligible for the SUD Life Samriddhi Plan?
What are the benefits of the SUD Life Samriddhi Plan?
3. Guaranteed Additions and Bonuses
Grace Period, Discontinuance and Revival of the SUD Life Samriddhi Plan
Free Look Period for the SUD Life Samriddhi Plan
Surrendering the SUD Life Samriddhi Plan
What are the advantages of the SUD Life Samriddhi Plan?
What are the disadvantages of the SUD Life Samriddhi Plan?
Research Methodology of SUD Life Samriddhi Plan
Benefit Illustration – IRR Analysis of SUD Life Samriddhi Plan
SUD Life Samriddhi Plan Vs. Other Investments
SUD Life Samriddhi Plan Vs. Pure-term + PPF/Equity Mutual Fund
Final Verdict on the SUD Life Samriddhi Plan
What is the SUD Life Samriddhi Plan?
SUD Life Samriddhi is a Limited Premium Non-Linked Deferred Participating Life Insurance Plan. It helps you build savings and boost them by way of guaranteed additions and bonuses, and offers life coverage. This plan offers you additional protection by way of an in-built accidental death benefit.
What are the features of the SUD Life Samriddhi Plan?
- Limited Premium Payment Policy – Pay premiums for a fixed period while enjoying long-term benefits.
- Wealth Creation with Protection – Helps you build a financial reserve while ensuring life cover.
- Built-in Accidental Death Benefit – Provides extra security in case of accidental demise.
- Guaranteed Additions & Bonuses – Enhances your savings through assured additions along with accrued bonuses.
- Optional Family Income Benefit Rider – Ensures your family receives a steady income in your absence.
Who is eligible for the SUD Life Samriddhi Plan?
| Parameter | |
| Age at entry | Minimum: 8 yearsMaximum: 55 years |
| Maximum Age at Maturity | 70 years |
| Policy term | For PPT 10 years: 15, 20 and 25 YearsFor PPT 15 years: 20 and 25 Years |
| Premium paying term (PPT) | 10/15 years |
| Sum Assured | ₹ 3 Lac to ₹ 1 Crore and in multiple of ₹1,000 |
| Premium Payment Modes | Monthly/ Quarterly/ Half-Yearly / Yearly |
What are the benefits of the SUD Life Samriddhi Plan?
1.Maturity Benefit
On survival of the Life Assured till the end of the SUD Life Samriddhi Plan Policy Term, provided the policy is in force, Basic Sum Assured along with accrued Guaranteed Additions, accrued Reversionary Bonuses, if any and Terminal Bonus, if any, will be paid, and the contract ceases immediately.
2.Death Benefit
In case of death due to a cause other than accident: The Death Sum Assured (as defined below), along with the accrued Guaranteed Additions, accrued Simple Reversionary Bonus, if declared (including any guaranteed addition and bonus pertaining to policy year of death) and terminal bonus, if declared will be paid as lump sum to the Beneficiary/Nominee and the contract ceases immediately.
In any case, the minimum death benefit shall be 105% of the total premiums paid as on the date of death.
Death Sum Assured is defined as the Highest of:
- 10 times the Annualised Premium, OR
- Guaranteed Sum Assured at the time of Maturity (i.e. Basic Sum Assured), OR
- Absolute amount assured to be paid on death (i.e. Basic Sum Assured)
In case of Death due to Accident: An additional benefit equal to the Death Sum Assured (as defined above) will be paid along with the death benefit, and the SUD Life Samriddhi Plan policy will terminate immediately
3.Guaranteed Additions and Bonuses
Guaranteed Additions: Guaranteed Additions of 3% p.a. of Basic Sum Assured will be attached to the policy at the end of each policy year for the first 3 policy years, provided the policy is in force.
Simple Reversionary Bonus: Simple Reversionary Bonus as a percentage of Basic Sum Assured may be declared by the Company and shall be attached to all in-force Policies from the fourth policy year onwards.
Terminal Bonus: The Company may also declare a terminal bonus depending on the performance of the participating fund, which shall be paid along with the maturity benefits and death benefits during the SUD Life Samriddhi Plan policy term, provided the policy is in force.
Grace Period, Discontinuance and Revival of the SUD Life Samriddhi Plan
A). 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.
B). Discontinuance
Lapse: If you have not paid all due premiums for the one full policy year within the grace period, the SUD Life Samriddhi Plan policy lapses. Life cover will cease, and no benefits shall become payable under the lapsed policy.
Reduced Paid-Up: If all the premiums due under this policy have been paid for at least the first full year and subsequent premiums are not paid, then the policy will acquire Reduced Paid-Up status. Once the policy becomes Reduced Paid-up, it will not be eligible for future Guaranteed additions and future Reversionary Bonuses, if declared.
C). Revival
You can revive your Lapsed/Reduced Paid-Up policy within five years from the due date of the first unpaid premium.
Free Look Period for the SUD Life Samriddhi Plan
If you disagree with any of those terms or conditions in the SUD Life Samriddhi Plan policy, you have the option to return the policy within 30 days from the date of receipt of the policy document.
Surrendering the SUD Life Samriddhi Plan
You can surrender your policy any time after completion of the first policy year. The Surrender Value payable will 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.
What are the advantages of the SUD Life Samriddhi Plan?
- Optional Rider – You have the flexibility to enhance coverage by opting for the rider.
- Loan Facility – Borrow up to 55% of the Surrender Value whenever you need funds.
- Accidental Death Benefit – In case of accidental demise, your family receives twice the death sum assured.
What are the disadvantages of the SUD Life Samriddhi Plan?
- Non-Guaranteed Benefits – The returns depend heavily on bonuses, making them uncertain.
- Low Returns – The plan offers poor growth compared to other investment options.
- Inadequate Coverage – The sum assured may fall short of meeting your family’s future financial needs.
Research Methodology of SUD Life Samriddhi Plan
The SUD Life Samriddhi Plan combines life insurance with investment, but the true deciding factor lies in its returns. Let’s break it down with an example from the SUD Life Samriddhi Plan policy brochure:
Benefit Illustration – IRR Analysis of SUD Life Samriddhi Plan
A 35-year-old male opts for the plan with a sum assured of ₹10 Lakhs. He pays an annual premium of ₹87,800 for 10 years. The SUD Life Samriddhi Plan policy term is 20 years.
| Male | 35 years |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 87,800 |
If the premiums are paid regularly, the SUD Life Samriddhi Plan policyholder becomes eligible for bonuses and a maturity benefit at the end of the term. The brochure illustrates two assumed return scenarios:
At 4% p.a., the Maturity benefit is ₹11.75 Lakhs, with an IRR of 1.89% as per the SUD Life Samriddhi Plan maturity calculator.
At 8% p.a., the Maturity benefit is ₹19.40 Lakhs, with an IRR of 5.18% as per the SUD Life Samriddhi Plan maturity calculator.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -87,800 | 10,00,000 | -87,800 | 10,00,000 |
| 36 | 2 | -87,800 | 10,00,000 | -87,800 | 10,00,000 |
| 37 | 3 | -87,800 | 10,00,000 | -87,800 | 10,00,000 |
| 38 | 4 | -87,800 | 10,00,000 | -87,800 | 10,00,000 |
| 39 | 5 | -87,800 | 10,00,000 | -87,800 | 10,00,000 |
| 40 | 6 | -87,800 | 10,00,000 | -87,800 | 10,00,000 |
| 41 | 7 | -87,800 | 10,00,000 | -87,800 | 10,00,000 |
| 42 | 8 | -87,800 | 10,00,000 | -87,800 | 10,00,000 |
| 43 | 9 | -87,800 | 10,00,000 | -87,800 | 10,00,000 |
| 44 | 10 | -87,800 | 10,00,000 | -87,800 | 10,00,000 |
| 45 | 11 | 0 | 10,00,000 | 0 | 10,00,000 |
| 46 | 12 | 0 | 10,00,000 | 0 | 10,00,000 |
| 47 | 13 | 0 | 10,00,000 | 0 | 10,00,000 |
| 48 | 14 | 0 | 10,00,000 | 0 | 10,00,000 |
| 49 | 15 | 0 | 10,00,000 | 0 | 10,00,000 |
| 50 | 16 | 0 | 10,00,000 | 0 | 10,00,000 |
| 51 | 17 | 0 | 10,00,000 | 0 | 10,00,000 |
| 52 | 18 | 0 | 10,00,000 | 0 | 10,00,000 |
| 53 | 19 | 0 | 10,00,000 | 0 | 10,00,000 |
| 54 | 20 | 0 | 10,00,000 | 0 | 10,00,000 |
| 55 | 11,75,000 | 19,40,000 | |||
| 1.89% | 5.18% | ||||
It’s important to note:
These rates (4% and 8%) are assumed projections, not guaranteed returns.
Once the premium payment period ends, you’re locked into the plan until maturity, with no liquidity.
For a long-term investment, the returns should at least match or beat inflation. Otherwise, the real value of money erodes over time.
The sum assured under this plan is also inadequate to secure your family’s future needs.
In short, both the returns and the life cover under the SUD Life Samriddhi Plan fall short for long-term financial planning. Investing here could derail your financial goals instead of supporting them.
SUD Life Samriddhi Plan Vs. Other Investments
To understand whether the SUD Life Samriddhi Plan is a suitable choice, let’s compare its returns with alternative options using the same metrics from the earlier illustration.
SUD Life Samriddhi Plan Vs. Pure-term + PPF/Equity Mutual Fund
A pure term life insurance policy with a sum assured of ₹10 Lakhs costs about ₹8,800 per annum for 10 years. This leaves around ₹79,000 annually available for investment during the premium-paying term.
Over 20 years, this amount compounds into a much larger corpus compared to SUD Life Samriddhi.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 10 years |
| Annualised Premium | ₹ 8,800 |
| Investment | ₹ 79,000 |
| Term Insurance + PPF | Term insurance + Equity Mutual Fund | ||||
| Age | Year | Term Insurance premium + PPF | Death benefit | Term Insurance premium + Equity Mutual Fund | Death benefit |
| 35 | 1 | -87,800 | 10,00,000 | -87,800 | 10,00,000 |
| 36 | 2 | -87,800 | 10,00,000 | -87,800 | 10,00,000 |
| 37 | 3 | -87,800 | 10,00,000 | -87,800 | 10,00,000 |
| 38 | 4 | -87,800 | 10,00,000 | -87,800 | 10,00,000 |
| 39 | 5 | -87,800 | 10,00,000 | -87,800 | 10,00,000 |
| 40 | 6 | -87,800 | 10,00,000 | -87,800 | 10,00,000 |
| 41 | 7 | -87,800 | 10,00,000 | -87,800 | 10,00,000 |
| 42 | 8 | -87,800 | 10,00,000 | -87,800 | 10,00,000 |
| 43 | 9 | -87,800 | 10,00,000 | -87,800 | 10,00,000 |
| 44 | 10 | -85,300 | 10,00,000 | -87,800 | 10,00,000 |
| 45 | 11 | -500 | 10,00,000 | 0 | 10,00,000 |
| 46 | 12 | -500 | 10,00,000 | 0 | 10,00,000 |
| 47 | 13 | -500 | 10,00,000 | 0 | 10,00,000 |
| 48 | 14 | -500 | 10,00,000 | 0 | 10,00,000 |
| 49 | 15 | -500 | 10,00,000 | 0 | 10,00,000 |
| 50 | 16 | 0 | 10,00,000 | 0 | 10,00,000 |
| 51 | 17 | 0 | 10,00,000 | 0 | 10,00,000 |
| 52 | 18 | 0 | 10,00,000 | 0 | 10,00,000 |
| 53 | 19 | 0 | 10,00,000 | 0 | 10,00,000 |
| 54 | 20 | 0 | 10,00,000 | 0 | 10,00,000 |
| 55 | 23,31,198 | 43,34,052 | |||
| 6.40% | 10.56% | ||||
Option 1: Pure Term + PPF (Debt Option)
PPF requires a minimum of ₹500 annually for 15 years, so adjustments are made for the final years.
Maturity Value (20 years): ₹23.31 Lakhs
IRR: 6.40%
Option 2: Pure Term + Equity Mutual Fund (Equity Option)
Equity mutual funds offer higher long-term growth but with higher risk.
Maturity Value (Pre-Tax): ₹48.22 Lakhs
Maturity Value (Post-Tax): ₹43.34 Lakhs
IRR: 10.56%
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 20 years | 48,22,488 |
| Purchase price | 7,90,000 |
| Long-Term Capital Gains | 40,32,488 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 39,07,488 |
| Tax paid on LTCG | 4,88,436 |
| Maturity value after tax | 43,34,052 |
With PPF, you get stable, safe returns that still beat the Samriddhi plan. With Equity Mutual Funds, you get inflation-beating returns and better wealth creation. In contrast, SUD Life Samriddhi locks your money for 20 years, offers poor liquidity, and fails to generate competitive returns.
Clearly, combining a pure term policy with suitable investments (PPF or Mutual Funds) provides far better value than investing in SUD Life Samriddhi.
Final Verdict on the SUD Life Samriddhi Plan
The SUD Life Samriddhi Plan is a traditional endowment policy where you pay premiums for a limited period and receive life cover along with a maturity benefit at the end of the term. The only added feature is an accidental death benefit, which doubles the sum assured in case of accidental demise. Beyond this, the plan offers no unique advantages and it also has a high agent commission.
However, the maturity benefit is non-guaranteed since it depends on bonus declarations. On analysing the numbers, the returns fall short of the inflation rate, meaning your purchasing power will shrink over time.
As a result, investing in this plan can derail your financial goals instead of supporting them.
In short, SUD Life Samriddhi neither provides meaningful life cover nor wealth creation. A better approach is to choose investment products aligned with your goals, risk appetite, and time horizon.
Never combine insurance and investment—keep them separate for efficiency. Diversify across asset classes to balance growth and safety.
Smarter alternatives can help you stay on track toward your goals while safeguarding your family’s future. Ensure your life cover is adequate to protect your family’s future needs and liabilities.
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