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Is the SUD Life Wealth Creator plan your gateway to long-term financial growth, or are there smarter investment options to explore?
Could the SUD Life Wealth Creator plan truly balance life cover with wealth creation, or does it lean more toward hidden costs?
Is the SUD Life Wealth Creator plan the flexible ULIP you’ve been searching for, or would a simpler investment strategy serve you better?
In this article, we’ll explore how such combination plans work, evaluate their suitability, and take a closer look at the features, benefits, and drawbacks of the SUD Life Wealth Creator Plan.
Table of Contents
What is the SUD Life Wealth Creator?
What are the features of the SUD Life Wealth Creator?
Who is eligible for the SUD Life Wealth Creator?
What are the benefits of the SUD Life Wealth Creator?
3. Return of Mortality Charges (RoMC)
What are the investment strategies and fund options in the SUD Life Wealth Creator?
What are the charges in the SUD Life Wealth Creator?
Grace Period, Discontinuance and Revival of the SUD Life Wealth Creator
Free Look Period for the SUD Life Wealth Creator
Surrendering the SUD Life Wealth Creator
What are the advantages of the SUD Life Wealth Creator?
What are the disadvantages of the SUD Life Wealth Creator?
Research Methodology of SUD Life Wealth Creator
Benefit Illustration – IRR Analysis of SUD Life Wealth Creator
SUD Life Wealth Creator Vs. Other Investments
SUD Life Wealth Creator Vs. Pure-term + PPF/Equity Mutual Fund
Final Verdict on SUD Life Wealth Creator
What is the SUD Life Wealth Creator?
SUD Life Wealth Creator is a Unit Lnked Life Insurance Plan that gives life cover along with an opportunity to create wealth in a way you wish. A plan where the investments are made as per your changing risk appetite.
What are the features of the SUD Life Wealth Creator?
- Provides diverse investment strategies with multiple fund options.
- Offers flexibility to modify the premium payment term.
- Allows fund switching and partial withdrawals for liquidity.
- Adds an extra allocation of 1% of the annualised premium to the fund starting from the 11th policy year.
- Refund mortality charges, enhancing overall returns.
Who is eligible for the SUD Life Wealth Creator?
| Min. Entry Age | 8 years |
| Max. Entry Age | 55 years |
| Premium Payment Term | Limited pay – 5/7/10 payRegular pay |
| Policy Term | 5 pay – 10-30 years7 pay – 10-30 years10 pay – 15-30 years
Regular pay – 10-30 years |
| Min. Annualized Premium | 5 pay – ₹ 1,50,0007 pay – ₹ 1,00,00010 pay – ₹ 60,000
Regular pay – ₹ 60,000 |
| Max. Annualized Premium | ₹ 100 Crores (subject to board-approved underwriting guidelines) |
What are the benefits of the SUD Life Wealth Creator?
1.Death Benefit
If all due premiums are paid, then in case of the unfortunate death of the Life Assured during the SUD Life Wealth Creator plan policy term, the death benefit payable will be: the Highest of
- Sum Assured under the Base Plan, less relevant partial withdrawals or
- Fund Value under the Base Plan as on the date of intimation of death of the Life Assured, or
- 105% of total base premiums paid
2.Maturity Benefit
The Fund Value at the prevailing NAV as on Maturity Date will be paid to the SUD Life Wealth Creator plan policyholder, provided the policy is in force.
3.Return of Mortality Charges (RoMC)
At the end of the SUD Life Wealth Creator plan policy term, on the maturity date, the total amount of mortality charges deducted in respect of life cover provided throughout the policy term will be added back as RoMC to the Regular Premium Fund Value.
4.Extra Allocation
From the 11th policy year onwards, 1% of one annualised premium, as Extra Allocation, will be added to the fund(s) along with each premium paid within the Grace Period.
What are the investment strategies and fund options in the SUD Life Wealth Creator?
SUD Life Wealth Creator presents 2 unique Investment Strategies which can be chosen by the Policyholder at the policy inception. The SUD Life Wealth Creator plan Policyholder can only have his funds in one of the Investment Strategies as mentioned below:
Self-Managed Investment Strategy:
This strategy enables the SUD Life Wealth Creator plan policyholder to manage the investments actively.
Under this strategy, policyholders can choose to invest the monies in any of the following fund options in proportions of his/ her choice. Policyholders can switch money among these funds using the switch option.
| Asset Allocation | ||||||
| S no | Fund Name | Equity, Preference Shares and Convertible Debentures | Debt Instruments | Money Market Instruments | Mutual Fund & Fixed Deposit | Risk Profile |
| 1 | Blue Chip Equity Fund | 70-100% | 0 | 0-30% | 0-30% | High |
| 2 | Growth Plus Fund | 40-100% | 0-60% | 0-30% | 0-30% | Medium to High |
| 3 | Balanced Plus Fund | 0-60% | 40-100% | 0-30% | 0-30% | Low to Medium |
| 4 | Income Fund | 0 | 0-70% | 0-30% | 0-30% | Low to Medium |
| 5 | Mid-Cap Fund | 70-100% | 0 | 0-30% | 0-30% | Very High |
| 6 | Gilt Fund | 0 | 60-100% | 0-40% | 0-40% | Low to Medium |
| 7 | Dynamic Fund | 10-95% | 10-95% | 0-80% | 0-15% | High |
| 8 | Money Market Fund | 0 | 0 | 85-100% | 0-15% | Low |
| 9 | Viksit Bharat Fund | 80-100% | 0 | 0-20% | 0 | High |
| 10 | New India Leaders Fund | 80-100% | 0 | 0-20% | 0 | High |
| 11 | SUD Life Midcap Momentum Index Fund | 80-100% | 0 | 0-20% | 0 | High |
| Equity, Preference Shares and Convertible Debentures | Money Market Instruments | Government Securities | ||||
| Discontinued Policies Fund | 0 | 0-40% | 60-100% | |||
Age-Based Investment Strategy:
At policy inception, based on the risk preference (aggressive or conservative) of the SUD Life Wealth Creator plan policyholder, the investments are distributed between two funds, Blue Chip Equity Fund and Gilt Fund, based on the age.
As the life insured moves from one age band to another, the funds are redistributed based on the attained age. The age-wise portfolio distribution for both risk preferences is shown in the table.
| Aggressive | Conservative | |||
| Attained age of Life Assured (years) | Blue Chip Equity Fund | Gilt Fund | Blue Chip Equity Fund | Gilt Fund |
| Up to 30 | 80% | 20% | 60% | 40% |
| 31-40 | 70% | 30% | 50% | 50% |
| 41-50 | 60% | 40% | 40% | 60% |
| 51-55 | 50% | 50% | 30% | 70% |
| 56-60 | 40% | 60% | 20% | 80% |
| 61-65 | 30% | 70% | 10% | 90% |
| 66-75 | 20% | 80% | 0% | 100% |
What are the charges in the SUD Life Wealth Creator?
A).Premium Allocation Charges
Each time the premium is paid, the Premium Allocation Charge, as a percentage of premiums received, is deducted from the premiums paid and the balance is allocated to the funds chosen by the SUD Life Wealth Creator plan policyholder.
| Policy Year | Premium Allocation charge as a percentage of Annualised Premium |
| 1 | 10% |
| 2 to 5 | 4% |
| 6+ | 0% |
B).Policy Administration Charge
Annual Policy Administration Charge as a percentage of Annualised Premium is 1.2% per annum, increasing at 5% per annum from the 2nd policy year.
C).Fund Management Charges:
| Fund Name | Annual Rate of FMC |
| BlueChip Equity Fund | 1.35% |
| Growth Plus Fund | 1.35% |
| Balanced Plus Fund | 1.30% |
| Income Fund | 1.30% |
| Mid Cap Fund | 1.35% |
| Gilt Fund | 1.30% |
| Dynamic Fund | 1.35% |
| Money Market Fund | 1.00% |
| Viksit Bharat Fund | 1.35% |
| New India Leaders Fund | 1.35% |
| SUD Life Midcap Momentum Index Fund | 1.30% |
| Discontinued Policies Fund | 0.50% |
D).Surrender/Discontinuance Charges:
It depends on the year of discontinuance and the annualised premium. There are no surrender or discontinuance charges after the 5th policy year.
E).Switching Charges:
Twelve switches per policy year are free of cost. Additional switches will be charged at the rate of ₹ 100 per switch.
F).Partial Withdrawal Charges:
Only four partial withdrawals in a policy year are free of cost; subsequent withdrawals are charged at ₹ 100 per partial withdrawal.
G).Mortality Charges:
Mortality charges are recovered on a monthly basis, on the first working day of each policy month, by the way of cancellation of an appropriate number of units. Mortality charges are worked out in accordance with the definition of sum at risk.
H).Inference from the charges: The charges imposed under this plan act as an additional burden on the investor.
Unlike most equity-based investment avenues that have minimal or no such costs, these charges can steadily chip away at your returns over time, reducing the overall wealth you could have accumulated.
Grace Period, Discontinuance and Revival of the SUD Life Wealth Creator
Grace Period
The company gives you a grace period of 30 days for yearly/half-yearly/quarterly modes and 15 days for monthly modes to pay the due premium.
Discontinuance
Discontinuance of Policy within the Lock-in Period of First Five Years: Your policy will acquire discontinuance status. The fund value after deducting the applicable discontinuance charges shall be transferred to the discontinued policy fund, and the risk cover under the policy shall cease.
At the end of the lock-in period, the proceeds of the discontinuance policy fund will be paid to the SUD Life Wealth Creator plan Policyholder, and the policy will terminate immediately.
Discontinuance of Policy after the Lock-in Period: The SUD Life Wealth Creator plan policy shall be converted into a reduced paid-up policy and will continue with the paid-up sum assured, i.e. original sum assured multiplied by the total number of premiums paid to the original number of premiums payable as per the terms and conditions of the policy.
Revival
The SUD Life Wealth Creator plan policy can be revived within the revival period of three years.
Free Look Period for the SUD Life Wealth Creator
If you disagree with any of those terms or conditions in the policy, you have an option to return the policy to us within the free look period, i.e. 30 days from the date of receipt of the SUD Life Wealth Creator plan policy document.
Surrendering the SUD Life Wealth Creator
On surrender of the SUD Life Wealth Creator plan policy during the lock-in period: The Policy will get discontinued, and no risk cover will be available during the discontinued period.
Upon receipt of such a request, the fund value, less applicable discontinuance charge, shall be transferred to the Discontinued Policies Fund, and the proceeds of the policy shall be paid to the policyholder at the end of the lock-in period. Surrender
After the Lock-in Period: When the policy is surrendered after completion of the lock-in period of five policy years, the surrender value, which is equal to the fund value as on the date of surrender, shall be paid to the policyholder
What are the advantages of the SUD Life Wealth Creator?
- Partial withdrawals are permitted from the 6th policy year onwards, or once the Life Assured turns 18, whichever comes later.
- The SUD Life Wealth Creator plan policyholder has the flexibility to increase or decrease the premium payment term.
- A Settlement Option is available for the Death Benefit.
- The policyholder can redirect premiums and switch between funds as per their preference.
What are the disadvantages of the SUD Life Wealth Creator?
- No loan facility is available under the plan.
- Top-up premium contributions are not permitted.
- The sum assured may fall short of adequately covering protection needs.
- The net premium is invested only after deducting charges, reducing the effective investment.
- Funds remain locked for the first 5 policy years, restricting liquidity.
- Overall returns are less competitive compared to alternative investment options.
Research Methodology of SUD Life Wealth Creator
Evaluating the potential returns of the SUD Life Wealth Creator Plan is essential to determine its suitability. While the plan may appear appealing because of its market-linked investment feature, a closer look through the Internal Rate of Return (IRR) reveals its actual effectiveness.
Let’s review an example from the SUD Life Wealth Creator plan policy brochure.
Benefit Illustration – IRR Analysis of SUD Life Wealth Creator
A 35-year-old male purchases the SUD Life Wealth Creator Plan with a sum assured of ₹10 lakhs, a policy term of 20 years, and a premium payment term of 20 years. He pays an annual premium of ₹1 lakh.
| Male | 35 years |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 20 years |
| Annualised Premium | ₹ 1,00,000 |
By paying premiums consistently, the SUD Life Wealth Creator plan policyholder becomes eligible for the fund value at maturity.
However, the illustrated return assumptions of 4% p.a. and 8% p.a. are neither guaranteed nor reflective of actual market performance, which can vary based on several factors.
| At 4% p.a. | At 8% p.a. | ||||
| Age | Year | Annualised premium / Maturity benefit | Death benefit | Annualised premium / Maturity benefit | Death benefit |
| 35 | 1 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 36 | 2 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 37 | 3 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 38 | 4 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 39 | 5 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 40 | 6 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 41 | 7 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 42 | 8 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 43 | 9 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 44 | 10 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 45 | 11 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 46 | 12 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 47 | 13 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 48 | 14 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 49 | 15 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 50 | 16 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 51 | 17 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 52 | 18 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 53 | 19 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 54 | 20 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 55 | 24,86,138 | 38,66,258 | |||
| IRR | 2.03% | 5.93% | |||
At a 4% return scenario: The fund value is ₹24.86 lakhs, with an IRR of 2.03 as per the SUD Life Wealth Creator plan maturity calculator.
At an 8% return scenario: The fund value is ₹38.66 lakhs, with an IRR of 5.93% as per the SUD Life Wealth Creator plan maturity calculator.
Even in the higher return scenario, the IRR remains sub-par. For a market-linked product, returns are expected to beat inflation, yet this plan falls short compared to other equity-oriented investment options.
Beyond low returns, the sum assured is insufficient, and the plan comes with high charges, limited transparency, and low life cover, making it an unattractive choice for long-term financial planning.
SUD Life Wealth Creator Vs. Other Investments
One of the major drawbacks of ULIP products is that the returns are not proportionate to the risk taken. Moreover, the life cover provided under this plan is inadequate. For effective financial planning, it is advisable to separate insurance from investment and compare the potential returns from alternative strategies.
SUD Life Wealth Creator Vs. Pure-term + PPF/Equity Mutual Fund
Let’s analyse the same metrics as in the previous illustration. For life coverage, a pure-term insurance policy with a sum assured of ₹10 lakhs costs an annual premium of ₹4,900, with a policy term and premium payment term of 20 years.
By opting for this, instead of paying ₹1 lakh annually into the ULIP, an individual saves ₹95,100 per year, which can be invested based on risk preference.
| Pure Term Life Insurance Policy | |
| Sum Assured | ₹ 10,00,000 |
| Policy Term | 20 years |
| Premium Paying Term | 20 years |
| Annualised Premium | ₹ 4,900 |
| Investment | ₹ 95,100 |
By channelling the savings into suitable instruments, investors can align their portfolio with their risk appetite. High-risk investors can allocate funds to equity-based instruments, while Risk-averse investors can opt for debt instruments. We consider both scenarios.
| 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 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 36 | 2 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 37 | 3 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 38 | 4 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 39 | 5 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 40 | 6 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 41 | 7 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 42 | 8 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 43 | 9 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 44 | 10 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 45 | 11 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 46 | 12 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 47 | 13 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 48 | 14 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 49 | 15 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 50 | 16 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 51 | 17 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 52 | 18 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 53 | 19 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 54 | 20 | -1,00,000 | 10,00,000 | -1,00,000 | 10,00,000 |
| 55 | 42,21,355 | 69,68,519 | |||
| IRR | 6.68% | 10.82% | |||
Pure-Term + PPF (Public Provident Fund): The final maturity value is ₹42.21 lakhs, yielding an IRR of 6.68%. Despite being a debt instrument, PPF outperforms even the 8% return scenario of the SUD Life Wealth Creator Plan.
Pure-Term + Equity Mutual Fund: The pre-tax maturity value is ₹76.74 lakhs, and after accounting for capital gains tax, the post-tax value is ₹ 69.68 Lakhs, resulting in an IRR of 10.82%. This return comfortably outpaces inflation and supports strong wealth accumulation over the long term
| Equity Mutual Fund Tax Calculation | |
| Maturity value after 20 years | 76,74,450 |
| Purchase price | 19,02,000 |
| Long-Term Capital Gains | 57,72,450 |
| Exemption limit | 1,25,000 |
| Taxable LTCG | 56,47,450 |
| Tax paid on LTCG | 7,05,931 |
| Maturity value after tax | 69,68,519 |
By separating insurance from investment, investors can achieve:
- Better risk-adjusted returns
- Higher transparency
- Greater flexibility
These are critical elements of sound long-term financial planning — elements that the SUD Life Wealth Creator Plan fails to deliver.
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Final Verdict on SUD Life Wealth Creator
The SUD Life Wealth Creator Plan is essentially a standard ULIP. While it provides exposure to market-linked investments, a closer look shows that its returns are relatively low compared to other market-oriented options.
For long-term wealth building, investments are expected to deliver inflation-beating growth — yet, despite its name, the so-called “Wealth Creator” fails to create meaningful wealth over time.
High charges limit its growth potential, and the plan struggles to even outpace inflation, leaving you financially short of your goals. On top of that, the sum assured is inadequate, making it unattractive from both an insurance and investment standpoint and it also has a high agent commission.
A smarter approach is to separate insurance and investment. A pure-term life insurance policy offers the most cost-effective way to protect your family’s future. For wealth creation, it’s better to build a diversified investment portfolio tailored to your risk appetite, financial goals, and time horizon.
Do Quora, Facebook, and Twitter have the final say when it comes to financial advice?
Start with the basics — an emergency fund, adequate health insurance, and a pure-term life cover. Then focus on structured investing through equity and debt instruments. If needed, seek guidance from a Certified Financial Planner (CFP) to design a personalised roadmap.
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