ABSLI Guaranteed Milestone Plan Review: A Friendly Guide

Introduction: Why You Need a Guaranteed Plan

Life can be unpredictable. You might switch jobs, move cities, or face a medical emergency. As a young professional or a newly married couple, these surprises can throw your budget off track. You want to make sure your family is safe, no matter what. That’s where a life insurance plan with guaranteed benefits comes in.

The ABSLI Guaranteed Milestone Plan promises a set payout when the policy ends and a secure benefit if something happens to you. In simple terms, you know exactly what you’ll get later—no surprises. In this article, we’ll explain how this plan works, what you get, and whether it might suit your goals. Think of this as a conversation about how to lock in your family’s future.

What’s the ABSLI Guaranteed Milestone Plan?

At its core, the ABSLI Guaranteed Milestone Plan is a basic life insurance policy. It’s called non-linked, non-participating. That means your money doesn’t go into stock markets, and you don’t share in the company’s profits. Instead, the plan gives you:

Guaranteed returns at maturity: You get back the premiums you paid, plus extra amounts that add up each year.
Guaranteed death benefit: If the worst happens during the policy term, your family gets a fixed payout.
Guaranteed Additions: Small boosts that grow each year, adding to your final amount.

Because everything is guaranteed, there’s no market risk. This is good if you want a safe, predictable outcome.

Key Features—In a Nutshell

Here’s a quick list of what the plan offers:

Guarantees on death and maturity: These amounts are locked in as long as you pay all your premiums.
Guaranteed Additions: Think of these as little bonuses that pile up every year.
Flexible policy terms: Choose how long the plan lasts—12, 14, 16, 18, 20, 22, 24, or 26 years.
Sum Assured formula: It’s 15 times your yearly premium. If you pay ₹50,000 a year, your Sum Assured is ₹7,50,000.
Joint Life option: You can cover yourself and your spouse under one roof. If one person dies, the other still gets benefits.
Optional Riders: Add extra protection for critical illness, accidents, hospitalisation, or even a waiver of premium if you get disabled.
Payment modes: Pay yearly, half-yearly, quarterly, or monthly. Just know that non-annual payments come with small extra charges.
Policy loan: You can borrow up to 85% of your policy’s surrender value if you need cash.

These features let you pick a plan that matches your life stage—for example, saving for your child’s college or planning a home down payment.

Who Can Sign Up?

Before you make a decision, check if you’re eligible:

Age (last birthday): You can join from 30 days old up to 60 years.
Policy term: Pick anywhere from 12 to 26 years.
Minimum Sum Assured: ₹90,000.
Minimum annual premium: ₹15,000.
Premium bands:
- Band 1: ₹15,000–49,999 per year
- Band 2: ₹50,000–99,999 per year
- Band 3: ₹1,00,000 or more per year
Payment term: Depends on the policy term.
- For a 12- or 14-year policy, you pay premiums for 6 years.
- For a 16- or 18-year policy, you pay for 8 years.
- For a 20- or 22-year policy, you pay for 10 years.
- For a 24- or 26-year policy, you pay for 12 years.
Minimum maturity age: You must be at least 18 when the policy ends.

Joint Life option: If you and your spouse are both under 50, you can buy one policy for both of you. The main person has full coverage, and the spouse has 20% of that. No riders can go with Joint Life, and you can only stop the policy if one of you passes away.

Joint policies make sense for newlyweds who want to protect each other in a single, cost-effective plan.

How Premiums and Sum Assured Work

Sum Assured Explained

Your Sum Assured is always 15 times your annual premium. For example, if you pay ₹60,000 per year, your Sum Assured becomes ₹9,00,000. Simple math.

Why this multiple? It balances a good coverage amount with a premium you can actually afford. If you miss future premiums, your coverage shrinks (we call this Reduced Paid-Up), but your Guaranteed Additions until then still count.

Premium Bands and Extra Charges

ABSLI divides premiums into three bands. These bands determine extra charges if you don’t pay yearly:

Band 1 (₹15,000–₹49,999): No extra charge for non-annual payments.
Band 2 (₹50,000–₹99,999): If you pay half-yearly, add 2%; quarterly, add 4%.
Band 3 (₹1,00,000+): If you pay half-yearly, add 3%; quarterly, add 4%.

Paying annually is cheapest. But if you prefer smaller instalments, you can pay quarterly or monthly—just keep those extra charges in mind.

A Simple Example

Imagine a 35-year-old man chooses a 20-year policy with a ₹50,000 annual premium:

Policy Year	Total Premiums Paid (₹)	Total Guaranteed Additions (₹)	Sum Assured (₹)	Maturity Payout (₹)
5	2,50,000	28,860	7,50,000	3,17,460
10	5,00,000	86,580	7,50,000	4,61,760
15	7,50,000	1,44,300	7,50,000	5,19,480
20	10,00,000	2,88,600	(Not relevant)	12,88,600

By Year 10, his Guaranteed Additions total ₹86,580.
At maturity (Year 20), he gets ₹10,00,000 (all premiums) + ₹2,88,600 (Guaranteed Additions) = ₹12,88,600.
If he dies in Year 12, nominees receive:
1. ₹75,000 immediately (1/10ᵗʰ of ₹7.5 lakh), plus any extra from added bonuses.
2. ₹75,000 each year for the next nine years.
  Or they can choose a lump sum now at an 8.25% discount rate.

Knowing these numbers helps you plan—like figuring out how much you’ll need for your child’s college in 20 years.

What You Actually Get: Benefit Details

Death Benefit

If you pass away after the first year:

Sum Assured on Death: The plan pays whichever is higher of:
1. Your original Sum Assured (15× annual premium),
2. 105% of total premiums paid so far, or
3. 10× annualised premium.
Payment Style:
1. First, your nominee gets 1/10ᵗʰ of that amount immediately, plus any extra Guaranteed Additions above the Sum Assured.
2. Then nine more equal instalments at each policy anniversary.
Lump-Sum Option: Nominees can also opt to take all remaining instalments as one big, discounted payment at an 8.25% rate.

If you die in the first year—before the risk really kicks in—the plan simply refunds all the premiums you paid (minus taxes).

Joint Life Death Benefit

If both of you have a joint plan:

Primary Person Dies: The spouse (secondary life) gets the primary death benefit in instalments or a lump sum. From then on, the spouse is the only person covered. No more premiums are due. At the end of the policy, whatever the spouse is owed (premiums + additions) goes to their nominee.
Spouse Dies First: The primary person gets a lump sum equal to 20% of the original Sum Assured. The policy continues for the primary person, who keeps paying premiums. When the primary person passes away, the regular death benefit applies.
Both Die Together: The primary’s death benefit pays in instalments; the spouse’s 20% amount pays in one lump sum. The policy then keeps going (without any more premiums) until it matures, and the remaining maturity benefit goes to the nominee.

Joint Life is perfect for couples who want one policy to handle both of them. If one partner passes, the other still has coverage without extra payments.

Maturity Benefit

If you (and your spouse, if you choose Joint Life) live through the entire policy term, you get:

Sum Assured on Maturity: That’s just the total of all premiums you paid (excluding any extra riders or taxes).
Accrued Guaranteed Additions: All those yearly bonuses you earned along the way.

What Are Guaranteed Additions? They’re like a monthly “thank you” bonus based on how much you pay, your age, and your policy term. ABSLI promises to add these every year.

In our 35-year-old’s example (₹50,000 annual premium, 20-year term):

He gets ₹10,00,000 (premiums) + ₹2,88,600 (Guaranteed Additions) = ₹12,88,600 at maturity.

That money can fund your child’s college, go toward a home down payment, or serve as an early retirement cushion. Knowing exactly what you’ll receive helps you plan life’s big milestones.

Extra Protection: Rider Options

Want more coverage? You can tack on riders for specific situations. Note: Riders aren’t available if you pick Joint Life. Here are the main choices:

Accidental Death & Disability Rider
Critical Illness Rider
Surgical Care Rider
Hospital Care Rider
Waiver of Premium Rider
Accidental Death Benefit Rider Plus

A Few Rider Rules:

You can pick more than one, but if you want accidental death benefits, you have to choose either the basic Accidental Death & Disability or the Accidental Death Benefit Plus, not both.
For health-related riders (like Critical Illness), you can’t pay more than 100% of your base premium. Overall, rider premiums can’t exceed 30% of your base premium.
Each rider pays separately. If you qualify for multiple riders at once, you get every applicable payout.

Who Should Consider Riders?

Young Parents: A Critical Illness rider gives you a lump sum if you face a covered illness—think of it as a safety net for hospital bills.
HNIs: You might want surgical or hospital care riders to cover big medical costs.
Urban Workers: If your job is risky or you worry about getting disabled, a Waiver of Premium rider stops premiums if you can’t work, so your plan stays active.

Riders can bump up your protection, but they do cost extra. Weigh the cost against your needs, and maybe talk to an advisor for a personalised plan.

If You Miss Premiums: Reduced Paid-Up & Surrender

Life can be hectic. Sometimes you might miss a payment. ABSLI gives you options so your policy doesn’t just vanish.

Reduced Paid-Up (RPU) Option

If you stop paying premiums after you’ve paid at least one full year, the policy doesn’t end. Instead, it goes into Reduced Paid-Up. Here’s what happens:

New (Reduced) Sum Assured: Your original Sum Assured gets scaled down based on how many premiums you paid compared to the total you were supposed to pay.
Reduced Maturity Benefit: That’s also lower by the same proportion.
Guaranteed Additions: You keep all the additions you earned up until that first missed premium. But no new additions come after that.
Riders: Any riders you had will stop once your policy becomes RPU.

So, your family still has coverage—just less of it. And your maturity benefit still has those early bonuses you collected.

RPU Death Benefit

If you die under RPU status:

Nominees get one-tenth of your reduced Sum Assured immediately, plus any extra additions you had.
They get nine more equal payments every year.

If you had a joint plan and you (the primary person) die, the spouse’s RPU death benefit follows the same pattern, and the policy continues for the spouse. If the spouse (secondary person) dies first, the primary person gets a reduced lump sum equal to 20% of the original Sum Assured, and the policy stays active.

RPU makes sure your policy retains some value instead of just lapsing.

Surrendering Your Policy

If you want to exit completely, you can surrender your plan for a cash value. Here’s how it works:

Surrender in Year 1: You get a Special Surrender Value (SSV), but only at the end of Year 1.
Surrender in Year 2 or Later: You get whichever is higher:
1. Guaranteed Surrender Value (GSV)—a set percentage of all premiums you paid so far, or
2. SSV—a value ABSLI decides based on market conditions (subject to regulator approval).

Be careful. Early surrender values tend to be quite low. If you need cash, think twice before surrendering too soon. Sometimes it’s better to switch to RPU and keep some benefits.

Need Cash? Policy Loan to the Rescue

Traditional insurance plans like this let you borrow against your policy. Here’s the scoop:

When You Can Borrow: Once you finish Year 1, and your policy has acquired a surrender value.
How Much You Can Borrow: Up to 85% of that surrender value.
Minimum Loan Amount: ₹5,000.
Interest Rate: It’s usually SBI’s Base Rate + 1%. As of June 1, 2024, that’s about 11.10% per year. The rate can change each June.
Repayment: Interest adds up daily. If you owe more than your surrender value, the policy ends, and your family loses the benefits. ABSLI will give you a warning if that’s about to happen so you can pay back some or all of the loan.

Why Use a Policy Loan?

Medical Emergencies: Instead of liquidating your investments, you can borrow cheaper money (around 11% a year) against your policy.
Short-Term Needs: If you see a business opportunity or face sudden expenses, this loan can tide you over.
Avoid Market Risks: Pulling money from equities can hurt if the market is down. A policy loan stays steady.

Just remember, if you don’t repay the loan, your death and maturity benefits shrink. Always compare this rate with other loans before deciding.

How This Plan Actually Works—Step by Step

Let’s walk through the journey from start to finish:

Choose Entry Age & Gender
Figure out if you (and your spouse for Joint Life) fit the age rules.
Pick a Policy Term
Select how many years you want coverage—12, 14, 16, 18, 20, 22, 24, or 26. Keep your goals in mind (child’s college, home purchase, etc.).
Decide Your Annual Premium
The more you pay each year, the higher your Sum Assured (remember: Sum Assured = 15× annual premium).
Set Your Premium Payment Term
This depends on your policy length. For example, a 20-year policy means you pay for 10 years.
Pick How Often You Pay
Annual, semi-annual, quarterly, or monthly. Just know that extra charges apply if you don’t pay annually.
Add Riders (Optional)
If you want extra coverage—like critical illness or hospitalisation—select riders and add their premiums.
Get the Policy Issued
ABSLI might ask for a medical exam or health declaration. Once approved, your plan kicks in.
Pay Premiums on Time
Keep paying until your payment term ends. If you miss a payment, you have a grace period, and if you still don’t pay, your policy becomes RPU or lapses.
Watch Guaranteed Additions Grow
Every month, additions pile up. ABSLI credits them yearly.
Realise Your Benefits

On Death: Nominees receive the structured death benefit (instalments or lump sum).
On Maturity: You get back all premiums plus additions.
On Surrender: You get a cash value if you exit early.
Policy Loan: Available once you build some surrender value.

This roadmap helps you see exactly what you’re signing up for and what to expect at each stage.

Fine Print & Possible Pitfalls

No plan is perfect. Here are some details and risks to keep in mind:

Free-Look Period (30 Days)
After you get the policy, you have 30 days (15 days if bought online) to review. If you’re not happy, return it. They’ll refund your premiums minus any risk charges, medical exam costs, and taxes.
Grace Period
You get 30 days extra for yearly, half-yearly, or quarterly payments. Monthly payments get 15 days extra. If you still don’t pay:
- If you didn’t pay at least one full year, the policy lapses—no benefits, unless you surrender (Section 7.2).
- If you paid one full year, it becomes Reduced Paid-Up (Section 7.1).
Revival Window
You have up to five years from the first missed premium to revive your policy. Pay all outstanding premiums plus interest (around 1% per month), and show that you’re still insurable. Then your plan goes back to normal.
Early Surrender Warning
If you exit too soon—especially before Year 5—you usually get very little back. Think twice before giving up on the policy early.
Suicide Clause
If the life insured dies by suicide within 12 months of starting or reviving the policy, the nominee only gets the higher of the surrender value or total premiums paid (minus taxes).
Loan Risks
If your outstanding loan balance grows to match or exceed your surrender value, the policy ends. Your family loses all death and maturity benefits. ABSLI will give you a heads-up before this happens.
Tax Rules
- Premiums qualify for Section 80C deductions (up to ₹1.5 lakh per year).
- Maturity proceeds are usually tax-free under Section 10(10D), unless your total premiums across all policies exceed ₹5 lakh in a year. In that case, the payout becomes taxable from April 1, 2023.
Regulatory Changes
Things like surrender value rates, loan interest rates, and rider rules can change if the insurance regulator (IRDAI) says so.

Knowing these details helps you stay on track and avoid nasty surprises.

About Aditya Birla Sun Life Insurance (ABSLI)

It’s important to trust the company behind your plan.

Started: ABSLI began in August 2000 and started selling policies in January 2001.
Joint Venture: It’s a 51:49 partnership between Aditya Birla Group (India) and Sun Life Financial (Canada).
Big Numbers: As of June 30, 2024, ABSLI managed assets worth ₹90,682 crore—up 22% from last year. In the first quarter of Fiscal Year 2025, they brought in ₹3,986 crore in premium income—28% more than last year.
Reach: Over 380 branches, 11 bancassurance partners, six distribution channels, and 56,000+ direct agents. They serve more than 20 lakh active customers and have 25,000+ employees.
Parent Company: Aditya Birla Capital handles ₹4.63 lakh crore in assets and a ₹1.27 lakh crore lending book as of June 30, 2024. The Aditya Birla Group itself is a Fortune 500 conglomerate with US$66 billion in revenue.

All of this means ABSLI has the strength and reach to back up its long-term promises.

FAQs: Your Quick Questions Answered

What’s the youngest you can join?
You can start from 30 days old, all the way up to 60 years.
Can I pay monthly?
Yes. Just remember there’s a 4% extra charge if your annual premium is ₹50,000 or more. Band 1 folks (₹15,000–₹49,999) pay no extra for non-annual modes.
How do I know my Guaranteed Additions?
They depend on your premium band, age, and policy term. Ask your advisor for a personal illustration—it’ll show you the exact numbers.
Is the death benefit a lump sum?
By default, it’s spread over 10 years in equal instalments. If your family wants the whole amount at once, they can take a discounted lump sum at 8.25% p.a.
What if I miss a payment after Year 1?
Your policy becomes Reduced Paid-Up. You’ll still have some coverage and keep the additions you already earned, but your benefits shrink, and any riders stop.
Can I surrender early if I need cash?
You can. After Year 1, you get a Special Surrender Value (SSV). After Year 2, you get the higher of Guaranteed Surrender Value (GSV) or SSV. Just know early surrenders usually give low returns.
What riders can I add?
You can add Critical Illness, Accidental Death & Disability, Surgical Care, Hospital Care, Waiver of Premium, or Accidental Death Benefit Plus. Health riders can’t cost more than 100% of your base premium. Total riders can’t exceed 30% of your base premium.
How do I find my Sum Assured?
Multiply your annual premium by 15. So, if you pay ₹60,000 a year, your Sum Assured is ₹9,00,000.
Can I borrow against the plan?
Yes—once Year 1 is over, you can borrow up to 85% of your surrender value at roughly 11.10% interest. Remember, any unpaid loan reduces your plan’s benefits.
Are my premiums tax-deductible?
Yes—under Section 80C, up to ₹1.5 lakh per year. Maturity benefits are tax-free under Section 10(10D) unless all your premiums go over ₹5 lakh in one year; then the payout becomes taxable after April 1, 2023.

Pros and Cons: Let’s Weigh It

Choosing a life insurance plan means balancing safety, cost, and flexibility. Here’s what’s great and what to watch out for:

Pros

Guaranteed Payouts: You know what you’ll get at the end—no market ups and downs.
Steady Growth: Guaranteed Additions build your corpus year after year.
Joint Coverage: One policy can protect both spouses, and if one passes, the other still has benefits.
Loan Option: Tap into your plan for cash at about 11% interest.
Rider Choices: Add protections for critical illness, disability, and more.
Tax Savings: Premiums under Section 80C, and usually tax-free maturity under Section 10(10D).

Cons

Low Early Surrender Value: If you quit in the first few years, you get very little back.
RPU Shrinks Benefits: Stop paying premiums after Year 1, and your coverage drops. Riders end.
Loan Interest Risk: If rates rise, your loan rate can go up, too.
Strict Payment Terms: For a 20-year policy, you still pay only 10 years—but that can feel tight if money’s tight.
No Market Upside: You give up the chance for higher returns if you invest in stocks.

If you prefer safety and certainty over risk and big returns, these advantages outweigh the drawbacks. But if you’re comfortable with market swings, you might combine this plan with other investments.

A Modern Take: Why It Works for Today’s Urban Lifestyle

With so many insurance plans promising high returns, it’s easy to feel lost. Many of those plans invest in stocks. Then you end up watching your money bounce around with the market.

The ABSLI Guaranteed Milestone Plan skips all that stress. It’s like setting up a slow, steady drip irrigation for your finances—you know exactly how much water your plant gets each day. No need to check the weather or worry about droughts.

Predictable Growth: If you want to buy a home in 10 years, you can figure out exactly how much you’ll need by then.
Peace of Mind: Busy professionals can stop worrying about quarterly market reports. They know their family has guaranteed protection.
Solid Foundation: HNIs can use this as the guaranteed “safe” part of a mixed portfolio. It balances out riskier bets like stocks or real estate.

In short, the plan is for people who prefer a clear, no-nonsense approach. It’s not about swinging for the fences—it’s about laying a steady path so your family hits every important milestone.

Is This Plan Right for You?

Let’s wrap up what we’ve learned. The ABSLI Guaranteed Milestone Plan is basically a combo of protection plus a savings account you can’t lose money on.

Young Professionals: If you’re juggling rent, EMIs, and living expenses, this plan locks in a definite amount by retirement or when your kid heads to college.
Newly Married or Young Parents: Joint Life means you and your spouse share one policy. If one of you passes away, the other still gets coverage without extra payments.
HNIs: Use this as the “fixed-income” part of your portfolio. It’s the safe block that balances riskier assets.

Your Takeaway

You get guaranteed money if you live through the policy term—no market worries.
If something happens to you, your family gets a set benefit, paid out over the years or as a lump sum.
You have options: riders for extra health cover, policy loans for emergencies, and a safety net if you need to stop paying premiums.
ABSLI’s strong track record means they’re likely to honour these promises for decades.

Ultimately, this plan is for you if you want stability. If you crave big potential gains and can handle market swings, you might look at other options or mix them together. But if you want a solid, guaranteed base for your family’s future, this plan deserves a closer look.

Folio of FAQs—Quickly Again

Entry Age: From 30 days to 60 years.
Payment Modes: Monthly, quarterly, semi-annual, annual (annual is cheapest).
Guaranteed Additions: Based on your premium, age, and term. Ask for a personalised quote.
Death Benefit: Usually paid in 10 instalments, or as a discounted lump sum.
Missed Premiums: After Year 1, the policy becomes Reduced Paid-Up with lower benefits.
Early Surrender: Available, but better to wait a few years for more value.
Riders: Critical Illness, Accidental Death, Hospital Care, etc. They have limits on how much you can pay for them.
Sum Assured: 15× your annual premium.
Policy Loan: Up to 85% of surrender value at about 11.10% interest.
Tax: Premiums under Section 80C; maturity under Section 10(10D), unless your total premiums exceed ₹5 lakh in one year.

Wrapping Up & Next Steps

You’ve seen how the ABSLI Guaranteed Milestone Plan works, its pros and cons, and the numbers behind it. Now, it’s up to you to decide if it fits your goals and budget. If you’re unsure or have any questions about the details, the numbers, or how it might work for your situation, please get in touch. We’re here to help you figure out if this plan makes sense or if another option might suit you better.

Have questions? Feel free to reach out to us for personalized guidance.

This guide uses details from the official ABSLI Guaranteed Milestone Plan Brochure and Policy Contract to keep everything accurate.

Reputable Sources Referenced

ABSLI Guaranteed Milestone Plan Official Brochure

ABSLI Guaranteed Milestone Plan Official Policy Contract

About the Author:

Mandar P is the founder of Secure My Wish and brings over two decades of experience in the personal finance space. He’s certified as a POSP under IRDAI and also holds AMFI certification for mutual fund distribution.

Disclaimer:

This article provides general information only and does not constitute financial advice. Financial regulations, product terms, and industry guidelines are revised from time to time. While we have made efforts to ensure the accuracy of the information presented, we do not guarantee its completeness or accuracy. We disclaim any liability for loss or damage arising from actions taken based on the information provided in this article. To make informed financial decisions, please do your own research and consult with a qualified financial professional.