If you want a predictable, contractually guaranteed income for a fixed period after you finish paying premiums — and you like the idea of loyalty additions and an option to convert future income into a lump sum — ABSLI Secure Plus is a product to study closely. This post breaks the plan down simply, explains the core mechanics (income benefit, loyalty addition, commutation), walks through the brochure’s real illustration (Mr Sharma), and flags the exact surrender / paid-up rules you must know.
What is ABSLI Secure Plus, in one sentence?
ABSLI Secure Plus is a non-linked, non-participating savings life insurance plan that lets you pay premiums for a limited period, and then receive guaranteed income for a chosen payout period — with loyalty additions and a commutation (lump-sum) option after the policy term. It also provides life cover throughout the policy term and several optional riders.
The core benefits of ABSLI Secure Plus
Guaranteed Income for your chosen Benefit Payout Period (6/8/10/12 years options).
Loyalty Additions that increase your income benefit during the payout. (Paid only if all premiums are paid.)
Commutation option — convert outstanding future income to a discounted lump sum (calculated using a discount rate).
Staggered Death Benefit option — nominee can choose instalments (annual or monthly) over 5 years instead of a lump sum.
Optional Riders — accidental death benefit, critical illness, surgical care, hospital care, waiver of premium (subject to terms).
How the income works
You choose a Premium Payment Term (PPT) and Policy Term (PT) at inception; the Benefit Payout Period (when income is paid) starts after the Policy Term ends. PPT, PT and Benefit Payout Period choices are made at inception and cannot be changed later.
Income Benefit is expressed as a percentage of your Annualised Premium — the exact percentage depends on your age at entry, premium band, PPT, PT and chosen Benefit Payout Period. The policy documents include lookup tables for the exact percentages.
Modal factors apply if you choose semi-annual/quarterly/monthly payouts (annual → semi-annual/quarterly/monthly conversion factors are specified).
If all due premiums are paid, Loyalty Additions are added during the Benefit Payout Period to enhance the Income Benefit.
Death benefit
If the life insured dies during the Policy Term while the policy is in force, the nominee receives the Sum Assured on Death, defined as the higher of: (a) 150% of total premiums paid to date, or (b) the Sum Assured (a multiple of annual premium chosen at inception).
The claimant may opt for the Staggered Death Benefit — instalments over 5 years (annual or monthly) with percentages and total payments illustrated in the policy (percentages calculated using a 4.40% p.a. interest basis). If instalments were chosen and later the claimant prefers a lump sum, a discounted value (using stated monthly discount factors) will be paid — always at least equal to Sum Assured less instalments already paid.
Maturity & commutation
At the end of the Policy Term, you can either:
Let Income Benefits be paid during the Benefit Payout Period, or
Elect the commutation option to receive a discounted lump sum (commuted value of outstanding benefits). That lump sum will be at least equal to Total Premiums Paid less any Survival Benefit already paid. The commutation calculation currently uses discounting factors (example rates appear in the policy — e.g., 9.28% referenced for commutation calculations), but factors may change subject to IRDAI approval.
Example cited in the brochure
The brochure’s working example shows how the ABSLI Secure Plus plan behaves in practice — helpful to understand timing and cashflow logic (not a generic promise of returns).
Mr Sharma, age 35, pays ₹1,00,000 p.a. for 12 years (PPT = 12), takes a Policy Term = 13 years and Benefit Payout Period = 12 years, Sum Assured = ₹12,50,000. If he survives to the end of the policy term, his illustrated Annual Income = 140% of Annualised Premium → ₹1,40,000, and Loyalty Addition is shown as 50% of Income Benefit = ₹70,000, leading to a combined Survival Benefit of ₹2,10,000 p.a. during the payout period. The brochure also shows the death scenario (death in year 7) where the Sum Assured (₹12.5 L) is paid to the nominee and the policy terminates. Use this example to see how premiums, PPT, PT and payout period interplay.
Surrender, paid-up & revival
Surrender value exists once one full year’s premium is paid; special surrender value (SSV) and guaranteed surrender value (GSV) rules apply. If only the first year’s premium is paid and you surrender in the first year, SSV applies; if the first two years’ premiums are paid, the surrender payable is the higher of GSV or SSV. GSV factors by policy term and year are printed in the policy contract (the contract lists exact % factors per surrender year & PT).
Reduced Paid-Up (RPU): If you stop paying after at least one full year, the policy becomes RPU — benefits continue but reduced proportionally by the RPU factor (ratio of premiums paid to total premiums payable). RPU policies do not get Loyalty Additions, and attached riders cease. The RPU Death Benefit is at least 150% of Total Premiums Paid.
Revival: You can revive a lapsed/RPU policy within the revival window (5 years from the first unpaid premium) by paying arrears plus interest and satisfying underwriting.
Riders available with ABSLI Secure Plus
Riders available include: Accidental Death Benefit Rider Plus, Critical Illness Rider, Surgical Care Rider, Hospital Care Rider, and Waiver of Premium Rider. Rider availability and limits (e.g., rider premium caps, age restrictions) and exclusions are detailed in the CIS and rider brochures; note that riders may not be available through POS channels. Suicide and hazard exclusions apply as described in the rider documents.
Who this plan is best for
Based on the brochure and contract, ABSLI Secure Plus suits three main groups:
Parents saving for a near-term milestone (education/wedding / large one-time expense) who want a predictable income or the option to commute to a lump sum.
Conservative savers who prefer contractual guarantees (income % of premium + loyalty additions) over market exposure.
People who want combined protection + scheduled income — life cover during the term, with an income revival option for the family if death occurs during payout.
Not ideal for people who need high liquidity in the short term or are chasing equity-like returns — surrender/paid-up rules materially reduce outcomes if you exit early.
Pros & Cons of ABSLI Secure Plus
Pros
Predictable, contractually-defined income; loyalty additions boost payouts if all premiums are paid.
The commutation option gives flexibility to turn future income into a lump sum.
Staggered Death Benefit provides structured payouts to nominees (annual/monthly instalments).
Cons
Complex lookup tables — income % depends on many inputs; always request a personalised illustration.
Early surrender or discontinuance can sharply reduce value (check GSV/SSV tables).
Some conversion/discount rates (for commutation or instalment conversions) are subject to revision with IRDAI approval.
Decision checklist for ABSLI Secure Plus
Ask for a personalised benefit illustration (your age, premium, PPT, PT and payout period).
Confirm the income % applicable to your exact profile (tables in policy).
Check GSV/SSV and RPU tables for the policy term you consider (surrender pain is highest early).
Decide commutation vs income ahead of time — understand discounting rules used for lump-sum conversion.
Income Benefit starts during the Benefit Payout Period, which commences after the end of the Policy Term and is selected at inception.
Can I change the Benefit Payout Frequency later?
Yes — you can change payout frequency (annual/semi/quarterly/monthly) during the Policy Term or Benefit Payout Period; changes become effective on the subsequent policy anniversary.
What is the minimum premium?
Minimum annualised premium banding and modal factors are shown in the official brochure of ABSLI Secure Plus (minimum ₹50,000 annualised in the standard POS specification). Check the product specs for current bands.
What happens if I die during the Benefit Payout Period?
If death occurs during the Benefit Payout Period, Income Benefit and Loyalty Addition continue to be paid to the nominee; the nominee also has commutation/lump-sum options as per policy terms.
Can I surrender the ABSLI Secure Plus policy?
Yes — Surrender Value rules depend on how many premiums are paid; after one full year, you may be eligible for SSV; after two year,s you get the higher of GSV/SSV (GSV factors are tabulated in the policy).
Final word
ABSLI Secure Plus is a clarity-first product: you get contractual income percentages, loyalty additions, and a clear commutation option — a good fit if you want predictable payouts for a planned future need. The trade-off is classic: certainty and protection in exchange for less liquidity and no market upside. Always request a personalised illustration, check surrender/RPU tables for your exact PT, and consider an emergency fund so you don’t have to exit early.
Got more questions? Don’t hesitate to reach out! We’re here to help you get personalised guidance.
This blog post references content from the official ABSLI Secure Plus brochure and policy contract to ensure factual accuracy.
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.
