SBI LIFE is offering five types of SBI pension plan. Although, by name all look same pension plans but all these SBI pension policy are quiet different from each other.
This blog post will help you comprehend the Pension plan SBI. These Retirement plans SBI will help you plan better for your second inning.
Table of Contents
SBI Pension Plan
Here are all available SBI Pension Plan Schemes.
- SBI Life Retire Smart Plus – ULIP Pension Plan
- SBI Life Retire Smart -ULIP Pension Plan
- SBI Life Saral Retirement Saver – Traditional Low premium plan
- SBI Life Saral Pension – Traditional Immediate Annuity Plan
- SBI Life Smart Annuity Plus
SBI Life Retire Plus
SBI Life Retire Plus is a unit linked pension plan . Here, you pay a premium for a certain duration ( regular/limited pay or one time) and accumulate Retirement corpus through market linked returns with a choice of 07 varied fund options.
In addition you get Loyalty Additions of 0.3% of fund value every year starting from end of 15th Policy year and Terminal Addition of 1.5% of the Fund Value.
SBI Life Retire Plus –Key Benefits
- Retirement corpus creation through market linked returns with choice of 07 varied fund options
- Flexibility to cater to your changing needs.
- Loyalty Additions and Terminal Addition to boost fund value.
- Maturity benefit
Maturity/ Vesting Benefit:
At maturity you will receive the following
Fund Value as on the date of maturity/ vesting Plus Terminal Addition(Terminal Addition is 1.5% of maturity/vesting Fund Value).
Ways to utilize the corpus:
- Purchase immediate annuity or deferred annuity from SBI at the then prevailing annuity rate. OR
- Commute up to 60% corpus and utilize the balance amount to purchase immediate annuity or deferred annuity from SBI at the then prevailing annuity rate. OR
- However, you shall be given an option to purchase immediate annuity or deferred annuity from any other insurer at the then prevailing annuity rate to the extent of percentage, stipulated by Authority (IRDAI), currently 50% of the entire proceeds of the policy net of commutation. OR
- To extend the accumulation period or deferment period within the same policy with the same terms and conditions as the original policy provided you are below an age of 60 years.
Death Claim
In case of an unfortunate event of death of the Life Assured (while the policy is in force), Higher of below two is paid,
- A Fund Value Plus Terminal Addition( 1.5% of the Fund Value)
- 105% of the total premiums received up to the date of death less Applicable Partial Withdrawal
SBI Life Retire Plus
SBI Life Retire Plus is also a unit-linked pension plan with a unique feature of a minimum assured maturity amount. This SBI Retirement plan have the below mentioned benefits:
Key Benefits :
- Build a retirement corpus through market-linked returns
- Safeguard your Guaranteed Maturity Benefit( Guaranteed maturity benefit of 101% of total premiums paid) against market volatility under ‘Advantage Plan’
- Guaranteed Additions up to 210% of Annual Premium to boost fund value ( applicable for policy term of 35 years under Regular/Limited Plan. )
Maturity/Vesting Benefit:
At maturity you will get higher of following two;
- Fund Value and terminal addition (1.5% of the maturity/vesting fund value )
- 101% of total premium paid
Ways to utilize the corpus:
- Purchase immediate annuity or deferred annuity from SBI at the then prevailing annuity rate. OR
- To commute up to 60% and utilize the balance amount to purchase immediate annuity or deferred annuity from SBI at the then prevailing annuity rate. However, you shall be given an option to purchase immediate annuity or deferred annuity from any other insurer at the then prevailing annuity rate to the extent of percentage, stipulated by Authority (IRDAI), currently 50% of the entire proceeds of the policy net of commutation. OR
- To extend the accumulation period or deferment period within the same policy with the same terms and conditions as the original policy provided you are below an age of 60 years.
Death Claim
In case of an unfortunate event of death of the Life Assured while the policy is in force, Higher of below two is paid,
- Fund Value as on the date of intimation of death claim Plus Terminal Addition( 1.5% of the Fund Value)
- 105% of the total premiums received up to the date of death less Applicable Partial Withdrawal
SBI Life – Saral Retirement Saver
SBI Life – Saral Retirement Saver is a simple Retirement traditional plan which helps you build a retirement corpus for your post-work life while securing your family’s future.
Key Benefits :
- Build a retirement corpus through guaranteed simple reversionary bonuses (Bonuses for first 5 policy years are guaranteed @ 2.50% for first three policy years and @2.75% for the next two policy years of the basic sum assured)
- Start saving for future income as early as from 18 years of age
- Protect your loved ones with an option of additional life cover through rider^
Maturity/Vesting Benefit:
At maturity you will get higher of following two;
- Basic sum assured plus vested Simple Reversionary bonus plus Terminal bonus,
- Total premiums received and accumulated interest rate of 0.25% p.a. compounding annually +vested Simple Reversionary bonus plus Terminal bonus,
Ways to utilize the corpus:
- Purchase immediate annuity or deferred annuity from SBI at the then prevailing annuity rate.OR
- To commute up to 60% and utilize the balance amount to purchase immediate annuity or deferred annuity from SBI at the then prevailing annuity rate. However, you shall be given an option to purchase immediate annuity or deferred annuity from any other insurer at the then prevailing annuity rate to the extent of percentage, stipulated by Authority (IRDAI), currently 50% of the entire proceeds of the policy net of commutation.
Death Claim
In case of an unfortunate event of death of the Life Assured while the policy is in force,
Higher of below two is paid,
A total premium received up to the date of death accumulated at an interest rate of 0.25% p.a. compounded annually plus vested simple reversionary bonus plus terminal bonuses,
B 105% of the total premiums received up to the date of death less Applicable Partial Withdrawal
SBI Life – Saral Pension ( SBI Pension Plan one time investment)
SBI Life – Saral Pension is an immediate annuity plan wherein you have to pay a lump sum amount and start taking pension on immediate basis. This SBI monthly pension plan offer pension immediately after payment ( from next month).
Annuity Options:
| Life Annuity with Return of 100% of Purchase Price( ROP) | Annuity is payable in arrears ( at the last pr chosen duration)at a constant rate throughout the life of the Annuitant. | On death of the Annuitant, all future annuity payouts cease immediately and the purchase price is refunded to the nominee/legal heirs. |
| Joint Life Last Survivor Annuity with Return of 100% of Purchase Price#(ROP) on death of the last survivor: | Annuity is payable in arrears at a constant rate till the primary annuitant is alive | On death of the primary annuitant, if the spouse is surviving, the spouse continues to receive same amount of annuity for life till his/her death. On the death of last survivor the purchase price shall be payable to the nominee/legal heirs. If the spouse has predeceased the primary annuitant, then on the death of the primary annuitant, the Purchase price shall be payable to the nominee / legal heirs. |
- The annuity payout is guaranteed throughout the life of the annuitant.
- The Annuity amount depends upon the Annuity Option and mode of annuity payment chosen by the policyholder.
Tax Benefit:
Income Tax benefits/ exemptions are as per the applicable income tax laws in India, which are subject to change from time to time.
SBI Life – Smart Annuity Plus
SBI Life Smart Annuity Plus is also a traditional annuity plan with many other benefits attached to it. One can choose any option of annuity.
- Deferred annuity – Means you wait fro few years and then take pension from the plan
- Immediate annuity- means pension is started on immediate basis.
Key Benefits:
- Guaranteed Lifetime Regular Income available from age 30 yrs
- Freedom to choose from wide range of Annuity Options
- Benefit of higher annuity payouts for large premium
Life Annuity (Single Life):
- Life Annuity : Annuity is payable at constant rate for life of annuitant and ceases immediately on death and the contract terminates.
- Life Annuity with Return of Purchase Price: Annuity payable at constant rate for life of annuitant which ceases on death and purchase price is returned to the nominee and the contract terminates.
- Life Annuity with Return of Balance Purchase price: Annuity is payable at a constant rate throughout the life of annuitant. On death, the balance purchase price# (which will be equal to the purchase price less sum total of annuity payments already received by the annuitant, if any) will be paid. If this balance is not positive then no death benefit is payable, all future annuity payouts cease immediately and the contract terminates.
- Life Annuity with Annual SIMPLE Increase of 3% or 5% : An increasing annuity is payable throughout the life of the annuitant which is increased by a simple rate of 3% or 5% per annum for each complete policy year, as per the option chosen. On the death of the annuitant, all future payouts cease immediately and the contract terminates.
- Life Annuity with Certain Period of 10 years or 20 years: Annuity is payable at a constant rate for a fixed period of 10 or 20 years, as per the option exercised; and thereafter the same annuity amount is payable throughout the life of the Annuitant.
Scenario 1: If the annuitant dies within the pre-defined period of 10 or 20 years, annuity payouts will still continue to be paid to nominee till the end of the chosen period, thereafter the annuity payouts cease and the contract terminates.
Scenario 2: If the annuitant dies after the pre-defined period of 10 or 20 years, the annuity payouts cease immediately on death of the annuitant and the contract terminates. - Life Annuity with Annual COMPOUND Increase of 3% or 5% : An increasing annuity is payable throughout the life of the annuitant which is increased by a compound rate of 3% or 5% per annum for each completed policy year, as per the option chosen. On the death of the annuitant, all future annuity payouts cease immediately and the contract terminates.
- Deferred Life Annuity with Return of Purchase Price** (Option 1.10):
i) Annuity is payable at a constant rate throughout the life of the Annuitant after the end of the deferment period.
ii) On death of the Annuitant during the deferment period, the death benefit payable to the nominee shall be higher of:
a. 100% of Purchase Price plus (+) Guaranteed Additions accrued till date of death.
b. 105% of Purchase Price. And all the future benefits/annuity payments cease immediately and the contract terminates.
iii) On death of the Annuitant after the end of deferment period, the death benefit payable to the nominee shall be higher of:
a. 100% of Purchase Price plus (+) Guaranteed Additions accrued during the deferment period minus (-) Total Annuity paid out till date of death of annuitant.
b. 100% of Purchase Price. And all the future benefits/annuity payments cease immediately and the contract terminates.
iv) Where Guaranteed Addition per month =Total Annuity payable in a policy year/12.
v) Guaranteed Additions accrued at the end of every policy month during the Deferment Period.
2. Joint Life Annuity (Two Lives):
- Life and Last Survivor 100% Annuity (Option 2.1): Annuity is payable at a constant rate till the primary annuitant is alive. On death of the primary annuitant, 100% of the last annuity payout will continue throughout the life of the surviving second annuitant. On death of the last survivor, annuity payouts will cease immediately and the contract terminates. If the Secondary annuitant pre-deceases the primary annuitant, nothing is payable after the death of primary annuitant and the contract terminates.
- Life and Last Survivor 100% Annuity with Return of Purchase Price** (Option 2.2): Annuity is payable at a constant rate till the primary annuitant is alive. On death of the primary annuitant, 100% of the last annuity payment will continue throughout the life of the surviving second annuitant. On death of the last survivor, we will refund the purchase price to the nominee, all future annuity payouts cease immediately and the contract terminates.
- Deferred Life and Last Survivor Annuity with Return of Purchase price** (Option 2.3):
i) Annuity is payable at a constant rate till the primary annuitant is alive after the end of the deferment period.
ii) On the death of the primary annuitant, second annuitant (if live at that time) will receive a life annuity, which will be 100% of the last annuity amount paid to the primary annuitant, as opted for. If the second annuitant pre-deceases the primary annuitant, annuity payments cease on the death of the primary annuitant.
iii) On the death of the last survivor during the deferment period, the death benefit payable to the nominee shall be higher of:
a. 100% Purchase price plus (+) Guaranteed Additions accrued till the date of death.
b. 105%Purchase Price. And all future benefits/annuity payments cease immediately and the contract terminates
iv) On death of the last survivor after the end of deferment period, the death benefit payable to the nominee shall be higher of:
a. 100% of Purchase price plus (+) Guaranteed Additions accrued during the deferment period minus (-) Total Annuity paid out till date of death of last survivor.
b. 100% of Purchase price. And all the future benefits/annuity payments cease immediately and the contract terminates
v) Where Guaranteed Additions per month= Total Annuity payable in a Policy year/12
vi) Guaranteed Additions accrue at the end of every policy month during the deferment period
Conclusion
SBI life Retire Smart and Retire Smart Plus are both unit linked Pension plan. SBI Life Saral Retirement saver is a simple retirement pension plan wherein you pay premium regularly and tend to accumulate a corpus to get pension in future.
While SBI Life Saral pension plan is an immediate annuity plan wherein you pay a lump sum amount and start taking pension on an immediate basis. This plan provides the option of return of purchase price and surrender of policy feature in case diagnosed with a critical illness.
While SBI Life Smart annuity plus is an deferred/ immediate annuity plan with a wide range of annuity options.
Taking the first steps towards long-term financial success.
You can always work with a Certified Financial planner and plan your finances, including Emergency funding, building a corpus for house purchase, and taking care of your health needs so that you can plan a better retirement income in your second inning, leading to a more secure and financially stable retirement.
