Overview
Retirement planning in India is of seminal importance given the rising rate of life expectancy, increasing health care expenses and dearth of robust social security measures among others. You should plan ahead to ensure that you can maintain the same lifestyle and meet any unforeseen expenses when you are old and grey. SBI Life is currently offering three pension plans for the benefit of customers. is one of the plans being offered. This is an individual, non-linked, participating traditional pension plan, which provides a secure future retirement.
Table of Contents
Premiums are paid during the policy term. The minimum sum assured is Rs.1 lakh while there is no limit to maximum. Minimum premium is Rs.7,500 p.a while there is no limit to maximum. Upon vesting, the proceed will be sum assured, vested simple reversionary bonus and terminal bonus. Upon death, the nominee will receive the total premiums paid at 0.25% p.a compounded annually in addition to the vested simple reversionary bonus and terminal bonus, if any.
Eligibility Conditions of SBI Life - Saral Pension Plan
Age |
Minimum: 18 years Maximum: 65 years (single premium); 60 years (regular premium) |
Age (vesting) |
Minimum: 40 years Maximum: 70 years |
Key Features of SBI Life - Saral Pension Plan
Type |
Individual, non-linked traditional participating pension plan |
Policy Term |
Minimum: 5 years (single premium), 10 years (regular premium) Maximum: 40 years |
Premium |
Minimum: Rs.7,500 p.a Maximum: No limit |
Premium Frequency |
Single, yearly, half-yearly, monthly |
Sum Assured |
Minimum: Rs.1 lakh Maximum: No limit |
Coverage |
Vesting Benefit: The vesting benefit is equal to the sum assured, vested simple reversionary bonus and terminal bonus. Customers have the following options:
Death Benefit: In the event of death of the policyholder, the proceed will be higher of total premiums paid at 0.25% p.a. compounded annually in addition to vested reversionary bonus and terminal bonuses or 105% of total premiums will be paid to the nominee. The nominee will have the following options:
|
Paid Up Value |
Regular premium Policy acquires a paid-up value if three years premium has been paid. Sum Assured on maturity will be reduced on the basis of the number of premiums paid to the total number of premiums payable. |
Freelook period |
15 days |
Grace period |
30 days |
Reinstatement |
Policy can be revived within three years of the due date of the first unpaid premium |
Surrender |
Regular premium: Surrender will be provided after 3 years provided the premiums are paid for the said period Single premium: Surrender will be provided after 1 year provided the premiums are paid for the said period |
Benefits of SBI Life - Saral Pension Plan
Tax Benefits |
Customers are eligible for Income Tax benefits as per the IT Act, 1961 |
Benefits |
|
Rider
Rider |
SBI Life - Preferred covers death of the life assured. It is an additional cover over the base product. As part of this rider, premiums can be paid as single or regular premium. |
Age |
Minimum: 18 years Maximum: 65 years |
Type |
Non-linked individual rider |
Premium Frequency |
Single, yearly, half-yearly, quarterly, monthly |
Term |
Minimum: 5 years Maximum: 30 years |
Premium Paying Term |
One year (single premium) Same as policy term (regular premium) |
Sum Assured |
Minimum: Rs.25000 x1000 Maximum: Rs. 50,00,000 Rider sum assured will be equal to or less than sum assured |
Coverage |
Death Benefit: Paid upon death before maturity Surrender: No surrender benefit for regular premium and will be paid only for single premium No maturity benefit is available |
Grace Period |
Depends upon the base product |
Revival |
Depends upon the base product |
GST of 18% is applicable on life insurance effective from the 1st of July, 2017