SBI Life - Saral Pension Plan

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.

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:

  • Buy annuity from the policy proceeds

  • Buy annuity with an option to commute up to 1/3rd of policy proceeds.

  • Use proceeds to purchase a single premium deferred product.

  • Extend the accumulation period or defer the vesting date, provided the individual is below 55 years on vesting (maximum: 70 years)

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:

  • Get proceeds as lump sum and use them for buying an annuity.

  • Annuity rates will be based on the on the annuity product.

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

  • Guaranteed simple reversionary bonus is offered at 2.5% for the first three years and 2.75% for the remaining two years. Simple reversionary bonuses will be declared thereafter.

  • Customers can defer their vesting date till 70 years.

  • Customers can also opt for additional life cover through preferred term rider.

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

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