Insurance Plans 244 views March 11, 2020

Saral Pension Plan of SBI Life

Saral Pension Plan of SBI Life is a pension plan for individuals to secure their life after retirement.

This pension product helps individuals meet their post-retirement financial needs without any hassle. It provides security, reliability, and protection through retirement corpus, reversionary bonuses, and optional rider.

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Features of Saral Pension Plan of SBI Life

The features of Saral Pension Plan of SBI Lif are as follows:

  1. Security with retirement corpus: One of the main key features of Saral Pension Plan of SBI Lif is that it helps the plan holders build a retirement corpus which is useful in determining investments needed to live a comfortable life post-retirement.
  2. Saral Pension Plan of SBI Lif is a traditional pension plan with additional benefits such as protection through term riders.
  3. This plan secures your and your family’s future post-retirement by providing income during your retirement years.
  4. Guaranteed reversionary bonuses: The policyholder is entitled to receive simple reversionary bonuses at regular intervals throughout the policy term. This pension plan ensures guaranteed simple reversionary bonuses for the first 5 years of the policy for in-force policies. During the first three policy years, the rate is 2.50% after which it is 2.75% for the remaining two years.
  5. Preferred term rider: The Pension plan holders get an optional life cover through SBI life.
  6. Premium: The minimum premium to be paid under this plan is Rs 7,500 p.a and there’s no limit for the maximum premium.
  7. Premium payment: The payment of premiums on the plan can be made yearly, half-yearly or monthly on a regular basis during the tenure of the plan.
  8. Paid-up value: Paid-up value is the reduced amount of sum assured on maturity by the insurance company, in case the customer discontinues payment of premiums. In the case of the Saral Pension Plan of SBI Lif, the Paid-up value is based on the number of premiums paid to the total number of premiums payable.
  9. Tax: 18% GST is applicable to the pension plan.

Benefits of Saral Pension Plan of SBI Lif

  1. Tax Benefits: Customers will be entitled to certain Tax Benefits as per IT Act, 1961.
  2. Grace Period: The plan allows a 30-days grace period to pay the due premiums under the plan in for annually, bi-annually, quarterly and monthly premium payment mode
  3. Period of Free-Look: In case the holder of the plan is not satisfied with Saral Pension Plan of SBI Lif, then he/she has an option to cancel the insurance plan within a period of 15 days of the issuance of the insurance policy. This is called the free-look period of the plan. The premiums paid on the plan will be repaid to the policyholder upon cancellation after deducting applicable expenses.
  4. Revival Benefit: In case the premiums on the plan are not paid by the plan holder within the grace period of 30 days as the case may be the pension plan will lapse. The Saral Pension Plan of SBI Lif if lapsed can be revived by the plan holder within 3 years from the date of the first unpaid premium.
  5. Death Benefit: In case of death of the policyholder, the proceeds will be paid to the nominee. The proceeds will include higher of the total premiums paid at 0.25% per annum + vested reversionary bonus + terminal bonus or 105% of the total premiums paid. The nominee will have the option of getting the proceeds as a lump sum and using them to buy an annuity.
  6. Vesting Benefit: The vesting benefit is equal to the assured sum plus vested simple reversionary bonus plus terminal bonus. The customers of Saral Pension Plan of SBI Lif can choose from the following options:
    • Purchase annuity from the proceeds of the plan
    • Purchase annuity with an option to commute up to 1/3rd of the
    • proceeds from the plan.
    • Use the proceeds from the plan to buy a single premium deferred product.
    • Postpone the vesting date (if the plan holder is below 55 years on vesting) or extend the accumulation period.

Eligibility Conditions of Saral Pension Plan of SBI Lif

  1. Customers must ensure the following eligibility before buying the individual, non-linked Saral Pension Plan of SBI Lif.
    The minimum sum assured under the plan is Rs. 1,00,000 and maximum sum assured under the plan is variable.
  2. The minimum age for the customer to buy this plan is 18 years and the maximum is 65 years for single premium and 60 years for regular premium.
  3. Vesting age: Vesting age is basically the age at which the customer starts receiving a pension under his/her pension plan. The minimum vesting age under the Saral Pension Plan of SBI Lif is 40 years and the maximum is 70 years.

Conclusion

Saral Pension Plan of SBI Life is beneficial for those who want to secure their finances after retirement. This individual, traditional non-linked, participating pension plan helps the policyholder to plan ahead after retirement.

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