Insurance Plans 129 views March 11, 2020

SBI Life Annuity Plus

Annuity Plus Plan offered by SBI Life is an individual and non-linked immediate annuity insurance policy. It is a non-participating insurance product. Annuity Plus helps the policyholder celebrate the golden years of his/her life without financial stress. The objective of Annuity Plus is providing guaranteed and regular annuity income throughout the life of the policyholder. This plan offers a wide range of options of the annuity by a single payment of premium.

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Features of SBI Life Annuity Plus

This is a pension insurance plan which provides a regular and steady income to the policyholder after his/her retirement. The key features of SBI Life Annuity Plus plan are as follows:

  1. Annuity plan offers security to the insured by providing steady and regular retirement income and also provides flexibility to choose from a comprehensive range of options of the annuity.
  2. This plan offers eight options of annuity payment which the policyholder can choose from.
  3. This plan offers payment of annuity even to the partners of the policyholder to secure them on the death of the policyholder.
  4. The policyholder can choose his/her spouse, children, parents or parents in law as the second annuitant in the insurance plan.
  5. On payment of higher amounts of premiums, the annuity rates in the plan will be higher.
  6. If you buy the annuity using National Pension Scheme Corpus then an additional discount of 0. 75% on the premium is offered.
  7. SBI Life also offers another premium discount of 2% if Annuity Plus plan is purchased online from the official site of SBI Life.
  8. The premiums paid for the plan and death benefit received from the plan is eligible for tax exemption. However, the annuity pay-outs received under the plan are taxable in the hands of the annuitant.

Benefits of SBI Life Annuity Plus Plan

This plan benefits the policyholder in various ways. The benefits offered by the plan are as follows:

The pay-out of the annuity amount will continue to be paid at a guaranteed rate to the annuitant throughout his/her life of the annuitant. An annuitant has the benefit to choose any of the eight following annuity options:

  1. Lifetime Annuity Income-:Annuity is paid throughout the annuitant’s life at a constant rate and on the death of the annuitant, the future annuities cease immediately.
  2. Lifelong income in form of annuity along with receiving returns of the premiums invested in the plan-: In this option, an annuity is paid at a fixed rate throughout annuitant’s life and on the death of the annuitant the future annuity ceases. However, the premiums paid in the plan is refunded back to the nominee of the plan.
  3. Lifelong income in form of annuity along with receiving in instalments the returns of premiums investment in the plan-: In this option, the annuity is paid at a fixed rate through the life of annuitant and on survival till seventh policy year, 30% of premiums paid is refunded to annuitant at the end of the seven-year. However on the death of the annuitant after seven years, the remaining 70% of the premium is refunded, and on the death of the annuitant within the seven years of the plan, 100% of the premiums are refunded to the nominee of the plan
  4. Lifelong income in form of annuity along with receiving a return of the remaining premium-: The annuity is paid to the annuitant at a fixed rate throughout annuitant’s life and on the death of the annuitant, the balance of the capital will be refunded after deducting the annuities paid.
  5. Lifelong income in the form of annuity which increases by 3% or 5% annually-: The pay-out of annuity in this option increases at 3% or 5% per annum on yearly basis and is paid throughout the annuitant’s life. On the death of the annuitant, the annuitant pay-outs cease.
  6. Life income in the form of annuity paid for 5 years, 10 years, 15 years or 20 years and for life thereafter-: The annuity is paid at a fixed rate for a certain period of 5, 10, 15, or 20 years as option exercised by the annuitant and the annuity is payable thereafter throughout annuitant’s life. However, if the annuitant dies before the pre-defined period, the annuity will continue to be paid to the nominee until a chosen period and on the death of the annuitant after the predefined period, the annuity ceases immediately.
  7. Lifelong income in the form of annuity along with 50% /100% annuity for the lifetime of surviving partner’s-: The annuity income is paid at a certain guaranteed rate throughout the annuitant’s life and on primary annuitant’s death, 50% or 100% of the last pay-out of the annuity will continue to be paid until the second annuitant is alive and upon the death of the second and last annuitant the annuity payment cease. However, on the death of the second annuitant before the primary annuitant, nothing is payable after the death of the primary annuitant.
  8. Lifelong income in the form of annuity along with 50 % or 100% income for the lifetime of the surviving partner’s and return of premium invested after death of the last survivor of the plan-: Annuity is paid at a fixed rate till the survival of the primary annuitant and on death of the primary annuitant, 50% or 100% of the last payment of annuity will continue to be paid throughout the second annuitant’s life. Upon the death of the second and last survivor the premium will be refunded to the nominee of the plan

Eligibility requirements of SBI Life Annuity Plus Plan

Annuity Plus Plan offered by SBI Life is issued only to those who fulfil the eligibility conditions of the plan. It is necessary to ensure before making a proposal of the plan to SBI Life that you satisfy the eligibility criteria of the plan. The eligibility requirements of SBI Life Annuity Plus Plan are as follows-

  1. Minimum age required for entry in the plan is 0 years if you buy the plan using proceeds of any deferred annuity plan, 40 years if you buy the plan independently, 55 years if you buy the plan under QROPs – 55 years and maximum age for entry in the plan is 80 years
  2. The minimum amount of annuity is INR 1000 per month and there is no maximum limit of annuity amount.
  3. The premium amount of the plan depends on the age of the annuitant and annuity amount.

Conclusion

Annuity Plus plan is a beneficial insurance policy offered by SBI Life. The annuity payout options can be chosen as per the requirement and need of the policyholder. This plan offers flexibility and ensures steady income to the policyholder by paying only a single premium for the plan.

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