Insurance Plans 2559 views January 24, 2020

SBI Life Pension Plan

SBI Life Pension plans help individuals plan for their retirement and it comes in different variants. Pension plans in SBI Life fund individual’s retirement through regular pension after their retirement. It also offers deferred annuity plans which create a retirement fund as well as immediate annuity plan which pays steady and regular annuities for the lifetime of the individual thereby providing a source of income after retirement. There are two annuity plans offered by SBI Life which are discussed below.

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Deferred annuity plans

Deferred annuity plans are savings oriented insurance plans in which you can choose the tenure for the plan and pay the premiums over the tenure as chosen by you. The premiums paid by you will accumulate into a corpus which would help fund your retirement.

Immediate annuity plans

Under immediate annuity plans, the payments of annuity start immediately after buying the policy. You pay a lump sum in immediate annuity plans and lifetime annuities are paid from the lump sum premium paid by you. You can choose to from different annuities modes as per your requirement.

SBI Pension Plans

There are three different types of pension plan in SBI Life Insurance. They are discussed below.

1. SBI Life – Saral Pension Plan

Saral Pension Plan by SBI Life Insurance is a traditional deferred pension plan which helps to accumulate a retirement corpus over the duration of the pension plan. The features of the plan are stated as follows –

  1. Premiums can be paid through single or regular premiums
  2. Saral Pension Plan is a participating pension policy in you can earn bonuses declared by the company
  3. Bonus under the pension policy is even guaranteed in the initial five years. From the sixth year of the policy, the bonus on the policy would depend on the profits earned by SBI Life

Eligibility criteria of SBI Life – Saral Pension Plan

  1. Entry age is18 years to 55 years
  2. Duration of the policy is 5 years to 30 years
  3. Sum assured is INR 25,000 to INR 50 lakhs
  4. The premium on these plans depends on the sum assured of the policy, the age of the individual and term of the policy
  5. Premium paying term for regular premium is equal to the policy term and once for a single premium.

2. SBI Life – Retire Smart Plan

Retire Smart Plan by SBI Life is a unit-linked pension plan allows the individual to earn market-linked returns on the investments and also guarantees minimum return which protects an individual’s investments from the market volatility. The features of the policy are stated as follows –

  1. The premiums paid towards this pension plans are invested under the strategy of ‘Advantage Plan’ in which when the plan approaches maturity, the investment shifts from equity fund to debt fund thereby protecting the returns from such investments from market volatility
  2. You can choose to pay the premiums on the pension policy either regularly or for a limited duration
  3. The premiums paid on the policy at the aggregate of 105% is the guaranteed minimum death benefit

Eligibility Criteria of SBI – Life Retire Smart Plan

  1. Entry age is 30 years to 70 years
  2. Term of the policy is 10/15 years to 35 years
  3. Premium amount for regular premium- Minimum is INR 24,000 annually and there is no maximum limit
  4. Minimum limited premium is INR 40,000 and there is no maximum limit
  5. Premium paying term for regular premium is equal to the policy term

3. SBI Life – Annuity Plus

Annuity plus pension plan by SBI Life is an immediate annuity plan which provides you with guaranteed annuities incomes throughout your life. The features of the plan are stated as follows –

  1. You can choose from eight annuity payment options according to your income requirement
  2. The pension plan offers annuity payments even to individual’s partner to secure them in case of an individual’s death
  3. The annuity rates offered will be higher if you pay a higher amount of premium and if you buy the product online directly from SBI Life, then you can also avail 2% premium discount.

Eligibility Criteria of SBI Life – Annuity Plus Plan

  1. If the plan is bought using the proceeds of a deferred annuity plan there is no minimum entry age
  2. If the plan is bought independently then the minimum entry age is 40 years
  3. If the plan is bought under QROPs then minimum entry age is 55 years
    Maximum Entry age for all of the above is 80 years
  4. The minimum Annuity amount is INR 1000/month and there is no maximum limit
  5. The premium amount depends on the annuity amount of the policy and age of the insured.

Conclusion

Pension Plans by SBI Life are of three different types and have their unique features and advantages. If you want a deferred annuity plan then you can choose SBI Life Saral Pension plan and if you want an immediate annuity plan you can choose SBI Life Annuity Plus plan. You can choose from the different types of pension plans by SBI Life as per your needs and requirements.

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