Investment Plans 431 views March 2, 2020

SBI Retirement Plans

SBI Life offers retirement oriented plans to secure the post-retirement period of the policyholder. Pension is an essential source of income to helps you meet the financial needs after retirement. SBI Life offers three retirement plans to its customers.

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SBI Retirement Plans

1. SBI Life- Saral Pension Plan

Saral Pension plan is an individual savings pension insurance policy. It is a non-linked and participating insurance product offered by SBI Life. The plan helps the policyholder to save enough in order to secure the future years of life after retirement. It is a tradition pension plan that helps the policyholder to secure a retirement corpus over the policy term.

Features and Benefits of SBI Life Saral Pension Plan

Key features and benefits of Saral Pension plan offered by SBI Life are as follows:

  1. The plan provides a regular bonus which helps the policyholder to meet the financial needs after their retirement. The bonus for the first 5 years is guaranteed and for a period after 5 years, the bonus depends upon the profits earned by SBI Life.
  2. The premiums can be paid through single or regular premiums.
  3. The plan offers security through the payment of fixed corpus for meeting the retirement needs of the policyholder.
  4. This plan provides reliability to the policyholder as it offers simple reversionary bonuses
  5. The plan also offers protection through the benefit of additional optional riders which can be added with the insurance policy to increase its  coverage and received enhance death benefit.
  6. The plan offers guaranteed interest on the sum assured in the policy at the rate of 0.25% per annum. The interest is compounded annually over the term of the plan. This helps the policyholder with an increased corpus at the maturity of the plan.
  7. On the death of the policyholder during the term of the plan, the aggregate of the premiums paid by the policyholder until death will be refunded along with an earning return rate of 0.5% per annum. Terminal and vested bonus, if any will also be paid to the nominee of the plan.

Eligibility requirements of SBI Life Saral Pension Plan

The plan is issued only to those applicants who fulfil the following eligibility requirements:

  1. Minimum entry age required is 8 years and maximum age of entry is 55 years
  2. Minimum term of the plan is 5 years and the maximum term is 30 years
  3. Minimum sum assured in the plan is INR 25,000 and maximum sum assured in the plan can be INR 50 lakhs
  4. The Premium for the plan depends on the age of the policyholder, the sum assured in the plan and the term of the plan.
  5. The term premium payment under regular premium- equal to the term of the policy term and under single premium-once.

2. SBI Life – Retire Smart

Retire Smart is a unit-linked plan that offers market-linked returns on investments as well as guaranteed minimum returns. This plan protects your investments from the volatility of the market.

Features and Benefits of SBI Life- Retire Smart

Key features and benefits offered by the plan are as follows:

  1. This plan protects the investments from market volatility by investing the premiums paid under the “Advantage Plan” strategy which shifts the plan when it attains maturity from equity funds to debt funds. Hence, the returns on the plan are protected.
  2. The plan offers regular premium payment option or single premium payment option which can be chosen by the policyholder as per their need.
  3. On maturity, the minimum fund value is guaranteed under the advantage plan strategy. The minimum fund value which is paid on maturity is 101% of the premiums paid in aggregate. This is paid as maturity benefit upon maturity of the plan.
  4. The plan offers the policyholder to defer the vesting age in the plan up to 80 years if the policyholder is below 55 years of age as on the maturity of the plan
  5. Terminal additions of 1.5% of fund value are added to the value of the fund when the plan matures.
  6. The policy guaranteed minimum death benefit which is 105% of the premiums paid in aggregate for the policy.

Eligibility requirements of SBI – Life Retire Smart Plan

It is necessary to ensure that you satisfy the eligibility criteria before you buy Retire Smart Plan. The eligibility conditions are as follows:

  1. Minimum age required for entry in the plan is 30 years and the maximum age for entry is 70 years
  2. Minimum term of the policy is 10 years or15 years and a maximum term of the policy is 35 years
  3. The minimum amount of premium under the regular premium option is INR 24,000 yearly and there is no such maximum amount for regular premium.
  4. The minimum amount of premium under the limited premium option is INR 40,000 with no maximum limit.
  5. The term of premium payment under regular premium- equal to the term of the policy and under limited premium 5 years/ 8 years for a plan with a term of 10 years, 5 years/ 8 years/10 years/15 years/ for a plan with term of15 to 35 years.

3. SBI Life – Annuity Plus

Annuity Plus offered by SBI Life is an immediate annuity pension plan which provides guaranteed annuity incomes throughout the life of the policyholder.

Features and Benefits of SBI Life Annuity Plus Plan

It is an annuity pension plan. The key features and benefits of the plan are as follows:

  1. This plan offers the policyholder to choose from eight options of the annuity payment.
  2. The plan extends the annuity payments to the partner of the policyholder for securing their future on the death of the policyholder. However, the policyholder can also choose the second annuity which may be his/her spouse, siblings, children, parents, parents-in-law.
  3. The annuity rates will be higher on payment of higher premiums.
  4. If you buy the policy online directly from the website of SBI Life, you can avail an additional 2% premium discount.
  5. If the plan is purchased using the corpus of National Pension Scheme then a discount of 0.75% is offered on the premium amount.

Eligibility requirement of SBI Life Annuity Plus

You must ensure to fulfil the eligibility requirements before buying this insurance plan. The eligibility conditions of Annuity Plus plan are as follows:

  1. Minimum age required for entry is 40 years and maximum entry age is 80 years
  2. Minimum Annuity is INR 1000 on a monthly basis and there is no maximum limit.
  3. The premium payment amount depends on the age of the policyholder and annuity amount.

Conclusion

If you want to secure your future after your retirement and ensure steady and regular income you can buy one of SBI Retirement Plans as per your needs and requirements.

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