SBI Life Pension Plans
Founded in October 2000, SBI Life Insurance (‘SBI Life’ / ‘The Company’) was registered with the Insurance Regulatory and Development Authority of India (IRDAI) in March 2001, making it one of India’s most trusted life insurance firms.
SBI Life’s comprehensive range of products serves individuals as well as groups through Protection, Pension, Savings, and Health solutions, serving millions of families across India. Because a pension is a valuable source of income that can help you meet your financial obligations after you retire. With this in mind, the State Bank of India Life Insurance Company has created a pension plan designed expressly to assist the working class in securing a good and consistent source of income.
Features & Benefits of SBI Pension Plans
SBI pension plans allow its customers to plan their retirement so they can be financially independent.
- Multiple Payment Options
The major benefit of the SBI pension plan is that it doesn’t burden your pocket. Instead, it is incredibly flexible that allows you to make payment either for a single premium, regular premium or even for a limited period.
- Guaranteed Income
Irrespective of your financial condition, the SBI pension plan (no matter what you choose) provides a fixed and steady income after retirement. In addition to this, you will also get the tax benefits on the premium paid under Section 80C of the Income Tax Act, 1961.
- Death Benefit
Under this feature, the pension plans from SBI provide a significant death benefit to provide the maximum financial protection to your family in case of your demise. In such an unfortunate event, the nominee shall receive the sum assured/death benefit.
- Addition of Riders
Because pension plans come with additional riders, you can easily customize the respective plans that would ultimately help you and your family to get additional protection against unforeseen events.
- Maturity Age
Another major highlight of the SBI pension plan is that it offers sheer flexibility to postpone an insured person’s vesting age using the deferment option.
Types of SBI Pension/Retirement Plans
Listed below are the types of pension plans offered by SBI to provide financial protection to the policyholder. Let’s discuss each of them in detail!
1. SBI Life- Retire Smart
If you are looking for a pension plan that is safe and secure and may provide a multitude of retirement benefits, then choose none other than SBI Life Retire Smart! This pension Savings Product aids in the systematic accumulation of a retirement fund. During the first five years of the contract, do not provide any liquidity. Policyholders will not be able to totally or partially surrender or withdraw funds invested in Unit Linked Insurance Products until the conclusion of the fifth year.
Features of SBI Life- Retire Smart:
Here is the list of the features that come under SBI Retire Smart.
- Security: SBI’s plan provides optimum security by securing your retirement years and allowing you to fund your ideal retirement.
- Advantage Plan: You don’t have to worry about your investments as, at the time of maturity/vesting, it guarantees a minimum of 101 percent of the premiums paid.
- Flexibility: The plan allows you to pay premiums in a variety of ways, either one time, regularly, or for a short time.
Minimum- 30 Years
Maximum- 70 Years
|Age at Maturity/Vesting||80 Years|
|Plan Type||Regular Premium / Limited Premium / Single Premium|
|Premium Payment Term (PPT) and Corresponding Policy Term (PT)||Plan Type||Premium Payment Term||Policy term (Years)|
|Single Premium||One-time payment at policy inception|
10 to 35
|Regular Premium||Same as policy term|
10 to 35
Payment Term (LPPT)
|5/8||10 to 14 (both inclusive)|
|5/8/10/15||15 to 35 (both inclusive)|
Premium Range (in Rs.) (in multiples of Rs. 100)
|Plan Type||Minimum (Rs.)||Maximum (in Rs.)|
Yearly: Rs. 24,000
Half Yearly: Rs. 15,000
Quarterly: Rs. 7,500
Monthly: Rs. 2,500
as per board
|Limited Premium Payment|
Yearly: Rs. 40,000
Half Yearly: Rs. 20,000
Quarterly: Rs. 10,000
Monthly: Rs. 5,000
as per board
|Single Premium||Rs. 1,00,000|
2. SBI Life- Annuity Plus
SBI Life Insurance is happy to introduce SBI Life -Annuity Plus, an individual, non-linked, non-participating, general annuity policy that provides you with a broad selection of annuity alternatives as well as inbuilt flexibilities, allowing you to maintain your level of living at all times. It also allows you to enjoy life’s needs without making any concessions.
Key Features of SBI Life -Annuity Plus:
The following are the key features of SBI Life Annuity Plans:
- Flexibility: The major highlight of the plan is that it offers you the freedom to choose from the complete range of annuity options
- Annuity Option: It allows you to have annuity payout till your or your partner’s lifetime. Your partner could be spouse, children, parents, parents-in-law or siblings
- Payout Frequency: The plan offers you the option to choose the frequency of annuity payouts – monthly, quarterly, half-yearly or yearly
- Annuity Benefit: The plan offers you the benefit of higher annuity rates for large premiums while offering you the option to advance your annuity payouts at your convenience.
0 year for product conversion; 40 years for all other cases
55 years for QROPS cases
|Premium||Such that the minimum annuity instalment can be paid||No limit|
Monthly: Rs. 1,000
Half-yearly: Rs. 6,000
Quarterly: Rs. 3,000
Yearly: Rs. 12,000
No lower limit will apply for annuity installment for the National
Pension System (NPS) Subscribers purchasing from proceeds
of NPS corpus
|Annuity Payout Mode|
Monthly or Quarterly or Half-Yearly or Yearly
(For Government sector subscribers under National Pension System (NPS), the monthly mode is
3. SBI Life- Saral Retirement Saver
Saral Retirement Saver is a non-linked, savings pension product that is specifically intended for people who want to be protected against market volatility while also having a secure future and a pleasant retirement. According to the relevant income tax regulations in India, which are subject to change from time to time, you may be entitled to Income Tax benefits/exemptions.
Features of SBI- Life Saral Retirement Saver:
Listed below are the salient features of SBI Life Saral Retirement Saver.
- Grace Period: For yearly/half-yearly premiums, you have a grace period of 30 days, and for monthly premiums, you have a grace period of 15 days from the due date. If no premium is paid during the grace period, the policy will lapse or become paid up at the end of the grace period.
- Surrender Value: Regular premium insurance will only have surrender value if the premiums for the first two years have been paid in full. Single-premium policies have immediate surrender value and can be canceled at any moment throughout the policy period.
- Death Benefit: In the event of the life assured’s death, the death benefit proceeds, which is the higher of the total premiums received up to the date of death plus vested simple reversionary bonus plus terminal bonuses, if any, accumulated at an annual interest rate of 0.25 percent compounded annually plus vested simple reversionary bonus plus terminal bonuses, if any.
|Entry Age||Minimum- 18 Years|
Maximum- Regular Premium-60 years
Single-Premium- 65 years
|Vesting Age||Min- 40 Years||Max- 70 Years|
|Plan Type||Regular Premium/Single Premium|
Min: Regular Premium-10 years
|Max- 40 Years|
|Basic Sum Assured||Min: Rs. 1,00,000|
Max: No limit, The maximum basic sum
Assured shall be as per the Board
Approved underwriting policy.
## The premiums for various modes as a percentage of annualized premium are given below:
i) Monthly Premium-8.4% of annualized premium
ii) Half-yearly Premium-50.2% of annualized premium
|Annualized Premium Amount||Min: Rs. 7,500 per annum|
Max: No limit, Based on Basic Sum Assured as per the board approved
4. SBI Saral Pension
SBI Life-Saral Pension is an individual, non-linked, non-participating instant annuity plan with a single premium. This plan provides you with a regular income as well as a return on your investment. In just a few simple steps, you may achieve financial freedom and enjoy the retired life you’ve always desired.
Features of Saral Pension by SBI:
Here are the features of SBI Saral Pension.
- A Standard Immediate Annuity Plan provides security for your retirement.
- Select a return of premium option: Single Life Annuity or Joint Life Annuity.
- The ability to take out a loan in the event of a financial emergency.
- The option to use the surrender facility if you are diagnosed with a critical disease.
- Surrender: If the annuitant, primary annuitant, secondary annuitant, spouse, or any of the annuitant’s children is diagnosed with any of the critical illnesses, the policy can be surrendered at any time after six months from the date of start.
|Entry Age||40 Years||80 Years|
|Premium||Such that the minimum annuity installment can be paid as per the annuity payment mode.||No limit, as per Board Approved Underwriting Policy|
|Minimum Annuity Payout (per installment)|
Monthly: Rs. 1,000, Half-Yearly: Rs. 6,000
Quarterly: Rs. 3,000, Yearly: Rs. 12,000
|No limit, as per Board Approved Underwriting Policy|
|Premium Payment Term||Single-Premium|
|Annuity Payment Mode||Monthly or Quarterly or Half-Yearly or Yearly|
How Does SBI Pension Plans Work?
Let’s take an example to understand the working of an SBI Pension Plan.
Geetanjali, is a 55-year-old working professional, looking to invest in an SBI Retire Smart plan that could allow her to become financially independent post-retirement.
Suppose, you chose a policy term of 10 years and selected “Lifetime Income with Balance Capital” under the “Annuity Options”.
Also, she opted for a premium frequency of Half-Yearly and a premium Amount of “Rs. 40000”. In addition to this, she chose a Premium Payment Term of 5 Years.
Here’s the maturity amount she will get:
|Premium Payment Term||5 Years|
|Policy Term||10 Years|
|Maturity Benefit||@ 4% Rs. 2,36,87,32,023|
|@ 8% Rs. 3,21,25,22,556|
Buying Process of SBI Pension Plans
If you are looking to buy the SBI pension plans, you will need to follow these steps:
- Simply visit the official website of SBI.
- Click on “Products” displayed on the status bar of the website.
- After that, you will be redirected to the page wherein you will need to click on “Retirement Plans” located under the “Please select your requirement” section.
- Then, you need to choose a plan that you want to buy. Let’s say, you want to buy “SBI Life- Retire Smart”, click on the “Buy Now” in the red color.
- You will then be directed to the different tab wherein you need to choose your annual income and date of birth.
- After that, you will need to choose the Policy Term, Premium Payment Term, Your Premium, and Premium Frequency.
- You will then see the “Maturity Amount” and “Death Benefit” on the right-hand side in the blue box.
- When you scroll down, you will need to select the “Annuity Option” and then click on the checkbox and click on “Proceed”.
- After that, you will see a page that shows “Here is What Your Plan Looks Like”. When you scroll a bit, you will see a checkbox “I have read and understood the Benefit Illustration”. Simply check it and then go to proceed.
- You then will need to identify your C-KYC number with your PAN and Date of Birth. Enter in both the columns and click on “fetch my C-KYC number”.
- After a series of steps, you will need to make the payment online using your card.
- Once you have successfully made the payment, the company shall share the policy documents on your registered mail ID and will also post a hard copy of the same to your address.
Frequently Asked Questions
Here is the list of the frequently asked questions related to the SBI Pension Plans:
Yes, you can take the entire money as a lump payment if the life assured passes away.
For regular premium insurance, you must pay premiums for at least two years to receive a surrender value.
Yes, riders can be cancelled at any time during the policy term. You will, however, be notified in advance via written notice.
The assignment is not permitted under the Saral Pension Plan.