SBI Life Retire Smart Plan
SBI Life Retire Smart plan is a retirement product that can secure your golden years of life by building a retirement corpus through methodical investments made during your earning years. It is a unit-linked non-participating pension plan that offers alternatives for investing in various funds with varied risk-return scenarios as well as life insurance coverage.
The plan comes in two variants: SBI Life Retire Smart and SBI Life Retire Smart Plus plan. This insurance offers regular and limited premium payment options and is specifically designed for customers who want to invest their resources in a policy that offers a mix of different funds to establish a corpus.
Continue reading to know about the plan in detail.
Eligibility Criteria
| Parameters | SBI Life Retire Smart | SBI Life Retire Smart Plus |
| Minimum Entry Age | 30 Years | 20 Years |
| Maximum Entry Age | 70 Years | 60 Years |
| Age At Maturity/Vesting | 80 Years | 30 To 70 Years |
| Premium Payment Term |
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| Policy Term |
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Key Features Of SBI Life Retire Smart Plan
Both plans share a common set of key features as discussed below:
- Terminal Addition
At policy maturity or vested time, or in the event of early death, an additional allotment of units is paid by way of Terminal Addition. Terminal Addition would be charged at 1.5 percent of the fund value. Only policies that are still in effect, even fully paid-up policies, would be eligible for the terminal addition. The terminal additions would be payable on the eventual vesting/maturity date or an earlier death in the event of a vesting date deferral or extension.
- Free Look Period
If you disagree with any of the policy’s terms and conditions, you have the option of returning the policy for cancellation and outlining your reasons for doing so within 15 days for policies obtained through any channel mode other than distance marketing and electronic policies, and 30 days for policies obtained through distance marketing and electronic policies, from the date of receipt of the policy document.
- Grace Period
For this plan’s monthly mode, the grace period is 15 days, and for all other modes, the grace period is 30 days. In the event that no premium is paid after the grace period, the policy will lapse.
- Revival
From the initial delinquent premium date, you have three consecutive full policy years to reinstate your coverage. The board-approved underwriting policy will apply to revival. Only plans with Regular and Limited Premium Payments are eligible for the revival option.
Benefits Offered By SBI Life Smart Plan
You should consider buying the SBI Life Smart plan because it offers the following benefits to the policyholder:
Death Benefit
The higher of Fund Value plus Terminal Addition or 105% of all premiums paid up until the moment of death is payable in the tragic event that the life assured passes away. The beneficiary may choose from the choices listed below to spend the death benefit money:
- Get the total amount in one lump sum.
- Use all of the policy’s proceeds, or a portion of them, to buy an annuity at the going rate, as long as the requirements for the approved instant annuity product are satisfied (e.g. minimum annuity amount or age criterion).
Maturity/Vesting Benefit
You will get the greater of Fund Value plus Terminal Addition or 101% of All Paid Premiums at the expiration of the insurance period. The following choices are available for maturity/vesting:
- Using the entire policy benefits to buy an instant annuity.
- Using the whole policy funds to buy a single premium deferred pension package.
- Can purchase an instant annuity with a commuting option for up to one-third of the policy profits in accordance with the tax laws in effect.
- If you are under the age of 55 at vesting, you may choose to delay the vesting date or extend the accumulating period. Up to the age of 80, the maximum extended period will be allowed.
Tax Benefits
As a policyholder, you qualify for income tax benefits and exemptions under the current Indian income tax regulations, which are subject to change. For more information, please contact your tax advisor.
Functioning Of SBI Life Smart Plan
Let’s understand how both plans, i.e., the SBI Life Smart plan and SBI Life Smart plus plan function!
Working Of The SBI Life Smart Plan:
Mr. Kumar, a 30-year-old male, bought the SBI Life Smart plan for a policy term and premium payment term of 25 years. He is paying a premium of Rs. 1 lakh annually.
In case Mr. Kumar survives the policy term
Mr. Kumar has paid an annual premium of Rs. 1 lakh for 25 years. When he will survive the policy term, he will get maturity benefits as follows:
| @4% | @8% | |
| Total Maturity Benefit | Rs. 34,82,678 | Rs. 60,75,270 |
In case Mr. Kumar dies at the end of the 18th policy year
Mr. Kumar has paid an annual premium of Rs. 1 lakh for 18 years. After that, his nominee will receive the death benefits as follows:
| @4% | @8% | |
| Death Benefits | Rs. 21,97,555 | Rs. 32,53,038 |
Working Of The SBI Life Smart Plus Plan:
Mr. Ajay, a 30-year-old male, bought the SBI Life Smart Plus plan for a policy term and premium payment term of 25 years along with a 100% investment in the Equity Pension Fund. He is paying Rs. 1 lakh as an annual premium.
In case Mr. Ajay survives the policy term
He has paid an annual premium of Rs. 1 lakh for 25 years. He will receive maturity benefits as follows:
| @4% | @8% | |
| Maturity Benefits | Rs. 34,02,801 | Rs. 60,19,011 |
In case Mr. Ajay dies at the end of the 18th policy year
He has paid an annual premium of Rs. 1 lakh for 18 years. His nominee will receive death benefit on the 18th year as follows:
| @4% | @8% | |
| Death Benefits | Rs. 22,01,708 | Rs. 32,81,855 |
What’s Not Included Under SBI Life Smart Plan?
The nominee or beneficiary of the policyholder shall be entitled to the fund value, as available on the date of intimation of death, in the event that the life guaranteed dies by suicide within 12 months of the date of commencement of the policy or from the date of revival of the policy, as applicable.
Frequently Asked Questions
No. The plan does not come with any riders.
Yes. They both are allowed under the plan.
No. There is no loan facility under the plan.
The fund options in both plans are as follows:
SBI Life Retire Smart Plan
- Equity Pension Fund II
- Bond Pension Fund II
- Money Market Pension Fund II
- Discontinued Policy Pension Fund
SBI Life Retire Smart Plus Plan
- Equity Pension Fund
- Equity Optimiser Pension Fund
- Growth Pension Fund
- Bond Pension Fund
- Money Market Pension Fund
- Top 300 Pension Fund
- Balanced Pension Fund
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