sbi life insurance
SBI Life Saral Pension Policy

SBI Life Saral Pension Plan

Given the increased rate of life expectancy and rising healthcare costs, among other factors, retirement planning is of fundamental importance. You should make plans now to make sure you can maintain the same standard of living and cover any unexpected costs in your golden years.

SBI Life Saral Pension plan is a single premium, non-linked, individual, and non-participating instant annuity product. The plan gives you a consistent income together with a refund of the purchase price. Your financial concerns following an active work life are all taken care of if you choose this plan.

Eligibility Criteria

Minimum Entry Age40 Years
Maximum Entry Age80 Years
UIN No.111N130V02
Premium Payment TermSingle Premium
Annuity Payment ModeMonthly/Quarterly/Half-Yearly/Yearly

Focal Points Of SBI Life Saral Pension Plan

Let’s check out some of the key features of the plan!

Surrender ValueOnly if the premiums for three complete years have been paid will the surrender value be applicable in the case of single regular premium plans. For single premium plans, the premium can be paid at any point throughout the insurance period to start the SBI Life Saral Pension Plan’s surrender value.
Loan FacilityOnce the policy has been in effect for six months, a loan may be obtained at any time. The maximum loan amount permitted by the policy must be determined so that the effective annual interest rate paid on the loan will not be greater than 50% of the annual annuity payment permitted by the policy.
Free Look PeriodCustomers who are dissatisfied with the SBI Life Saral Pension Plan’s terms and conditions have 15 days from the date they received the policy to return the insurance to the insurer. The free look time will be increased to 30 days in the event that the insurance was purchased using a distant marketing strategy.
Grace PeriodIf a customer misses the deadline for paying the premium, they will have a grace period of 30 days to make up for the missed payment. This refers to the yearly and biannual premium payment options. The grace period that applies in the case of monthly premium payment mode is 15 days. The policy will remain in effect throughout the grace period, but it will expire if the outstanding premium is not paid by the conclusion of the grace period.
NominationSection 39 of the Insurance Act of 1938 makes nomination for the SBI Life Saral Pension Plan mandatory.
Annuity Options

The plan offers two annuity options:

  1. Option 1: Life Annuity with a Return of 100% of Purchase Price
  2. Option 2: Joint Life Last Survivor Annuity with Return of 100% of Purchase Price on death of the last survivor

Why Should You Choose SBI Life Saral Pension Plan?

Some of the reasons for choosing the SBI Life Saral Pension plan are discussed below:

  • Death Benefit: In the tragic event that the annuitant passes away, the death benefit payable will be used to pay the annuity installment(s) that were paid after the date of death and the proportionate annuity installment(s) that have become due (from the date of death to the next annuity payment due date).
  • Tax Benefits: Customers who buy the SBI Life Saral Pension Plan are entitled to tax benefits in accordance with the existing income tax regulations.
  • Staff Discount: Employees, retired employees, VRS holders, minor children, and spouses of employees of SBI Life Insurance Co. Limited, SBI, RRBs sponsored by SBI, and subsidiaries of the State Bank group are eligible for a staff discount of up to 2.25 percent on the tabular premium.
  • Higher Purchase Price Incentive: The plan also offers incentives on the purchase price as mentioned in the table below:
Purchase Price RangeIncentive Per Thousand Price
Rs. 5 Lakhs To Less Than Rs. 10 Lakhs2.75
Rs. 10 Lakhs To Less Than Rs. 25 Lakhs3.75
Rs. 25 Lakhs & Above4.25

SBI Life Saral Pension Purchase Price & Pension Amount

The premium for this plan must be paid throughout the selected insurance tenure. In this plan, there is a Guaranteed Simple Reversionary Bonus for the first five years: for the first three years, at a rate of 2.50% per year of the Sum Assured, and for the next two years, at a rate of 2.75% per year of the Sum Assured.

Let’s assume Mr. X, 60 years old, purchases the policy for Rs. 10 lakhs. Therefore, the death benefits for the given annuity options will be as follows:

Annuity OptionsAnnual Annuity AmountAnnuity Amount As A Percentage Of Purchase PriceDeath Benefit
Life Annuity with Return of 100% of Purchase Price (ROP)Rs. 58,7215.87Rs. 10 Lakhs
Joint Life Last Survivor Annuity with Return of 100% of Purchase Price (ROP) on death of the last survivorRs. 57,9615.80Rs. 10 Lakhs

However, if the annuitant passes away during the policy tenure, that is, prior to the annuity beginning, the entire premium paid to date, along with interest at a rate of 0.25% per annum compounded annually, Vested Simple Reversionary Bonus, and Terminal Bonus, will be paid to the nominee as Death Benefit, which he can choose to receive as a lump sum or as an annuity.

Frequently Asked Questions

Yes, you may withdraw the entire payment in one lump sum in the event that the life assured passes away.

No, assignments are not permitted under the Saral Pension Plan.

You can avail surrender facility under the plan on diagnosing with any one of the 20 critical illnesses as specified in the policy brochure.