SBI Life Saral Retirement Saver Plan
The time after retirement is when your life truly starts over. The SBI Life Saral Retirement Saver plan is a non-linked, individual, participating, and savings pension plan. It is specifically designed to safeguard the future of your family while building a retirement corpus. This plan is a perfect option for those who seek complete protection from market volatility, a stable future, and a happy retirement.
|Minimum Entry Age||18 Years|
|Maximum Entry Age|
For Regular Premium: 60 Years, For Single Premium: 65 Years
|Vesting (Maturity) Age||40 To 70 Years|
Regular Premium: 10 Years, Single Premium: 5 Years
Maximum: 40 Years
|Basic Sum Assured||Rs. 1 Lakh To No Limit|
Focal Points Of SBI Life Saral Retirement Saver Plan
Let’s take a look at some of the key features of the plan:
|Policy Revival||By submitting a formal application within five years of the first unpaid premium’s due date or before the policy’s maturity date, you can reinstate a lapsed or paid-up insurance.|
|Grace Period||For yearly and half-yearly premiums, you have a grace period of 30 days, and for monthly premiums, you have a grace period of 15 days. If no premium is paid during the grace period, the policy will continue to be in effect until it expires or is paid in full.|
|Free Look Period||For policies obtained by any channel method other than distance marketing and electronic policies, you have the choice to evaluate the terms and conditions of the policy within 15 days of receipt, and you have 30 days for policies obtained through distance marketing and electronic policies. You can return the insurance and a letter explaining your objections if you don’t agree with the terms and conditions.|
|Surrender Value||Regular-premium policies won’t gain surrender value until the first two complete premium years have been paid. Policies with a single premium can be surrendered at any moment during the policy term and will immediately receive their surrender value.|
|Paid-Up Value||For regular premium policies, the policy only becomes paid up if the premiums have been paid in full for at least the first two years in a row. Within five years of the first missed premium, you can reinstate the insurance.|
Why Should You Zero In SBI Life Saral Retirement Saver Plan?
You should consider buying the plan because it offers the following benefits to the policyholder:
- Guaranteed Bonus: Simple reversionary Bonuses for the first five years of the policy are as follows: @ 2.50% for the first three years and @ 2.75% for the following two years of the basic sum assured. Only active policies will be eligible for the guaranteed bonus.
- Vesting Benefit: The plan also offers the higher of Basic Sum Assured or Total Premiums Received plus Simple Reversionary Bonuses and Terminal Bonus, if any, as vesting benefits to the policyholder.
- Death Benefit: If the life assured passes away, the beneficiary will receive the greater of the total premiums paid up to the date of death accumulated at an interest rate of 0.25 percent per year compounded annually plus vested simple reversionary bonuses plus terminal bonuses, if any, or 105% of the total premiums paid up to the date of death.
- Rider Benefit: At a reasonable price, you can add the SBI Life-Preferred Term Rider (UIN: 111B014V02) cover to the base product. The rider can only be added at the start of the policy.
- Staff Discount: Additionally, the product offers employees, retired employees, VRS holders, minor children, and spouses of employees of SBI Life Insurance Co. Ltd., State Bank of India, RRBs sponsored by State Bank of India, and subsidiaries of State Bank group 2.25% off the tabular premium for regular premium policies, and 2.0% off the tabular premium for single premium policies.
- Tax Benefits: According to the relevant income tax regulations in India, which are liable to change from time to time, you can be qualified for income tax benefits or exemptions.
Functioning Of SBI Life Saral Retirement Saver Plan
Let’s understand the functioning of the plan with a simple example.
Mr. Singh, 45 years old, wants to invest in a plan that can provide him as well as his family members a steady life after his retirement. Therefore, he decided to buy the SBI Life Saral Retirement Saver plan by paying a regular premium on a yearly basis for a basic sum assured of Rs. 15 lakhs. Other details of the plan are mentioned below:
Policy Term: 15 Years
Premium Payment Term: 15 Years
Premium Amount: Rs. 93,504 Per Annum
Now, let’s take a look at the benefits of the product!
@4% = Rs. 18,62,250
@8% = Rs. 25,35,000
In case Mr. Singh, unfortunately, dies at the end of the 10th policy year, the death benefits will be as follows:
@4% = Rs. 12,02,994
@8% = Rs. 15,47,994
What’s Not Included Under SBI Life Saral Retirement Saver Plan?
The nominee or beneficiary of the policyholder shall be entitled to at least 80% of the total rider premiums paid up to the date of death or the surrender value available as on the date of death, whichever is higher, provided the policy is in force, in the event of death by suicide within 12 months of the commencement of risk under the rider policy or from the date of revival of the rider policy, as applicable. Total rider premiums paid refers to all payments made, excluding any additional premiums and relevant taxes.
Frequently Asked Questions
No. An assignment is not allowed under the plan.
Yes. The “with profits” pension business of the company is where the policy will share in the profits. It earns a share of the bonuses generated by this business’s profitability.
You can pay premiums as single, yearly, half-yearly, or monthly premiums.
The minimum annualized premium amount is Rs. 7,500; whereas, there is no limit for the maximum annualized premium amount.