SBI Life Smart Annuity Plus Plan
After your retirement, the regular flow of income gets hindered, but that does not make your responsibilities lesser. You also have responsibilities to fulfill, dreams to achieve, and the necessity to maintain your lifestyle. But earning this money may be an obstacle. To eradicate this problem, SBI Life Insurance Company has come up with a brilliant plan, Smart Annuity Plus Policy, that offers you to choose from immediate or deferred annuity options with inbuilt flexibilities, providing you with an opportunity to always maintain your standard of living. It is an individual, non-linked, non-participating, general annuity product that rewards you with a regular flow of income so that you can fulfill all your needs and responsibilities. It also gives you complete freedom to indulge in life’s necessities without any compromises. To know more about this policy, have a look at the following mentions.
|Minimum age at entry|
0 year for product conversion;
30 years for all other cases;
45 years for deferred annuity options;
55 years for QROPS
|Maximum age at entry|
75 years for deferred annuity options;
95 years for all other options.
Minimum – Such that the minimum annuity installment can be paid as per annuity payout mode.
Maximum – No upper limit
|Annuity payout per installment|
Monthly: Rs. 1,000
Quarterly: Rs. 3,000
Half-yearly: Rs. 6,000
Yearly: Rs. 12,000
No lower limit of annuity installment will be applied for National Pension System (NPS) Subscribers purchasing from
proceeds of NPS corpus.
Maximum – No upper limit
|Deferment period (Only for Deferred annuity options)||1 year to 10 years|
|Premium payment frequency a||Single Premium|
|Annuity payout mode|
Monthly, Quarterly, Half-Yearly, and Yearly
(For Government sector subscribers under National Pension System (NPS), the monthly mode is mandatory)
|Free look period|
In general – 15 days
In case the policy is sold through distance mode and electronic policies – 30 days
What Are The Benefits of SBI Life Smart Annuity Plus?
This plan has come up with a sack full of benefits and facilities that promise to keep you financially healthy after your retirement so that you can live your golden days of life peacefully. The following table gives you the details of these benefits. Have a look.
(The annuity payout will continue at a guaranteed rate, throughout the life of the annuitant)
|Life annuity with return of purchase price|
|Life annuity with return of balance purchase price|
|Life annuity with an annual simple increase of 3%|
|Life annuity with a certain period of 10 years|
|Life annuity with an annual compound increase of 3%|
|Deferred life annuity with return of purchase price|
|Joint life annuity options|
|Life and last survivor 100% annuity|
|Life and Last Survivor 100% Annuity with Return of Purchase Price|
|Deferred Life and Last Survivor Annuity with Return of Purchase price|
NPS – Family Income
[This option is only available for National Pension System (NPS) subscribers]
On the death of the annuitant(s), the annuity payment will cease and the refund of the purchase price will be utilized to purchase an annuity contract afresh for living dependent parents (if any) as per the order specified below:
Key Highlights of SBI Life Smart Annuity Plus
Apart from the above benefits and facilities, this plan has come up with a bunch of special advantages that have made the plan unique and popular among customers. And the mentions are as follows.
Under this plan, you can get the following discounts.
- NPS Subscriber: The annuity amount would be grossed up by 0.75% if the annuity is being purchased from the proceeds of the NPS corpus. Where the sale is through a channel where no commission is payable, the annuity amount will be grossed up by an additional 2.00% for all NPS Subscribers.
- Discount to policyholders/beneficiaries of SBI Life pension policies: All such policies would be eligible for an increased annuity by grossing up the annuity amount by 2.00%.
- Online Sale and Direct Marketing: (wherever commissions are not payable): The annuity amount would be grossed up by 2.00%.
- Staff Discount: The annuity amount would be grossed up by 2.00% for 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.
Advancing Your Annuity Payouts:
This facility is only available for immediate annuity options) In normal circumstances, the annuity is payable in arrears. However, at inception, you may choose to advance your annuity payouts, subject to the following conditions:
- This option is available for half-yearly or yearly annuity payment modes.
- The desired date of the first annuity payment should be after at least 90 days from the date of the purchase of the annuity.
- An interest amount would be charged for the delay in receiving the premium/purchase price. The premium/purchase price should have been received one half-year or one year before the desired date of the first annuity payment, depending on the annuity payment mode.
- The interest will be charged on the premium amount/purchase price. The interest rate applicable is 250 basis points greater than the benchmark yield of the RBI Repo Rate as on 1 April of the Financial Year, and it will be compounding on a half-yearly basis.
- Further annuity payments would then be based on your chosen dates.
Tax Exemption Benefits:
Under this plan, you are eligible to avail of Income Tax benefits/exemptions as per the applicable income tax laws in India, which are subject to change from time to time.
Surrender Value (SV) is available only under Deferred Annuity Options and Annuity Options with a Refund of the Full Purchase Price. The Surrender value will be higher of the Guaranteed Surrender Value (GSV) and Special Surrender Value (SSV). The maximum SSV shall be restricted to the Death Benefit.
You can have access to benefits/payout if this product is purchased as QROPS (Qualifying Recognized Overseas Pension Scheme), through the transfer of UK tax-relieved assets. The following terms & conditions will be applied to QROPS policyholders:
- Cancellation in the Free-Look Period – If this product is purchased as QROPS through the transfer of UK tax-relieved assets, the proceeds from cancellation in the free-look period will only be transferred back to the fund house from where the money was received.
- Non-Forfeiture Benefits – If this product is purchased as QROPS through the transfer of UK tax-relieved assets, access to benefits is restricted till the policyholder attains 55 years of age, hence the age at entry would be a minimum of 55 years of age or any such age as specified as per HMRC regulations.
What are the general exclusions of SBI Life Smart Annuity Plus?
Understanding a policy is incomplete if you do not go through its exclusions. Therefore, to offer you a better idea of the plan, and to avoid future complications, here are general exclusions of the SBU Life Smart Annuity Plus Policy.
- If there is any kind of breach of law with criminal intent, the policy will not be liable to compensate.
- If there is anything that does not qualify the terms and conditions of the company and the policy, that will also fall under the category of exclusions.
How does SBI Life Smart Annuity Plus work?
Once you know the policy’s inclusions and exclusions, the next important thing to know is how this policy works and how much you have to pay to purchase this policy. Here is an example.
Mr. Gupta, a 36-year-old businessman bought SBI Life Smart Annuity Plus Policy. Let us find out his annuity payout amount and how much he needs to pay to avail of the benefits of the policy for the given credentials.
|Annuity type||Immediate Annuity|
|Life type||Single life|
|Source of business||New Proposal|
|Channel type||Individual agent|
|Mode of annuity payout||Yearly|
|Annuity option||Life annuity with return of purchase price|
|Annuity payout amount||Rs. 50 lakhs|
|Purchase price||Rs. 8,23,91,190|
Frequently Asked Questions
In the case of Joint life annuities, the maximum age difference allowed between primary and secondary life is 30 years.
You must submit an existence certificate periodically per the annuity option chosen. Your annuities will be paid through electronic transfer (ECS). However, the company will make payments through any other approved mode if your bank does not support this facility.
Balance Purchase Price = Premium (excluding applicable taxes, other statutory levies if any) less Annuity payouts made to date. In case this is negative, no death benefit will be payable.
The following conditions are applicable to this policy:
- The Annuitant will be required to submit an existing certificate with a periodicity not less than annually as per the annuity option chosen in the format provided by the insurer.
- In case the existence certificate is not received, the annuity payout will cease. The annuity payouts will resume on receipt of the existence certificate and all the arrears (without any interest accumulation) will be paid out.
- Similarly, in case of the unfortunate death of the annuitant/s, the death intimation needs to be conveyed well in time. Annuity installment/s that have fallen due and paid/collected after the date of death will be recovered immediately.
- In the case of the ‘Life and Last Survivor’ types, the Existence Certificate of the Primary annuitant will be required. After the Primary annuitant’s death, the Existence certificate of the Secondary annuitant will be required.