Life Insurance SBI Life Insurance Smart Annuity Plus Plan

SBI Life Smart Annuity Plus Policy

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.

Eligibility Criteria

Parameters	Descriptions
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.
Premium	Minimum – Such that the minimum annuity installment can be paid as per annuity payout mode. Maximum – No upper limit
Annuity payout per installment	Minimum: 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.

Parameter	Descriptions
Single life (The annuity payout will continue at a guaranteed rate, throughout the life of the annuitant)
Life Annuity	An annuity is payable at a constant rate throughout the life of the Annuitant. On the death of the Annuitant, all future annuity payouts cease immediately and the contract terminates.
Life annuity with return of purchase price	On the death of the Annuitant, all future annuity payouts cease immediately and the purchase price is refunded to the nominee and the contract terminates.
Life annuity with return of balance purchase price	On the death of the Annuitant, the company will refund the balance purchase price which will be equal to the purchase price less the sum total of annuity payments already received by the annuitant, if any. If this balance is not positive then no death benefit is payable, all future annuity payouts cease immediately and the contract terminates.
Life annuity with an annual simple increase of 3%	An increasing annuity is payable throughout the life of the annuitant which increases by a simple rate of 3% or 5% p.a. for each completed policy year, as per the option exercised. On the death of the annuitant, all future annuity payouts cease immediately and the contract terminates.
Life annuity with a certain period of 10 years	An annuity is payable at a constant rate for a fixed period of 10 or 20 years, as per the option exercised; and thereafter the same annuity amount is payable throughout the life of the Annuitant. If the annuitant dies within the pre-defined period of 10 or 20 years, annuity payouts will continue to be paid to the nominee until the end of the chosen period, thereafter, the annuity payouts cease and the contract terminates. If the annuitant dies after the pre-defined period of 10 or 20 years, the annuity payouts cease immediately on the death of the annuitant and the contract terminates.
Life annuity with an annual compound increase of 3%	An increasing annuity is payable throughout the life of the annuitant, which is increased by a compound rate of 3% or 5% p.a. for each completed policy year, as per the option exercised. On the death of the annuitant, all future annuity payouts cease immediately and the contract terminates.
Deferred life annuity with return of purchase price	An annuity is payable at a constant rate throughout the life of the Annuitant after the end of the deferment period. On the death of the Annuitant during the deferment period, the death benefit payable to the nominee will be higher of the followings: 100% of Purchase Price plus (+) Guaranteed Additions accrued till the date of death. 105% of the Purchase Price. And all future benefits/annuity payments cease immediately and the contract terminates. On the death of the Annuitant after the end of a deferment period, the death benefit payable to the nominee will be higher of the followings: 100% of Purchase Price plus (+) Guaranteed Additions accrued during the deferment period minus (-) Total Annuity paid out till the date of death of the annuitant. 100% of the Purchase Price. And all future benefits/annuity payments cease immediately and the contract terminates. Where Guaranteed Addition per month = Total Annuity payable in a policy year. Guaranteed Additions accrued at the end of every policy month during the Deferment Period.
Joint life annuity options
Life and last survivor 100% annuity	An annuity are payable at a constant rate till the primary annuitant is alive. On the death of the primary annuitant, 100% of the last annuity payout will continue throughout the life of the surviving secondary annuitant. On the death of the last survivor, annuity payouts will cease immediately and the contract terminates. If the Secondary annuitant pre-deceases the primary annuitant, nothing is payable after the death of the primary annuitant and the contract terminates.
Life and Last Survivor 100% Annuity with Return of Purchase Price	On the death of the primary annuitant, 100% of the last annuity payment will continue throughout the life of the surviving secondary annuitant. If the secondary annuitant pre-deceases the primary annuitant, annuity payments cease on the primary annuitant’s death. On the death of the last survivor, the company will refund the purchase price to the nominee, all future annuity payouts cease immediately and the contract terminates.
Deferred Life and Last Survivor Annuity with Return of Purchase price	An annuity is payable at a constant rate till the primary annuitant is alive after the end of the deferment period. On the death of the primary annuitant, the second annuitant (if live at that time) will receive a life annuity, which will be 100% of the last annuity amount paid to the primary annuitant, as opted for. If the second annuitant pre-deceases the primary annuitant, annuity payments cease on the primary annuitant’s death. On the death of the last survivor during the deferment period, the death benefit payable to the nominee will be higher of: 100% Purchase price plus (+) Guaranteed Additions accrued till the date of death. 105%Purchase Price. And all future benefits/annuity payments cease immediately and the contract terminates. On the death of the last survivor after the end of a deferment period, the death benefit payable to the nominee will be higher of: 100% of the Purchase price plus (+) Guaranteed Additions accrued during the deferment period minus (-) Total Annuity paid out till the date of death of the last survivor. 100% of the Purchase price. And all future benefits/annuity payments cease immediately and the contract terminates. Where Guaranteed Additions per month= Total Annuity payable in a Policy year. Guaranteed Additions accrue at the end of every policy month during the deferment period.
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: Living dependent mother of the deceased subscriber. Living dependent father of the deceased subscriber.

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.

Several Discounts:

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 Benefit:

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.

QROPS:

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.

Parameters	Credentials
Age	36 years
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

1. What will the maximum age difference be in the case of joint life annuities?

In the case of Joint life annuities, the maximum age difference allowed between primary and secondary life is 30 years.

2. How will I receive my annuity payments?

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.

3. What is Balance Purchase Price under this plan?

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.

4. What are the terms and conditions of the SBI Life Smart Annuity Plus Policy?

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.