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SBI Life Retire Smart Plan is a non-participating Unit Linked Insurance Plan. Thus, it is a Non-Traditional Pension Plan without Bonus facility but it guarantees 101% of all premiums paid on vesting thus protecting your funds from market volatility.
How it works – In this plan, premium can be paid regularly or for a limited term. The premiums paid net of all charges is invested in the Advantage Fund which initially invests the amount in equity funds with a high risk and then systematically transfers the amount to less riskier funds with increasing time to maturity.
On vesting (time at which the policyholder chooses to receive annuity payments), the policyholder may purchase an Immediate or Deferred Annuity or postpone the Vesting age.
On earlier death, 105% of total premiums paid is refunded to the nominee.
COMPARE THIS PLAN WITH OTHER PENSION PLANS
Death Benefit – In case of death of the Life Insured within the Policy Tenure, the nominee gets higher of :
o Fund Value (including the Terminal Additions), or
o 105% of total premiums paid till death
The beneficiary can utilize the benefit received in the following ways:
o Receive the entire benefit in lump sum. Or
o Purchase an Immediate Annuity Plan from the company with benefit amount
Maturity Benefit – On survival till the end of the policy tenure, the policyholder gets higher of:
o Fund Value (including Terminal Addition), or
o 101% of all premiums paid.
The policyholder can utilize the proceeds to:
o Purchase an Immediate Annuity Plan from the company, or
o Purchase a Single Premium Deferred Annuity Plan from the company, or
o Purchase an Immediate Annuity plan and commute 1/3rd of the corpus. By commuting, the policyholder can withdraw 1/3rd of the corpus in cash which will be tax-free.
o The policyholder may also choose to postpone the Vesting Age if he is less than 55 years of age up to age 80 years.
Income Tax Benefit - Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80CCC. Death Benefit is tax free under section 10(10)D subject to fulfilment of terms and conditions. The commuted part of the Maturity Benefit is i.e. 1/3rd of the corpus is tax-free under Section 10 (10)D but the rest is taxable.
|
|
Minimum |
Maximum |
|
Policy Term (in years) |
10 or 15-35 |
|
|
Premium Payment Term (in years) |
Regular Pay – Equal to policy term Limited Pay : Term 10 years – 5/8 Term 15-35 years – 5/8/10/15 |
|
|
Entry Age of Life Insured (in years) |
30 |
70 |
|
Age at Vesting (in years) |
40 |
80 |
|
Annual Premium (in Rs.) |
Regular Pay: Yearly – 24,000 Half-yearly – 15,000 Quarterly – 7,500 Monthly – 2,500 Limited Pay: Yearly – 40,000 Half-yearly – 20,000 Quarterly – 10,000 Monthly – 5,000 |
No Limit |
|
Payment modes |
Annually, half-yearly, quarterly, monthly |
|
The below illustration is for a healthy Male (non-tobacco user) aged 35 years opting for a
Annual Premium = Rs. 50000
Policy Term= 15, 25 and 35 years
Premium Payment Term = 10 years (limited pay)
Riders – There are No Additional Riders in this plan
Guaranteed Additions – Guaranteed Additions of 10% of Annual Premium is credited to the Fund Value every year from the end of the 15th policy anniversary till the Vesting date.
Terminal Additions - at the vesting date, an extra 1.5% of the Fund Value is added to the existing Fund Value.
Investment Fund Options
In this plan, there are 3 fund options.
Top-up – Not Available
Switching – since the funds are systematically allocated towards the different funds under the ‘Advantage Plan’ Option, switching is not applicable.
Partial Withdrawal - In this policy, there are no partial withdrawals allowed.
Premium Allocation Charge – This charge is deducted from the Premium Paid by you
|
Policy Year |
Premium Allocation Charge |
|
1 |
5.75% |
|
2 |
4.25% |
|
3-10 |
4.00% |
|
11 & above |
2.50% |
Policy Administration Charge— This is the charge for the administrative working of the policy and is deducted by cancellation of units on a monthly basis.
|
Policy Year |
Policy Administration Charge |
|
1-5 |
Rs. 45 |
|
6 & above |
Rs. 70 |
Fund Management Charge– This charge is deducted by adjusting the NAV of the units on a daily basis.
|
Type |
Charge |
|
Equity Pension Fund II |
1.35% |
|
Bond Pension Fund II |
1.00% |
|
Money Market Pension Fund II |
0.25% |
Discontinuation Charge— This charge is for discontinuing the plan before the end of the Policy Tenure.
|
Year of Discontinuation |
Annual Premium < Rs. 25,000 |
Annual Premium >Rs. 25,000 |
|
1 |
Lower of 20% * (Annual Premium or Fund Value) to a maximum of Rs. 3,000 |
Lower of 6% * (Annual Premium or Fund Value) to a maximum of Rs. 6,000 |
|
2 |
Lower of 15% * (Annual Premium or Fund Value) to a maximum of Rs. 2,000 |
Lower of 4% * (Annual Premium or Fund Value) to a maximum of Rs. 5,000 |
|
3 |
Lower of 10% * (Annual Premium or Fund Value) to a maximum of Rs. 1,500 |
Lower of 3% * (Annual Premium or Fund Value) to a maximum of Rs. 4,000 |
|
4 |
Lower of 5% * (Annual Premium or Fund Value) to a maximum of Rs. 1,000 |
Lower of 2% * (Annual Premium or Fund Value) to a maximum of Rs. 2,000 |
|
5 onwards |
Nil |
|
Mortality Charge - Nil.
Service Tax would be applicable on the charges depending on the applicable rates.
You stop paying the premium - If the policy holder stops paying the premium before the first 5 policy years, the policy will be treated as it is treated in case of Surrender within 5 years. If the policyholder dies before the payment of the Surrender value, the value will be paid to the nominee or beneficiary immediately.
If the premium is stopped after 5 years, the policyholder may
You want to surrender the policy – if the policyholder surrenders the policy before the completion of 5 policy years, the Fund Value net of discontinuation charge will be credited to the Discontinued Policy Pension Fund where it will stay for the remainder of the lock-in period earning a minimum guaranteed interest rate of 4%. At the end of that period the policyholder can
You want a loan against your policy – Loan facility is not available in the plan
