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SBI Life Retire Smart

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SBI Life Retire Smart Plan


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.


Key Features of SBI Life Retire Smart Plan


  • This is a Unit Linked Pension Plan which comes with a minimum Guaranteed Maturity Benefit of 101% of all premiums paid in case the funds do not give desired returns.
  • The ‘Advantage Plan’ option manages the fund against market volatility. Initially the net premium is invested in Equity Pension Fund II which carries high risk. With the maturity/vesting period approaching, the units are allocated to less riskier funds (Bond Pension Fund II and Money Market Pension Fund II respectively)to protect them against any adverse market fluctuation. It also guarantees 101% of all premiums paid on Vesting.
  • Guaranteed Additions and Terminal Additions increase the Fund Value to give maximum returns.
  • A minimum of 105% of all premiums paid is guaranteed on earlier death.
  • Premiums can be paid regularly or for a limited term as per suitability.
  • The plan allows the policyholder to postpone the Vesting Age if age is lower than 55 years



Benefits you get from SBI Life Retire Smart Plan


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.



Eligibility conditions & other restrictions in SBI Life Retire Smart Plan             





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)



Age at Vesting (in years)



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



Sample Illustration of SBI Life Retire Smart Plan


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)



Additional Features and Benefits of SBI Life Retire Smart Plan


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.

  1. Equity Pension Fund II
  2. Bond Pension Fund II
  3. Money Market Pension Fund II


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







11 & above




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


Rs. 45

6 & above

Rs. 70



Fund Management Charge– This charge is deducted by adjusting the NAV of the units on a daily basis.



Equity Pension Fund II


Bond Pension Fund II


Money Market Pension Fund II



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


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


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


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


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




Mortality Charge - Nil.


Service Tax would be applicable on the charges depending on the applicable rates.



What happens if?


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

  • Surrender the plan. The options available will be the same as in case of surrender after 5 years option.
  • Make the plan paid-up in which case the plan continues without premium payments and the coverage shall cease. If at any time, the fund value becomes lower than one annual premium, the policy will be terminated immediately and the available fund value will be paid to the policyholder.


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

  • Purchase an Immediate annuity plan from the company
  • Use the entire fund value to buy a Single Premium Deferred Pension product from the company
  • Purchase an Immediate annuity plan and commute up to 1/3rd of the Fund value
  • If the surrender is done after 5 years then the policyholder again has the above mentioned options to be exercised in the year of surrender itself.


You want a loan against your policy – Loan facility is not available in the plan


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