SBI Life Saral Pension Plan
SBI Life Saral Pension Plan
SBI Life Saral Pension Plan is a Regular Premium Deferred Annuity Plan. It is a Traditional Insurance Plan with Bonus facility.
Key Features
The policy provides a higher timeframes of 10 to 40 years
In case of death of the Annuitant within the Policy Tenure, the entire premium paid till date along with an interest rate of 0.25% p.a. compounded annually + Vested Simple Reversionary Bonus + Terminal Bonus would be payable to the nominee as Death Benefit which he can opt to take in a lumpsum or as an annuity
When the policy matures, the Vesting Benefit in this plan is Sum Assured + Vested Simple Reversionary Bonuses + Terminal Bonus, if any
Benefits
In case of death of the Annuitant within the Policy Tenure, the nominee will receive total premiums paid accumulated at an interest rate of 0.25% p.a. compounded annually + Vested Simple Reversionary Bonus + Terminal Bonus as Death Benefit which can be taken by the nominee as a lumpsum or as annuity from SBI Life.
On Vesting, the Annuitant has the following options:
- Withdraw 1/3rd of the Vesting Benefit as Tax Free under section 10(10)A and utilize the remaining to purchase annuity from SBI Life
- Use the entire amount to purchase annuity from SBI Life
- Utilize the entire amount to purchase a Single Premium Deferred Pension Plan from SBI Life
- To extend the accumulation period or defer the vesting date, provided you are below age of 55 years on vesting. The maximum extended period will be up to age 70 years.
Life Insurance premiums paid up to Rs. 1,00,000 are allowed as a deduction from the taxable income each year under section 80C and 1/3rd of the Maturity proceeds are tax free under section 10(10)A subject to fulfilment of terms and conditions.
There is 1 Additional Rider in this plan:
Preferred Term Rider
How it works
In this plan, premium needs to be paid for the entire policy tenure as chosen between 10 to 40 years.
There is Guaranteed Simple Reversionary Bonus in this plan for first 5 years:
- At the rate of 2.50% p.a. of the Sum Assured for first three years and
- At the rate of 2.75% p.a. of the Sum Assured for the next two years.
The Guaranteed Bonus will be applicable only to in-force policies.
The Vesting Benefit in this plan is Sum Assured + Vested Simple Reversionary Bonuses + Terminal Bonus, if any. The Sum Assured carries an implicit guaranteed interest rate of at least 0.25% p.a. compounding annually
On Vesting, the Annuitant has the following options:
- Withdraw 1/3rd of the Vesting Benefit as Tax Free under section 10(10)A and utilize the remaining to purchase annuity from SBI Life
- Use the entire amount to purchase annuity from SBI Life
- Utilize the entire amount to purchase a Single Premium Deferred Pension Plan from SBI Life
- To extend the accumulation period or defer the vesting date, provided you are below age of 55 years on vesting. The maximum extended period will be up to age 70 years
However, if the Annuitant dies within the Policy Tenure, i.e. before the Annuity starts, the entire premium paid till date along with an interest rate of 0.25% p.a. compounded annually + Vested Simple Reversionary Bonus + Terminal Bonus would be payable to the nominee as Death Benefit which he can opt to take in a lumpsum or as an annuity.
There is an additional rider that can be availed in this plan of Preferred Term Rider.
Eligibility
| Minimum | Maximum | |
| Sum Assured on Vesting (in Rs.) | 100000 | No Limit |
| Policy Term (in years) | 10 | 40 |
| Premium Payment Term (in years) | Equal to Policy Tenure | |
| Entry Age of Annuitant (in years) | 18 | 65 |
| Age at Vesting / Maturity (in years) | 40 | 70 |
| Premium (in Rs.) | 7500 | No Limit |
| Payment modes | Yearly, Half-Yearly, Quarterly and Monthly | |
FAQs
You stop paying the premiumThe policy will lapse if the premium stops. The policy becomes paid up if at least 3 years’ premiums have been paid and continues with Reduced Benefit. The policy can however be revived within 3 years from the due date of the first unpaid premium.
You want to surrender the policyIf least 3 years’ premiums have been paid the policy acquires Surrender Value which depends on the Policy Term.
Guaranteed Surrender Value=30% of all Premiums paid-1st year’s premium
You want a loan against your policyThere is no Loan available under this plan.
