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SBI Life Saral Pension Plan

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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.

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.
 

Bonus in SBI Life Saral Pension Plan


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.
 

Key Features of SBI Life Saral Pension Insurance Plan

  • It is a Regular Premium Deferred Annuity plan
  • 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

On vesting, the Annuitant has the following options:
  1. 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
  2. Use the entire amount to purchase annuity from SBI Life
  3. Utilize the entire amount to purchase a Single Premium Deferred Pension Plan from SBI Life
  4. 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
There is an additional rider that can be availed in this plan of Preferred Term Rider


COMPARE THIS PLAN WITH OTHER PENSION PLANS

 

Benefits you get from SBI Life Saral Pension Insurance Policy


Death Benefit – 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.

Vesting Benefit – When the policy matures, the Vesting Benefit is Sum Assured + Vested Simple Reversionary Bonuses + Terminal Bonus, which can be availed by the policyholder as Annuity.

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

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 80C and 1/3rd of the Maturity proceeds are tax free under section 10(10)A subject to fulfilment of terms and conditions
 
 

Eligibility conditions & other restrictions in SBI Life Saral Pension Policy

 
  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
 

Additional Features and Benefits of SBI Life Saral Pension Plan


Riders – There is 1 Additional Rider in this plan:
Preferred Term Rider


What happens if?


You stop paying the premium – The 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 policy – If 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 policy - There is no Loan available under this plan.

 
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