SBI Life Insurance Company is a private life insurer which is present all across India with a network of more than 800 branches. The company offers a range of life insurance plans meant to fulfil every financial need of the customer. Individuals can plan for their children’s secured future, the family’s secured future, investments and protection through life insurance plans offered by the company. One such type of plan which the company offers is a retirement plan. There are a variety of plans which are designed as retirement insurance plans helping individuals create a corpus for their retirement. Let’s understand retirement plans in details –
Retirement plans are also called pension plans. These plans help individuals create a corpus for retirement and then receive lifelong incomes after they retire. Retirement plans can be of two kinds. The first one is the deferred annuity plan wherein there is a specified policy tenure chosen by the individual. Policyholders pay premiums during the policy tenure to build up a retirement corpus. When the tenure ends, the accumulated corpus is then used to buy annuities which are regular incomes payable throughout the annuitant’s life. The other kind is the immediate annuity plan. Immediate annuity plans have no policy tenure. Individuals pay a lump sum premium and buy annuity pay-outs which are paid immediately from the next frequency chosen by the policyholder. Thus, retirement plans promise retirement funding and help individuals be financially free even after they retire.
Retirement or pension plans have the following salient features –
SBI Life offers the following types of retirement plans –
Vesting means when the plan matures. In case of deferred annuity plans, when the chosen plan tenure comes to an end and the insured is alive, the maturity of the plan is called vesting.
On vesting, the policyholder can choose from any of the following options:
In a deferred annuity plan, if the insured dies, a death benefit is paid. This benefit can be received in a lump sum by the nominee. The nominee can also choose to avail annuity payments from the death benefit.
In immediate annuity plans, the annuity pay-outs stop after the annuitant dies. If the annuity is a joint life annuity, the payouts would continue even after the death of the primary annuitant till the surviving annuitant is alive. It would stop when the second annuitant also dies.
SBI Life Retirement Plans
SBI Life Savings Plans