SBI Life – Annuity Plus Plan

SBI Life Insurance Company was founded in the year 2001 as a bancassurance company. It’s a joint venture between two large financial services companies, State Bank of India and BNP Paribas Cardif. 62.1% of the total capital is held by State Bank of India and 22% of the capital is held by BNP Paribas Cardif. With the expertise of these two market giants, SBI Life Insurance Company is emerging as a strong leader in the Indian insurance market. CRISIL Ltd, a popular rating agency has rated the company with AAA-highest rating. SBI Life Insurance Company offers a comprehensive range of insurance, investment and pension products to cater to diver needs of people across the country.

What are Annuity Plans?

Annuity plans are the products offered by the insurance company that offers regular payment for life for the lump sum investment that you make. There are various types of annuity plans such as immediate annuity and deferred annuity etc. Each annuity plan works differently.

SBI Life’s Annuity Plus Plan

SBI Life’s Annuity Plus is a traditional, non-participating immediate annuity plan. A regular stream of income is important for everyone to maintain the lifestyle and to live a peaceful life at any age. SBI life’s Annuity Plus is an investment product that is designed to provide your regular income in order to maintain the standard of living. The plan offers various annuity options and flexibilities to provide you with regular income/pension for the rest of your life.

Features of SBI Life’s Annuity Plus Plan

  1. A comprehensive range of annuity options to choose from
  2. Enjoy pension/regular income from as early as 40 years
  3. Flexibility to choose the annuity pay-out frequency – yearly, half-yearly, quarterly or monthly
  4. Option to enjoy the annuity payouts until you or your partner’s lifetime. Your partner could be your spouse, children, parents-in-law or siblings
  5. The benefit of higher annuity rates for large premium
  6. Accidental death benefit as an additional rider at an affordable cost
  7. Facility to advance your annuity pay-outs
  8. Return of premium or balance premium
  9. Options for financial institutions/banks to purchase an immediate annuity in respect of annuity payments for their commitments to the homeowners under reverse mortgage schemes

Benefits of SBI Life’s Annuity Plus Plan

  • Security : As the plan pays out a steady and regular income, it ensures financial security. To receive the annuity payouts you need to submit existence certificate every year.
  • Flexibility : Plan offers flexibility to choose from a comprehensive range of annuity options.
    Annuity payout modes can also be chosen as per convenience.
  • Reliability : Fixed amount of pension throughout the year
  • Tax benefit : Tax benefits can be claimed under Section 80CCC of the Income Tax Act, 1961.

Eligibility Criteria for SBI Life’s Annuity Plus

Eligibility conditions Minimum Maximum
Entry age 40 years 80 years
Premium range The amount on which the minimum annuity instalment can be paid No limit
Annuity payout (per instalment
Yearly
Half-yearly
Quarterly
Monthly

Rs. 12,000
Rs. 6,000
Rs. 3,000
Rs. 1,000


No limit
Annuity payment mode Yearly/ Half-yearly/ Quarterly/Monthly (monthly mode is mandatory for government sector subscribers under National Pension System (NPS)

Annuity options available under SBI Life’s Annuity Plus plan

  1. Life annuity (single life) The annuity payout will continue at a guaranteed rate as long as you are alive. You will have the below options :
    1. Lifetime income :
      Annuity payouts will be made as long as the annuitant is alive. Upon the death of the
      annuitant, annuity pay-out benefits will cease immediately.
    2. Lifetime income with a capital refund :
      Annuity payouts will be made as long as the annuitant is alive. Upon the death of the
      annuitant, annuity pay-out benefits will cease immediately and the premium is
      refunded to the nominee.
    3. Lifetime income with a capital refund in parts :
      Annuity payouts will be made at a constant rate as long as the annuitant is alive. At the
      end of 7 years, 30% of the premium paid is paid back to annuitant on survival. Upon
      the death of the annuitant, the premium will be refunded. If death occurs within
      seven years, 100% premium will be paid back and if it is beyond seven years, 70%
      premium will be paid to the nominee.
    4. Lifetime income with balance capital refund :
      Annuity payouts will be made at a constant rate as long as the annuitant is alive. Upon
      the death of the annuitant, balance capital (premium paid – total annuities paid) will
      be refunded.
    5. Lifetime income with an annual increase of 3% or 5% :
      Annuity payout increases every year at 3% or 5% simple rate as per the option exercised.
      Upon the death of the annuitant, annuity pay-out benefits will cease immediately.
    6. Lifetime income with a certain period of 5, 10, 15 or 20 years :
      Annuity payouts will be made at a constant rate for a fixed period of 5, 10, 15 or 20 years
      as per the option exercised. If the death occurs within the chosen period, the
      annuity payout will continue for the nominee. If death occurs after the chosen
      period, annuity benefits will cease immediately.
  2. Life annuity (Joint life) :
    The annuity payout will continue at a constant rate until both the annuitants are alive.

    Annuitants can choose below options :

    1. Life and last survivor :
      50% or 100% income : Annuity is payable at a constant rate till the first annuitant is alive. On the death of the first annuitant, 50% or 100% of the last annuity pay-out will continue throughout the life of surviving annuitant. In case, secondary annuitant dies first, nothing will be payable after primary annuitants death.
    2. Life and last survivor :
      50% or 100% income with a capital refund : Annuity is payable at a constant rate till the
      first annuitant is alive. On the death of the first annuitant, 50% or 100% of the last
      annuity pay-out will continue throughout the life of surviving annuitant. The
      premium will be refunded to the nominee on the death of surviving annuitant.
    3. NPS – Family income :
      This option is specifically for NPS subscribers under which benefits payable are as per the regulations of PFRDA.

Who should buy SBI Life’s Annuity Plus plan?

SBI Life’s annuity plus plan is most suitable for individuals looking for retirement savings plans to create a regular stream of income.

When should you buy SBI Life’s Annuity Plus plan?

Investment in SBI Life’s annuity plus plan can be done after the age of 40 years up to 80 years.

Documents required for buying SBI Life’s Annuity Plus plan

  • PAN card is mandatory
  • Identity proof : PAN card/ Aadhaar card/driving license /passport /Voter’s ID card etc.
  • Address proof : electricity bill etc /Bank account statement
  • Income proof : salary certificate /IT return
  • Age proof : Birth certificate/school certificate/Passport etc.

Additional optional rider available in SBI Life’s Annuity Plus plan

You can opt for additional accidental death benefit rider. In the event of accidental death during the policy, a lump sum benefit equal to 12 times annualised annuity amount up to a maximum of the purchase price of the annuity is payable to the nominee. In case of a joint life annuity, the rider can be opted by primary annuitant or by both the annuitants. However, the premium needs to be paid separately for both the annuitants. Here are the eligibility criteria for the rider benefit

Eligibility conditions Minimum Maximum
Entry age 40 years 60 years
Rider term 10 years
Maturity age - 70 years
Sum assured Rs. 25,000 Rs. 50,00,000

Conclusion

SBI Life’s Annuity Plus plan is a comprehensive annuity plan with a wide range of annuity options that helps you secure your post-retirement life with steady and regular income flow for a lifetime.


FAQs

Better annuity rates are offered for higher premiums. Additional annualised annuity rates per Rs. 1000 premium is as below

Premium Incentive on an annualised modal annuity
Rs. 1,50,000 to less than Rs. 3,00,000 Rs. 2.50
Rs. 3,00,000 to less than Rs. 5,00,000 Rs. 3.50
Rs. 5,00,000 and above Rs. 4.25

Yes. Cancellation can be done after buying SBI Life’s Annuity Plus plan. There is a ‘free look period’ of 15 days for policies bought offline and 30 days for policies purchased through distance marketing mode. Within the free look period, you can cancel your policy in case you are not satisfied with the terms and conditions of the policy. However, it’s important to state the reason for objection/cancellation.


You need to opt for advancing annuity payout at the inception of SBI Life’s Annuity Plus plan. However, below conditions are applicable for this option.

  • The option is available for only yearly and half-yearly annuity payout modes
  • The desired date of annuity should be after 90 days from the date of purchase of the annuity
  • Additional charges will be levied
  • Payment of annuity will be based on the dates chosen by you