SBI Life Insurance Company is one of the leading and most reputed insurance companies in India. The company was founded in the year 2001 as a result of the amalgamation of two biggest financial companies, State Bank of India and BNP Paribas Cardif. SBI Life Insurance Company operates across the country through its multi-distribution channels. SBI Life Insurance Company is known for offering a diverse range of customisable insurance and investment products to various customer segments.
Peace of mind and financial security are the two main important things that everyone wants to achieve for their golden years. Pension plans are designed to provide these two things. Unit-linked pension plans are market-linked pension products offered by the life insurance companies. Like any other unit-linked insurance plans, pension plans also come with both insurance and investment element. Unit-linked pension plans are locked-in for five years which helps you create a good corpus for your retirement.
SBI Life’s Retire Smart is a non-participating unit linked pure pension plan that provides the benefit of both protection and wealth creation. With the increasing longevity, early planning for retirement life has become very important. SBI Life’s retire smart helps you save systematically in order to get adequate income in your golden years.
|Entry age||30 years||70 years|
|Vesting age||40 years||80 years|
|Plan type||Regular premium/limited premium|
|Policy term (PT)||10 years||35 years|
|Premium paying term (PPT)
For Regular premium policy
For Limited premium policy
|Same as the policy term
For the 10-year policy term: 5 years/ 8 years
For the 15/30 year policy term: 5/8/10/15 years
|Premium payment frequency||Yearly/half-yearly/quarterly/monthly (for monthly mode, three months premium needs to be paid in advance and renewal premium payment can be made only through ECS, debit card, credit card and SI|
Premium range depending on the plan type and premium payment frequency
|Plan type||Premium payment frequency||Premium range (in Rs.)|
|Regular premium||Yearly||24,000||No limit|
|Limited premium||Yearly||40,000||No limit|
When you pay a premium, after deduction of premium allocation charges it is invested in investment funds in various proportion to provide the maturity or vesting benefits. On vesting, you will have below three options:
Below are the three funds in which your premium is invested in to.
|Fund options||Asset allocation (in %)||Risk profile|
|Equity||Debt instruments||Money market instruments|
|Equity pension fund II||80%-100%||0%-20%||0%-20%||High|
|Bond pension fund II||–||60%-100%||0%-40%||Low to medium|
|Money market pension fund II||–||0%-20%||80%-100%||Low|
Premium paid by you will be invested in various proportions in these funds through ‘Advantage plan’.
Depending on the remaining investment term to maturity, the allocation range would be:
|No. of years to maturity||Fund allocation %|
|Equity pension fund II||Bond pension fund II||Money market pension fund II|
|16 years and above||40%-75%||10%-60%||0%-35%|
SBI Life’s retire smart plan is suitable for investors looking out for long-term investments that can maximise their savings and provide regular income after retirement. As SBI Life’s Retire Smart plan offers various fund choices to invest in, it’s suitable for investors of various risk profile.
Though retirement may seem decades/years away, planning well in advance can help you ensure live those golden years happily. As SBI life’s Retire Smart plan invests into the market, investing early can help you take advantage of time and various market cycles to grow your money.
If the surrender is requested in the first five years, the fund value will be transferred to ‘discontinued policy pension fund’ and ‘discontinuance/surrender compulsory option’ will be exercised only on the 1st working day of the 6th policy year. If the surrender is requested after five years, ‘discontinuance/surrender compulsory option’ will be exercised immediately.
There is no loan facility in SBI Life’s Retire Smart plan.
If the life assured commits suicide within one year of policy commencement or from the date of revival, the policy will be considered void and all the benefits offered under the plan will cease. Fund value on the date of death intimation will be payable to the beneficiary.
SBI Life’s Retire Smart plan is competent investment product with flexible features and market-linked performance that helps you plan for stress-free post-retirement life. The plan also provides financial security to the family in the eventualities.
Some of the major types of charges applicable are
Premium allocation charges: Once the premium is paid, these charges are deducted before investing. Details of charges are as below
|Policy year||Premium allocation charges (in %)|
Policy administration charges: These charges are deducted monthly by cancelling appropriate units in the fund.
Charges are as below:
|Policy year||Policy administration charges|
|1-5||Rs. 45/ month|
|6 onwards||Rs. 70/ month|
Fund management charges: Fixed percentage of charges are deducted before calculating daily net asset value (NAV) for the relevant fund.
|Fund name||Fund Management Charges|
|Equity pension fund II||1.35% p.a.|
|Bond pension fund II||1% p.a.|
|Money market pension fund II||0.25% p.a.|
|Discontinued policy pension fund||0.50% p.a.|
Mortality Charges: NIL
Discontinuance charges: When the policy is discontinued mid-way, charges will be levied as a percentage of annual premium or fund value. Details of charges as below:
|Year of discontinuance||For annual premium up to Rs. 25,000||For annual premium above Rs. 25,000|
|1||Lower of 20% X(AP or FV) subject to a maximum of Rs. 3,000||Lower of 6% X(AP or FV) subject to a maximum of Rs. 6,000|
|2||Lower of 15% X(AP or FV) subject to a maximum of Rs. 2,000||Lower of 4% X(AP or FV) subject to a maximum of Rs. 5,000|
|3||Lower of 10% X(AP or FV) subject to a maximum of Rs. 1,500||Lower of 3% X(AP or FV) subject to a maximum of Rs. 4,000|
|4||Lower of 5% X(AP or FV) subject to a maximum of Rs. 1,000||Lower of 2% X(AP or FV) subject to a maximum of Rs. 2,000|
This option is applicable during complete withdrawal/revival/surrender of the policy. Under this, below options are made available to choose after completion of five policy years.
Other SBI Life Retirement Plans