SBI Life Insurance Company is a joint venture between State Bank of India, the largest state-owned banking and services company in India and BNP Paribas Cardif, a multinational insurance company headquartered in Paris. Unrivalled strength of State Bank of India and the strong global presence of BNP Paribas has contributed hugely to the tremendous success of SBI Life Insurance Company. With a multi-channel distribution network and customisable products for every customer segment, SBI Life Insurance Company is emerging as one of the best insurers in India. The company has been consistently recognised and awarded for its contribution to the Indian insurance sector.
Pension plans offered by life insurance companies are the combination of insurance and investment for retirement life. Pension plans are designed to provide life cover as well as pension benefits for happy retirement life. With the proceeds of pension plans, you can purchase annuity plans and opt for monthly pension benefits. Basically, it’s crafted to secure your golden years.
SBI Life’s Saral Pension plan is non-linked, participating in a traditional pension plan. SBI Life’s Saral Pension plan gives a great opportunity to save and build a corpus for retirement years. With this, you will not only avail life cover but also create wealth to live a happy life later. With many challenges of rising cost, inflation and expenses, it requires you to save enough and systematically in order to maintain the same lifestyle even after retirement. SBI Life’s Saral Pension plan comes with various features to secure your golden years.
Further, the nominee can opt for either of the below options
|Vesting age||40 years||70 years|
|Policy term||10 years||40 years|
|Premium payment term||Same as the policy term|
|Sum assured||Rs.1,00,000||No limit|
|Plan type||Single premium / Regular premium|
|Premium payment mode||Single/yearly/half-yearly/monthly (Premium for various modes as a percentage of annual premium are given below)
Monthly premium – 8.4% of the annual premium
Half-yearly premium – 50.2% of the annual premium
|Premium range||Rs. 7,500 p.a||No limit|
|Entry age||18 years||50 years for regular premium and 55 years for single premium|
|Maturity age||–||60 years|
|Policy term||10 years for regular premium and 5 years for single premium||30 years|
|Premium paying term||Same as the policy term|
|Sum Assured (in Rs.)||25,000||50,00,000|
|Please note: rider sum assured cannot be more than the basic sum assured of the plan|
SBI Life’s Saral Pension plan is a great investment option for all the investors planning for retirement. It is basically targeted at working class individuals who need to build a decent corpus for golden years of life that could provide a regular source of income.
Retirement planning should be made in the early years of your career as time can help you build a good amount of corpus for your post-retirement life. It’s ideal to invest in SBI Life’s Saral Pension plan as soon as you start earning. However, SBI Life’s Saral Pension plan allows you to invest any time during the age of 18 years to 65 years.
There are two scenarios to discontinuation of premium payment in SBI Life’s Saral Pension plan. Discontinuance of premium within the first three years of policy: Policy will lapse and policy benefits will be ceased immediately. The policy can be revived within two years from the date of first unpaid premium by making payment of all dues along with interest if any. If revival is not done, the policy will be terminated.
Discontinuance of premium after three years of policy: After payment of three full year’s premium, policy acquires paid-up status. Hence, if further premium payments are discontinued, policy benefits will continue but at the proportionately reduced value. The policy can also be revived within two years.
Surrender of SBI Life’s Saral Pension Plan depends on the type of premium payment plan chosen. In the case of single premium plans, you can surrender your policy anytime during the policy term. However, if you have opted for regular premium policies, you can surrender your policy only after completion of three years of having premium paid in full. Guaranteed surrender value is as mentioned below.
|Policy year||GSV as % of the basic premium paid|
|20 year onwards||70%|
There is no loan facility available in SBI Life’s Saral Pension Plan
SBI Life’s Saral Pension plan is one of the best retirement policy that helps you live your life hassle free and maintain a current lifestyle even after you retire. With the protection offered, reliable bonuses and many flexible features, SBI Life’s Saral Pension plan helps you plan for prosperous post-retirement life.
You need to pay the premium for the chosen policy term. On vesting, the sum assured + vested simple reversionary bonuses + terminal bonus, if any is considered as vesting proceeds. These proceeds can be used immediately to purchase an annuity to receive the monthly pension benefits. Or else, you can defer the annuity purchase to a later date. Depending on the income tax rule, you can commute part of your proceeds while investing in an annuity.
In case of death during the policy term, death benefits defined in the plan are payable to the nominee.
Yes. You can revive your discontinued policy within two years from the date of discontinuance. Once the company decides to revive depending on its underwriting terms and requirements, you need to pay all the unpaid premiums with interest.
Terminal bonus is kind of loyalty benefit that is paid only once at the end of the policy maturity for all the in-force policies. This is basically a bonus paid for maintaining the policy till the end. Value of terminal bonus is non-guaranteed which will be declared only at the end of the policy maturity.
Other SBI Life Retirement Plans