SBI Life Insurance Company offers you variety of Pension Plans. This article is all about various SBI Pension Plans.
SBI offers 4 basic Pension Plans.
01) SBI Life - Horizon™ II Pension
02) SBI Life - Unit Plus™ II Pension
03) SBI Life - Lifelong Pensions
04) SBI Life - Immediate Annuity
You should carefully review the benefits offered by various SBI Pension Plans before choosing a Pension Plan for you. Each Pension Plan comes with different benefits. It is advisable that an Individual should first access his/her needs before buying any Pension Plan.
01) SBI Life - Horizon™ II Pension -
This Plan is available in 2 types. One is Pure Pension Plan & the other is Pension Cum Life Cover Plan.
It is a unique Unit Linked Pension Plan that will enable you to build a kitty good enough to enable you to spend a peaceful and financially sound Retired life!
SBI Life - Horizon II Pension is a safe and a hassle free way to get high returns! SBI Life - Horizon II Pension comes with the unique feature of Automatic Asset Allocation by means of which you truly, don’t need to be an expert to grow your money!
Key Features:
SBI Life - Horizon II Pension is the most simple unit linked pension plan; all you need to do is:
Available with two options:
- No medical required to enroll for Pure Pension
- No premium allocation charges from year 11 onwards.
- Save tax u/s 80 CCC (1) of IT Act.
- 15 days free look period from the date on which you receive the policy document.
Product type:
This is a Unit Linked Pension product.
Investment Plans available
Plan A - Dynamic Plan: Here a higher proportion of your money is invested in equity. It is ideal for longer period of terms.
Plan B - Growth Plan: Here, the investment in equity automatically decreases more rapidly as the funds are put into less risky options. This leads to more balanced approach, hence lower volatility coupled with good returns in long run.
Benefits
Retirement Benefit: At vesting age you get a choice to withdraw upto one third of the fund value in lumpsum-tax free as per the current tax law.The remaining amount has to be used to buy Annuity from either SBI life or from any other Annuity provider.
Death Benefit:
- Death during the term of policy
- Death after Vesting age: Death Benefit depends upon the annuity option chosen
02) SBI Life - Unit Plus™ II Pension -
It is also of two basic types. One is Single Premium Mode and the other is Regular Premium Mode.
This is a unit linked pension plan wherein the policyholder chooses an investment period from 5 to 52 years for a vesting age between 50 to 70 years. You can choose to pay either single premium or pay regular premium for the entire policy term. Your contributions are invested into 5 fund options as per your choice.
Key Features:
- Choice to invest & control four different funds as per your risk appetite.
- Flexibility to choose between two options
- Pure Pension
- Pension cum Life Cover
- No medical required for Pure Pension, automatic acceptance facility.
- Flexibility to increase regular contribution.
- Top up payments: any amount, anytime.
- Customize your plan by adding riders.
- 15 days free look period.
Product type:
This is a non participating Unit Linked Pension product.
How does it work?
Choose your vesting age: Any age between 50 years - 70 years.
Choose premium frequency and premium amount
Choose plan option
Option I Pure Pension Plan (For age group 18-65)
Option II Pension Plan with life cover (For age group 18-60)
Benefits
Death Benefit: During accumulation phase
Fund value will be paid in lumpsum to nominee.
The higher of fund value or sum assured will be paid in lumpsum to nominee.
Guaranteed additions by way of free allocation of units to increase your retirement kitty.
On Vesting:
It’s your income; you decide how it works for you. You have choice and flexibility.You can take upto one third of the fund value in lumpsum. tax-free as per current tax law.
The tax free limit applicable for the commutated value may change as per change in Income Tax rules
During Annuity Phase:
Balance amount has to be used to purchase annuity. The rate at which the amount at vesting date will be converted to an annuity is not guaranteed and will be based on the prevailing immediate anniuty rates under the relevant annuity option at the vesting date.
Currently SBI Life Insurance offers the following annuity options.
Tax Benefits
Save tax u/s 80 CCC (1) of IT Act.
03) SBI Life - Lifelong Pensions -
Life expectancy is improving rapidly. People live longer. You cannot work throughout your life. You will have to retire from work. In the post retirement period you have lot of time for yourself. You would like to do things you have not done while you were working
You need to have a comprehensive plan to meet your post retirement financial needs ensuring complete peace of mind.
Key Features:
A maximum of Rs. 1,00,000 p.a . paid as a contribution on a pension plan is fully deductible from the taxable income (within the max. ceiling Rs. 1 lakh )
Minimum Guaranteed returns of 4% p.a. (compounded annually) on your Personal Pension Account (till 31st March 2010) + Vested bonus.
It helps you to accumulate enough savings to meet the old age needs and look for a reliable and enduring pension payment.
It is an extremely flexible plan:
On maturity you have a choice to withdraw up to 33% from your Personal Pension Account in a lump sum. This withdrawal amount is tax-free as per the current fiscal law.
Helps you to utilize all alternatives of tax savings today and also plan for a worry free tomorrow.
In “Pension cum Life Cover” plan, you have the facility of Automatic Cover Maintenance , which ensures that the cover remains in force even when you miss the premium payments. This facility is available after the first three years of the term.
In “Pension cum Life Cover” plan, the life cover acceptance is based on a simple medical questionnaire without any Medical examination
Rebates for Annual, Semi- Annual mode of premium and on high Contribution amount. Enjoy financial independence when you retire.
15 days Free Look Period from the date on which you receive the policy documents.
04) SBI Life - Immediate Annuity -
SBI Life Insurance introduces SBI Life - Immediate Annuity Plan for Pension Policyholders. This product provides annuity payments immediately from payment of purchase price. It has been specially designed to cater to the annuity needs of our existing policyholders (SBI Life - Lifelong Pensions, SBI Life - Horizon II Pension, SBI Life - Unit Plus II Pension) at the vesting age.
All you need to do is choose the annuity option and pay a purchase price to commence the annuity for the required amount. We at SBI Life will calculate the amount of each annuity payments based on the purchase amount and life expectancy.
What are the Key Features?
You can opt for any one of the 6 Annuity options available and your annuity option stays the same throughout the tenure.
Option to choose the periodicity of your annuity: Members can choose the periodicity of the annuity depending upon their needs. The options available are Annual, Half yearly, Quarterly, and Monthly.
Annuity rates guaranteed for life: Attractive annuity rates due to group effect. Annuity rates decided at the time of entry are guaranteed for the rest of life for the given purchase price.
Age at Entry for member : 50 to 70 Years as on last birthday
Minimum Annuity will be Rs. 250 per month.
What are the Annuity Options* Available?
A variety of Options to choose from:
Life annuity at constant rate.
Annuity payable at constant rate throughout the life of the Annuitant with facility of receiving on death of the Annuitant a refund of purchase price less the sum total of annuity already paid till date of death.
Annuity payable at constant simple rate throughout the life of the Annuitant with facility of receiving on death of the Annuitant 100% refund of purchase price.
Annuity increasing at the rate of 1% or 2% or 3% per annum as the case may be and payable during the life of the Annuitant
Annuity certain for 5/ 10 / 15 years as the case may be and for the life thereafter
Last survivor annuity, whereby upon the death of the Annuitant his/ her spouse* will receive a life annuity, which will be either 100% or 50% of the last annuity amount paid to the Annuitant, as the case may be.
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