Pension Plan from SBI Life Insurance | Smart Pension

Insurance | admin | February 23, 2011 at 9:35 am

Introduction

SBI Life -Smart Pension, a unit linked deferred pension plan.

With the changing social and economic environment, shifting individual and family needs, it is advisable to follow a dynamic retirement planning process to improve the probability of success of your retirement plan.

A unit linked deferred pension plan, which offers you the flexibility to provide for all your retirement goals at one go or as per your convenience, spread over a period of time. What’s more, it provides you a minimum guaranteed return on the gross premiums paid.

Key Features

Enjoy the benefit of guaranteed amount at maturity or vesting
Option to avail pension by paying only one single premium.
Phase your retirement income – You have an option to take multiple single premium Policies, at lower costs.
Freedom to avail different annuity options.
Tax benefits as per the prevailing tax laws.

Special Features
Guaranteed Amount:

The product offers you a minimum guaranteed return of 4.5% per annum (on gross premium), applicable for this financial year 2010-11, for all premiums received up to March 31, 2011.
Starting from 1st April 2011, every year the guaranteed interest rate shall be 50 basis points above the average of the reverse repo rate prevailing as on the last working day of June, September, December and March of the previous financial year.

# The Guarantee is applicable only at maturity, and shall be further subject to the Policy being in force till the Maturity Date. Guarantee Charge of 0.35% p.a. would be recovered from the Fund (through cancellation of units) to provide the Guarantee.

Phased retirement income:

You have an option to take multiple single premium Policies, whenever you have lump-sum money available. This would help you to match the inflating pension required after your retirement.
You have an option to take multiple single premium Policies, whenever you have lump-sum money available. This would help you to match the inflating pension required after your retirement.
You will get the added advantage of a spread of annuity rates prevailing over a period and avoid unfortunately getting locked into a low annuity rate at a single point.
As a special benefit for loyal customers, we would be capping the overall policy administration charges to Rs 100 per month, irrespective of the number of policies you have opted for under single life.

Product Snapshot

product snapshot of SBI life insurance

Benefits:

• Maturity Benefit: On completion of Policy Term, the fund value can be utilized as follows:

1) Purchase Annuity Plan for the entire amount.
OR
2) Commute up to one third of Fund Value as lump sum and the balance can be pension plan from SBI life insurance used for the purchase of annuity.

You may purchase an annuity either from SBI Life Insurance Company Limited or from any other annuity provider, subject to regulatory provisions. You can avail a 2% discount on annuity purchase price if you buy annuities from SBI Life. The annuity will be based on the rates available at the time of purchase of annuity.

• Death Benefit:
In the unfortunate event of death of the policyholder, the Fund Value is payable in lump sum to the nominee or legal heir of the policyholder as on the date of intimation of the claim to the company.

You may download SBI Life Smart Pension official brochure from here.