SBI Life, one of the leading insurance providers in India, is a joint venture between India's biggest bank - the State Bank of India, and BNP Paribas Cardif. SBI Life insurance company offers wide-ranging insurance products to cater to the requirements of the customers. And Pension Plans are one of the renowned products offered by the company. SBI Life Pension plans are comprehensive retirement cum investment plans which help to build a corpus over a longer tenure to live a financially secure life after retirement.
Those individuals who participate in SBI Pension Plan get annuity payments once they retire. SBI offers two main types of pension plans: delayed annuity and instant annuity. Let's take a look at the SBI Life Pension plan in detail:
Features of SBI Life Pension Plans
SBI Life Insurance Pension Plan comes with several features. Some of them are mentioned below. Take a look:
Affordable and Secure way for planning retirement years
Option to include a family member
Advantage option under this plan provides protection against market volatility
Minimum assured amount at the time of maturity
Simple Reversionary bonuses at regular intervals
Offer two annuity payout options: Deferred Annuity and Immediate Annuity Plans
Benefits of SBI Life Pension Plans
SBI Life Insurance Pension Plan allows its customers to plan their retirement in advance with its pocket-full of benefits. The benefits that the plan offers are:
1 Multiple Premium Payment Options
SBI Life Pension plans offer an option to pay a Single premium, Regular Premium, or for a Limited Period.
2 Death Benefit
The plan provides a death benefit for the financial protection of your family in your absence. The death benefits or sum assured will be received by the nominee in unfortunate events.
3 Guaranteed Income
The plan provides a fixed and steady income after retirement. Guaranteed additions are allowed to be paid by the insured regularly for the policy term of 15 years or more.
The policy can be surrendered anytime during the policy term.
5 Riders Availability
With additional riders, retirement plans can be customized to help you and your family avail of additional protection against unforeseen events.
6 Maturity Age
SBI Life Pension plans offer flexibility to postpone an insured person's vesting age using the option of Deferment.
7 Tax Benefits
Get the tax benefits on premiums paid under Section 80CCC of the Income Tax Act, 1961.
Claim Settlement Ratio of SBI Life Insurance
SBI Life Pension Plan ensures to look after your retirement needs so that you can live your second innings without any financial crunch.
Investing in retirement plans helps in providing guaranteed income after retirement to cater to your financial needs. Thus, before buying a pension plan, it is necessary to choose the right company by evaluating its performance. The Claim Settlement Ratio of a company assists you to do so. IRDAI in its annual report 2019-2021 published SBI Life Insurance Company's CSR as 94.52, indicating good claim settlement ability of the insurer.
Let's compare SBI Life's CSR with the top 5 Pension plan insurers in the graph below and understand its market performance.
Claim Settlement Ratio of Top Pension Plan Insurance Companies (2019-20)
SBI Life company offers 3 effective pension insurance plans that provide financial assistance after your retirement.
SBI Life Pension Plans
Why Should You Buy
SBI Life Saral Pension
It is a non-linked pension plan that provides safety from market volatility by providing a life insurance cover.
SBI Life Retire Smart
The plan guarantees 101% of all premiums paid by the insured on maturity.
SBI Life Annuity Plus
It is an individual, non-linked annuity plan that comes out with a comprehensive range of annuity options
Let's discuss each plan in detail.
SBI Life Saral Pension
SBI Life Saral Pension is an individual and non-linked participating savings retirement plan. The plan is specifically designed for individuals who want complete safety from market volatility to have a secure future.
Guaranteed Bonus: SBI Saral Pension plan offers a guaranteed simple reversionary bonus for the initial 5 policy years @ 2.50% for the first three years and 2.75% (of the basic sum assured) for the rest of the years.
Vesting Maturity Benefit: Under this benefit, the policyholder will receive a higher basic sum assured or total premium received along with a vested simple reversionary bonus, and a simple terminal bonus.
Life Insurance Cover: The plan offers the option of additional life cover through SBI Life - Preferred Term Rider.
Regular Premium - 60 years, Single-Premium - 65 years
Type of Plan
Regular Premium/Single Premium
Regular Premium - 10 years, Single-Premium - 5 years
Sample Premium Illustration
The graph illustrates the premium payable by an individual under the SBI Life Saral Pension plan at different ages and different sums assured with Life annuity option.
SBI Life Retire Smart is a unit-linked insurance plan that comes out with dual benefits of investment and insurance. It offers useful features that empower great control to manage the investment.
Flexibility: The plan offers the flexibility to choose premium payment terms as per your requirements. It allows you to modify your fund allocation as per changing market situations.
Option to pay: Single premium, Regular Premium, or for a limited period
Advantage Plan: A minimum of 101 % of total premium is paid by the insurer at the time of maturity.
Accident death benefit cover: In case of an unfortunate event such as death of the insured, higher of fund value (as on the date of claim intimation) plus 1.5% of the fund value or 105% of the premiums received up to the death date is payable by the insurer.
Minimum: 30 years, Maximum: 70 years
Maximum: 80 years
Regular Premium/Limited Premium/Single Premium
SBI Life Annuity Plus Plan
SBI Life Annuity Plus is an individual, non-linked, and non-participating general annuity plan. The plan helps you to enjoy your post-retirement period without any financial worries.
Regular Income: With this annuity plan, you will get a regular income for life. You can also ask to receive periodic income as per your requirements.
Annuity Options: The plan provides a wider choice of annuity options to choose from.
Rider Benefits: It offers additional rider benefits at affordable premium rates.
Tax Benefits: The plan comes out with tax benefits as per the prevailing tax laws.
Fund Value is the total number of units under the funds and the corresponding NAVs.
2. What is the Deferment Period?
It is the period between the date of subscription to an insurance-cum-pension policy and the date on which you receive the first installment of pension. Such policies generally prescribe a minimum and maximum limit on the deferment period.
3. Why Should someone invest in SBI Life pension plans?
All SBI pension plans are full of amazing benefits and features which make it a preferred option. They do offer regular income, lifetime annuity options, flexibility, advance annuity payout, and much more.
4. Can the annuity payout date be advanced?
Yes, at the time of inception the annuitant may select to advance the annuity payout. However, advancement will be subject to certain conditions.
5. Is Loan Against the policy available under SBI pension plans?
No, the Loan facility is not available under this pension plan.
6. How is Tier 1 account different from the Tier II account?
Under a Tier I account, one cannot withdraw until they attain 60 years of age, whereas, in Tier II, one can make a withdrawal from your balance whenever they wish to.
7. How much do I need to contribute annually under a Tier I account?
The minimum contribution that one needs to contribute one time under Tier I account is Rs. 500 & Rs. 6000 annually.
8. How much do I need to contribute annually under a Tier II account?
The minimum contribution that one needs to contribute one time under Tier I account is Rs. 250 & Rs. 2000 annually.
9. Are there any maximum limit under the Tier I & Tier II accounts of SBI Pension plans?
The maximum limit of the SBI Pension Fund Scheme is Rs. 12,000 per annum, for both Tier I and II taken together.
10. Can I cancel my riders of the SBI Pension Fund Scheme?
Yes, riders can be canceled on any policy anniversary.