SBI Life Retire Smart Plan is a unit-linked non-participating pension plan which offers guaranteed returns. It guarantees 101% of all premiums paid on vesting and also protects your funds from market volatility. Along with the life insurance cover, it comes out with multiple fund options which will add to the growth of an investment. It provides regular and limited premium payment options. It is exclusively designed for people who want to build a corpus by investing their savings. Let’s check its eligibility criteria.
|Entry age||30 years to 70 years|
|Maximum maturity/vesting age||80 years|
|Policy tenure||Regular premium/limited premium/single premium|
|Premium frequency||Single/yearly/ half-yearly/quarterly/monthly|
To offer complete protection and assistance during the post-retirement period, the plan has come out with multiple features and benefits. Let’s explore them in detail.
Mahesh (age-30 years) is planning for his retirement and looking out for all available options through which he can build the retirement corpus and get a regular income during the post-retirement period. He decided to invest in SBI Life Retire Smart with the premium payment term of 35 years and an annual premium of Rs 50,000.
At the time of vesting, the higher of fund value + terminal addition or 101% of total premiums paid is payable. There will be guaranteed additions till vesting/maturity of the policy.
In case of demise of the insured during the policy period, the higher of 105% of total premiums paid or fund value + terminal addition is payable to the beneficiary.
Yes, you can add an accidental death benefit rider with SBI Life Retire Smart. It offers a lump sum benefit to the beneficiary of 12 times the annualized premium amount in case of the insured’s death due to an accident.
SBI Life Retire Smart is one of the most preferred alternatives when it comes to pension products in India. A wide range of benefits along with multiple funds option makes it the best one to stand out of the crowd. It is a profitable plan where all your premiums are invested to generate the best of returns. Another aspect of choosing this plan is that it offers 3 different fund options to choose from. It comes out with different risk-reward ratings to suit the needs of multiple investors. You must invest in this plan for a secure and happy post-retirement period.
Premium Allocation Charge: The same charges will be deducted from the premium paid by you.
|Policy Year||Premium Allocation Charge|
|11 & above||2.50%|
Policy Administration Charge: It is a charge associated with the administrative working of the plan and it gets deducted by the cancellation of units monthly.
|Year||Policy administration charge|
|6 & above||Rs. 70|
Fund Management Charge: This charge gets deducted by adjusting the NAV of the units regularly.
|Equity Pension Fund II||1.35%|
|Bond Pension Fund II||1.00%|
|Money Market Pension Fund II||0.25%|
Mortality Charge: Nil, there would be some service tax as per the applicable rates.
SBI Life Retire Smart Policy is a unit-linked insurance plan that comes out with three active funds. Such funds offer a variable mix of risk and return and one discontinued policy fund. The premiums paid are useful for different fund options and can switch as per the years remaining. The fund allocation is mentioned below.
In the case where the insured has committed suicide within 1 year of the policy issuance or renewal, the plan will not offer the complete cover. It will just pay the fund value to the beneficiary.
To invest in SBI Life Retire Smart Policy, you have to submit a duly signed insurance form or proposal form along with the required medical history and KYC documents. In a few cases, you might need to submit income age proof as well.
In case of any unwanted situation striking the insured, the nominee can easily file a claim. Let’s look at the process
In case the insured stops paying the premium during the initial 5 years of the policy, the plan will treat it as a surrender option. If the insured dies before the surrender value payment, the nominee/beneficiary will receive the same immediately.
If the insured surrenders the plan before the completion of the lock-in period (5 years), the fund value & net value of discontinuation charge will be credited to the discontinued policy pension fund. Under the same, it will stay for the remaining years of lock-in period earning a minimum guaranteed interest rate of 4%.
No, you can't apply for the loan against the SBI Life Retire Smart Policy.
The plan allows nominations under section 39 of the Insurance Act, 1938. It might change from time to time.
The SBI Life Retire Smart Policy doesn’t allow any partial withdrawals. In case of need, you are allowed to surrender your policy.
There are two modes - online and offline. Under the online mode, you are allowed to pay your premiums through cheque, cash, ECS, credit and debit cards, net banking and other available online modes. On the other hand, offline mode will ask for cash payment by simply visiting the nearest branch office of SBI Life.
Last updated on 06-11-2020