SBI Life Retire Smart
SBI Life Retire Smart
  • Free Look Period
  • Maturity/vesting Benefit
  • Tax Benefits u/s 80C
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SBI Life Retire Smart

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.

SBI Life Retire Smart: Eligibility

Entry age 30 years to 70 years
Maximum maturity/vesting age 80 years
Policy tenureRegular premium/limited premium/single premium
Premium frequencySingle/yearly/ half-yearly/quarterly/monthly
Minimum premiumRs.2500

Key Features and Benefits

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.

  • Guaranteed Additions: SBI Life Retire Smart provides guaranteed additions under which the insured will get the reward with up to 10% of the annual premium. The addition will start from the 16th year of the policy until the time of vesting.
  • Terminal Addition: The insured will be liable to receive a terminal addition under which a few extra units are allocated to the insured. Usually, 1.5% of the premium paid will be added to the fund value. It will offer the required financial assistance to the nominee in case of the insured’s demise.
  • Death Benefit: In case the insured dies because of an unfortunate incident during the policy tenure, the nominee will be liable to receive the higher of fund value that includes terminal benefits or 105% of the total paid premiums. The insured can receive the entire amount as a lump sum amount or can use the same to buy an annuity plan.
  • Maturity/vesting: On completion of the vesting period, the insured/nominee will get fund value or the total paid premiums. The nominee can use the same in four different ways.
  • Free Look Period: The plan comes out with a free look period of 15 days. Under the same, you can cancel your plan if you want to and get a refund.
  • Grace Period: If an insured fails to renew his/her policy on time, he/she will be offered a grace period under which the plan should be renewed. The grace period for this plan is 15 days for monthly frequency and 30 days for quarterly, half-yearly, and yearly frequencies.
  • Surrender Benefit: The policy comes out with a lock-in period of 5 years. If you surrender within the lock-in period, funds get to move to discontinuance policy fund and get paid after a tenure of 5 years. In the case where you surrender the plan after 5 years, you will get the fund value immediately.
  • Tax Benefit: The premium that you pay towards your policy is tax-deductible as per section 80CCC and the benefits that you received under your plan can fall under Section 10(10A) and 10(10D).

How Does The Plan Work?

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.

Case A: He survives till vesting date

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.

Case B: Mahesh dies within the policy tenure

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.

Does SBI Life Retire Smart Plan Offer Any Rider?

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.

Why You Should Go For SBI Life Retire Smart?

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.

SBI Life Retire Smart: Charges

Premium Allocation Charge: The same charges will be deducted from the premium paid by you.

Policy YearPremium Allocation Charge
15.75%
24.25%
3-104.00%
11 & above2.50%

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.

YearPolicy administration charge
1-5Rs. 45
6 & aboveRs. 70

Fund Management Charge: This charge gets deducted by adjusting the NAV of the units regularly.

TypeCharge
Equity Pension Fund II1.35%
Bond Pension Fund II1.00%
Money Market Pension Fund II0.25%

Mortality Charge: Nil, there would be some service tax as per the applicable rates.

Investment of Funds Under SBI Life Retire Smart Policy

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.

Exclusions

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.

Required Documents

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.

Claim Process

In case of any unwanted situation striking the insured, the nominee can easily file a claim. Let’s look at the process

  • The nominee or beneficiary should submit in writing about the death of the insured stating the cause of death, policy number, and date of death.
  • It is important to file the claim within 90 days of the claim event. If there is any kind of delay in the same, the company will check the situation which led to the delay in filing the claim. If the situation was beyond the control of the claimant, they will proceed with processing the claim.
  • If the company is satisfied that the claim and the documents submitted are valid, it will make the payment to the claimant.

FAQs

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.

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Last updated on 05-03-2020