Is SBI pension plan worth

When it comes to pension plans SBI provides its customers with 3 different types of Pension Plans. All the three plans cater to different needs of different customers. Let us discuss each of the three plans in detail.

SBI Life – Saral Pension

The Saral Pension Plan is a traditional plan that also provides a bonus facility. The regular premium deferred annuity plan offers a timeframe between 10 to 40 years. If the policyholder passes away during the policy tenure, the premium that has been paid till date plus a compounded interest of 0.25% plus vested simple reversionary bonus plus terminal bonus will be paid to the beneficiary as the death benefit. The beneficiary can opt to receive the death benefit for buying an annuity or in lump sum. The multiple maturity benefits offered by the Saral Pension Plan also add to its popularity. This pension plan is eligible for a tax benefit under Section 80C and Section 10 (10) D of the Income Tax Act 1961.

SBI Life – Retire Smart

The SBI Life – Retire Smart plan is a non-participant ULIP pension plan, that does not provide any liquidity during the first five years of buying the plan. The policyholder also cannot surrender the linked insurance products either completely or partially till the term of 5 years end. The biggest benefit of this plan is that the guaranteed additions results at 10% of the yearly premium from the 15th year of policy and then continue every year, till the end of the plan. When the policy matures, the policyholder receives the higher of the fund value, which includes guaranteed and terminal additions. The assured retirement corpus bring reliability to the plan too. The plan is also popular as it provides security to your retirement years. The plan gives you the flexibility to pay the premiums either on a regular basis or for a specific period. As the investment is controlled by the advantage plan feature it keeps a check on the risk-exposure and also ensures that there is minimal risk to the investment, but at the same time the returns are maximum.

SBI Life – Annuity Plus

The Annuity Plus plan by SBI Life is also a traditional, non-participating immediate annuity plan. In this plan, once the single premium is deposited under the plan, there is payment of annuity as per the option and frequency chosen. It offers you a comprehensive range of options (annuity options) to choose from on payment of a single premium. This way, you can be sure of an even and consistent annuity for life which provides you with a security blanket. The payout options are: Lifetime Income Lifetime Income with Capital Refund Lifetime Income with Capital Refund in parts Lifetime income with Balance Capital Refund Lifetime income with Annual Increase of 3% or 5% Lifetime income with certain period of 5, 10, 15 or 20 years and life thereafter Life Annuity (Two lives) with option to choose either Life and Last Survivor - 50% or 100% Income or Life and Last Survivor - 50% or 100% Income with Capital Refund With this plan, there can be an Accidental Death Benefit Rider that provides a cover of INR 50 lakhs. The plan also offers higher annuity rates in case of higher premiums. This pension plan is eligible for a tax benefit under section 80C and section 10 (10) D of the Income Tax Act 1961.

Minimum Maximum
Entry Age18 yearsFor Regular Pay 60 Years For Single Pay 65 Years
Vesting Age40 years70 years
Policy TermFor Regular Premium 10 Years For Single Premium 5 Years 40 years
Annual Premium AmountINR 7500No upper limit
Sum AssuredINR 1,00,000No upper limit
Minimum Maximum
Entry Age30 years70 years
Vesting Age40 years80 years
Policy Term10 years | 15 years35 years
Annual Premium AmountFor Regular Premium INR 24,000 p.a. For Limited Premium INR 40,000 p.a. No upper limit
Sum AssuredINR 1,00,000No upper limit
Minimum Maximum
Entry Age40 years 0 years for SBI Life Policies 80 years
Purchase Price Depends on the annuity payout amount and the age of the annuitant.Depends on the annuity payout amount and the age of the annuitant.
Annuity Payout AmountMonthly: Rs. 1000, Quarterly: Rs. 3000, Half-yearly: Rs. 6,000, Yearly: Rs. 12,000No upper limit
Annuity Payout FrequencyMonthly /Quarterly / Half yearly / Yearly