SBI Pension Plan

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SBI Life Insurance Company is a joint venture between the State Bank of India and BNP Paribas Cardif. While the former Indian counterpart has a stake-holding of 74% of the company, BNP Paribas Cardif has a total holding of 26% of the company. According to the Brand Equity and Nielsen Survey conducted by the Economic Times in 2013, SBI life Insurance Company was voted ‘The Most Trusted Private Life Insurance Brand 2013’. The company works on its mission to emerge as the leading company which offers a comprehensive range of insurance products to customers and to ensure high standards of customer satisfaction through service efficiency. Being true to its mission, the company offers a wide range of products for everyone’s needs.

What are Pension Plans?

Plans which provide for annuity payouts after retirement of the individual are called pension plans. These plans come in two options called Deferred Annuity and Immediate Annuity. Under the first option, pension payouts start sometime after the accumulation phase where the individual is supposed to pay premiums to the company. In the event of death during the payment phase, a specified death benefit is paid by the company to the insured’s nominee. Under the second option of annuity, payments start immediately after the policyholder pays a bulk amount to the company and on his subsequent death, annuity payments simply stop.

SBI Life Pension Plans

SBI Life Insurance Company offers three different types of Pension Plans to individuals to help them plan for their retirement. The plans offer great benefits to the individuals for a worry-free retired life. Let us take a look at the different types of pension plans offered by SBI Life and the features and benefits of each of the plans in details.

SBI Life Saral Pension Plan

A traditional pension plan with the following features and offering the following benefits:

  • The plan participates in the company’s profits and bonus is declared under the plan
  • On Vesting the chosen Sum Assured including the Simple Reversionary Bonuses and Guaranteed Bonuses accumulated during the term of the plan and a Terminal Bonus, if any is payable to the policyholder.
  • The fund available on vesting can be utilized in various ways. Commutation of 1/3rd portion of the fund is possible tax-free and the remaining portion will pay annuities. Alternatively, one can also buy a deferred annuity plan by paying a single premium
  • The vesting age can also be postponed by the policyholder if he is aged 55 years or below. The maximum age to which the vesting can be  postponed in 70 years
  • On death of the policyholder during the plan tenure, higher of total premiums paid growing at a compounded rate of 0.25% p.a. till the date of death or 105% of all premiums paid till death is payable to the nominee
  • The death benefit can be withdrawn in lump sum or used to buy an annuity plan form the company
  • Guaranteed Bonuses are added in the first 5 years of the plan. The rate of addition is 2.50% of the Sum Assured for the first 3 years and 2.75% of the Sum Assured in the last 2 years.
  • SBI Life Preferred Term Rider can be added to the base plan to increase the coverage.

Eligibility Details

 

Minimum

Maximum

Entry Age

18 years

Regular Pay – 60 years

Single Pay - 65 years

Vesting Age

40 years

70 years

Policy Term

Regular pay - 10 years

Single Pay – 5 years

40 years

Sum Assured

Rs.1 lakh

No limit

Annual Premium amount

Rs.7500

No limit

Premium Payment Term

Equal to the policy term or Single Pay

Premium Payment Frequency

Monthly, quarterly, half-yearly or yearly

 

SBI Life Retire Smart Plan

A unit linked pension plan with the following features:

  • Besides market linked returns, the plan also gives guaranteed additions to further increase the corpus
  • Guaranteed Additions accrue @10% of the annual premium from the 15th year of the plan till the end of the term
  • Moreover, a Terminal Addition @1.5% of the Fund Value will be paid on the vesting date
  • On vesting, higher of the applicable Fund value including the guaranteed additions and terminal additions or 101% of total premiums paid by the policyholder are payable
  • The vesting corpus can be withdrawn up to the extent of 1/3rd portion and the remaining proceeds will be utilized to receive the specified pension. A deferred annuity plan can also be purchased with the entire proceeds if needed
  • The vesting age can also be postponed by the policyholder if he is aged 55 years or below. The maximum age to which the vesting can be  postponed in 70 years
  • On death of the policyholder during the tenure of the plan, higher of the available fund value including terminal additions or 105% of the premiums paid till death is payable to the nominee
  • The death benefit can be withdrawn in lump sum or used to buy an annuity plan form the company
  • The investments are managed under the Advantage Plan feature which systematically reduces risk exposure as the plan nears the vesting date to keep the investment secure
  • The plan has 3 fund options under the Advantage Plan which are Equity Pension Fund II, Bond Pension Fund II and Money Market Pension Fund II

Eligibility Details

 

Minimum

Maximum

Entry Age

30 years

70 years

Vesting Age

40 years

80 years

Policy Term

10 years

35 years

Sum Assured

Rs.1 lakh

No limit

Annual Premium amount

Regular Pay – Rs.24, 000

Single Pay – 40, 000

No limit

Premium Payment Term

Equal to policy term or limited pay for 10-15 years

Premium Payment Frequency

Monthly, quarterly, half-yearly or yearly

 

SBI Life Annuity Plus Plan

This is an Immediate Annuity plan which has the following aspects:

  • The annuity which is paid is paid immediately once the single premium is deposited with the insurer
  • There are two annuity options under the plan. The first option is for a single life and the second option is for a joint life annuity. Both the options are further sub-divided into further annuity payout options.
  • The annuity payout options under the Single Life Annuity option 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
  • The annuity payouts under the second option of joint life annuity include:
      • Life or Last Survivor with 50% or 100% of the income
      • Life or Last Survivor with 50% or 100% of the income and Refund of capital
  • The policyholder may avail advance annuity payouts in compliance to certain terms and conditions
  • An Accidental Death Benefit Rider can be availed under the plan up to a maximum coverage of Rs.50 lakhs
  • The company promises higher rates of annuity payouts for higher premiums

Eligibility Details

 

Minimum

Maximum

Entry Age

40 years

80 years

Purchase Price

Depend on the annuity payout amount and the annuitant’s age

Amount of Annual Payout

Rs.2400

No limit

Annuity payout Frequency

Monthly, quarterly, half-yearly or yearly

 

Sample Annuity Rates

The following table shows the sample rates of annuity payouts against specific amounts of premiums for individuals of different ages

Age

45 years

55 years

Premium paid

Rs.250,000

Rs.250,000

Annual Annuity Pay-out

Rs.18,075

Rs.20,395

 

Some common features of pension plans

  • Pension plans are offered both as a traditional plan or as a market linked insurance plan. While immediate annuity plans come only in the traditional variant, deferred annuity plans might be in any of the above-mentioned variant of traditional or unit linked plan
  • Pension plans do not allow the policyholder to withdraw the entire accumulated corpus. The plans pay pensions from the corpus which can be received yearly, half-yearly, quarterly or monthly. Pension payments are the only benefits which accrue from the plans. However, the plans do allow the policyholder to withdraw a maximum of 1/3rd portion of the corpus which is accumulated if the policyholder so desires. This withdrawal is called commutation and will not be subject to any tax under the provisions of the Section 10(10A). The rest of the corpus which is paid as annuity is taxable in the annuitant’s hands as it is treated as an income.
  • The premiums which are paid for Immediate Annuity plans are tax-free under Section 80CCC while the death benefit paid in respect of Deferred Annuity plans will earn tax exemption under Section 10(10D) as is common with other insurance plans.
  • Pension plans, both Deferred and Immediate Annuity plans, do not earn any bonus.
  • Immediate Annuity plans can be taken on a joint life basis. This means that both the annuitant and the spouse would become eligible to earn annuity payments from the company. The annuitant will be called the primary annuitant while the spouse will be the secondary annuitant. First, annuity payments will be paid till the life of the policyholder who is the primary annuitant and post his death, the payments will be made till the lifetime of the spouse who is the secondary annuitant.
  • While there is no death benefit option in the immediate annuity variety of pension plans, deferred annuity plans are eligible to have a death benefit. If the policyholder dies during the accumulation phase, a specified death benefit is paid to his nominee. This benefit depends on the company and the plan design offered by the company. The nominee has two options of dealing with the death benefit. The first option is that he takes the death benefit in one lump sum and chooses to use it as per his discretion. The other choice is to avail annuity from the proceeds payable on death. The nominee can avail annuity payments from the company on his own life without withdrawing the death benefit in lump sum.
  • Pension can be availed under both plan options either in the monthly, quarterly, half-yearly or annual mode as chosen by the policyholder.

Applying for a Pension Plan from the company:

Online

The company offers specific plans which are available online only. The customer only needs to log into the company’s website, choose the required plan, choose the coverage and provide the details. The premium will be determined using the filled details. The customer then needs to pay the premium online through credit card, debit card or net banking facilities and the policy will be issued

Intermediaries

Plans which are not available online can be purchased from agents, brokers, banks, etc. where the intermediaries help with the application process.

SBI Pension Plan - FAQ

1. How to pay premium? What are the modes of payment available?

There are 10 modes to pay your SBI Life Insurance premium namely:

  • Direct Remittance At Sbi Life Branch By Post Or Courier
  • Electronic Clearing Service (ECS) – Mandate
  • Direct Debit
  • Standing Instruction On Your Credit Card
  • Online Payments
    • Through State Bank Group Atms
    • Payment Through Visa Bill Pay.Com
    • Online Payment Of Premium Through Sbi Life Website
  • Si-Eft For State Bank And Associate Banks’ Account Holders
  • Payment Through Point Of Sales (Pos) Terminals At Select Sbi Life Branches
  • Payment Through Easy Access Mobile Application
  • Pay Premium In Cash At Authorized Collection Centers
  • Nach (National Automated Clearing House)

NACH is a newly launched service that works on the same principle as that of ECS, which requires filling in a form and getting registered before availing this facility.

2. How can I check policy status for SBI pension plan?

For checking your policy status online, login to e-portal . You need to enter customer ID, date of Birth and policy number. The details of the policy along with the status is displayed on the next screen.

Alternatively avail the SMS facility if you are a registered user.

SMS POLVALUE <space>< policy number> and send it to 56161 or 9250001848.


3. What is the policy renewal process for SBI pension plan?

Renewal of policy can be done by the following modes:

  • Online
  • Through SMS
  • Through SBI Brach
  • By Cash

For renewal process, after login into your account, click on the ‘Renew Policy’ tab to proceed with premium payment.

If you want to get the renewal details by mobile,

SMS RENDET to 56161 or 9250001848.

Alternatively, you can renew the process by using the kiosk in the SBI ATM and select the option for renewal process.


4. What is the company’s process to settle claim for SBI pension plan?

The procedure for settling claim through SBI life Insurance requires intimating the nearest branch by submitting the list of documents as specified in the website. After the documents are verified, the claim is settled as soon as possible. In case one requires additional help or further clarifications, one can write to claims@sbilife[dot]co[dot]in


5. What is the policy cancellation process for SBI pension plan?

The policy cancellation process requires you to submit a duly filled surrender form along with relevant documents in the nearest SBI branch in your city. Upon receiving and verifying the documents, the policy is deemed cancelled as per bank accounts record. The premium refund is calculated on NAV value prevailing at the current market rate, if you submit the policy before 3:00 PM , else next day’s NAV value is applicable.

Reviews for SBI Pension Plan

TOTAL REVIEWS (1)
Hridayanand
Guwahati
February 04, 2016

"Good"

Buy insurance from SBI Life Insurance. Admit in the hospital for more than one day then can claim and the SBI Life Insurance reimburse the complete amount. Dental related problems are not covered and few other things are also not covered on the health insurance. Good pension plan and great services.
Plan Name: eWealth Insurance
Agent Code: BPW00249

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