SBI Life Annuity Plus Plan

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SBI Life Annuity Plus is a traditional immediate annuity plan with various annuity options to cater a hassle free retirement life. 

SBI Life Annuity Plus - Key Features 

  • This is a non-participating immediate annuity plan where the premium amounts have to be paid in one lump sum and the annuity payout begins immediately from the next month, quarter, 6 months or year.
  • Wide array of Annuity options
  • Annuity rates are higher for higher premium amounts 

SBI Life Annuity Plus - Benefits 

  • The annuity payouts can be advanced provided to certain terms and conditions
  • Tax Benefits: All the premium amounts paid for the plan and the claims received under it are eligible for tax deductions under Income Tax Act as per Section 80CCC and Section 10(10A). 

SBI Life Annuity Plus - Product Specification:

 

Minimum

Maximum

Entry Age (Last Birthday)

40 years

80 years

Premium

Depends on the Entry age and the Annuity Amount chosen

Annuity Payout frequency

Annual, half-yearly, quarterly, monthly

Annuity Payout

Yearly – 2400

Half-yearly – 1200

Quarterly – 600

Monthly – 200

No limit

 

Details about Premium

Annual Premium in Rupees and benefit illustration for Lifetime Annuity option for single life

Age

45 years

55 years

Premium paid

250,000

250,000

Annual Annuity Payout

18,075

20,395

 

SBI Life Annuity Plus - Policy Details 

Grace Period: This plan provides no grace period for premium payment failure since it is a Single Premium Pay plan. 

Policy Termination or Surrender Benefit: The policy does not have surrender options. 

Free Look Period: If the policyholder is not happy with the insurance coverage of the policy terms and conditions, then he has the option to cancel his plan within 15 days of receiving the policy documents, given no claims have been made. 

Additional Features or Riders 

  • The plan has the option of Accidental Death Benefit Rider with a maximum Sum Assured of 50 lakhs
  • The first Annuity option is Life Annuity for a Single Life where the annuity will be paid up to the insured’s death. This option has further annuity choices namely:
  • 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 second Annuity Option is Life Annuity for two lives where the annuity is paid up to the death of both the annuitants. This option also has further choices namely:
      • Life and Last Survivor – 50% or 100% Income
      • Life and Last Survivor – 50% or 100% Income with Capital Refund 

Documents Required 

If a person is looking to be insured with this SBI Life Annuity Plus plan, then he has to submit a duly filled insurance application form or policy proposal form along with correct medical history report and other important KYC documents. Some might also have to submit their Income Proof, based on the sum assured amount chosen and the age of the person. 

You may also like to read: SBI Life Pension Plans

Frequently Asked Questions:

Q.  How are the service taxes applicable under the plan?

All the service taxes shall be applicable under the current tax laws and are subject to change according to the amendments by the current ruling authority and the regulatory body. 

Q.  What are the conditions for nomination under this plan?

This plan allows nominations for its benefits under section 39 of the Insurance Act. 

Q.  What are the conditions for assignment under this plan?

The policyholder is not allowed to appoint an “Assignee” under the plan. 

Q.  What are the details of the Annuity Options under the plan?

Below are the Annuity Options under the plan:

Life Annuity: The Annuity Payouts shall be continued at a guaranteed rate for the complete life of the ‘Annuitant’. The Annuitant has the option to choose from the Annuity options as below:

Lifetime Income (Single Life):

  • The annuity is payable at a static rate for the complete life of the Annuitant
  • On the Annuitant’s death, all the future annuity payouts shall cease immediately and the premiums are payable to the beneficiaries.

Lifetime Income with Capital Refund:

  • The annuities are payable at a static rate for the complete life of the annuitant.
  • On the annuitant’s death, all the future annuity payouts shall cease immediately and the total premiums are payable to the beneficiaries.

Lifetime Income with Capital Refund in parts:

  • The annuities are payable at a static rate for the complete life of the annuitant
  • At the end of 7 years, 30% of the total premiums are paid to the annuitant on his survival.
  • On the annuitant’s death;
    • In the case of the annuitant’s demise after 7 years, 70% of the total premiums shall be paid to the beneficiaries.
    • In the case of the annuitant’s death within 7 years, 100% of the total premiums shall be paid to the beneficiaries.

Lifetime Income with Balance Capital Refund:

  • The annuities are payable at a constant rate throughout the annuitant’s life.
  • In the case of the annuitant’s death, the balance capital equal to the premiums paid less the sum total of the annuities paid shall be paid to the beneficiaries. If the balance is negative, then no such death benefits are payable.

Lifetime Income with Annual Increase of 3% or 5%:

  • The annuity payouts shall increase at a simple rate of 3% or 5% annually for every complete year as per the option and will be paid for the complete life of the annuitant.
  • In the case of the death of the annuitant, all the future annuity payouts will cease immediately.

Lifetime Income with Certain Period of 5, 10, 15 and 20 years:

  • The annuities are payable at a static rate for a specific period of time of 5, 10, 15 and 20 years as per the option and further the annuities are payable for the complete life of the annuitant.
    • Case I: If the annuitant dies within the chosen time period of 5, 10, 15 and 20 years, then the annuity payouts shall still continue to be paid to the beneficiaries till the end of the time period, further the annuity payouts are subject to cease.
    • Case II: If the annuitant dies after the time period chosen, then the annuity payouts are subject to cease automatically after the death of the annuitant immediately. 

Life Annuity (Two Lives): The annuity payouts shall continue at a guaranteed rate, for the complete life of the annuitant. The annuitant has the below options to choose from:

Life and Last Survivor: 50% or 100% Income:

  • The annuities are payable at a static rate for the life of the main annuitant
  • In the case of the death of the main annuitant, 50% or 100% of the last payout of the annuity shall continue for the entire life of the second annuitant. In the case of the death of the second annuitant, the annuity payouts will cease immediately.
  • If the second annuitant dies before the main annuitant, then nothing shall be paid after the death of the main annuitant. 

Life and Last Survivor: 50% or 100% Income with Capital Refund:

  • The annuities are payable at a static rate till the life of the main annuitant.
  • In the case of the demise of the main annuitant, 50% or 100% of the final annuity payment shall continue for the complete life of the second annuitant.
  • In the case of the death of the second annuitant, the premiums shall be refunded to the beneficiaries.