SBI Life Retire Smart Plus

What is SBI Life Retire Smart Plus?

SBI Life - Retire Smart Plus is an individual, unit-linked, non-participating pension savings product designed to help you financially prepare for your retirement. It allows you to build a retirement corpus through regular investments. SBI Life - Retire Smart Plus plan offers you the flexibility to choose from various fund options to align your investment strategy with your risk appetite. The accumulated amount is then used to provide you with a regular income stream in the form of annuities after retirement. This helps you maintain your desired lifestyle even after you stop working.

Features of SBI Life Retire Smart Plus 

The features of the SBI Retire Smart Plus plan are: 

• Maturity Benefit: This benefit provides a lump sum payout at the end of the policy term, helping you create the financial foundation for your golden years.

• Diverse Fund Options: Choose from 7 different investment funds to match your risk appetite and financial goals.

• Free Switches: Switch between funds strategically at no additional cost, allowing you to adapt your investment strategy as needed.

• Partial Withdrawals: Meet unexpected financial emergencies through partial withdrawals from your accumulated funds, but only after the lock-in period.

• Premium Payment Plans: Select the payment option that works best for you - pay a single premium, regular premiums throughout the policy term, or limited premiums for a set period.

• Loyalty Additions (from the 15th year): Receive loyalty additions every year starting from the end of your 15th policy year, boosting your overall fund value.

• Terminal Addition (1.5%): Get an additional 1.5% of your fund value as a terminal addition upon maturity, further increasing your retirement savings.

• Increase Policy Term: Extend the policy term for single premium policies, allowing your investment to grow for a longer period.

• Adjust Premium Payment: Increase the premium paying term or the entire policy term for regular and limited premium plans to suit your financial situation better.

• Change Payment Term: Switch from a limited premium payment term to a regular premium payment term for long-term investment consistency.

• Defer Vesting Date: Postpone the date you start receiving your retirement income to better align with your retirement plans.

Eligibility Criteria for the SBI Life Retire Smart Plus

Benefits of the SBI Life Retire Smart Plus

Here are the key benefits of the SBI Retire Smart Plus plan: 

1. Death Benefit

   • Provides financial security for your loved ones in case of your unfortunate demise while the policy is active.

   • The nominee receives the higher amount between:

     • Fund value (accumulated units) + Terminal Addition (1.5% of fund value), or

     • 105% of total premiums paid (minus any partial withdrawals in the last 2 years)

   • Discontinuation within 5 years: Fund value is paid.

   • Discontinuation after 5 years: Fund value is paid if the revival option isn't exercised within 3 years.

2. Maturity/Vesting Benefit

   • Receive a lump sum amount on policy maturity or vesting date (reaching the end of the policy term):

     • Fund value on maturity date + Terminal Addition (1.5% of maturity fund value)

3. Flexible Usage of Maturity Corpus

   • Choose how you want to utilize the maturity benefit:

     • Purchase an Annuity (Income Option): Get regular income payments throughout your retirement. You can either buy an annuity from SBI Life or another insurer (up to 50% of the corpus).

     • Partial Commutation (Lump Sum): Withdraw up to 60% of the corpus as a lump sum and use the remaining amount to purchase an annuity.

     • Extend Accumulation Period (Deferment): Continue growing your corpus within the policy until you reach 60 years old (maximum extension).

4. Tax Benefits

   • SBI Life Retire Smart Plus offers tax benefits under current Indian income tax regulations. However, these are subject to change.

5. Additional Features

   • Investment Choice: Invest in different fund options based on your risk appetite.

   • Loyalty Additions: Get bonus additions to your fund value after the 15th policy year (subject to conditions).

   • Partial Withdrawals: Access your funds partially after the lock-in period in case of emergencies.

Policy Details of the SBI Life Retire Smart Plus

• Switching: You have the flexibility to switch between different funds within the policy at any time during the policy term. The switch amount can be any percentage of the fund value, with a minimum switch amount of INR 5,000. There are no restrictions on the number of switches you can make.

• Revival: If your policy is discontinued due to non-payment of premiums, you have a period of 3 consecutive policy years to revive it. The revival process includes restoring the risk cover and shifting the fund as per your chosen allocation. Loyalty additions are applicable upon revival.

• Grace Period: The policy offers a grace period of 15 days for the monthly premium payment mode and 30 days for all other premium payment modes. If no premium is paid during this grace period, the policy will lapse.

• Discontinuance of Policy: Discontinuance of the policy can occur during the lock-in period due to non-payment of premiums. Depending on the type of policy (regular or single premium), specific conditions apply for revival, surrender, or proceeds payment after the lock-in period.

• Free Look Period: Upon receiving your policy document, you have a free look period of either 15 days (for policies sourced through non-distance marketing channels) or 30 days (for policies sourced through distance marketing or electronic means). During this period, you can review the policy terms and conditions. If you disagree with any terms, you have the option to return the policy for cancellation and receive a refund based on a specified formula.

• Premium Redirection: Starting from the 2nd policy year onwards, you can redirect your premiums without any charges. This means you can alter the allocation percentages for future premiums by informing SBI Life in writing at least two weeks before the due date of the relevant premium. This redirection applies to all future premiums but does not affect existing units.

Exclusions Under the SBI Life Retire Smart Plus

If the life assured passes away due to suicide within 12 months from the policy's start or revival, the nominee or beneficiary will receive the fund's current value as of the death notification date. Additionally, any charges, except Fund Management Charges, collected after the death date will be returned to the fund value as of the death notification date.