SBI Life - Retire Smart: Reviews & Features - SBI Pension Plan

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SBIPension Plan - Features:

• The fund value of the policyholder is boosted through guaranteed additions of up to 210% of Yearly Premium.
• A regular pay to the policyholder of Guaranteed Additions of 10% of Yearly Premium starting from the end of 15th policy year and at the end of every year thereafter till the end of the policy.
• Terminal additions of 1.5% of Fund Value at vesting or maturity or on earlier death
• Through 'Advantage Plan', SBI life will manage the investments of the policyholder. It guarantees a minimum of 101% of all premiums at maturity or vesting.
• Minimum 105% of all the premiums paid in case of earlier death.
• Options of regular and limited period premium are available.
• Policyholder can postpone his vesting age.

SBIPension Plan  - Benefits: 

Maturity Benefit: The policyholder will receive the Fund value plus Terminal addition or 101% of total premiums paid. There are following options on Maturity/Vesting:

• Purchasing immediate annuity from the entire policy proceeds
• Purchasing a single premium deferred pension product from the entire policy proceeds
• Purchasing immediate annuity with an option to commute up-to one third of the policy proceeds as per the current Income Tax rules.
• Extension of the accumulation period. The maximum extended period will be up to 80 years of age.

Death benefit: Higher of the fund value plus terminal addition or 105% of total premiums that are paid till the time of death is payable. There are following options for beneficiary to use the death benefit amount:

• Receive the entire proceeds as a lump sum amount
• Purchase an annuity by utilizing the entire proceeds or part of it provided eligibility criteria of the approved immediate annuity product is met.

Tax Benefits: Paid premiums under the policy are eligible for tax deduction under section 80CCC of the Income Tax Act, 1961. On discontinuing the policy or on vesting, the policyholder can commute upto one third of the policy proceeds as per the Income Tax Act.