SBI Smart Annuity Plus

What is SBI Smart Annuity Plus?

SBI Smart Annuity Plus is a flexible non-linked, non-participating from SBI Life Insurance that offers guaranteed income for life. You can choose between immediate or deferred payouts, with options for monthly, quarterly, or yearly payments. This plan aims to provide financial security during retirement planning, ensuring a steady income stream tailored to individual needs and preferences.

Features of SBI Smart Annuity Plus

The key features of SBI Smart Annuity Plus plan are as follows:

• You can choose from a wide range of annuity options to suit your financial needs.
• Enjoy guaranteed regular income for your entire life.
• You have the flexibility to opt for an immediate or deferred annuity based on your preference.
• Benefit from annuity payouts that increase at a compounded rate over time.
• Large premium contributions allow you to enjoy higher annuity rates.
• You can select the frequency of annuity payouts, whether monthly, quarterly, half-yearly, or yearly.
• Certain annuity options provide the benefit of returning the purchase price or balance purchase price.

Eligibility Criteria for SBI Smart Annuity Plus

Benefits of SBI Smart Annuity Plus

The SBI Life Smart Annuity Plus Plan offers several benefits, the key among them are as follows:

1. Single Life Annuity Options: 

   • Life Annuity (Option 1.1): Fixed annuity paid for the annuitant’s lifetime. Payments stop upon death, and the contract terminates.
   • Life Annuity with Return of Purchase Price (Option 1.2): Fixed annuity paid for the annuitant’s lifetime. On death, the purchase price is refunded to the nominee, and the contract ends.
   • Life Annuity with Return of Balance Purchase Price (Option 1.3): Fixed annuity paid for life. Upon death, the remaining purchase price (purchase price minus annuity paid) is refunded if positive; otherwise, no benefit is paid.
   • Life Annuity with Simple Increase (3% or 5%) (Option 1.4, 1.5): Fixed annuity paid with a 3% or 5% annual increase. Payments stop upon death, and the contract ends.
   • Life Annuity with Certain Period (10 or 20 years) (Option 1.6, 1.7): Annuity paid for a fixed period of 10 or 20 years, then for life. If the annuitant dies within this period, payments continue to the nominee until the end of the period.
   • Life Annuity with Compound Increase (3% or 5%) (Option 1.8, 1.9): Fixed annuity with a 3% or 5% compound annual increase. Payments stop upon death, and the contract ends.
   • Deferred Life Annuity with Return of Purchase Price (Option 1.10): Annuity starts after a deferment period. Death during deferment results in a refund to the nominee (higher of 100% of purchase price + guaranteed additions or 105% of purchase price). After deferment, the nominee receives the higher of 100% of purchase price + guaranteed additions minus annuity paid, or 100% of purchase price.

2. Joint Life Annuity Options

   • Life and Last Survivor 100% Annuity (Option 2.1): Fixed annuity paid to the primary annuitant, continuing 100% to the secondary annuitant upon the primary’s death. Payments stop when both annuitants pass away.
   • Life and Last Survivor 100% Annuity with Return of Purchase Price (Option 2.2): Fixed annuity paid to the primary annuitant, continuing 100% to the secondary annuitant upon the primary’s death. If the secondary annuitant dies first, payments stop. Upon death of the last survivor, the purchase price is refunded to the nominee.
   • Deferred Life and Last Survivor Annuity with Return of Purchase Price (Option 2.3): Annuity starts after the deferment period, continuing to the secondary annuitant after the primary’s death. If the secondary annuitant dies first, payments stop.

3. Death Benefits for Deferred Life and Last Survivor Annuity with Return of Purchase Price

   1. If the last survivor dies during the deferment period:
      • The nominee will receive the higher of:
        • 100% of the purchase price plus guaranteed additions accrued till the date of death.
        • 105% of the purchase price.
      • All future annuity payments will stop, and the contract will terminate.
   2. If the last survivor dies after the deferment period:
      • The nominee will receive the higher of:
        • 100% of the purchase price plus guaranteed additions accrued during the deferment period minus total annuity payouts received till death.
        • 100% of the purchase price.
      • All future annuity payments will stop, and the contract will terminate.
   3. Guaranteed Additions:
      • Monthly addition = Total annuity payable in a policy year ÷ 12.
      • Guaranteed additions are credited at the end of each policy month during the deferment period.

4. NPS – Family Income Annuity (Option 2.4)

   • Eligibility: Available only for National Pension System (NPS) subscribers.
   • Structure: Life and Last Survivor – 100% Annuity with Return of Purchase Price.
   • For Single/Unmarried Subscribers: Life Annuity with Return of Purchase Price.
   • On Death of Annuitant(s): 
     • Dependent Parents: Refund of purchase price used to buy a new annuity:
       • First, for the living dependent mother.
       • Then, for the living dependent father.
     • If No Parents: Refund goes to surviving children.
     • If No Children: Refund goes to legal heirs.
   • Purchase Price (Premium): Excludes taxes and statutory levies.

5. Annuity Options for NPS Subscribers

   • Option 1.1: Life Annuity.
   • Option 1.2: Life Annuity with Return of Purchase Price.
   • Option 2.1: Life and Last Survivor – 100% Annuity.
   • Option 2.2: Life and Last Survivor – 100% Annuity with Return of Purchase Price.
   • Option 2.4: NPS Family Income Annuity.

   NOTE: Selection depends on subscriber category (e.g., single, married) and events like retirement, death, or withdrawal. The NPS annuity is governed by PFRDA regulations.

6. Incentives for Higher Purchase Price

   • Higher purchase prices offer better annuity rates in the form of additional annuity amounts.

7. Discounts on Annuity

   • NPS Subscribers: Annuity purchased using NPS corpus will be grossed up by 0.75%, and an additional 2% if no commission is payable, with a maximum gross-up of 2.75%.
   • SBI Life Pension Policyholders or Beneficiaries: Eligible policies get a 2% increase in annuity amounts.
   • Online Sales or Direct Marketing: Annuity increases by 2% if no commission is involved.
   • Staff Members: Employees, retired employees, VRS holders, and eligible family members of SBI Life, SBI, and its subsidiaries receive a 2% increase.
   • Maximum Cap: Non-NPS subscribers can get a maximum gross-up of 2%, while NPS subscribers are capped at 2.75%.

8. Advancing Annuity Payouts

   • For immediate annuity options, you can advance your payouts (half-yearly or yearly modes) by choosing a date at least 90 days after purchase. An interest rate of 250 basis points above the RBI repo rate (as of April 1), compounded half-yearly, will be charged for early payouts.

9. Receiving Annuity Payments

   • You need to submit an existence certificate periodically. Annuity payments are processed through electronic transfers (ECS). If ECS is unavailable, payments will be made via other approved methods.

Policy Details of SBI Smart Annuity Plus

• Existence Certificate: You need to submit an existence certificate every year or as per your chosen annuity option. If you don’t submit it, your annuity payments will stop but will resume with pending amounts (without interest) once the certificate is submitted. For the 'Life and Last Survivor' options, the primary annuitant must provide the certificate first, followed by the secondary annuitant after the primary’s death.
• Surrender Benefit: You can surrender the policy only for Deferred Annuity or Annuity with Return of Purchase Price options. The surrender value will be the higher of the Guaranteed Surrender Value (GSV) or Special Surrender Value (SSV), calculated based on specific factors in the policy. Check the policy document for exact details.
• Free Look Period: You have 30 days to review your policy. If you are not satisfied, you can cancel it and get a refund after deducting stamp duty and any annuity paid. For policies purchased with pension vesting proceeds, refunds will follow the rules of the original scheme or insurer.
• QROPS (Qualifying Recognized Overseas Pension Scheme): If you purchased the policy using UK tax-relieved assets, QROPS benefits can only be accessed after age 55. Refunds during the free-look period will be sent to the original fund.
• Applicable Taxes: Taxes or other charges on premiums will apply as per government rules at the time of payment.
• Nomination and Assignment: Nomination follows Section 39 of the Insurance Act, 1938. For NPS Family Income options, PFRDA rules apply. Assignment is as per Section 38 of the same Act.
• No Maturity Value or Loan Provision: This policy does not provide any maturity value or loan option.

How the SBI Smart Annuity Plus Plan Works?

The working steps of the SBI Smart Annuity Plus Plan are listed below:

Step 1: Decide the lump sum amount to pay or the annuity installment you wish to receive.

Step 2: Select an annuity option, either immediate or deferred, based on your preference.

Step 3: Choose how often you want payouts: monthly, quarterly, half-yearly, or yearly.

Step 4: Provide your details and your partner's details if the option requires it.

Step 5: Get details of your annuity payout based on your premium or the premium required for your chosen payout. Payments will begin one month, quarter, half-year, or year after the policy starts.

Step 6: Receive payouts directly in your bank account from the annuity start date.

Suicide Exclusion Criteria

Under the SBI Smart Annuity Plus Plan, there is no suicide exclusion. The policy does not have any exclusions related to suicide, and all benefits are payable as per the terms of the policy.