SBI Annuity Plans

What is an SBI Annuity Plan?

An SBI annuity plan is a financial product that converts a lump-sum amount into a guaranteed stream of regular monthly or annually income. It is an assurance-based investment where you receive fixed principal and interest instalments over a defined period. SBI Life annuity plans are the best options to create financial security through assured income during retirement years.

As an investor, you can choose to invest through either:

• Lump-sum payment (for immediate annuity income)
  
  
• Regular premium payments (for deferred annuity income)

In return, SBI offers guaranteed monthly payouts for the entire chosen tenure or lifetime, depending on the plan type. These annuity plans help ensure a stable post-retirement income, protecting you against fluctuations in market or repo rates.

Types of SBI Annuity Plans

SBI offers various annuity plans for long-term income security and financial stability during retirement. Below is a concise overview of all types of annuities currently available through SBI Life Insurance:

• SBI Life Annuity Plus: An immediate annuity plan that converts a single premium into lifelong income. It offers 14 annuity choices under single-life and joint-life categories.
• SBI Life Smart Annuity Plus: This non-linked, non-participating plan guarantees regular income through immediate or deferred options. It can be purchased both online and offline.
• SBI Life Smart Annuity Income: Designed for National Pension System (NPS) subscribers, this plan provides guaranteed monthly income for life. It includes single and joint life options.
• SBI Life Saral Pension: A standard immediate annuity plan offers lifelong income in exchange for a single premium. The entry age ranges from 40 to 80 years, and the minimum monthly annuity is ₹1,000.
• SBI Life Swarna Jeevan Plus: This group general annuity plan provides immediate or deferred options for employers and trustees managing superannuation or pension schemes.

SBI Life Annuity Plus

SBI Life Annuity Plus is an individual, non-linked, non-participating immediate annuity plan that provides regular income for life after retirement. It helps you convert your NPS or superannuation corpus into a steady pension stream so your post-retirement life remains financially secure. The plan offers 14 annuity options, including 10 under Single Life and 4 under Joint Life, allowing you to decide how your pension continues and whether the purchase price should be returned to your nominee.

Key Features of SBI Life Annuity Plus

Sample Illustration - SBI Life Annuity Plus (Monthly Payout)

Here’s how the monthly annuity payout may look for a 60-year-old annuitant, based on the purchase price and the selected annuity option:

*Actual payouts depend on the age of the annuitant, option selected, and purchase price. For Joint Life options, both annuitants are assumed to be the same age.

SBI Life Smart Annuity Plus

SBI Life Smart Annuity Plus lets you decide when your income begins, how it increases, and whether your nominee receives the purchase price or balance amount after your lifetime. It is an individual, non-linked, non-participating general annuity plan that lets you choose either an Immediate or Deferred annuity. You make a single payment and receive a guaranteed regular income for life. You can also choose between Single Life and Joint Life options, with multiple variants under each.

Key Features of SBI Life Smart Annuity Plus

Sample Illustration - SBI Life Smart Annuity Plus (Monthly Payout)

The following examples show indicative monthly and annual annuity payouts for a 60-year-old annuitant based on a purchase price of ₹10,00,000.

Immediate Annuity Examples

Deferred Annuity Examples

*Monthly amounts are approximated as an annual annuity divided by 12. The actual annuity amount will depend on the prevailing annuity rate at the time of purchase.

SBI Life Smart Annuity Income

The SBI Life Smart Annuity Income plan is an individual, non-linked, non-participating, general annuity product. It ensures a lifelong, steady income stream for subscribers of the National Pension System (NPS), regulated by the PFRDA. It offers flexibility to choose how and when your annuity is paid and whether the purchase price should be returned to your nominee after your lifetime.

The available annuity options are:

1. Single Life Annuity: The annuity is payable at a constant rate for as long as the annuitant is alive. Upon death, all payments cease, and no further benefit is payable.
   
   
2. Single Life Annuity with Return of Purchase Price: The annuity is payable constantly throughout the annuitant’s life. Upon death, the nominee refunds the purchase price, and the contract terminates.
   
   
3. Joint Life Annuity: The annuity continues until either annuitant is alive. If the primary annuitant passes away, 100% of the annuity amount continues to the surviving secondary annuitant. Upon the death of either, payments cease with no further benefits.
   
   
4. Joint Life Annuity with Return of Purchase Price: The annuity is paid for as long as either annuitant is alive. After both have passed away, the nominee refunds the purchase price, ending the contract.
   
   
5. NPS: Family Income: The annuity is payable for the lifetime of the subscriber and the spouse. If the subscriber has no spouse, it is paid for life under the single life option. After the death of both annuitants, the purchase price is used to buy a new annuity for living dependent parents (first mother, then father).

Key Features of SBI Life Smart Annuity Income

Sample Illustration - SBI Life Smart Annuity Income

The following table illustrates indicative monthly annuity payouts for a 60-year-old annuitant with a purchase price of ₹10,00,000:

*For Joint Life options, both annuitants are assumed to be the same age. The annuity rate for NPS generally ranges between 4% and 7%. Payments are made in arrears based on the selected mode.

SBI Life Saral Pension

The SBI Life Saral Pension Plan is a standard, single-premium, non-linked, non-participating immediate annuity plan that provides guaranteed lifelong income after retirement. It pays a fixed income for life and returns the purchase price to the nominee per the chosen option.

The plan offers two annuity options:

• Life Annuity with Return of 100% of Purchase Price (ROP): Fixed income for the annuitant’s lifetime. The purchase price is refunded to the nominee or legal heir on death.
  
  
• Joint Life Last Survivor with Return of 100% of Purchase Price (ROP): Income for the primary annuitant’s lifetime. After the primary annuitant’s death, the spouse receives the same income for life. After both pass away, the purchase price is refunded to the nominee or legal heirs.

Key Features of SBI Life Saral Pension

Sample Illustration - SBI Life Saral Pension

Suppose a 60-year-old invests a purchase price of ₹10 lakh. Under the Life Annuity with Return of Purchase Price option, the annual income is about ₹63,000, roughly 6.3% of the purchase price, and is paid yearly for life. After the annuitant’s death, the nominee receives the full purchase price of ₹10 lakh.

If the Joint Life Last Survivor with Return of Purchase Price option is chosen, the annual income is about ₹62,000, or about 6.2%. The spouse continues to receive the same income for life after the primary annuitant’s death, and after both pass away, the nominee receives the ₹10 lakh purchase price.

Actual annuity depends on age, option, purchase amount, and payout frequency.

SBI Life Swarna Jeevan Plus

The SBI Life Swarna Jeevan Plus is a non-linked, non-participating group general annuity plan designed for corporate clients (employer-employee groups, superannuation trusts, and institutional pension schemes). It enables organisations to convert their pension or superannuation liabilities into a predictable lifelong income for their members. Through this plan, the Master Policyholder can transfer existing or emerging pension liabilities to SBI Life. The insurer then assumes responsibility for future pension payments. You can start the annuity immediately or after a chosen deferment period (1 to 10 years). 

Key Features of SBI Life Swarna Jeevan Plus

Sample Illustration - SBI Life Swarna Jeevan Plus

To help you understand how different annuity options work, here’s a sample payout illustration based on a 60-year-old member investing ₹10 lakh with the monthly income mode. The table below shows the estimated monthly annuity and what happens upon the annuitant’s death under each option:

Key Takeaways

SBI Annuity Plans by SBI Life Insurance provide lifelong, guaranteed income through immediate and deferred options. The portfolio includes Annuity Plus, Smart Annuity Plus, Smart Annuity Income, Saral Pension, and Swarna Jeevan Plus, covering individual and group needs. Investors can select single or joint life cover with monthly, quarterly, half-yearly, or yearly payouts. Some variants offer annual income increases of 3% to 5% and loan access after six months. Premiums may qualify for tax benefits under Section 80CCC.