SBI Life Saral Pension Plan

• Avail vesting benefit
• Guaranteed bonus
• Commutation benefit
• Flexible deferment period
• Additional life cover through rider
• Tax benefits

Death Benefit

In the event of death of the life assured, the higher of total premiums paid accumulated at a rate of 0.25% p.a. (compounded annually) along with vested reversionary bonus plus terminal bonuses OR 105% of total premiums paid.

The nominee has the following options to receive the death benefit:

• Get the entire proceeds as a lump sum.
• Use the entire proceeds or a part for buying an annuity at the prevailing annuity rate.

Vesting/Maturity Benefit

On vesting, the annuitant will receive the higher of Sum Assured or total premiums paid accumulated at an interest rate of 0.25% p.a. (compounding annually) plus vested simple reversionary bonuses plus terminal bonus.

The life assured can take the vesting benefit through the following options:

• Purchase an immediate annuity from the entire proceeds.
• Commute up to one-third of the vesting proceeds and utilize the remaining amount to purchase an immediate annuity.
• Purchase a single premium deferred pension product through the entire proceeds.
• Extend the accumulation period.

Commutation Benefit

The annuitant/policyholder can take up to 1/3^rd of the benefit as tax-free lump sum amount and utilize the remaining amount shall be used to receive a regular stream of income.

Deferment of Vesting Benefits

The policyholder has an option to extend the accumulation period within the same policy, provided the life assured is under 55 years of age. The maximum vesting period cannot go beyond 70 years of age.

Bonus

The company declares profits arising from ‘with profits’ pension business.

Simple Reversionary Bonus: A simple reversionary bonus is declared as a percentage of the sum assured. It is guaranteed as 2.5%/2.75% of sum assured for the first two years/next two years, respectively. Thereafter, it is declared depending on the long term view of investment returns, mortality, expenses and other factors.

Terminal Bonus: The Terminal Bonus is declared every year basis of statutory valuation. A terminal bonus is expressed as a percentage of vested bonus and it is paid at death, maturity or surrender.

In-force policies enjoy guaranteed bonus rates.

Loan Benefit

No loan facility is available under this policy.

Surrender Value

For Regular Premium Paying Policy, the Surrender Value can be acquired after payment of all premiums for first three policy years.

For Single Premium Paying Policy, the Surrender Value can be acquired any time after payment of the single premium.

The Surrender Value payable is the higher of Guaranteed Surrender Value or Non-Guaranteed Special Surrender Value.

SBI Life – Preferred Term Rider can be opted, subject to payment of additional rider premium.

You may avail tax benefits on premium paid under Section 80CCC of Income Tax Act. The commutation benefit (1/3rd of the vesting benefit) can be taken as tax-free lump sum as applicable under section 10(10A) of the Income Tax Act, 1961.

Mr. Rajesh Sinha at 30 years of age is looking to accumulate a corpus amount that can help him attain financial independence after retirement. He then chooses to buy SBI Life - Saral Pension with the policy term and premium payment term of 30 years, sum assured of Rs 5 Lacs with the annual premium of Rs 30,000.

Scenario A: On survival of Rajesh at vesting

On vesting/maturity of the policy term, Rajesh will receive the higher of Sum Assured or total premiums paid accumulated at an interest rate of 0.25% p.a. (compounding annually) plus vested simple reversionary bonuses plus terminal bonus.

Scenario B: On demise of Rajesh

On the unfortunate death of Rajesh, the higher of 105% of total premiums paid or total premiums paid accumulated at a rate of 0.25% p.a. (compounded annually) along with vested reversionary bonus plus terminal bonuses is payable.