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Jul 07, 2015

SBI Life - Saral Pension Plan


Fund Name:

Plan Group: Saral Pension Plan

Product Type: Individual

Plan Objective: Retirement

Investment Objective

Retirement - means giving up work and continuing to Celebrate Life! SBI Life - Saral Pension is a traditional, participating pension plan which offers you complete safety from market volatility, by providing you a secure future and a joyous retirement.

Explore The Plan

Rider Options

Optional Benefit :
SBI Life - Preferred Term Rider (UIN: 111B014V01):
If you feel that along with Retirement Savings you want Life Insurance, you have the flexibility to tailor the policy according to your requirements by opting for Preferred Term Rider.

Grace Period

Grace Period :
You are allowed grace period of 30 days from the Premium Due Date for yearly/half-yearly premium and 15 days for monthly Premium. The policy will remain in force during grace period and will lapse at the end of grace period, if no Premium is paid.

Free Look Period

Free Look Period :
You have the option to review the terms and conditions of policy within 15 days of receipt for policies sourced through any channel mode other than Distance Marketing and 30 days for policies sourced through Distance Marketing. In case you disagree with the terms and conditions, you can return the policy stating the reason for objection.
The amount payable on free look cancellations is: Premium received MINUS (Stamp Duty + Cost of medical expenses, if any)

Policy Term

* Policy Term :
Minimum : For Single premium : 5 years,
Minimum : For Regular premium : 10 years
Maximum : 40 years


* Guaranteed Bonus : Guaranteed simple reversionary Bonuses for first 5 years; @ 2.50% for first three years and @2.75% for the next two years, of the Sum Assured. Guaranteed bonus will be applicable only to in-force policies.
* Vesting (Maturity) benefit : Sum Assured plus vested simple reversionary bonuses plus terminal bonus, if any. The sum assured carries an implicit guaranteed interest rate of at least 0.25% p.a. compounding annually.
* Death Benefit : Total premiums paid till date accumulated at an interest rate of 0.25% p.a. compounded annually plus vested reversionary bonus plus terminal bonuses, if any.
* Life Cover : Option of additional life cover through SBI Life - Preferred Term Rider (UIN: 111B014V01).
* You can buy immediate annuity from your entire proceeds or commute upto one-third of the policy proceeds and buy annuity with the rest.
* Flexibility : You can defer the vesting date upto age of 70 years or extend the accumulation / deferment period of your policy .


Vesting Benefits :
On attaining the vesting age, the vesting benefit proceed will be the Sum Assured plus Vested Simple Reversionary bonus plus Terminal bonus, if any. You will have the following options :
i. To purchase immediate annuity from the entire policy proceeds
ii. To purchase immediate annuity with an option to commute upto one-third of the policy proceeds as per current Income Tax rules
iii. To utilize the entire proceeds to purchase a Single premium deferred pension product
iv. To extend the accumulation period or defer the vesting date, provided you are below age of 55 years on vesting. The maximum extended period will be up to age 70 years

Death Benefit :
In the event of death of the life assured, the death benefit proceed will be total premiums paid accumulated at an interest rate of 0.25% p.a. compounded annually plus Vested Simple Reversionary Bonus Plus Terminal Bonus, if any, will be paid to the nominee. The nominee will have the following options :
i. To receive entire proceeds as lump sum
ii. Utilize the entire proceeds of the policy or part thereof for purchasing an Annuity at the then prevailing rate. The annuity should be purchased from SBI Life only. The annuity rate available for the purchase of this annuity will be based on the prevailing annuity rates on the immediate annuity product.

Tax Benefits :
a. Premium paid under this policy is eligible for tax deduction u/s 80CCC of the Income Tax Act.
b. On vesting, you can currently commute up to one third of the policy proceeds as per Income Tax Act, 1961. This commuted value is exempted from tax under section 10(10A)
(iii) of the Income Tax Act 1961. The non commuted pension amount taken in the form of Immediate Annuity is currently taxable.
c. Under section 10(10D) of the Income Tax Act 1961, the lump sum death proceeds are not taxable.
*Tax benefits, are as per the Income Tax laws & is subject to change from time to time.

Sum Assured Details

* Sum Assured :
Minimum : Rs.1,00,000/- (x 1,000/-)
Maximum : No Limit

Entry Age Details

* Age at Entry :
Minimum : 18 years
Maximum : For Single premium : 65 years,
Maximum : For Regular premium : 60 years

Premium Payment Term

* Premium Frequency :
Single / Yearly / Half-yearly / Monthly The premiums for various modes as percentage of annual premium are given below
- Monthly Premium - 8.4% of annual premium
- Half-yearly Premium - 50.2 % of annual premium
* Premium :
- Minimum : Rs.7,500 p.a.
- Maximum : No Limit

General Exclusions

Exclusions :
Preferred Term Rider: If the Life Assured, whether sane or insane, commits suicide within 12 months from the date of issue of this Policy or the date of any revival/reinstatement of this Policy, the Policy will become null and void. No benefit will be paid under such circumstances except on an ex-gratia basis at the discretion of the company

Surrender Details

Surrender Value :
Surrender will be allowed after 3 years provided three years full premiums have been paid in case of Regular Premium and after 1 year, in case of Single Premium, from the start of the policy.
The Guaranteed Surrender Value for regular premium policies, is 30% of all Premiums paid excluding 1st year's Premium and Rider Premium, if any and for Single premium policies, Guaranteed Surrender Value is 75% of Single Premium excluding rider premium, if any. Cash value of the allocated Bonuses, if any, will also be added.
The Non-Guaranteed (Special) Surrender Value (SSV) will be based on an assessment of the past financial and demographic experience of the product / group of similar products and likely future experience and will be reviewed from time to time depending on changes in internal and external experience and likely future experience. This Surrender Value will depend on the term of the policy, the number of years for which Premiums have been paid and the duration elapsed at the time of surrender.
On surrender, the higher of the Non-Guaranteed SSV and the GSV will be paid. Surrender Value can be used as per following options :
I. To purchase immediate annuity from the entire policy proceeds
II. To purchase immediate annuity with an option to commute upto one-third of the total surrender value as per current Income Tax rules
III. The entire proceeds can be used to purchase a single premium deferred pension product.

Revival Details

Revival :
a. You may revive the lapsed policy by making a written application within a period of 3 years from the due date of the first unpaid Premium.
b. The Company may, as per approved underwriting policy accept or decline the request for revival of the lapsed policy, or accept the request for revival on such terms and conditions as it deems fit.
c. All Unpaid Premiums with interest will be payable on revival.
d. The revival of the policy will be effective after the Company's approval is communicated in writing to the Life Insured.
e. If the policy has not acquired guaranteed surrender value and you do not revive within revival period then premium paid by you would be forfeited.

Vesting Age Details

Age at Vesting :
Minimum : 40 years
Maximum : 70 years

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