SBI Life - Annuity Plus Plan
- Premiums as low as Rs.17/day for sum assured of Rs.1 crore*
- Claim up to Rs. 1,50,000 deduction under section 80C**
- Choose between annual and monthly premium payment options
SBI Life - Annuity Plus Plan is an immediate annuity, non-participating, non-linked plan that offers a plethora of annuity options that are readily available for customers of SBI Life Insurance Company. Under this plan, a policyholder will be required to make a one-time payment towards the premium paid to immediately avail an annuity for a single or for two lives. This plan works best for people who are 40 years old and above as this plan acts as a pension that is paid depending on the mode of payment that you have selected which could be monthly, quarterly, half-yearly, and yearly. Some of the key features of the plan are as follows:
- Large premiums attract incentives of larger annuity rates
- You have flexibility to choose to advance your annuity payouts
- Lifetime annuity is available with annual increases of 3% or 5%
- You have complete freedom in choosing the type of plan that you want to opt for
Eligibility - SBI Life - Annuity Plus Plan?
An individual will have to meet the eligibility criteria listed below to avail the SBI Life - Annuity Plus Plan:
| Parameters | Details |
| Minimum age for entry | 0 years for conversion of product; 40 years in all other cases |
| Maximum age for entry | 80 years |
| Maximum age difference of annuitants for Joint Life options | 30 years |
Sum Assured and Premium Range – What you get and what it costs?
Sum Assured:
The sum assured is based entirely on the premiums that you will have to pay and on the term of the policy. The sum assured for a SBI Life - Annuity Plus Plan is listed below:
| Parameters | Details |
| Annuity Payout (Per instalment) |
Dependent on the premium made and annuity rates at the time of purchasing the policy.
Minimum:
|
| Maturity Age | Minimum: N/A Maximum: Remainder of the policyholder’s life |
| Annuity Payment mode | Monthly, Quarterly, Half-yearly, and Yearly. |
Premiums*:
Premiums are paid to the insurer to purchase a policy from them so that the individual can come under the benefits and coverage of the SBI Life - Annuity Plus Plan. The premiums that a policyholder will have to pay towards a SBI Life - Annuity Plus Plan is listed below:
| Parameters | Details |
| Premium | Minimum: Enough to assure that the annuity is paid. Maximum: No limits |
| Premium Payment Term | One-time payment |
| Premium Payment Frequency | One-time payment |
| Premium Paying Modes | ECS, debit cards, cheques, credit cards, and other acceptable modes |
*Premiums paid vary based on age, location, plan term and other factors
Premiums for SBI Life - Annuity Plus Plan can be made using any of the following ways:
- Through the use of debit or credit cards
- ECS/Direct Debit/Salary Deduction Scheme
- With a cheque or demand draft
- Using payment gateways or internet banking
- Payment in cash at the insurer’s branch office
Plan Coverage – What the SBI Life - Annuity Plus Plan covers?
The Annuity Plus Plan offered by SBI Life Insurance offers a number of benefits and these are listed below:
| Parameters | Details |
| Single Life Annuity Option | Lifetime Income: Annuity is paid uniformly to the annuitant for life and is ceased at the time of death of the annuitant. |
| Lifetime Income with Capital Refund in Parts: Annuity is paid uniformly to the annuitant for life and the total premium is returned to the annuitant in instalments. | |
| Lifetime Income with Capital Refund: 100% of the premium is refunded by the insurer by making uniform annuity payments to the annuitant. | |
| Lifetime Income with Balance Capital Refund: Annuity is paid uniformly to the annuitant for life and a refund of the premium paid minus sum total of annuities will be given in case the annuitant passes away. | |
| Lifetime income with certain period of 5, 10, 15 or 20 years: Annuity is paid uniformly for a fixed period of time of either 5, 10, 15 or 20 years. | |
| Lifetime Income with Annual Increase of 3% or 5%: Annuity is paid to the annuitant with a uniform increase of either 3% or 5% for every payout. Payments cease once the annuitant passes away. | |
| Joint Life Annuity Options | Life and Last Survivor - 50% or 100% Income without Capital Refund: Annuity is paid uniformly until the death of the last annuitant where either half or full is paid. Annuity ceases in case both annuitants die and premiums will not be refunded. |
| Life and Last Survivor - 50% or 100% Income with Capital Refund: Annuity is paid uniformly until the death of the last annuitant where either half or full is paid. Premiums will be refunded at the time of death of either one of the annuitants. | |
| Incentives for Higher premiums | Higher premiums paid will attract better annuity rates. These incentives will be paid in the form of additional annuity. |
| NPS Subscribers | A discount of 0.75% is awarded to for premiums made by National Pension Scheme Subscribers. |
| Nomination | As per Section 39 of the Insurance Act, 1938, nomination facility is allowed. |
| Assignment | Assignment is not allowed with this plan. |
| Surrender | This facility is not available with this plan. |
| Free Look Period | A Free Look Period of 15 days is provided from the day of receiving the policy documents. The policyholder can review the documents and can either accept or reject the policy within this period. The premiums paid, minus stamp duty charges, will be returned to the policyholder. |
Riders/Add-On Plans - Additional coverage under the SBI Life - Annuity Plus Plan:
Additional Death Benefit Rider is available for a policyholder to add to their base plan. The policyholder’s family or nominee will receive a lump sum amount at the time of the policyholder’s death. This payout will amount to 12 times the annuity amount that was paid at the time of purchase of the policy. The rider limits have been listed as follows:
| Particulars | Details |
| Minimum age at entry | 40 years |
| Maximum age at entry | 60 years |
| Maximum age at maturity | 70 years |
| Rider term which is fixed | 10 years |
| Minimum sum that is assured | Rs.25,000 |
| Maximum sum that is assured | Rs.50,00,000 |
Exclusions – What the SBI Life - Annuity Plus Plan doesn’t cover?
There are no exclusions under the SBI Life - Annuity Plus Plan.
Tax Benefits – How you can save with the SBI Life - Annuity Plus Plan?
Tax benefits will be applicable as per prevailing tax laws under Section 80C of the Income Tax Act, 1961. Any payouts that are made by the insurer will be susceptible to be taxed as income tax.
Why you should buy the Annuity Plus Plan from SBI Life Insurance Company?
SBI Life Insurance Company is a joint venture between BNP Paribas Cardiff and State Bank of India (SBI). With an authorized capital of Rs.20 billion, the company is aimed at expanding its reach to provide the best products and service to the company’s large customer base. The Claim Settlement Ratio of SBI Life Insurance Company was recorded as 95.8% in FY15-16.
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