• SBI Life - Retire Smart Plan

    Life Insurance
    • 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

    The Retire Smart by SBI Life a non-participating, unit-linked pure pension plan by SBI, which offers guaranteed returns to the policyholders so as to pave the way for a stress-free post-retirement life. Through this plan, you can get the benefits of investing and savings, both at the same time for a small premium amount. There are plenty of benefits offered by this plan, which help you secure yours and the lives of your loved ones, once you hit the twilight years of your life. There are three different fund options to choose from which come with varied risk and returns rating, and caters to a varied group of people based on their risk appetite.

    Eligibility - Who the SBI Life Retire Smart Plan is for?

    Retire Smart comes with a number of criteria which every prospective policyholder needs to meet. The criteria mostly depend on the age and the sum assured an individual is looking for. Find all the requirements mentioned below:

    Parameters Criteria
    Minimum Entry Age 30 years
    Maximum Entry Age 70 years
    Minimum Age at Maturity 40 years
    Maximum Age at Maturity 80 years

    Sum Assured and Premium Range - What you get and what it costs?

    Sum Assured - This is the amount the nominees will receive if the person insured meets an untimely death.

    Premium Range - Premium range for the Retire Smart policy is as follows:

    For Regular Premium
    Premium Frequency Minimum Premium Maximum Premium
    Monthly Rs.2,500 No Limit
    Quarterly Rs.7,500
    Half-yearly Rs.15,000
    Yearly Rs.24,000
    For LPPT
    Premium Frequency Minimum Premium Maximum Premium
    Monthly Rs.5,000 No Limit
    Quarterly Rs.10,000
    Half-yearly Rs.20,000
    Yearly Rs.40,000

    Plan Coverage - What the SBI Life Retire Smart Plan offers?

    The SBI Life Retire Smart Plan offers plenty of coverage for a policyholder. Here’s everything mentioned in a table:

    Guaranteed Additions The Retire Smart plan offers a policyholder with guaranteed additions, wherein the insurer will reward in-force policies with up to 10% of the annual premium. The addition of this benefit will commence from the 16th year of the policy and will go on for the passing years till the time of vesting.
    Terminal Addition Policyholders will receive a terminal addition , wherein extra units are allocated to the policy, provided that it is still active.Typically, 1.5% of the premium paid will be added to the fund value and will be provided to the nominees in case the person insured meets their demise.
    Death Benefit
    • If the person insured meets with an unfortunate death while the policy is still in force, the nominees will receive the higher of the fund value including terminal benefits, or 105% of the total premiums paid till the time of the death.
    Also, the nominee will have two options ahead of them. For instance,
    • They can receive the entire amount in one go - as a lump sum payment.
    • They can choose to use the total and partial proceeds to purchase an annuity plan, which should be done at the prevailing rate. To do this, the minimum eligibility criteria with regards to annuity amount and age must be met.
    Maturity/Vesting Benefit Once the policy completes its vesting period, the policyholder/nominee will receive the higher of either the fund value with terminal additions or 101% of the total premiums paid provided that the policy is still active. The beneficiaries can choose to utilise the amount in four different ways:
    • Purchase a new annuity plan with the entire proceeds received.
    • Purchase immediate annuity plan by using at least 1/3rd of the total proceeds.
    • Increase the vesting date or accumulation period up to 80 years as long as the beneficiary is less than 55 years of age.
    • Purchase a single premium pension policy with the entire proceeds received.
    Note that, if the eligibility criteria to buy a new annuity plan is not met, the entire proceeds will be paid to the beneficiary.

    Exclusions - What the SBI Life Retire Smart Plan doesn’t cover?

    There are no exclusions as such under the SBI Life Retire Smart Plan.

    Other Key Features of the SBI Life Retire Smart Plan:

    Below are some of the other key features of the SBI LIfe Retire Smart Plan.

    Free Look Period A policyholder has the option to return the policy if they don’t agree with the terms and conditions offered by the policy. If the policy is bought through traditional means, the policyholder will be offered a free look period of 15 days within which the policy must be returned. If the policy is bought through distance marketing sources like the internet et al, a free look period of 30 days is offered to the policyholder. The policyholder must adhere to the timeline and must send a reason as to why they are returning the policy.
    Grace Period If a policyholder fails to renew their policy within the given period, they will be offered a grace period within which the policy should be renewed. Grace period for this policy stands at 15 days for monthly frequency and 30 days for quarterly, half-yearly, and yearly frequencies.
    Surrender If the policy is surrendered within five policy years, the fund value will be divested and will be put in a Discontinued Policy Fund after deducting the surrender penalty. The money would then be eligible for surrender compulsory option when the sixth policy year comes into action. If the person assured dies before receiving the sum assured, the nominees will be paid the same immediately.
    Nomination Nomination facility is available under this policy based on Section 39 of the Insurance Act.
    Assignment Assignment facility is not available under this plan.

     

    Tax Benefits – How you can save with the SBI Retire Smart Plan?

    Along with all the attractive benefits and features, the SBI Retire Smart Plan also offers Tax Benefits. These benefits are mentioned below:

    • Benefits under Section 80C of IT Act, 1961 on premium.
    • Benefits under Section 10(10D) of the It Act, 1961 on death proceeds under this policy.

    Why you should buy the SBI Smart Shield Plan from SBI?

    The Smart Shield Plan comes from SBI Life Insurance, which happens to be the largest banks in the country. The company - which is a joint venture between State Bank of India and BNP Paribas - uses the vast, ever-present bank network to cater to policyholders’ concerns. Besides this, the policy comes with plenty of interesting features like the Advantage Plan, where all your premiums are invested to generate the best of returns. Another aspect going for this plan is that if has 3 different fund options to choose, which come with different risk reward rating to suit the requirements of a variety of investors.

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