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SBI Life - Saral Pension Plan

The Saral Pension Plan from SBI Life is the ideal retirement solution that allows investors to pursue the hobbies and passions that have always wanted to. Since the cost of living is constantly on the rise, purchasing the SBI Life Saral Pension Plan will not only help in ensuring that you continue your current lifestyle, but will also help in meeting unexpected medical expenses and family expenses. The plan also offers protection against market loss and ensures that you reap the benefits of the money invested in the plan while you are still earning an income.

The SBI Life Saral Pension Plan offers a guaranteed simple reversionary bonus for the first five years at 2.50% of the sum assured for the first three years and 2.75% of the sum assured for the following two years. A maturity benefit is also included in the plan, which will be the sum assured along with terminal bonus, if any, and vested simple reversionary bonuses. The sum assured comes with an imbedded guaranteed interest rate of a minimum of 0.25% per annum compounding yearly on the overall premiums. The plan also offers a death benefit which will be the higher of the overall premiums paid accrued at an interest rate of 0.25% per annum compounded yearly plus terminal bonuses, if any, and vested simple reversionary bonus; or 105% of the overall premiums paid.

Eligibility Criteria – Who is the SBI Life Saral Pension Plan for?

The SBI Life Saral Pension Plan can be purchased by anyone who wants to build a corpus for retirement. To avail the policy, customers will have to meet certain eligibility criteria which are as follow:

Parameters Details
Minimum Entry Age 18 years
Maximum Entry Age 65 years
Minimum Maturity Age 40 years
Maximum Maturity Age 70 years
Policy Term 10 years to 70 years

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

Customers who purchase the SBI Life Saral Pension Plan will have to insure their lives for a certain amount and make premium payments at regular intervals of time to avail the benefits offered by the policy. Following are some of the important details regarding the sum assured and premium range of the SBI Life Saral Pension Plan:

Parameters Details
Minimum Sum Assured Rs.1 lakh
Maximum Sum Assured No Limit
Premium Payment Modes Monthly / Semi-Annual / Annual / Single
Minimum Premium Amount Rs.7,500 per annum
Maximum Premium Amount No Limit

Plan Coverage – What the SBI Life Saral Pension Plan covers?

The SBI Life Saral Pension Plan offers both death and maturity benefits which are as follow:

Maturity Benefits When the policy hits the maturity date, the maturity benefit for which the customer will be eligible will be the higher of sum assured or overall premium payments made accrued at an interest rate of 0.25% per annum compounding yearly plus terminal bonus, if any, plus simple reversionary bonus. There are four options that customers can choose from upon the maturity of the SBI Life Saral Pension Plan: They can either purchase immediate annuity from the proceeds of the whole policy, or purchase immediate annuity with an option to commute up to one-third of the proceeds from the plan as per prevailing Income Tax regulations, or use all the proceeds to buy a single premium deferred pension product, or extend the accrual period or defer the maturity date, provided the customer is under 55 years of age on maturity.
Death Benefit In case of the unfortunate demise of the life assured, the death benefit will be the higher of overall premiums paid accrued at an interest rate of 0.25% per annum compounded yearly plus terminal bonuses, if any, plus vested simple reversionary bonus, or 105% of overall premiums paid will be offered to the beneficiary. The nominee can either choose to receive the death benefit as a lump sum or can choose to use all or part of the proceeds to buy an annuity at the current rate. The annuity can only be purchased from SBI.

Other Key Features of SBI Life Saral Pension Plan:

Following are some of the other key features of the SBI Life Saral Pension Plan:

Surrender Value In case of single regular premium plans, the surrender value will only be applicable if the premiums for three full years have been paid. In case of single premium plans, the premium can be paid at any time during the policy term to activate the surrender value of the SBI Life Saral Pension Plan. The Guaranteed Surrender Value in case of regular premium plans will be 30% of all basic premiums paid in case the policy is surrendered during the third policy year. In case the policy is surrendered between the fourth and seventh policy year, the Guaranteed Surrender Value will be 50% of all basic premiums paid. In case the policy is surrendered between the eighth and fifteenth policy year, the Guaranteed Surrender Value will be 60% of all basic premiums paid. In case the policy is surrendered between the sixteenth and twentieth policy year, the Guaranteed Surrender Value will be 65% of all basic premiums paid. In case the policy is surrendered post the twentieth policy year, the Guaranteed Surrender Value will be 70% of all basic premiums paid. In case of Single premium policies, the Guaranteed Surrender Value will be 70% of basic premium in case the policy is surrendered any time before the end of the third policy year. In case the policy is surrendered after the third policy year, the Guaranteed Surrender Value will be 90% of all basic premiums paid. Once the policy is surrendered, the customer shall receive the higher of the Non-Guaranteed Special Surrender Value or the Guaranteed Surrender Value. The Non-Guaranteed Special Surrender Value will be based on the past demographic and financial experience of the product, the policy term, and the number of years for which the premiums have been paid in addition to the duration elapsed at the time of surrender.
Paid-Up Value In case of regular premium policies, the SBI Life Saral Pension Plan will acquire a paid-up value only in case the premiums have been paid for three full years. The policy can be revived within two years from the date of the first unpaid premium. The sum assured on maturity of paid-up policies will be lowered based on the number of premiums paid to the overall number of premiums payable under the plan. The lowered sum assured will be referred to as the paid-up sum assured. This sum assured in addition to any vested simple reversionary bonuses and terminal bonus, if any, shall be the paid-up value of the policy.
Participation in Profits The plan can participate in the profits arising out of SBI Life’s ‘with profits’ pension business. It will receive a share of profits emerging from this business in the form of bonuses. The simple reversionary bonus will be declared as a percentage rate and will apply to the sum assured in respect of the basic policy benefit. The reversionary bonuses will be guaranteed to be at the rate of 2.5% of the sum assured for the first three years, and 2.75% of the sum assured for the following two years. Reversionary bonuses thereafter shall be declared on the basis of the company’s long term view of mortality, expenses, investment returns and other experience. Once the reversionary bonus has been declared, it will form a part of the plan’s guaranteed benefits. Future benefits on the other hand will not be guaranteed and shall depend on future profits.
Revival In case a policy has lapsed due to non-payment of premiums, it can be revived by making a written application within a period of two years from the due date of the first unpaid premium. SBI Life has the discretion to approve or decline the application but in case the application has been accepted, all unpaid premiums will be have to paid along with interest.
Grace Period In case a customer fails to make the premium payment on time, he/she will receive a grace period of 30 days to ensure that the due premium has been paid. This stands for annual and semi-annual premium payment modes. In case of the month premium payment mode, the grace period applicable will be 15 days. The policy shall continue to remain active during the grace period but will lapse in case the due premium has not been paid by the end of the grace period.
Free Look Period Customers who are not satisfied with the terms and conditions of the SBI Life Saral Pension Plan have the option to return the policy back to the company within 15 days from the date on which they received the policy. In case the policy was purchased through the distance marketing mode, the free look period will be extended to 30 days.
Nomination Nomination for the SBI Life Saral Pension Plan is mandatory as per Section 39 of the Insurance Act, 1938.

Riders – Add-on Covers that can be purchased with the SBI Life Saral Pension Plan:

The SBI Life Saral Pension Plan has only one rider that can be attached to increase the level of cover you can avail from the policy. The SBI Life – Preferred Term Rider will offer protection along with retirement savings. Customers have the flexibility to alter the policy based on their requirements by choosing the SBI Life – Preferred Term Rider. In case of the unfortunate and untimely death of the policyholder, the rider sum assured will be paid to the nominee along with the death benefit.

Tax Benefits – How you can save with the SBI Life Saral Pension Plan?

Customers who purchase the SBI Life Saral Pension Plan will be eligible for tax benefits as per the currently prevailing income tax laws.

Why Choose the SBI Life Saral Pension Plan?

The SBI Life Saral Pension Plan is a great investment option for those who wish to save money for their retirement and live a life of peace when they can no longer earn an income. The plan requires customers to pay premiums at regular intervals of time and these premiums paid will accumulate for the tenure of the policy and at the end of it, a lump sum amount will be given to you. Customers can use the maturity benefit for a number of reasons, be it for purchasing an asset, or taking that long vacation they have always dreamed of, or to even go about their daily lives without having to compensate on their current lifestyle. Moreover, SBI Life Insurance Company Limited has established itself as one of the major insurance companies in India, thereby ensuring that your investment is safe. In addition, the company also employs the finest insurance agents who can help you pick the policy that best suits your unique requirements. A customer service team that operates round the clock will ensure that any concerns or issues you face are dealt with in a timely manner.