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SBI Life - Retire Smart(Pension Plan)

Smart Shield

Introduction:

Due to higher disposable incomes and breakthrough in medical sciences, longevity has increased to a great extent. We are all living longer after retirement.

Retirement may sound distant to you at the moment. However, it could span as long as one-fourth of our lifetime and is ever increasing; and not many of us have really noticed or even thought about that.

Moreover, many people underestimate how much they need to save for retirement. Thus, for creating a retirement corpus, systematic & disciplined investment is required during one’s earning years.

We present to you, SBI Life - Retire Smart, a non-participating unit linked pure pension plan, which guarantees you minimum of 101% of all premiums paid, when policy is in force, on Maturity/Vesting; thus the downside risk in the market is protected to a great extent.

Key Features:

  • Your Fund Value is boosted, through guaranteed additions of up-to 210%* of Annual Premium (Conditions Apply)
  • Guaranteed Additions of 10% of Annual Premium are paid regularly, starting from the end of 15th policy year and at the end of every year thereafter till the end of policy term.
  • Get Terminal Additions of 1.5% of Fund Value, at maturity/vesting or on earlier death.
  • No need to worry about your investments, as the same is managed on your behalf by SBI Life through ‘Advantage Plan’. This plan guarantees a minimum of 101% of all premiums paid at maturity/vesting.
  • Get a Guarantee of minimum 105% of all premiums paid on earlier death.
  • Option to pay premiums regularly or for a limited period.
  • Flexibility to postpone your vesting age.

Product Snapshot:

Age^ at Entry Minimum: 30 years Maximum: 70 years
Age^ at Maturity/Vesting Minimum: 40 years Maximum: 80 years
Policy Term 10, 15 to 35 years (both inclusive)
Premium Paying Term Regular Premium - Same as policy term
Limited Premium
5/8 years - Policy Term of 10 years
5/8/10/15 years - Policy Term of 15 - 35 years (both inclusive)
Premium Frequency Yearly / Half-yearly / Quarterly / Monthly
Minimum Premium Amounts (x 100)
Premium Frequency Regular premium Limited Premium
Yearly Rs. 24,000 Rs. 40,000
Half yearly Rs. 15,000 Rs. 20,000
Quarterly Rs. 7,500 Rs. 10,000
Monthly Rs. 2,500 Rs. 5,000
Maximum Premium Amount (X 100) No limit

* This is applicable for policy term of 35 years and provided the policy is in-force. Guaranteed addition would not apply to policies where vesting date has been deferred without payment of further premium.
^All the references to age are age as on last birthday.

Benefits

  • Maturity/Vesting Benefit: On completion of policy term, you will receive the Higher of (Fund Value Plus Terminal Addition or 101% total premiums paid). You have the following options on Maturity / Vesting:
    • To purchase immediate annuity, from the entire policy proceeds
    • To purchase a single premium deferred pension product, from the entire policy proceeds
    • To purchase immediate annuity with an option to commute up-to one-third of the policy proceeds, as per current Income Tax rules

    To extend the accumulation period or defer the vesting date provided you are below age of 55 years at vesting. The maximum extended period will be up to age 80 years.

    Note - In case the eligibility criteria of the approved immediate annuity product are not met (e.g. minimum annuity amount) the vesting benefit will be paid in lump sum.
  • Death Benefit:
      In the unfortunate event of death of the Life Assured, Higher of (Fund Value plus Terminal Addition or 105% of total premiums paid till the time of death), is payable. The beneficiary can use the death benefit amount, as per the below mentioned options:
    • Receive the entire proceeds as lump sum
    • Utilize the entire proceeds of the policy or part thereof for purchasing an annuity, at the then prevailing rate, provided eligibility criteria of the approved immediate annuity product is met (e.g. minimum annuity amount or age criterion).
  • Tax Benefits*:
    Premiums paid under the Policy are eligible for tax deduction u/s 80CCC of the Income Tax Act, 1961. On vesting or on surrender/discontinuance, the policyholder can currently commute up to one third of the policy proceeds as per the Income Act Tax, 1961. This commuted value is exempted from tax under section 10(10A) (iii) of the Income Tax Act 1961. The non-commuted pension taken in the form of an immediate annuity is currently taxable.

    Death benefit under this policy is tax exempt u/s 10 (10D) of the Income Tax Act, 1961.

    Tax benefits, are as per the Income Tax laws & are subject to change from time to time. Please consult your tax advisor for details.

For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale.

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