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SBI Life - Saral Pension

Smart Shield

Introduction:

Retirement - means giving up work and continuing to Celebrate Life! SBI Life - Saral Pension is an Individual, Participating, Non Linked, Traditional Pension Plan, which offers you complete safety from market volatility, by providing you a secure future and a joyous retirement.

Key Features:

  • 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 on the total premiums.
  • Benefit: Higher of total premiums paid accumulated at an interest rate of 0.25% p.a. compounded annually plus vested reversionary bonus plus terminal bonuses, if any or 105% of total premiums paid.
  • Cover: Option of additional life cover through SBI Life - Preferred Term Rider.
  • On Vesting, 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

* If age at vesting is below 55 years.

Product Snapshot:

Age^ at Entry Min: 18 years 
Max: For Single premium: 65 years,
  For Regular premium: 60 years
Age^ at Vesting Min: 40 years Max: 70 years
Policy Term
Min: For Single premium: 5 years,
  For Regular premium: 10 years
Max: 40 years
Sum Assured** Min: Rs.1,00,000/- Max:  No Limit
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 Min:  Rs.7,500 p.a. Max: No Limit

^All the references to age are age as on last birthday.

# 3 Months premium to be paid in advance and renewal premium payment through Electronic Clearing System (ECS) or Standing Instructions (where payment is made either by direct debit of bank account or credit card]

For Monthly Salary Saving Scheme (SSS), 2 month premium to be paid in advance and renewal premium payment is allowed only through Salary Deduction

**Sum Assured is always greater than or equal to Total premiums paid accumulated at an interest rate of 0.25% p.a. compounded annually

Benefits

  • Vesting Benefit:
    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 have the following options:
    • To purchase immediate annuity from the entire policy proceeds
    • To purchase immediate annuity with an option to commute upto one-third of the policy proceeds as per current Income Tax* rules
    • To utilize the entire proceeds to purchase a Single premium deferred pension product
    • 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 an event of death of the policyholder, the death benefit proceed will be higher of total premiums paid accumulated at an interest rate of 0.25% p.a. compounded annually plus vested reversionary bonus plus terminal bonuses, if any, or 105% of total premiums will be paid to the nominee. The nominee will have the following options:
    • To receive entire proceeds as lump sum
    • 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 rates available for the purchase of this annuity will be based on the prevailing annuity rates on the immediate annuity product.
  • Tax Benefits*:
    • Premium paid under this policy is eligible for tax deduction u/s 80CCC of the Income Tax Act.
    • On vesting, the policy holder 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.
    • Under section 10(10D) of the Income Tax Act 1961, the lump sum death proceeds are not taxable.
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