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Features
Why do I require Lifelong Pensions plan?
Lifelong Pensions plan helps you to meet your financial requirement no matter which life stage you are at. It is designed specially for individuals who wish to build their kitty retirement with no risk and tax advantage u/s 80 CCC (1) of IT Act.
What are the Lifelong Pensions plan available with SBI Life?
We have designed 2 plans to meet your requirements:
Plan 1: Pure Pension
Plan 2: Pension cum life cover
Plan 1: Pure Pension
This plan is a pure savings accumulation vehicle. No medical underwriting required. You can enjoy the benefits of this plan without any hassles, Automatic Acceptance. You have to just fill a simplified Proposal form.
Plan 2: Pension cum life cover
This plan is a pension builder plan with life insurance option. A simple medical questionnaire needs to be filled. The term of the life cover is equal to the Vesting Age / 65 whichever is earlier. If Life cover is extended due to postponement of Vesting Age, new medical questionnaire and new premium amount will be applicable. In this plan you have the facility of Automatic Cover Maintenance, which ensures that the cover remains in force even when you miss the premium payments. This facility is available after the first three years of the term. The Premiums due for Life Cover will be deductible from your Personal Pension Account.
How do the Plans work?
There are 3 Phases:
Phase 1: Accumulation Period
Phase 2: Vesting Period
Phase 3: Annuity Period
What are the terms and Conditions?
| |
Pure Pension Plan 1 |
Pension cum Life Cover Plan2 |
| Minimum term |
2 years |
5 years |
| Maximum term |
52 years |
52 years |
Contribution Holiday:
This facility is available from year 4 onwards for both options
If you have opted for Plan 2 Pension cum Life Cover, and you have not paid your regular contribution after year 4 as per the schedule, Life cover premium will be deductible from the Personal Pension Account to keep in force the Life Cover option*.
• Conditions Apply
Common feature of the Plans
Age to start receiving your pension anytime between 50 to 70 years old (age on last birthday)
Contribution payment mode
You have 2 options:
Regular contribution payment
Monthly Quarterly, Half-yearly and Yearly
Single contribution payment
One time premium payment for the selected term at commencement.
Minimum Contribution Amount
| Regular contribution payment mode: |
Rs. 3000 p.a. |
| Single contribution payment: |
Rs.10, 000 |
| Extra addition contribution (Top-ups): |
Rs. 500 |
Benefits
Tax Benefit
Tax exemption u/s 80 CCC (1) of IT Act, up-to Rs. 10,000 for everyone irrespective of gross income.
• Please consult your tax advisor for details.
II. Maturity Benefit
You can get maturity benefits only after the accumulation period is over. At the end of this period, the amount of your Personal Pension Account (Contributions net of administrative fee and Life cover charge, if any + Guaranteed Return + Vested Bonus) can be utilized in several ways:
• Immediate Cash need: You have a choice to withdraw up to 33% from your Personal Pension Amount in a lump sum. This withdrawal amount is tax-free as per the current fiscal law.
• Purchase of Annuity: The total/balance amount (after withdrawal from PPA) has to be utilized in seeking annuity from SBI Life (subject to the choice and rates available at that time), or any other insurance company.
Annuity options available with SBI Life
The policyholder has the choice to opt for any of the following options:
1. Life Time Annuity:
Fixed annuity amount as long as you live.
2. Increasing Life Annuity:
It provides progressively higher pension by a fixed percentage every year (rate will be fixed at vesting age as per the rates available at this time) to keep up with the increasing cost of living.
The first 2 options can be purchase with option of refund of Purchase price less Amount of pensions already received.
3. Annuity for Life with guaranteed period:
Fixed guaranteed annuity for a minimum guaranteed period of 5, 10, 15 years (payable to you or your nominee), and thereafter only to you as long as you is alive.
4. Joint Lifetime annuity + Lifetime annuity for Survivor:
The payment of annuities during the lifetime of the person, and thereafter as long as the spouse lives. The annuity amount could be the same as drawn by the person while he was alive, or half of the amount, as opted at the beginning.
The annuities could be payable monthly, quarterly, half yearly or yearly as per your option.
III. Death Benefit
• Death Benefit during accumulation period
a) Pure Pension (Plan 1): The nominee would be paid the Personal Pension Account (Net accumulated contributions + minimum guaranteed return + vested bonus)
b) Pension cum Life Cover (Plan2): The nominee would be paid the same benefit as per the Pure Pension Plan + Sum Assured for Life Cover.
• Death benefit during the Pension/Annuity period
Death benefits depend on the pension option chosen:
1. Life Time Annuity:
no death benefit
2. Increasing Life Annuity:
no death benefit
First 2 options with refund of balance purchase price: nominee will receive Purchase price less pension's amount already paid to the annuitant, if any.
3. Annuity for Life with guaranteed period:
If death occurs during guaranteed period, the remaining guaranteed period annuity will be paid to the nominee as per the original schedule. If death occurs after this guaranteed annuity period, no death benefit.
4. Joint Life time annuity + Life time annuity for Survivor :
If spouse survives, he/she will receive 50% / 100% of the annuity for Life time
Eligibility
Age Criteria
| |
Pure Pension Plan 1 |
Pension cum Life Cover Plan2 |
| Minimum Age at entry |
18 yrs. |
18 yrs. |
| Maximum Age at entry |
52 years |
52 years |
| Maximum cover age for life cover |
N/A |
65 yrs. |
| Vesting Age |
50 - 70 yrs. |
50 - 70 yrs. |
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