Know Everything About SBI Pension Plans!
Updated On Mar 24, 2022
A pension plan should be part of any prudent financial strategy. In India, the condition for senior citizens is not very favourable. With the rising cost of living, it is becoming more necessary than ever to prepare for retirement. A pension plan is the best way to ensure that you will have a steady stream of income once you retire. If you haven't already invested in a pension plan and are looking for one, SBI Life offers a variety of options.
SBI Life Insurance Company, a joint venture between State Bank of India and BNP Paribas, was named "Most Trusted Private Life Insurance Brand" in 2013. For its consumers, the organisation offers a wide variety of plans and policies. SBI Life provides something for everyone with the goal of achieving excellent customer satisfaction standards. To know more about SBI pension plans, read on.
SBI Saral Pension
The Saral Pension Plan is a typical pension plan with a bonus component. The normal premium deferred annuity plan has a 10-to-40-year duration. If the policyholder dies during the policy term, the death benefit will be given to the beneficiary in the amount of the premium paid to date + 0.25 percent compounded interest plus vested simple reversionary bonus plus terminal bonus. The recipient has the option of receiving the death benefit in the form of an annuity or a lump sum payment. The Saral Pension Plan's many maturity benefits contribute to its popularity. The Income Tax Act of 1961 provides a tax credit for this pension plan under Section 80C and Section 10(10) D.
SBI Life - Retire Smart
The SBI Life – Retire Smart plan is a non-participant ULIP pension plan with no liquidity for the first five years after purchase. Until the conclusion of the 5-year term, the policyholder is also unable to surrender the connected insurance products in full or in part. The most significant advantage of this plan is that guaranteed additions begin at 10% of the annual premium in the 15th year of coverage and continue every year afterwards until the policy is terminated. The policyholder receives the higher of the fund value, including guaranteed and terminal additions, when the policy matures. The plan also benefits from the guaranteed retirement corpus. The plan is especially popular since it ensures that your retirement years are secure. The plan provides you the option of paying premiums on a monthly basis or for a certain amount of time. Since the investment is regulated by the advantage plan feature, it maintains a close eye on risk exposure and guarantees that the investment has the least amount of risk while simultaneously yielding the highest returns.
SBI Life - Annuity Plus
SBI Life's Annuity Plus plan is another typical, non-participating instant annuity option. Once a single premium is placed into the plan, annuity payments are made according to the option and frequency selected. It provides you with a wide selection of annuity alternatives to choose from when you pay a single premium. You may be certain of an even and constant annuity for the rest of your life, providing you with a safety net. The following are the payment options: Lifetime Earnings With a capital refund, you can earn an income for the rest of your life. Lifetime Income with Partial Capital Refund Balanced lifetime income Refund of capital Life Annuity (Two Lives) with option to choose either Life and Last Survivor - 50 percent or 100 percent Income or Life and Last Survivor - 50 percent or 100 percent Income with Capital Refund Life Annuity (Two Lives) with option to choose either Life and Last Survivor - 50 percent or 100 percent Income with Capital Refund Life Annuity (Two Lives) with option to choose either Life and Last Survivor - 50 percent or 100 percent Income with Capital Refund This plan may have an Accidental Death Benefit Rider with a coverage of INR 50 lakhs. If you pay more in premiums, you'll get a better annuity rate. Section 80C and section 10(10) D of the Income Tax Act 1961 provide tax benefits for this pension scheme.
The main purpose of pension plans is to give people dignity and confidence in their post-retirement years, not merely via the accumulation of a lump sum, but also through regular monthly payments.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.