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SBI Life Saral Pension Plan: Plan Details, Benefits, and Reviews

Published On Dec 28, 2022 10:00 AM By InsuranceDekho

SBI Life Saral Pension is a classic participation pension plan that will take care of your post-retirement financial needs by providing you with adequate life insurance and bonus opportunities. This will allow you to enjoy your golden years worry-free.

SBI Life- Saral Pension Plan

In addition to being a standard plan, the Saral Pension Plan has a bonus facility in its benefits package. The time frame for the regular premium deferred annuity plan is between 10 and 40 years. If the policyholder dies during the policy's term, the beneficiary will get the amount of premiums paid so far, plus 0.25% interest, any vested simple reversionary bonuses, and any terminal bonuses. 

The beneficiary can choose whether to get the money as a lump sum or to use it to buy an annuity. The Saral Pension Plan is also very popular because it gives you multiple benefits when you reach retirement age. This pension plan can get a tax break under Section 80C and Section 10(10)D of the Income Tax Act of 1961.

Features of the SBI LIfe Saral Pension Plan

Following are the notable features of the SBI Life Saral Pension Plan - 

  • This annuity plan is a Deferred Annuity with Regular Premiums.
  • The policy gives longer periods of time, from 10 to 40 years.
  • If the annuitant dies during the policy's term, the nominee will get the total premiums paid up to that point, plus interest at a rate of 0.25 percent p.a. compounded annually, the vested simple reversionary bonus, and the terminal bonus. The nominee can choose to take this as a lump sum or as an annuity.
  • This plan's vesting benefit at policy maturity consists of the sum assured plus any simple reversionary bonuses earned plus any terminal bonuses earned.

SBI Life Saral Pension Policy Details

Below we have enlisted some of the key details of the SBI Life Saral Pension Plan - 

  • Grace Period: There is a grace period of fifteen days if you pay your premium every month, and 30 days if you pay in any other way.
  • Policy Cancellation or Surrender Benefit: If 3 years' worth of premiums have been paid, the policy can be canceled. Whether the "Special Surrender Value" or "Guaranteed Surrender Value" is higher will determine the Surrender Value. You can buy a deferred or immediate annuity plan with all or some of the surrender value.You can buy a deferred or immediate annuity plan with all or some of the surrender value.
  • Free Look Period: If the client isn't happy with his SBI coverage for life insurance or the terms and conditions of the policy, he can withdraw his policy within 15 days of obtaining his policy documentation, as long as no claims have been made.
  • Add-ons or Riders: Under the policy, you can add the SBI Life Preferred Term Rider, which gives you more coverage 
  • Exclusions - According to the policy, 80% of all insurance premiums are returned if someone commits suicide within the first twelve months after the policy starts. If the person dies within the first year after the policy is renewed, the nominee gets the higher of 80% of the insurance premiums or the Surrender Value.
  • Documents Required- The policyholder has to send in a properly filled insurance application/proposal form, as well as proof of address, proof of identity (Aadhaar Card, Passport, and PAN Card), and a detailed health history report, as needed. Depending on the principal amount and the policyholder's age, the policyholder may also have to show proof of income.

Benefits of the SBI Saral Pension Plan

Following are the benefits of the SBI Saral Pension Plan - 

  • The Sum Assured plus any accumulated "Simple Reversionary Bonus and terminal bonus" will be paid out as an annuity upon Maturity. This annuity can be received in a lump sum payment or it can be postponed in order to acquire a Single Premium Deferred Annuity.
  • When the annuity is bought, up to a third of the corpus can be exchanged for cash.
  • If the policyholder is under 55 years old, the accumulating period may be lengthened.
  • An accumulation of all life insurance premiums paid that grows at a compound rate of 0.25% p.a. guarantees the minimum sum assured.
  • On death, the nominees will get either the minimum guaranteed SA plus all bonuses that have been paid out, including the terminal bonus, or 105% of all premiums paid up to that point.
  • The beneficiary has the option to take a lump sum payout or use the money to purchase an annuity from the insurance provider.
  • For the first five years, a "guaranteed bonus" of 2.50 percent of the SA and 2.75 percent of the SA is paid.
  • Tax Benefits: According to sections 80CCC and 10 of the Indian Income Tax Act, the insured person gets tax breaks on all insurance premiums and claims received (10A).


SBI Life's Saral Pension Plan is a great option for savers to have the financial security to follow their dreams in retirement. Due to the ever-increasing cost of living, investing in this policy  can help you not only maintain your present standard of living, but also deal with the financial burdens of unforeseen medical bills and other family costs. The plan also protects you from market losses and makes sure that you can get the most out of the money you put into it while you are still making money.


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.

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