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SBI Life Saral Pension

Pension is an important source of income which helps you meet your financial needs post retirement. Keeping this in mind, the State Bank of India life insurance has designed a pension plan specifically to help the working class to secure a good and regular source of income.

The SBI Life Saral Pension Plan is an individual participating non-linked traditional pension plan which comes with Guaranteed Bonuses for the first 5 years and Simple Reversionary Bonus thereafter throughout the policy term, if any.

Note: All product related information has been sourced from the official website of SBI Life.

Product Specifications of SBI Life Saral Pension Plan

Age at Entry18 years - MinMaximum:
Regular Premium - 60 years
Single Premium - 65 years
Age at Vesting40 years - Min70 years - Max
Policy TermMinimum:
Regular Premium - 10 years
Single Premium - 5 years
40 years - Max
Sum AssuredMin - ₹1,00,000/-
Max - No such limit
Premium FrequencySingle | Half -Yearly | Yearly | Monthly
The premium for various modes as percentage of annual premium are given below:
● Monthly - 8.4% of annual premium
● Half-Yearly - 50.2% of annual premium
Premium₹7,500 per annum – Min
No such limit on maximum amount

SBI Life Saral Pension Policy Details

Surrender Value - If you have made successful premium payments for 3 regular policy years, you can avail for a surrender value in case of regular premium and any time during policy term.

The Guaranteed Surrender Value will be 30% of all basic premium paid if surrendered during the third year for regular premium policies. The GSV will be 50% of all basic premium in case of policy surrender from 4th-7th policy year OR 60% of all basic premiums paid in case of policy surrender from 8th-15th policy years OR 65% of all basic premiums paid in case of policy surrender from 16th-20th policy years OR 70% of all basic premiums paid in case of policy surrender post 20th year.

For single premium policies, the GSV is 70% of all basic premium paid if surrendered during the third year while 90% of all basic premium paid if surrendered post 3 policy years.

Nomination - Nomination has been made compulsory with respect to this policy as per Section 39 of the Insurance Act, 1938.

Free Look Period - You can return the policy in case you disagree with any of the terms and conditions within 15 days from the date of policy receipt or 30 days in case the policy has been sourced via distance marketing.

Grace Period - You are entitled to a grace period of 30 days from the premium due date for yearly/half-yearly premium and 15 days for monthly premium.

Key Features of SBI Life Saral Pension

  • Option to avail additional life cover through rider options.
  • Entitled to receive simple reversionary bonuses throughout the policy term.
  • Option to extend the accumulation period.
  • Option to defer the vesting period.
  • Ensured protection for your family by providing income during your retirement years.
  • Guaranteed Simple Reversionary Bonuses for first 5 years for inforce policies; @ 2.50% for first three years and @2.75% for next two years

Benefits of SBI Life Saral Pension

A: Entitled to tax benefits under Section 80CCC and Section 10(10A)(iii) of the Income Tax Act, 1961.

B: The Vesting Benefit payable will be equal to the Sum Assured plus Vested Simple Reversionary bonus plus Terminal bonus, if any. This benefit can be utilised in the following ways:

  1. To purchase immediate annuity from the entire policy proceeds.
  2. To purchase immediate annuity with an option to commute up to one-third of the policy proceeds as per current Income Tax rules.
  3. To utilize the entire proceeds to purchase a Single premium deferred pension product.
  4. To extend the accumulation period or defer the vesting date, provided you are below age of 55 years on vesting. The maximum extended period is up to age 70 years.

C: The Death Benefit payable will be a 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.

This benefit can be utilised in the following ways:

  • 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.

Eligibility Conditions of SBI Life Saral Pension Plan

Age at Entry18 years - MinMaximum:
Regular Premium - 60 years
Single Premium - 65 years
Age at Vesting40 years - Min70 years - Max
Policy TermMinimum:
Regular Premium - 10 years
Single Premium - 5 years
40 years - Max
Sum AssuredMin - ₹1,00,000/-
Max - No such limit
Premium FrequencySingle | Half -Yearly | Yearly | Monthly
The premium for various modes as percentage of annual premium are given below:
● Monthly - 8.4% of annual premium
● Half-Yearly - 50.2% of annual premium
Premium₹7,500 per annum – Min
No such limit on maximum amount

Documents Required in SBI Life Saral Pension Plan

  1. Basic KYC documents which include Proof of ID and Address.
  2. Proof of age and income.

Riders in SBI Life Saral Pension Plan

Under this policy, you can avail the option rider of SBI Life - Preferred Term Rider. Under this rider, you can avail a life cover for this overall policy. In case of death of the policyholder, the rider Sum Assured is paid along with the death benefit.

Age at Entry18 years - Min
Max:
● 50 years for regular premium
● 55 years for single premium policies
Maximum Maturity Age60 years
Policy TermMin:
● 10 years for regular premium
● 5 years for single premium
Max - 30 years
Rider policy term cannot be higher than the policy term.
Premium Paying TermSame as policy term
Sum Assured₹25,000 - Min
₹50,00,000 - Max
Rider Sum Assured will be equal to or less than Sum Assured

FAQs of SBI Life Saral Pension Plan

What is SBI Saral pension and how can I create account with SBI?

The SBI Life Saral Pension Plan is an individual participating non-linked traditional pension plan which comes with Guaranteed Bones and Simple Reversionary Bonus. You can create an account online by registering with a user ID and Password on the official website of SBI Life if you are an SBI life policyholder.

Why should you buy SBI Life Saral Pension plan?

If you are looking for a good retirement plan with a regular income, this plan is a good investment. Under this policy, you are required to pay regular premiums which in turn get accumulated over the policy tenure and are received in the form of annuities. The money received can be in the form of lump sum which can be further utilized to purchase annuities.

Who should buy SBI Life Saral Pension plan?

Any individual aged between 18-65 years can purchase SBI Life Saral Pension Plan.

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