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.

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.

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.

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