State bank of India Life Insurance is a joint venture between SBI and BNP Paribas Cardiff. SBI life insurance voted the most trusted life insurance company in 2013. This company do offer a wide range of services to its customers. The service which we will about today is the SBI Pension Plans.
What are the Pension Plans?
The plans which provide the annuity payouts after the retirement to the employees. There are two options of the pension plan, and the first one is deferred annuity. In this plan, the individual needs to pay premium first, and after some time of the investment they will start receiving payouts, and in the case of death, the insurance covered by company will be paid to the account nominee. The second one is the immediate annuity. In this plan, payout starts immediately after the payment of the bulk amount, but there is no continuity of payment after the person died.
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SBI Pension Plans:
There are three types of pension plans SBI does offer, and the eligibility criteria of each plan are different.
- SBI Life – Saral Pension Plan
- SBI Life – Annuity Plus
- SBI Life – Retire Smart
#1 SBI Life – Saral Pension Plan:
The first pension plan in our list is Saral Pension Plan offered by SBI life insurance company. The type of Saral pension plan is a traditional participating plan. The minimum age requires for a single premium is 18 to 60, and after 60, the individuals can opt for the regular premium account. The maximum vesting age of the plan is 70.
Policy Term is a minimum of 5 years for a single premium and ten years for the regular premium account. The minimum annual premium is 7500, and the amount assured is 100000.
#2 SBI Life – Annuity Plus:
The second pension plan in our list is the Annuity Plus Plan offered by SBI life insurance company. The type of Annuity Plus plan is a traditional immediate annual return plan. The minimum age requires for premium is 40 to 80.
Policy Term is a single pay premium. The minimum annual premium depends upon the chosen sum assured by the person.
#3 SBI Life – Retire Smart:
The third pension plan in our list is the Retire Smart Plan offered by SBI life insurance company. The type of Smart Retire plan is a Unit Linked pension plan. The minimum age requires for premium is 30 to 70. The maximum vesting age is 40 to 80. The minimum term for the policy is ten years and can go up to for 35 years.
The minimum annual premium is 24000 for the regular pay and 40000 for the limited pay. The sum assured under this plan is 105% of the total premium paid.
- It comes in both traditional and unit-linked plans.
- It does not allow anyone to withdraw all circumstances at once. It is too sure that you will receive the pension annually.
- Premium you will pay under immediate annuity plans are 100% tax-free.
- Both of the pension plans do not earn any bonus.
- The pension can be available under both plans. You can choose it monthly, quarterly or yearly.
SBI Insurance company is all set to provide the new upgraded pension schemes to its employees. The benefits of employees are they can save tax by premium and earn extra after some time. There is also a pension scheme after retirement. Meanwhile, they will receive the amount monthly or annually depends upon the plan they will choose.