SBI Life Retire Smart Plan

What is SBI Life Retire Smart?

SBI Life - Retire Smart is an individual, unit-linked, non-participating pension plan that is designed to help you build a retirement corpus. This investment plan offers a combination of investment and insurance benefits. It invests your premiums in units of various funds chosen by you, that allows you to grow your wealth over the long term. SBI Life Retire Smart Plan also provides life insurance coverage, offering financial protection to your loved ones in case of your unfortunate demise.

What are the Features of SBI Life Retire Smart Plan?

The features of SBI Retire Smart Plan, which is a Unit-Linked Pension Plan (ULPP) are listed below: 

• Build your retirement corpus: You get a lump sum payout at maturity to fund your retirement dreams.

• Invest your way: Choose from 7 different investment options (funds) that suit your risk appetite. You can switch between funds anytime, for free.

• Access your money: You can make partial withdrawals after the lock-in period.

• Pay your way: Choose how you want to pay your premiums: pay a single lump sum, regular payments throughout the policy term, or limited payments over a shorter period.

SBI Life Retire Smart Eligibility Criteria

*A pension calculator can help you to estimate your pension amount at vesting age. 

What are the Benefits of SBI Life Retire Smart?

Below are the benefits of SBI Retire Smart Pension Plan:

1. Security and Financial Freedom:

   • Guaranteed Maturity Benefit: Receive at least 101% of your total premiums paid on maturity, protecting you from market fluctuations.

   • Enhanced Corpus: SBI Life Retire Smart returns grow your retirement savings with potential market-linked investments.

   • Death Benefit: Your family receives a payout in case of your unfortunate demise.

2. Flexibility:

   • Choose Your Payment Term: Opt for a single premium, regular payments, or limited payments.

   • Adjust Your Policy: Extend your policy term, adjust your premium payment term, or defer your vesting date for greater control.

   • Annuity Options: Utilize your retirement corpus to purchase an annuity for a steady income stream.

3. Reliability:

   • Loyalty Additions: Get bonus additions to your fund value starting from the 15th policy year.

   • Terminal Addition: Receive an additional 1.5% of your fund value on maturity or vesting.

4. Maturity/Vesting Benefits:

   • Upon maturity of your SBI Life Insurance Retire Smart policy, receive a higher of your fund value with a terminal addition or 101% of your total premiums.

   • Choose to use the proceeds for an immediate or deferred annuity or partially withdraw funds.

5. Death Benefit:

   • Your beneficiary receives the higher of your fund value with a terminal addition or 105% of your total premiums paid.

SBI Life Retire Smart: Policy Details

The key details of SBI smart retirement plan are listed below:

• Free Look Period: You have 15 days (for non-Distance Marketing and electronic policies) or 30 days (for Distance Marketing and electronic policies) from receiving the policy document to review its terms. If you disagree with any terms, you can return the policy with reasons, and you'll receive a refund based on the formula provided.

• Grace Period: You get 15 days for monthly payments and 30 days for other modes after the due date to pay premiums without policy lapse.

• Discontinuance of Policy: This occurs due to surrender or non-payment of premiums before the grace period ends. If your SBI Retire Smart policy discontinues during the lock-in period, the fund value (after deducting charges) goes into a discontinued policy pension fund, and you have a 3-year revival window. After this, if not revived, proceeds will be paid at the end of the revival or lock-in period, whichever is later.

• Surrender: You can surrender your SBI Life Retire Smart policy anytime. If surrendered within the first 5 years, the fund value (net of discontinuance charges) goes into a discontinued policy pension fund. If, after 5 years, the fund value is payable directly. Surrender value is credited on the first working day of the 6th policy year.

• Revival: You have a 3-year revival period after the first unpaid premium. During the lock-in period revival, this SBI smart retirement plan resumes with the fund shifted according to the Advantage Plan. After lock-in, revival includes collecting unpaid premiums without interest, deducting applicable charges, and adding back previously deducted discontinuance charges.

Exclusions Under the SBI Life Retire Smart Plan

If the life assured passes away due to suicide within 12 months from the policy's start or from revival, the nominee or beneficiary will receive the fund value at the time of death notification. Additionally, any charges beyond Fund Management and Guarantee Charges incurred after the death will be included back into the fund value at the time of death notification.

Is SBI Life Retire Smart Good Or Bad?

SBI Life Retire Smart has both advantages and disadvantages, so it depends on your individual needs and risk tolerance. Below are the reasons why SBI Life Smart Retirement Plan can be a good choice for you:

• The SBI Retire Smart Plan offers the combined benefit of growing your retirement corpus through market-linked investments and providing life cover.

• You can choose how you pay premiums (regular, limited, or single) and invest in various funds based on your risk appetite.

• You can potentially avail tax deductions on premiums paid under Section 80CCC and Section 10(10D) of the Income Tax Act (subject to change).

• Even if the market performs poorly, you will receive at least 101% of premiums paid on maturity.

SBI Life Retire Smart pension plan can be a good investment option for those seeking a disciplined, long-term approach to retirement planning with the benefit of life insurance. However, you must carefully consider the market risks and associated charges.