SBI Saral Retirement Saver

What is SBI Saral Retirement Saver?

The SBI Life - Saral Retirement Saver is an individual, non-linked, participating, savings pension plan. It is designed for individuals seeking complete safety from market volatility and a secure future with a joyous retirement. This plan helps build a retirement corpus that guarantees independence. It acknowledges the importance of planning for retirement to maintain your lifestyle, manage medical costs and family expenses, and protect from rising inflation. The benefits of this plan, such as surrender, complete withdrawal, or maturity/vesting, are primarily available in the form of annuities, with some allowance for commutation as per applicable regulations.

Features of SBI Saral Retirement Saver

• Guaranteed Bonus: The plan offers guaranteed simple reversionary bonuses for the first five policy years. These are 2.50% for the first three policy years and 2.75% for the next two policy years, calculated on the basic sum assured. These guaranteed bonuses are applicable only to in-force policies.

• Participation in Profits: The policy participates in the profits of the company's 'with profits' pension business, sharing profits through bonuses. After the first 5 years, simple reversionary bonuses are declared based on the company's long-term view of investment returns, expenses, mortality and other experience. Once declared, these bonuses become part of the guaranteed benefits.

• Terminal Bonus: A terminal bonus may be declared annually for in-force and paid-up policies, based on statutory valuation. It may also be paid upon death, surrender or maturity. The rate is expressed as a percentage of the vested bonus.

• Vesting (Maturity) Benefit: The maturity benefit is the higher of the basic sum assured or total premiums received accumulated at an interest rate of 0.25% per annum compounding annually, plus vested simple reversionary bonuses, plus any terminal bonus.

• Death Benefit: In case of the life assured's death, the death benefit is the higher of total premiums received up to the date of death accumulated at an interest rate of 0.25% p.a. compounded annually plus vested simple reversionary bonuses plus terminal bonuses, or 105% of the total premiums received up to the date of death.

• Life Cover: An additional life cover option is available through the SBI Life - Preferred Term Rider.

Eligibility Criteria for SBI Saral Retirement Saver

Benefits of SBI Saral Retirement Saver

Below are the benefits of SBI Saral Retirement Saver: 

• Retirement Corpus: The plan is designed to create a retirement fund ensuring financial independence.

• Guaranteed Returns: The plan offers guaranteed bonuses for the first five policy years, providing a level of security.

• Protection from Market Volatility: As a non-linked product, the plan offers complete safety from market fluctuations.

• Flexibility at Maturity: You have options to utilize the maturity benefits to purchase an annuity plan from SBI Life or another insurer, with the option to commute up to 60% of the proceeds.

• Death Benefit Options: The beneficiary can withdraw the death benefit as a lump sum or use it to purchase an annuity.

• Tax Benefits: You may be eligible for income tax benefits and exemptions as per the applicable income tax laws in India, which are subject to change.

Riders of SBI Saral Retirement Saver

The plan offers an optional SBI Life - Preferred Term Rider (UIN: 111B014V02) for additional life cover.

The rider can be availed only at the inception of the policy. The rider term cannot be more than the base policy term.

The rider sum assured cannot be more than the basic sum assured.

The rider premium cannot be more than 30% of the base product premium

Additional Details of SBI Saral Retirement Saver

• Premium Payment: Premiums can be paid yearly, half-yearly, or monthly. Up to 3 months premium needs to be paid in advance for most payment modes.

• Paid-Up Value: A policy acquires a paid-up value after at least two full years' premiums have been paid. The guaranteed bonus rates are not applicable to paid-up policies.

• Surrender Value: Regular premium policies acquire surrender value after at least two full years' premiums have been paid, while single premium policies acquire it immediately.

• Grace Period: There is a grace period of 30 days for yearly/half-yearly premiums and 15 days for monthly premiums.

• Free Look Period: You have 15 days to review the policy terms (30 days for distance marketing/electronic policies) and can return it if not satisfied.

• Revival: Lapsed or paid-up policies can be revived within 5 years of the first unpaid premium.

• Nomination: Nomination is allowed as per Section 39 of the Insurance Act, 1938.

• Assignment: Assignment is not allowed under this plan.