SBI Life - Smart Annuity Income

What is SBI Life - Smart Annuity Income?

SBI Life - Smart Annuity Income is an Individual, Non-Linked, Non-Participating, General Annuity plan designed to secure your financial future post-retirement. This plan ensures a steady and guaranteed stream of income throughout your life, enabling you to maintain your lifestyle and achieve long-term financial well-being. With a one-time premium payment, you are entitled to fixed annuity payments for life, providing protection against market fluctuations and offering peace of mind. This plan is exclusively available to subscribers of the National Pension Scheme (NPS), regulated by the Pension Fund Regulatory and Development Authority (PFRDA).

Features of SBI Life - Smart Annuity Income

Below are the features of SBI Life - Smart Annuity Income: 

• Annuity Options: Choose from five different annuity options to best suit your retirement planning and financial goals.

• Guaranteed Lifelong Income: Secure a steady stream of income throughout your retirement years.

• Purchase Price Incentives: Benefit from attractive incentives when you invest a higher amount.

• Payout Frequency Flexibility: Select the frequency of your annuity payouts (monthly, quarterly, semi-annually, or annually) to align with your spending patterns.

• Security: Enjoy the peace of mind that comes with a guaranteed income stream, shielding you from market fluctuations and ensuring financial stability during retirement.

• Financial Freedom: Gain the freedom to pursue your passions and enjoy your retirement without worrying about running out of money.

• Reliability: Count on a trusted and reliable insurer like SBI Life to provide consistent and dependable income support.

• Regular Income: Receive regular income payments to cover your essential expenses and maintain your desired lifestyle.

• Flexibility: Customize your annuity plan to match your individual needs and preferences, including the frequency of income payouts.

Eligibility Criteria for SBI Life - Smart Annuity Income

Benefits of SBI Life - Smart Annuity Income

Below are the benefits of SBI Life - Smart Annuity Income:

• Guaranteed Income: Receive regular, guaranteed income payments throughout your retirement.

• Flexibility: Choose from five annuity options to best suit your individual circumstances and family needs:

  • Single Life Annuity: Receive regular payments for life.

  • Single Life Annuity with Return of Purchase Price: Receive regular payments for life, and your purchase price is returned to your nominee upon your death.

  • Joint Life Annuity: Receive regular payments as long as either you or your spouse is alive.

  • Joint Life Annuity with Return of Purchase Price: Receive regular payments as long as either you or your spouse is alive, with your purchase price returned to your nominee upon the death of the last surviving spouse.

  • Family Income: Prioritizes family support with income options for you, your spouse, and dependent parents, with a final refund to your children or legal heirs.

• Tax Benefits: Consult with your tax advisor for potential tax benefits associated with annuity plans.

• Peace of Mind: Enjoy the security of knowing you have a reliable income stream during your retirement years.

Additional Details of SBI Life - Smart Annuity Income

1. Policy Loan

   SBI Life - Smart Annuity Income offers a loan facility exclusively for the following options:

   • Single Life Annuity with Return of Purchase Price

   • Joint Life Annuity with Return of Purchase Price

     • Eligibility: Loan can be availed any time after six months from the policy commencement date.

     • Loan Amount: The maximum loan amount is restricted such that the effective annual interest on the loan does not exceed 50% of the annual annuity amount at the time of availing the loan.

     • Joint Life Option: Under this option, the primary annuitant can avail of the loan, and upon their death, the secondary annuitant is eligible for the same.

     • Interest Rate:

       • Determined based on the 10-year G-Sec rate as of April 1 of the relevant financial year, plus a margin of up to 200 basis points (bps).

       • Interest rate is rounded to the nearest 25 bps.

       • Current applicable rate for FY 2024-2025 is 9.00% compounded half-yearly.

     • Repayment:

       • Loan interest is recovered from the annuity payouts.

       • The annuitant can repay the loan principal anytime during the annuity payment period.

       • Outstanding loans are recovered from the claim proceeds.

2. Free Look Period

   Policyholders are granted a 30-day free look period to review the policy terms and conditions.

   Key Features of the Free Look Period:

   • Eligibility: Applicable from the date of receipt of the policy document, electronically or otherwise.

   • Cancellation:

     • If the policyholder disagrees with any terms or conditions or decides to cancel the policy for any reason, they can return the policy for cancellation.

     • This option is available if no claims have been made under the policy.

   • Refund:

     • A refund of the premium paid will be processed after deducting stamp duty and any annuity instalments already paid.

     • The refunded amount will be transferred back to the CRA (Central Record Keeping Agency) account from where the funds were received.