SBI Life Pension Plans for NRI 2024

National Pension Scheme SBI

The National Pension Scheme SBI is part of the NPS Scheme launched by the Government of India in 2004 by the Pension Fund Regulatory and Development Authority (PFRDA) to encourage people living abroad or in the country to create a corpus. 

The fund is managed by the SBI Life Pension Funds Private Limited (SBIPFPL), a subsidiary of the State Bank of India. The scheme offers NRI customers within the age group of 18-60 years to create a pension fund that they can use for themselves in their retirement years.

The scheme allows the investors to invest in either Tier I or even both plans at the same time: 

• Tier I – The account under the SBI Life NPS scheme does not allow the customer to withdraw any amount invested. This is a mandatory account and offers tax benefits to the account holders. 

• Tier II – The account can only be opened by investors who already have a Tier I account. The consumers are allowed to withdraw funds from this voluntary account. 

Key Features of the accounts are: 

1. Tier I

   • The minimum account opening amount is Rs 500

   • The minimum contribution amount is Rs 500

   • The minimum account balance at year-end is Rs 6,000

   • Part Withdrawals under Tier 1

   • The account allows its consumers to withdraw a part of their pension, not exceeding 25% of the total contribution. 

   • There is a 3-year lock-in period. 

   • The consumers are only allowed to withdraw a maximum of three times during the entire plan term. 

   • Exit Strategy under Tier I

   • After the age of 60 years: 

   • The client must make a mandatory investment of 40% of the total fund amount in the Annuity Scheme

   • The remaining 60% of the invested funds can be withdrawn in a lump sum or stay invested until you turn 70. 40% of the total withdrawal is tax-free. 

   • Before the age of 60 years (After completion of 10 Years)

   • 20% of the fund amount can be withdrawn in a lump sum

   • 80% of the fund amount must be invested in Annuity Scheme

2. Tier II

   • The minimum account opening amount is Rs 1,000

   • The minimum contribution amount is Rs 250

   • The minimum account balance at year-end is Rs 2,000

SBI Life Pension Plan for NRI

SBI Life is currently offering attractive insurance plans at competitive rates to help Indians living onshore or overseas. 

1. SBI Life Saral Pension 

   SBI Life Saral Pension plan is one of the most reliable pension plans for the NRI Market. The plan provides:

   • Security – Under the plan, you can expect to live a stress-free retired life. 

   • Flexibility – The fund aims to provide a fixed annual payout for the lifetime

   • Reliability – An option to choose from 2 life annuity options under the Saral Pension Plan

   The key features of the plan are: 

   • Your investment is vested in a Standard Immediate Annuity plan.

   • You can choose Single Life Annuity or Joint Life Annuity option from the available return of premium options.

   • You can avail of a loan facility in case of financial needs as per specified conditions.

   • If you get diagnosed with a specified critical illness, you have the option to surrender the plan.

   	Minimum	Maximum
   Entry Age	40 Years	80 Years
   Annual Premium Payout	As per the minimum annuity instalment amount	No Limit (As per BAUP)
   Premium Payment Term	Single Pay Premium
   Premium Payment Frequency	Monthly/ Quarterly/ Half-yearly/ Annually

   *BAUP: Board Approved Underwriting Policy

2. SBI Life Retire SMART Plan 

   SBI Life offers another ULIP pension plan for NRIs as SBI Life Retire SMART Plan. 

   Key Features: 

   • The pension plan offers a guaranteed additional increase to the total sum invested up to 210%* of the annual premium once you have completed 15 years till the end of the term. (*Conditions apply)

   • In case of an untimely death of the policyholder, the nominee would receive the higher of the two - fund value as of the date of demise plus 1.5% fund value as terminal additions or 105% of the total premiums paid until death under the SBI Life Retire SMART Plan. 

   • The pension plan also offers tax benefits under U/S 80C and 10(10D) of the Income Tax Act.

   Eligibility Criteria

   	Minimum	Maximum
   Entry Age	30 Years	70 Years
   Investing Age	80 Years
   Plan Type	Regular Pay/ Limited Premium/ Single Premium
   Policy Term	10 Years	35 Years
   Minimum Annual Premium Amount	Regular Pay – Rs 24,000 Limited Premium – RS 40,000 Single-Premium – Rs 1 Lakh	No Limit; as per BAUP
   Premium Payment Frequency	Monthly/ Quarterly/ Half-yearly/ Annually/Single

3. SBI Life Annuity Plus

   SBI Life Annuity Plus is an individual and non-linked plan helping you to enjoy your post-retirement life without any financial worries

   Key Features:

   • Regular Income: The policyholder is set to get regular income for life with the SBI Life Annuity Plus Plan or can ask for periodic income, whichever option is convenient for the plan holders. 

   • Annuity Options: The plan offers two annuity options. The first plan is for a single life covered and the second option is for a joint-life annuity. 

   • Tax Benefits: The plan offers tax benefits as per applicable tax laws.

   Eligibility Criteria 

   	Minimum	Maximum
   Entry Age	40 Years	80 Years
   Annual Annuity Payout	Rs 12,000	No Limit
   Premium Payment Frequency	Monthly, Quarterly, Half Yearly, annually
   Premium Amount	To cover minimum annuity instalment	No Limit; as per BAUP

4. SBI Life Saral Retirement Saver Plan

   SBI’s Life Saral Retirement Save Plan offers reliable chances for retirees to secure their future. You can plan to build your retirement corpus with a life cover option through SBI Life Preferred Term Rider.

   Key Features:

   • Guaranteed Simple Revisionary Bonus: The plan offers a bonus for the first 5 years @ 2.50 for the first three years and then 2.75% for the next 2 years. 

   • Death Benefit: In the event of the policyholder’s death, the nominee would receive either of the two whichever is higher - total premiums paid up to date of death at an interest rate of 0.25% compounded annually plus bonus(simple reversionary bonus plus any terminal bonus), or 105% of total premiums received up to the date of death.

   Eligibility Criteria

   	Minimum	Maximum
   Entry Age	18 Years	Regular Pay – 60 years Single Pay – 65 years
   Investing Age	40 Years	70 Years
   Policy Term	Regular Pay – 10 years Single Pay – 5 years	40 Years
   Basic Sum Assured	Rs 1 Lakh	No Limit; as per BAUP
   Annualized Premium Amount	Rs.7,500	No Limit; as per BAUP

How Can an NRI Invest in These Schemes Under the NPS?

NRIs can invest in the National Pension Scheme through an online portal or visit your nearest SBI Branch. 

The documents required are: 

• Age Proof

• Address Proof

• ID Proof

• Income Proof

How Can NRI Apply for the SBI Life NRI Pension Plans?

You can follow this procedure to apply for the SBI Life NRI pension plans:

• Get an NRI NPS Application Form from PFRDA, NPR Trust Website or your nearest SBI Life NRI Bank branch. 

• Once the form has been submitted and verified by the bank, the bank will forward the application to Central Record Keeping Agency (CRA).

• Deposit the initial cheque, and the Permanent Retirement Account Number will be generated. 

• The PRAN number would be shared with the NRI Applicant.

In Conclusion

Selecting a pension plan especially when you are living abroad is a tough task and you need a specialist who can guide you through this process. State Bank of India has had a long relationship of trust and confidence with their customer. 

Visit your nearest SBI Life NRI branch and allow the bank to pick a plan which would suit your needs and objective allowing you to lead a happy and prosperous retired life. 

FAQ's