SBI Pension Plan Scheme-Annuity Plus
SBI Life Annuity plus is traditional non-participating pension plan scheme. SBI Pension Annuity Plus offers annuity option with various flexibility features. After retirement, income of an individual stops and expense continues. Medical expenses need to be incurred. During that time, income from pension offers some kind of security to the retired individual to maintain similar standard of living. In this article we would discuss about SBI pension plan scheme-Annuity plus.
Features of SBI Pension plan Annuity plus scheme
- Freedom to choose from variety of annuity payout options.
- Minimum age of entry is 40 years which provides opportunity to get pension from this age itself.
- You can get pension till your lifetime or your partner’s lifetime. Partner includes spouse, children, parents, in-laws or siblings.
- Annuity payout would be monthly, quarterly, half-yearly and yearly.
- Higher premiums would get higher annuity rates
- Riders available if you pay additional premiums
- Options for banks or financial institutions to pay annuity payments to owners who have done reverse mortgage with them.
You may like: Best Pension Plans in India
Benefits of SBI Pension Plan Annuity plus scheme
1) Incentive for high premiums: If you pay high premiums, you would get higher annuity rates. The higher rates would be Rs 2.50 to Rs 4.25 for every Rs 1,000 additional premiums paid over and above Rs 150,000.
2) Accidental benefit: If you can pay additional premiums, you can get accidental benefit and sum assured would be paid.
3) Tax Benefits:
- Premiums paid for pension plans are eligible for tax deduction under section 80CCC.
- Lump sum amount paid after death is not taxable.
- Annuity payouts are taxable as per income tax applicable for an individual.
Sum Assured
Minimum – Rs 25,000
Maximum – Rs 50,00,000
Annuity payouts
Minimum annuity payout would be Rs 200 per month. The options available are monthly, quarterly, half-yearly and yearly.
Variants:
SBI Pension plan Annuity plus scheme is available in 5 variants.
1) Life Annuity – Single life: Annuity guaranteed payout throughout the life of the annuitant. Option for lifetime payout with or without refund of the premium paid.
2) Life Annuity – Two lives: Annuity payment guaranteed for payout throughout the life of the annuitant. In this variant, last survivor among the 2 can opt for lifelong payout with or without the refund of the premiums paid.
Also read: 7 Ways to invest Retirement money in India
3) Life Annuity – Increasing annual rate: Annual payout under this variant increases 3%-5% per annum. Payout would be through-out annuitant life.
4) Life Annuity – Balance capital Refund: Under this variant, annuity payout would happen at constant rate through-out annuitant life and on death, balance would be payable to the partner. Balance premium = Premium paid minus annuity paid.
5) Annuity life – Minimum Fixed period: Annual payout at constant rate for minimum period of 5 years, 10 years, 15 years and 20 years.
Conclusion: Pension plans offer several advantages and each pension plan would have its unique features. However, majority of the pension plans offer low return on investment.
If you enjoyed this article, share this with your friends and colleagues through Facebook and twitter.
Suresh
SBI Pension Plan Scheme-Annuity Plus
- Bandhan Innovation Fund NFO – Issue Details and Review - April 14, 2024
- I’m 40, Have 30 Lakhs, Where Should I Invest in Mutual Funds? - April 13, 2024
- 5 Mutual Fund Schemes with 55% to 67% returns in FY2024 - April 9, 2024
Hi
Isnt the sbi life annuity plus plan an immediate annuity one?
Thankyou
Hi
Is this the same as sbi life annuity plus scheme? Which option would u recommend .?
Thankyou
Prakash, Yes it is the same. In case one is conservative investor and looing for some pension schemes, you can look for SBI Annuity plus or HDFC pension plan scheme. I personally do not prefer to invest in such schemes.
Hi
I ànd my wife started investing in uti retirement fund abt 5 yesrs back.
The cut off age is I think 58. We invest arond 50000 each every year. Since its is equity based how can we be sure of the final amt ? Do they convert the entire amt into annuity? Can you pls enlighten me on the terms and conditions?
Prakash, Thought these are retirement funds these act just like any other mutual fund, but invest majority in safe invesment options. This way your money may be secured to some extent. I don’t think there are any special terms and conditions for retirement funds.
I have NRE Account with state bank of india, thalassery. Is it possible to open pension scheme account with this bank?
Rafeeque, This is pension product and you can purchase it. However there are some guidelines for that. You can contact SBI Pru life customer care for that.
Hi, I must say this post is really good. I found very few basic things about annuity but so in detailed.