SBI Life Annuity Plus

About SBI Life Annuity Plus Plan

The SBI Life Annuity Plus plan is a traditional, non-participating immediate annuity plan. The plan offers a comprehensive range of annuity options along with the single premium payment option. A steady retirement income is guaranteed with the purchase of this plan as it offers fixed annuity. It has been specially crafted for the celebration of your retirement years.

Let’s understand this plan in brief before getting into its details:

How Does the Plan Work?

An individual has to either choose the preferred lump sum amount to be paid or the annuity instalment that s/he requires. The benefits can be chosen from the following range of annuity options:

• Life annuity (single life): The annuity pay-out will be paid at a guaranteed rate. For a single life annuity, the individual can select any of the following plans:
  • Lifetime income: Annuity is paid at a constant rate throughout the life of the annuitant and the payments cease after the death of the insured.
  • Lifetime income with capital refund: Annuity is paid throughout the insured’s life and paid premiums are returned on his/her death.
  • Lifetime income with capital refund in parts: A constant amount is paid as annuity throughout the life of the annuitant. Additionally, 30% of the premium is paid to the annuitant if s/he survives for 7 years after initiation of the policy and 70% of the premium is returned to the nominee if death occurs after that period. 100% premium will be returned to the nominee if the insured dies before 7 years have passed since the start of coverage.
  • Lifetime income with balance capital refund: A constant amount is paid as annuity throughout the life of the annuitant. On death, the nominee is paid the balance capital from the sum of all premiums.
  • Lifetime increase with annual increase of 3% to 5%: The amount of the annuity pay-out increases at 3% or 5% annually. No annuity is offered on death of the individual.
  • Lifetime income with certain period of 5, 10, 15 or 20 years: Annuity is payable at a constant rate for a fixed period decided by the annuitant. This can be chosen accordingly for 5, 10, 15, or 20 years. Payments will be made at a constant rate even after the selected period, and the selection is important only for the following scenarios:
    • Scenario 1: If the annuitant dies within the selected time period of 5, 10, 15, or 20 years, the annuity amount will be paid to nominee till the end of the chosen period and will cease after that.
    • Scenario 2: If the annuitant dies after the selected time period of 5, 10, 15, or 20 years, the annuity amount will cease immediately.
• Life annuity (two lives): Annuity amounts are offered for two people instead of one in the plan mentioned earlier.
  • Life and last survivor – 50% or 100% income: The annuity is paid at a constant rate till the primary annuitant is alive. On death, 50% or 100% of the last annuity pay-out is continued to be paid throughout the life of the surviving secondary annuitant. Pay-outs will cease on death of the secondary annuitant. If the primary annuitant outlives the secondary annuitant, no payments are made after his/her death.
  • Life and last survivor – 50% or 100% income with capital refund: An annuity is paid at a constant rate until the primary annuitant’s demise. On death, 50% or 100% of the last annuity payment will continue throughout the life of the surviving (secondary) annuitant. The premium will be refunded to the nominee.

Pay-outs are available in monthly, quarterly, half-yearly, or yearly modes.

Riders

This plan offers the Accidental Death Benefit Rider.

Why Should I Buy This Plan?

Besides the benefits mentioned earlier, here are some additional features of this plan:

• Provides immediate pay-outs of fixed annuity for one or two individuals (joint plan)
• It has an accidental death rider with a maximum pay-out of INR 50 lakhs
• A variety of options are available for annuity pay-outs
• Annuity payments are offered for individuals right from the age of 40

Who Should Buy This Plan?

Minimum age to purchase the plan is 40 for any of the options, and the maximum age is 60 years. The annuity plan is a good option for individuals looking for fixed pension payments for them and their spouse.