Know All About SBI Life - Annuity Plus Plan

A pension plan should be part of any prudent financial strategy. In India, the condition for senior citizens is not very favourable. With the rising prices, it is becoming more necessary than ever to prepare for retirement. A pension plan is the most effective way to ensure that you'll have a steady stream of income once you retire. If you've not already invested in a pension plan and therefore are looking for one, SBI Life offers a variety of options.
The SBI Life Annuity Plus plan is indeed a non-participating, classic instant annuity. Including the single premium payment option, the plan provides a wide range of annuity alternatives. The acquisition of this plan ensures a regular retirement income because it includes a fixed annuity. It was created especially for you to commemorate your retirement years. To know more about SBI Life - Annuity Plus Plan, read on.

How Does The SBI Life - Annuity Plus Plan Work?

An individual must either select the chosen lump sum payment amount or the annuity instalment that he or she requires.
The following annuity options are available for the benefits -

1. Annuity pay-out (single life): The annuity pay-out will be given at a fixed rate. A person can choose from one of the following schemes for a single life annuity -

• Lifetime Income - Annuity payments are made at a fixed rate for the duration of the annuitant's life, and payments stop when the annuitant dies.
• Lifetime income with capital refund - The insured receives annuity payments for the rest of his or her life, and the premiums paid are refunded when he or she dies.
• Income for the rest of your life with a partial capital refund - Throughout the annuitant's life, a fixed sum is paid as an annuity. Additionally, if the annuitant survives for 7 years after the policy's inception, 30% of the premium is paid to the annuitant, and 70% of the premium is refunded to the nominee if death happens after that period. If the insured dies before 7 years has passed since the start of coverage, the whole premium will be repaid to the nominee.
• Income for the rest of your life with a capital refund - Throughout the annuitant's life, a fixed sum is paid as an annuity. The remaining capital from the total of all premiums is paid to the nominee upon death.
• Increase throughout a lifetime with a 3% to 5% yearly increase - The annuity pay-out grows at a rate of 3% to 5% every year. On the individual's death, no annuity is provided.

2. Life annuity (two lives) - In this plan, annuity amounts are given for two persons rather than one as in the previous plan.

• 50 percent or 100 percent income for life and last survivor - Until the principal annuitant dies, the annuity is provided at a fixed rate. When the primary annuitant dies, the remaining secondary annuitant receives 50% or 100% of the final annuity payment for the rest of his or her life. When the secondary annuitant dies, the payments will stop. If the primary annuitant lives longer than the secondary annuitant, no payments are provided following the primary annuitant's death.
• 50 percent or 100 percent income with capital repayment for life and last survivor - An annuity is a payment that is made at a fixed rate until the principal annuitant dies. After death, the surviving (secondary) annuitant will receive 50% or 100% of the last annuity payment for the rest of his or her life. The candidate will get a refund of the payment.

Endnotes

This retirement plan provides I Security – consistent income, ii) Reliability – a fixed annuity/pension for the rest of the annuitant's life, and iii) Flexibility – a variety of annuity alternatives. It aids in the securement of an annuity/pension for a loved one in the case of an unforeseen occurrence. There is also the option of deferring annuity payments.

Also read-How To Plan For Retirement According To Your Age? 

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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.