Saving for retirement often becomes a bit difficult for those with bigger families or for those with lots of responsibilities to cater to at present. In such situations, enrolling in a plan that can help you plan and save for your future with a simplistic approach while also offering you tax benefits, could come in handy. One such plan is the SBI Life Saral Pension Plan by the State Bank of India.
It is a single premium, individual, non-linked, non-participating, immediate annuity scheme providing benefits with annuity options.
The minimum entry age in the scheme is 40 years and the maximum entry age is 80 years. There is no requirement for a systematic premium payment plan. The annuity can be received either on a monthly, quarterly, or yearly basis as the subscriber wishes.
There are two options on offer. In the Life Annuity with Return of 100% of Purchase Price*(ROP) option, in case of the sudden death of the subscriber, the pension payments discontinue and it is refunded back to the next of kin, i.e., the nominee/legal heir or the spouse.
The other option is the Joint Life Last Survivor Annuity with a Return of 100% of the Purchase Price*(ROP) on the death of the last survivor. Here, in case of the death of the annuitant, the payments are directed to the spouse of the deceased. The account is transferred to the nominee or the legal heir only in the absence of the spouse, whether they were already dead or are the last survivor after the annuitant.
Also Read: Rajasthan Pension Scheme For Senior Citizens: Know The Benefits And Eligibility
Any annuity plan is geared to provide two specific benefits – tax benefits and simplicity, and SBI Life Saral Pension ticks the list on both. It is one of the popular pension plans. It offers regular income, as well as death benefits, which can be claimed as a lump sum amount by the nominee of the annuitant. The investments are managed under the Advantage Plan feature, which systematically reduces risk exposure as the SBI pension plan nears the vesting date to keep the investment secure.