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SBI Life Lifelong Pensions Plan You have trusted SBI for banking Now TRUST SBI Life for your retirement benefits

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SBI Life Lifelong Pensions Plan

You have trusted SBI for banking

Now TRUST SBI Life for your retirement benefits

Why Pensions scheme?

Before:

Now:

Tomorrow?

Working Time Retirement

RetirementWorking Time

Working Time Retirement

Lifelong Pensions the best tool to provide financial security for retirement age

60 yrs

71 yrs

80/85 yrs ?

67 yrs

V.R.S.

How does it work?

ACCUMULATION PERIOD

Flexible contribution mode of payment

(minimum Rs. 3,000 p.a.)

ANNUITY PERIOD4 main options

13 different choices

Vesting Age

50 to 70

How does it work during the accumulation period?

Plus Vested Bonus

Personal Pension Account

4% p.a. till March 2010

Annuity options available at the vesting age (50 upto 70)

Option 1 & 2 available with refund of balance purchase price

Life time annuityG u ara n te ed pe ns ion

fo r th e e n tire L ife

Increasing Life tim e annuity(sa y @ 1 / 2 / 3 % p .a .)

P ro tec tion a ga in st in fla t ion

Joint Life tim e annuity(h u sba n d / w ife )

Life tim e annuity for Survivor5 0 % o r 1 0 0 % o f la st a nn u ity

Annuity for Lifew ith guaranteed period of

5 / 10 / 15 years

PURCHASE OF ANNUIT Y4 M AIN OPTIONS

1 2 3 4

Lifelong Pensions Plan: Product features

Option 1

Pure Pension

Option 2

Pension w ith L ife cover

L ifelong Pensions2 options

Simplified Proposal Form

Lifelong Pensions Plan: 2 options

Option 1Pure Pension

Option 2Pension cum Life

CoverMin. / Max. Age at entry 18 / 65 18 / 60

Min. / Max Term 2 years / 52 years 5 years / 52 years

Min. / Max age to start receiving pension

Anytime between 50 to 70 years(choice of annuity option, 6 months before vesting Age)

Min. / Max contribution Single contribution: Rs. 10,000 (x 500) / No LimitRegular contribution: Rs. 3,000 (x 500) p.a. / No Limit

(Min. per contribution Rs. 500)

Contribution Mode Single /Y / HY / Q / M (3 months in advance by cheque. Standing Instruction / Credit Card thereafter)

Min. / Max. S.A. for Life Cover

Not Available Rs. 25,000 / Rs. 3lakh(Max. Rs. 1 lakh for 46 & above)

Max. Cover Age for Life Cover

Not Available 65 years

Lifelong Pensions 2 options

Option1: Pure Pension product:• No medical questionnaire, • No financial underwriting,• Pure accumulation vehicle: Automatic acceptance

Option 2: Pension cum Life Cover:• Simple medical questionnaire• If life cover is not accepted, automatic enrolment under option

1.• Term of the Life Cover is equal to vesting age / 65 years old

whichever is earlier. • If Life cover is extended due to postponement of vesting age,

new medical questionnaire and new premium amount

Hassle free process to join: Simplified proposal form

In case of unpaid contribution P.P.A. will be used to maintain the Life Cover

The Policyholder has the option to write us to end the Life Cover,

Personal

Pension

Account

Premium for Life Cover will be deductible from the PPA

Once a year

Life Cover

How does it work?

ACCUMULATION PERIOD

Flexible contribution mode of payment

(minimum Rs. 3,000 p.a.)

ANNUITY PERIOD4 main options

13 different choices

Vesting Age

50 to 70

Investment Period:Do not speculate with your pension

?No uncertainty

Unit Linked product

To get the best of compounding effect without any risk

?Lifelong Pensions: Non Unit Linked product

Accumulation period easy to understand

Accumulation period ends at vesting date /death whichever is earlier

Contribution(s) Net of premium for Life Cover if any

Personal Pension Account

How does it work during the accumulation period?

Plus Vested Bonus

Personal Pension Account

4% p.a.Till March 2010

Regular contribution

Single contribution

Extra AdditionalContributionMin. Rs. 500

When you wish

An example

P.P.ARs. 10,000 p.afor 30 years

30 years later

P.P.A.*=

Rs. 781,130Total contributions paid: Rs. 300,000

Assuming 6% per annum

The compounding effect

Accumulation period:

The compounding effect• Long period of time for accumulation period makes

savings effort less cumbersome.• Short period of time for accumulation period makes

savings effort more difficult

Your prospect is never too young to think about a

good pension builder

TIME DURATION IS A FAVOURABLE FACTOR

P.P.A.: the Power of Compounding

Term 10 years 20 years 30 years 40 years 50 years

Single ContributionRs. 10,000

16,650 29,830 53,410 95,660 171,310

Single ContributionRs. 20,000

33,300 59,660 106,820 191,320 342,620

Yearly Contribution

Rs. 5,000

64,635(50,000)

181,420(1,00,000)

3,90,565(1,50,000)

7,65,110(2,00,000)

14,35,860(2,50,000)

Yearly ContributionRs. 10,000

1,29,270(1,00,000)

3,62,840(2,00,000)

7,81,130(3,00,000)

15,30,220(4,00,000)

28,71,720(5,00,000)

Cost of delaying is highAssumptions 6% p.a

At vesting Age (50 to 70)

The amount of P.P.A. helps you to retire gracefully.

You will have to opt for annuity option

How does it work?

ACCUMULATION PERIOD

Flexible contribution mode of payment

(minimum Rs. 3,000 p.a.)

ANNUITY PERIOD4 main options

13 different choices

Vesting Age

50 to 70

6 months before vesting age,choose the most

convenient annuity option

Upto 33% of the P.P.A. as a lump sum

TAX-FREE

Balance PPA is used to purchase annuity option(free choice of annuity provider)

Your Personal Pension Account

Annuity options available at the vesting age (50 upto 70)

Option 1 & 2 available with refund of balance purchase price

Life time annuityG u ara n te ed pe ns ion

fo r th e e n tire L ife

Increasing Life tim e annuity(sa y @ 1 / 2 / 3 % p .a .)

P ro tec tion a ga in st in fla t ion

Joint Life tim e annuity(h u sba n d / w ife )

Life tim e annuity for Survivor5 0 % o r 1 0 0 % o f la st a nn u ity

Annuity for Lifew ith guaranteed period of

5 / 10 / 15 years

PURCHASE OF ANNUIT Y4 M AIN OPTIONS

1 2 3 4

Vesting age 50 to 70: Life time annuity

Life time annuity

PEACE OF MIND FOR THE YEARS TO COME

Available with option refund of Balance Purchase Price

Vesting age 50 to 70: Increasing Life time annuity

Increasing Life time annuity

Every year, your pension increases of, say 1/2/3 % p.a.

Available with option refund of balance purchase price

Refund of Balance Purchase Price to your nominee

Amount of P.P.A.

Used to buy annuity(-) Cumulative annuity

Amount already paid =

A WIN- WIN option!

Balance of AnnuityPurchase

Price

At vesting age: Life time annuity for you and Life time annuity for the survivor (50 /100%)

Joint Life time annuity

The best option to protect you as well as your spouse

Vesting age 50 to 70Y: guaranteed period 15 Yrs + life time annuity

Annuity for lifewith 5/10/15 years guaranteed period

15 guaranteed period after 15 years, life annuity

1 2 3 4 5 6 7 8 9 10

Payable to the policyholder / nominee

50/70 15th

A Life time pension with guaranteed source of income for the first 5/10/15 years for the family

11 12 13 14 15

Which annuity option is the best?

All options have been calculated with the same monetary value

So…

The Option chosen by the policyholder is always the best !!!

Some examples of annuity optionfor a P.P.A of Rs. 10 lakhs

Vesting Age 60 years 65 years

Life Annuity(with refund Balance Purchase Price)

Rs. 75,360(Rs. 71,360)

Rs. 85,010(Rs. 79,400)

Increasing Life Annuity @ 2%(with refund Balance Purchase Price)

Rs. 63,750(Rs. 60,600)

Rs. 73,380(Rs. 69,390)

Life annuity with 10 years guaranteed period

Rs. 73,090 Rs. 80,790

Life annuity with 15 years guaranteed period

Rs. 70,410 Rs. 75,740

Joint Life Annuity with 50% reversion Rs. 68,680 Rs. 76,090

Joint Life Annuity with 100% reversion

Rs. 63,090 Rs. 68,860

Annuity rates are not guaranteed at the entry time, Rate will be fixed at vesting age only

What about death benefits?

In case of death during the accumulation period

Option 1: Pure Pension

Nominee will receivein one Lump Sum

the amount of the Personal Pension Account

Option 2: Pension cum Life

Cover

Nominee will receivein one Lump Sum

the amount of the Personal Pension Account

+

Basic Sum Assured for the Life Cover

In case of death during the annuity period

1. Life time annuity

2. Life time Annuity with refund of balance purchase price

3. Increasing Life time annuity @ 1 / 2 / 3 % p.a.

4. Increasing Life time annuity @ 1 / 2 / 3% p.a. with refund of balance purchase price

5. Joint Life time annuity with 50% / 100% reversion to the spouse

6. Annuity for Life with 5 / 10 / 15 years guaranteed period

No death benefit

Refund of balance purchase price to the nominee if any

No death benefit

Refund of balance purchase price to the nominee if any

If spouse survives, he/she will receive 50% / 100% of the annuity for Life time

If death occurs during guaranteed period, the remaining guaranteed period annuity will be paid to the nominee as per the original schedule

What about tax advantage?

Pension = Section 80 CCC

A maximum of Rs. 10,000 p.a.

paid as a contribution on a pension plan

is fully deductible from the taxable income

Should be increased upto Rs. 20,000 next Fiscal Year

80CCC Taxe advantage for everybody

Gross Total Income

Tax rebate u/s 88As a percentage of the

premium paid upto Rs. 70,000

Tax exemptionU/S 80CCC

Upto Rs. 10,000

Rs. 0 - 1.5 lac 20% 20%

Rs.1.5 – 5 lac 15%

AboveRs. 5 lac

Rs. 10,000Tax

exemptionIrrespective of

Gross TotalIncome

Is there any rebate?

Rebates will be addedto the PPA

Mode of payment:• Yearly: 2% of Contribution• Half-Yearly: 1% of Contribution• Quarterly: no rebate• Monthly: Extra charge 5%

Contribution amount:• From Rs. 1 lakh up to Rs.199,500: 1% of Contribution• From Rs. 2 lakhs up to Rs. 499,500: 2% of Contribution• Rs. 5 lakhs and above: 3% of Contribution

Life cover premium• Women: 5% discount regular mode / 1% for Single mode

Rebates are cumulative

Surrender Value

  Flexible / Single contribution Regular contribution

Policy Year   Duration till vesting age

Less than 6 years

Duration till vesting age

6 years and above

1 NIL NIL NIL

2 80% of PPA NIL NIL

3 80% of PPA 80% of PPA NIL

4th year and onwards

85% of PPA -do- 85% of PPA

Some illustrations

Illustration that will tell you your Yearly Pension Amount and the total amount accumulated in your PPA if you

contribute Rs. 10,000 annually

Age at retirement 60 years 65 years

Age at entry Retirement/PPA Amount* (Rs.)

Yearly Pension Amount ** (Rs.)

Retirement/PPA Amount* (Rs.)

Yearly Pension Amount ** (Rs.)

30 790,370 59,562 1,114,460 94,740

35 548,190 41,312 790,370 67,189

40 367,220 27,738 548,190 46,602

45 221,990 16,729 367,220 31,217

Note:

* Retirement/Personal Pension Account amount available at retirement illustrated are based on assumptions. This is worked out at the rate of 6% per annum (with a bonus of 2% over and above the base rate of 4%. The base rate of 4% is guaranteed for the first 7 years as of now).The actual rate for each year will be based on Company’s performance. Please request for a sales illustration for a complete projection

** Yearly Pension Amount payable to the policyholder are indicative and are not guaranteed. It is assumed the entire Retirement Amount is used to purchase Life Time Annuity. This option entitles you to receive this amount every year as long as you survive.

An illustration that tells you what your Annual Contribution should be to get a Retirement Amount of

Rs. 1 lakh

Age at retirement 60 years 65 years

Age at entry Annual Contribution*(Rs.)

Annual Contribution*(Rs.)

30 1,265 897

35 1,824 1,265

40 2,723 1,824

45 4,310 2,723Note:

* Annual Contribution amount illustrated are based on assumptions. This is worked out at the rate of 6% per annum (with a bonus of 2% over and above the base rate of 4%. The base rate of 4% is guaranteed for the first 7 years as of now).The actual rate for each year will be based on Company’s performance. Please request for a sales illustration for a complete projection. Minimum Annual Contribution Amount should be not less than Rs. 3,000.

Lifelong Pensions

The competitors

Competitors to Lifelong Pensions

Non Unit Linked

HDFC: Personal Pension Plan ICICI: Forever Life LIC: New Jeevan Suraksha OM KOTAK: Kotak Retirement Plan TATA AIG: Nirvana AVIVA: Pension Plus AMP Sanmar: Bhagya Shree

And NOW

SBI Life: Lifelong Pensions

Unit Linked

ICICI: Life Time Pension ICICI: Life Link Pension AVIVA: Pension Plus AMP Sanmar: Bhagya Shree

Lifelong Pensions / Personal Pension Plan (HDFC)

Lifelong Pensions (SP)

Lifelong Pensions (RP)

Personal Pension (SP)

Personal Pension (RP)

Min/Max Age at entry

18 / 65 18 / 65 35 / 60 18 / 60

Min/Max Vesting Age

50 / 70 50 /70 50 / 70 50 / 70

Min/Max term 2 / 52 2 / 52 5 / 35 10 / 35

Min/Max contribution

Rs. 10,000 Rs. 3,000 p.a.(Min. Rs. 500)

Min. SA Rs. 25,000 Y: Rs. 1,800

Guaranteed returns

4% for the first seven year

4% for the first seven year

No No

Death benefit PPA PPA Contribution refunded @ 8% p.a.

Contribution refunded @ 8% p.a.

Extra additional contribution

Yes Min. Rs. 500

YesMin. Rs. 500

No No

Surender Value Y1: 0Y2-3: 80% PPAY4: 85% PPA

Policy Term more than 6Y:

Y1/2/3: 0 Y4++: 85% PPA

Y1: 0Y2++: 50% SP + VB

Y1/2/3: 0Y4++: 50% P – 1st YP

Free choice of annuity provider

Yes Yes Yes Yes

Lifelong Pensions / Forever Life(ICICI)

Lifelong Pensions (SP) Lifelong Pensions (RP) Personnal Pension (RP)

Min/Max Age at entry 18 / 65 18 / 65 18 / 60

Min/Max Vesting Age 50 / 70 50 /70 50 / 70

Min/Max term 2 / 52 2 / 52 5 / 30

Min/Max contribution Rs. 10,000 Rs. 3,000 p.a.(Min. Rs. 500)

Min. SA: Rs. 50,000

Guaranteed returns 4% for the first seven year

4% for the first seven year SA @ 3.5% p.a. for the first 4 years

Death benefit PPA PPA SA + VB

Extra additional contribution

Yes Min. Rs. 500

YesMin. Rs. 500

No

Surender Value Y1: 0Y2-3: 80% PPAY4: 85% PPA

Policy Term more than 6Y:Y1/2/3: 0

Y4++: 85% PPA

Y1/2/3: 0Y4++: 35% PP – 1st YP

Free choice of annuity provider

Yes Yes Yes

Lifelong Pensions / New Jeevan Suraksha (LIC)

Lifelong Pensions (SP) Lifelong Pensions (RP) New Jeevan Suraksha

Min/Max Age at entry 18 / 65 18 / 65 18 / 65

Min/Max Vesting Age 50 / 70 50 /70 50 / 79

Min/Max term 2 / 52 2 / 52 2/ 35

Min/Max contribution Rs. 10,000 Rs. 3,000 p.a.(Min. Rs. 500)

SP: Rs. 10,000RP: Rs. 2,500

Guaranteed returns 4% for the first seven year

4% for the first seven year No. Only in case of death

Death benefit PPA PPA Contribution Paid @ 5% p.a.

Extra additional contribution

Yes Min. Rs. 500

YesMin. Rs. 500

NO

Surender Value Y1: 0Y2-3: 80% PPAY4: 85% PPA

Policy Term more than 6Y:Y1/2/3: 0

Y4++: 85% PPA

SP: Y1/2: 0 Y3++: 90%PRP: Y1/2:0, Y3++: 90%P-

1st YP + VB

Free choice of annuity provider

Yes Yes NO

Lifelong Pensions / Kotak Retirement Plan

Lifelong Pensions (SP) Lifelong Pensions (RP) Kotak Retirement Plan (RP)

Min/Max Age at entry 18 / 65 18 / 65 18 / 60

Min/Max Vesting Age 50 / 70 50 /70 45 / 65

Min/Max term 2 / 52 2 / 52 5 / 30

Min/Max contribution Rs. 10,000 Rs. 3,000 p.a.(Min. Rs. 500)

Y / HY / QYP: Rs. 4,000

Guaranteed returns 4% for the first seven year

4% for the first seven year No

Death benefit PPA PPA SA – P due + PPA

Extra additional contribution

Yes Min. Rs. 500

YesMin. Rs. 500

Max 25% SA p.a.

Surender Value Y1: 0Y2-3: 80% PPAY4: 85% PPA

Policy Term more than 6Y:Y1/2/3: 0

Y4++: 85% PPA

No surender value

Free choice of annuity provider

Yes Yes Yes

Lifelong Pensions / Nirvana (TATA AIG)

Lifelong Pensions (SP) Lifelong Pensions (RP) NIRVANA (RP)

Min/Max Age at entry 18 / 65 18 / 65 18 / 65

Min/Max Vesting Age 50 / 70 50 /70 50 / 65

Min/Max term 2 / 52 2 / 52 10 / 42

Min/Max contribution Rs. 10,000 Rs. 3,000 p.a.(Min. Rs. 500)

Y/HY/Q/MMin SA: Rs. 50,000

Guaranteed returns 4% for the first seven year

4% for the first seven year After 10 Years:G.A.=10% of SA (1 time)

Death benefit PPA PPA SA + G.A. (if any) + VB (from Y5 onwards)

Extra additional contribution

Yes Min. Rs. 500

YesMin. Rs. 500

NO

Surender Value Y1: 0Y2-3: 80% PPAY4: 85% PPA

Policy Term more than 6Y:Y1/2/3: 0

Y4++: 85% PPA

Y1/2/3: 0Y4++: 30%P – 1st YP+VB

Free choice of annuity provider

Yes Yes Yes

Lifelong Pensions / Pension Plus (AVIVA)

Lifelong Pensions (SP) Lifelong Pensions (RP) Pension plus (RP)

Min/Max Age at entry 18 / 65 18 / 65 18 / 65

Min/Max Vesting Age 50 / 70 50 /70 50 / 70

Min/Max term 2 / 52 2 / 52 5 / 52

Min/Max contribution Rs. 10,000 Rs. 3,000 p.a.(Min. Rs. 500)

Y / HY / Q / MYP: Rs. 6,000

Guaranteed returns 4% for the first seven year

4% for the first seven year YP: 6,000 – 7,499: 103%PYP: 7,500 – 9,999: 104%PYP 1 lac & above: 105%P

(1 time)

Death benefit PPA PPA PPA

Extra additional contribution

Yes Min. Rs. 500

YesMin. Rs. 500

YesMin. Rs. 1,000

Surender Value Y1: 0Y2-3: 80% PPAY4: 85% PPA

Policy Term more than 6Y:Y1/2/3: 0

Y4++: 85% PPA?

Free choice of annuity provider

Yes Yes Yes

Lifelong Pensions / BHAGYA SHREE (AMP Sanmar)

Lifelong Pensions (SP)

Lifelong Pensions (RP)

BHAGYA SHREE (SP)

BHAGYA SHREE (RP)

Min/Max Age at entry

18 / 65 18 / 65 18 / 65 18 / 65

Min/Max Vesting Age

50 / 70 50 /70 45 / 70 45 / 70

Min/Max term 2 / 52 2 / 52 5 / 52 5 / 52

Min/Max contribution

Rs. 10,000 Rs. 3,000 p.a.(Min. Rs. 500)

Min. SA Rs. 1,00,000

Y: Rs. 2,500

Guaranteed returns

4% for the first seven year

4% for the first seven year

No No

Death benefit PPA PPA PPA PPA

Extra additional contribution

Yes Min. Rs. 500

YesMin. Rs. 500

YesMin. Rs. 2,500

YesMin. Rs. 2,500

Surender Value Y1: 0Y2-3: 80% PPAY4: 85% PPA

Policy Term more than 6Y:

Y1/2/3: 0 Y4++: 85% PPA

Y1/2/3/ 0Y4: 90% PPAY5: 95% PPA

Y6++: 100% PPA

Y1/2/3/ 0Y4: 90% PPAY5: 95% PPA

Y6++: 100% PPA

Free choice of annuity provider

Yes Yes Yes Yes

Lifelong Pensions / Life Time/Life Link (ICICI)

Lifelong Pensions (SP)

Lifelong Pensions (RP) Life Link(SP)

Life Time (RP)

Min/Max Age at entry

18 / 65 18 / 65 18 / 62 18 / 60

Min/Max Vesting Age

50 / 70 50 /70 50 / 70 50 / 70

Min/Max term 2 / 52 2 / 52 3 / 52 10 / 52

Min/Max contribution

Rs. 10,000 Rs. 3,000 p.a.(Min. Rs. 500)

SA: Rs. 40,000 Y/HY/Q/MYP: Rs. 10,000

M: Rs. 833

Guaranteed returns

4% for the first seven year

4% for the first seven year No No

Death benefit PPA PPA 100% / 105% P paid+ PPA

PPA+ SA if any

Extra additional contribution

Yes Min. Rs. 500

YesMin. Rs. 500

No No

Surrender Value Y1: 0Y2-3: 80% PPAY4: 85% PPA

Policy Term more than 6Y:Y1/2/3: 0

Y4++: 85% PPA

Y1: 0Y2++: unit value

Y1/2/3: 0Y4++: unit value

Free choice of annuity provider

Yes Yes Yes Yes

How to sell Lifelong Pensions?

According to their age group, why should they buy Lifelong Pensions Scheme?

18 to 30 yrs: • Accumulating money at a lower price

31 to 40 yrs: • Looking for Tax benefit, Section 80 CCC

41 to 50 yrs: • Start building Pension

51 to 60 yrs: • Act now, otherwise…

60 to 70 yrs: • Financial independance post retirement

Lifelong Pensions USP’s

Save Tax u/s 80 CCC irrespective of the tax bracket. Guaranteed returns 4% till March 2010. Flexibility in premium contribution, in mode of payment, in

retirement age, in annuity options and annuity provider. Making the right choice for long commitment is now easy…

Never too young to start building pension and….

Never too late to benefit from lifetime income….

LIFELONG PENSIONS HELPS YOUTO MAINTAIN YOUR EXISTING LIFESTYLE