sbi life lifelong pensions plan you have trusted sbi for banking now trust sbi life for your...
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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
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
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
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
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.
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
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