SBI Life Saral Pension Scheme has lots of benefits including tax exemption up to Rs 1.5 lakh, check details

The State Bank of India (SBI) Life Saral Pension Yojana is an ideal retirement solution that allows investors to pursue the hobbies and passions they have always wanted. As the cost of living is increasing continuously, buying SBI Saral Pension Scheme will not only help in ensuring that you continue with your current lifestyle, rather, it will also help in meeting unexpected medical and family expenses.

SBI Life Saral Pension Yojana offers a guaranteed Simple Reversionary Bonus at 2.50% of Sum Assured for the first three years for the first five years and 2.75% of the Sum Assured for the next two years. The State Bank of India Saral Pension Scheme also includes a Maturity Benefit, which will be Sum Assured as well as Terminal Bonus, if any, and vested Simple Reversionary Bonuses. The Sum Assured comes with an implicit guaranteed interest rate of a minimum 0.25% compounding annually on the total premium!

The State Bank of India Saral Pension Yojana also provides a death benefit that is applicable at an interest rate of 0.25% p.a. on the total premium earned along with terminal bonus, if any, and vesting. will be higher than the simple reversionary bonus; or 105% of the total premiums paid. The State Bank of India Saral Pension Scheme also provides protection against market losses and ensures that you reap the benefits of the money invested in the scheme while still earning income.

SBI Life Saral Pension Scheme Benefits

  • On maturity, the Sum Assured along with accrued Simple Reversionary Bonus and Terminal Bonus is paid either as an immediate annuity or can be used to purchase a single premium deferred annuity State Bank of India Saral Pension Yojana Can be postponed!
  • While buying an annuity, 1/3 of the corpus can be commuted.
  • The accumulation period can be extended if the policyholder’s age is less than 55 years.
  • The minimum sum assured is guaranteed as the accumulated value of the total life insurance premium, growing at a compounded rate of 0.25% p.a.
  • On death, minimum Guaranteed SA plus vested bonus including terminal bonus or 105% of all premiums paid so far is payable to the nominee.

SBI Life Saral Pension Scheme gives tax benefits and tax treatment on maturity

  • By investing in this State Bank of India Saral Pension Yojana, you will get tax benefits up to Rs 1.5 lakh under section 80CCC. Note that this tax benefit comes under the purview of section 80C, totaling Rs 1.5 lakh.
  • At the time of maturity, the amount withdrawn in lump sum (whether 1/  3rd or 60%) is exempt from tax. The balance amount that goes towards the purchase of an annuity State Bank of India Saral Pension Scheme is also exempt from tax. However, annuity income from such a plan is taxed at your marginal tax rate in the year of receipt.

SBI Life Saral Pension Product Specification

Entry Age (last birthday)

  • Minimum: 18 years
  • Maximum: 65 years

Inherent age (last birthday)

  • Minimum: 40 years,
  • Maximum: 70 years

Policy Term (in years)

  • Minimum: 40 years
  • Maximum: 70 years

Premium Paying Term (in years)

  • Equal to the policy term

Premium payment frequency

  • Annual, Half Yearly, Quarterly, Monthly

Premium

  • Minimum: 7500
  • Maximum: No limits

Sum assured

  • Minimum: 100,000
  • Maximum: No limits

Click here to read and know more about the Saral Pension Scheme.

(Sources: mytechnicalvoice.com)

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