A quote by Mr. Rodriguez states that ‘When a man retires, his wife gets twice the husband but only half the income’. This quote only goes on to prove that retirement is the period of life when a person gets to explore a lot more about himself and his loved ones. While the first part is in light vein, the second part of the quote brings you back to reality.
Non Resident Indians who travel around the world and work round the clock would always desire to have a peaceful retired life. The insurance companies in India are constantly working to lighten the burden on NRIs, planning their retirement options. State Bank of India has few pension plans suitable to the needs of Non Resident Indians.
SBI life Lifelong pension plus – for Non Resident Indians who are looking for a non - participating plan and security of their investments can go for this product.
SBI life smart pension - for Non Resident Indians who are looking for their investment to be divided into parts that assure them guaranteed returns and a part that is invested in units can go for this plan.
General conditions of the pension plans:-
Lifelong pension plus - The age criterion for this plan is that the NRI should be a person who is in the age group of 18 years to 65 years during the purchase of policy. The age of the NRI at maturity can be a between 40 and 70 years.
Smart pension – The age criterion for this plan is that the NRI should be more than 30 years and less than 65 years of age during purchase. The age of the NRI at maturity of plan is to be between 45 years and 75 years of age.
Lifelong pension plus - The premium payment to this plan is flexible. An NRI can choose to pay premiums once a month, a quarter year, a half year, a year or even just once for his life time as a single premium. However there is a minimum limit on how much the NRI can pay if the premium is annual or a single premium.
Smart pension – This plan accepts a onetime premium payment and the premiums should be a minimum of Rs 50,000 to be eligible for this plan.
The annuity option is almost the same in both, the NRI can choose to withdraw one third of the accumulated sum on maturity of the plan. If he does withdraw this sum then the rest of the sum is paid off as annuities. If not then the entire accrued sum along with benefits is paid off as annuities to NRI.
The policy provides a life cover to the NRI proposer. If death of the NRI policyholder takes place during the premium payment term of the policy, the nominee of the policy or the heir of the policy holder is paid the fund value.
Special features of the policies:-
Lifelong pension plus plan gives the option of choosing additional insurance coverage against accident and also a term cover where the NRI can get complete sum assured from these plans on the course of event taking place (accident, death).
Smart pension plan has an option of purchasing multiple policies with payment of one time premium at different stages of life. With this option an NRI can stay in track with the growing rate of inflation.
Returns on each plan:-
Lifelong pension plus plan accrues up to 10% of the premium paid and this sum is accrued to the guaranteed fund after fixed intervals of time (15 years and 5 years). If it is single premium plan then the percentage of sum accrued is 1% of the premium.
Smart pension plan accrues a certain percentage of the single premium per year.
**Features and availability of the plan is subject to policies of the service provider and can be changed without prior notice. Please check with your financial advisor before investing in this instrument.
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