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SBI Life Lifelong Pensions Plan

SBI Life Lifelong Pensions Plan. You have trusted SBI for banking Now TRUST SBI Life for your retirement benefits. Why Pensions scheme?. 60 yrs. 67 yrs. Before: Now: Tomorrow?. Working Time. Retirement. 71 yrs. V.R.S. Working Time. Retirement. 80/85 yrs ?. Working Time.

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SBI Life Lifelong Pensions Plan

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

  2. Why Pensions scheme? 60 yrs 67 yrs Before: Now: Tomorrow? Working Time Retirement 71 yrs V.R.S. Working Time Retirement 80/85 yrs ? Working Time Retirement Lifelong Pensions the best tool to provide financial security for retirement age

  3. How does it work? ACCUMULATION PERIOD Flexible contribution mode of payment (minimum Rs. 3,000 p.a.) Vesting Age 50 to 70 ANNUITY PERIOD 4 main options 13 different choices

  4. How does it work during the accumulation period? Personal Pension Account 4% p.a. till March 2010 Plus Vested Bonus

  5. Annuity options available at the vesting age (50 upto 70) 2 3 4 1 Option 1 & 2 available with refund of balance purchase price

  6. Lifelong Pensions Plan: Product features Simplified Proposal Form

  7. Lifelong Pensions Plan:2 options

  8. 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

  9. In case of unpaid contribution P.P.A. will be used to maintain the Life Cover Personal Pension Account Life Cover Premium for Life Cover will be deductible from the PPA Once a year The Policyholder has the option to write us to end the Life Cover,

  10. How does it work? ACCUMULATION PERIOD Flexible contribution mode of payment (minimum Rs. 3,000 p.a.) Vesting Age 50 to 70 ANNUITY PERIOD 4 main options 13 different choices

  11. InvestmentPeriod:Do not speculate with your pension No uncertainty ? Unit Linked product Lifelong Pensions: Non Unit Linked product To get the best of compounding effect without any risk

  12. Accumulation periodeasy to understand Contribution(s) Net of premium for Life Cover if any PersonalPensionAccount Accumulation period ends at vesting date /death whichever is earlier

  13. Extra Additional Contribution Min. Rs. 500 When you wish Single contribution Regular contribution How does it work during the accumulation period? Personal Pension Account 4% p.a. Till March 2010 Plus Vested Bonus

  14. An example 30 years later P.P.A.* = Rs. 781,130 Rs. 10,000 p.a for 30 years P.P.A Total contributions paid: Rs. 300,000 Assuming 6% per annum The compounding effect

  15. 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

  16. P.P.A.: the Power of Compounding Assumptions 6% p.a Cost of delaying is high

  17. 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

  18. How does it work? ACCUMULATION PERIOD Flexible contribution mode of payment (minimum Rs. 3,000 p.a.) Vesting Age 50 to 70 ANNUITY PERIOD 4 main options 13 different choices

  19. 6 months before vesting age,choose the most convenient annuity option Your Personal Pension Account 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)

  20. Annuity options available at the vesting age (50 upto 70) 2 3 4 1 Option 1 & 2 available with refund of balance purchase price

  21. Life time annuity Vesting age 50 to 70:Life time annuity PEACE OF MIND FOR THE YEARS TO COME Available with option refund of Balance Purchase Price

  22. Increasing Life time annuity Vesting age 50 to 70:IncreasingLife time annuity Every year, your pension increases of, say 1/2/3 % p.a. Available with option refund of balance purchase price

  23. Refund of Balance Purchase Price to your nominee Balance of Annuity Purchase Price Amount of P.P.A. Used to buy annuity Cumulative annuity Amount already paid (-) = A WIN- WIN option!

  24. Joint Life time annuity • At vesting age: Life time annuity for you and Life time annuity for the survivor (50 /100%) The best option to protect you as well as your spouse

  25. Annuity for lifewith 5/10/15 years guaranteed period Vesting age 50 to 70Y:guaranteed period 15 Yrs + life time annuity 50/70 15th 15 guaranteed periodafter 15 years, life annuity 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Payable to the policyholder / nominee A Life time pension with guaranteed source of income for the first 5/10/15 years for the family

  26. 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 !!!

  27. Some examples of annuity optionfor a P.P.A of Rs. 10 lakhs Annuity rates are not guaranteed at the entry time, Rate will be fixed at vesting age only

  28. What about death benefits?

  29. In case of death during the accumulation period Option 2: Pension cum Life Cover Nominee will receive in one Lump Sum the amount of the Personal Pension Account + Basic Sum Assured for the Life Cover Option 1: Pure Pension Nominee will receive in one Lump Sum the amount of the Personal Pension Account

  30. In case of death during the annuity 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 • Life time annuity • Life time Annuity with refund of balance purchase price • Increasing Life time annuity @ 1 / 2 / 3 % p.a. • Increasing Life time annuity @ 1 / 2 / 3% p.a. with refund of balance purchase price • Joint Life time annuity with 50% / 100% reversion to the spouse • Annuity for Life with 5 / 10 / 15 years guaranteed period

  31. What about tax advantage?

  32. 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

  33. 80CCC Taxe advantage for everybody Rs. 10,000 Tax exemption Irrespective of Gross Total Income

  34. Is there any rebate?

  35. 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

  36. 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 Surrender Value

  37. Some illustrations

  38. Illustration that will tell you your Yearly Pension Amount and the total amount accumulated in your PPA if you contribute Rs. 10,000 annually 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.

  39. An illustration that tells you what your Annual Contribution should be to get a Retirement Amount of Rs. 1 lakh Note: * 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.

  40. Lifelong Pensions The competitors

  41. 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 Competitors to Lifelong Pensions

  42. Lifelong Pensions / Personal Pension Plan (HDFC)

  43. Lifelong Pensions / Forever Life(ICICI)

  44. Lifelong Pensions / New Jeevan Suraksha (LIC)

  45. Lifelong Pensions / Kotak Retirement Plan

  46. Lifelong Pensions / Nirvana (TATA AIG)

  47. Lifelong Pensions / Pension Plus (AVIVA)

  48. Lifelong Pensions / BHAGYA SHREE (AMP Sanmar)

  49. Lifelong Pensions / Life Time/Life Link (ICICI)

  50. How to sell Lifelong Pensions?

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