Annuity Plus FAQs: Immediate Annuity Tax Benefits & Returns

SBI Life – Annuity Plus is an individual, non-linked, non-participating immediate annuity product. Under this product, the proposer has to pay a single premium for an immediate annuity for single life or for two lives. After purchasing the annuity, the first annuity installment is paid one year, six months, three months or one month after the date of the purchase of the annuity depending on the mode of annuity payment selected which is yearly, half-yearly, quarterly or monthly respectively.

The product offers immediate annuities to the individual/s, who wish to purchase the annuities being vested on their pension products in consideration of the accumulated funds/ corpus/ pension amount (known as compulsory purchase annuity) or who wish to get regular income throughout their lifetime. The product can also be purchased by the banks/ financial institutions, who wish to purchase the immediate annuities in respect of the annuity payments for their commitments to home-owners under the reverse mortgage schemes.

• Step 1: The proposer chooses the one-time lump sum he/ she wishes to pay OR The proposer chooses the annuity installment he/ she wishes to receive • Step 2: The proposer thereafter chooses the benefit from the range of annuity options available • Step 3: He/ She chooses the annuity payout frequency – monthly, quarterly, half-yearly, or yearly • Step 4: Annuity payout would be directly credited to the policyholder’s designated Bank Account on the pre-chosen interval Once in a year the annuitant shall be required to submit an existence certificate to continue receiving annuity payouts.

SBI Life - Annuity Plus offers the below benefits:
• Regular income through annuity payout at guaranteed rate for lifetime.
• Option to have lifetime annuity for self and your partner (spouse, children, parents, parents in law or siblings)
• Flexibility to choose annuity payouts – monthly, quarterly, half-yearly or yearly.
• Option to advance annuity payouts.

Age** at Entry	Min.: 40 years Max.: 80 years The Maximum difference between the ages of both annuitants cannot exceed 30 years.
Policy Term	Lifetime
Premium Frequency	Single Premium
Minimum Premium	Such that the annuitant can be paid minimum annuity as per the annuity payment mode. The minimum annuity payment under various modes is as under: Annuity Payment Mode Minimum Annuity (Rs.) Monthly 1,000 Quarterly 3,000 Half-Yearly 6,000 Yearly 12,000

**All the references to age are age as on last birthday.

The base plan is a pure income/ payout plan but the annuitant can avail of insurance cover by opting for the ADB (Accidental Death Benefit) Rider.
In the event of accidental death of the annuitant, a lump sum benefit (Rider Sum Assured) would be payable to the nominee/ legal heir. This Rider Sum Assured would be 12 times the annualised annuity or purchase price, whichever is the lower multiple of Rs. 1000.

There are 14 annuity options (10 options under Single Life annuity and 4 options under Joint Life annuity) under this plan. These are as below:
A. Single Life Annuity
i. Life time Income– Annuity is payable at a constant rate throughout the life of the annuitant. On death of the annuitant, all future annuity payments cease immediately and the contract terminates.
ii. Life time Income with Capital Refund
• Life time Income with Capital Refund – annuity is payable at a constant rate throughout the life of the annuitant. On death of the annuitant, 100% of the premium will be refunded to the nominee and the contract will terminate.
• Life time Income with Capital Refund in parts – annuity is payable at a constant rate throughout the life of the annuitant. The premium would be returned in parts as follows:
Case 1: if the annuitant dies during the first 7 years, 100% of the premium will be refunded to the nominee and the contract will terminate
Case 2: on survival of the annuitant at the end of 7 years, 30% of the premium will be refunded to the annuitant. On death, balance 70% of the premium will be refunded to the nominee and the contract will terminate.
iii. Life time Income with annual increase
• Life time Income with annual increase of 3% – an increasing annuity is payable throughout the life of the annuitant which is increased by a simple rate of 3.00% p.a. for each completed year.
• Life time Income with annual increase of 5% – an increasing annuity is payable throughout the life of the annuitant which is increased by a simple rate of 5.00% p.a. for each completed year.
iv. Life time Income with certain period
• Life time Income with certain period of 5 years – annuity is payable at a constant rate for a fixed period of 5 years and thereafter annuity is payable throughout the life of the annuitant.
• Life time Income with certain period of 10 years – annuity is payable at a constant rate for a fixed period of 10 years and thereafter annuity is payable throughout the life of the annuitant.
• Life time Income with certain period of 15 years – annuity is payable at a constant rate for a fixed period of 15 years and thereafter annuity is payable throughout the life of the annuitant.
• Life time Income with certain period of 20 years – annuity is payable at a constant rate for a fixed period of 20 years and thereafter annuity is payable throughout the life of the annuitant.
B. Joint Life Annuity
i. Life and Last Survivor
• Life and Last Survivor with 50% income – annuity is payable at a constant rate till the first annuitant is alive. On death of the first annuitant, 50% of the annuity payment will continue throughout the life of the surviving second annuitant. On death of last survivor, annuity payments will cease immediately and the contract will terminate. If the second annuitant pre – deceases the first annuitant, annuity payments will cease on death of the first annuitant.
• Life and Last Survivor with 100% income – annuity is payable at a constant rate till the first annuitant is alive. On death of the first annuitant, the same annuity will continue throughout the life of the surviving second annuitant. On death of second annuitant, annuity payments will cease immediately and the contract will terminate. If the second annuitant pre – deceases the first annuitant, annuity payments will cease on death of the first annuitant.
ii. Life and Last Survivor with Capital Refund
• Life and Last Survivor with 50% income with Capital Refund – annuity is payable at a constant rate till first annuitant is alive. On death of the first annuitant, 50% of the annuity payment will continue throughout the life of the surviving second annuitant. On death of the second annuitant, premium will be refunded to the nominee, annuity payments will cease and the contract will terminate. If the second annuitant pre-deceases the first annuitant, annuity payments will cease on death of the first annuitant.
• Life and Last Survivor with 100% income with Capital Refund – annuity is payable at a constant rate till first annuitant is alive. On death of the first annuitant, the same annuity will continue throughout the life of the surviving second annuitant. On death of the second annuitant, premium will be refunded to the nominee, annuity payments will cease and the contract will terminate. If the second annuitant pre-deceases the first annuitant, annuity payments will cease on death of the first annuitant.

Such customers can choose any of the 14 annuity options.

Yes, at inception the annuitant may choose to advance the annuity payout. However, the advancement will be subject to the below conditions:
• Advancement is available only where the annuity payout mode chosen is yearly or half-yearly.
• The desired date of first annuity is at least 90 days from the date of purchase of the annuity.
• An additional interest will be charged for the notional delay in receiving the premium.

Large purchase price incentives are available as additional annualised annuity per Rs. 1,000 premium as per the below grid:

Premium	Incentive on annualised annuity
Less than Rs. 150,000	Nil
Rs. 150,000 to Rs. 299,999	Rs. 2.50
Rs. 300,000 to Rs. 499,999	Rs. 3.50
Rs. 500,000 and above	Rs. 4.25

No, the rider can be availed at the time of entry only by paying an additional premium for the rider.

SBI Life-Accidental Death Benefit Rider is an individual rider which has been attached to this product. This rider covers the life assured against the risk of death due to accident.

In the event of death due to an accident, a lump sum benefit, i.e., the Rider Sum Assured would be payable to the nominee/ legal heir.

An accident is a sudden, unforeseen and involuntary event caused by external, visible and violent means. The death should occur within 120 days of the date of accident solely and directly due to injuries caused by the accident and should be independent of all other causes.

Death due to the consequences of or occurring during the events as specified below are not covered:

• Infection: Death caused or contributed to by any infection, except infection caused by an external visible wound accidentally sustained
• Drug Abuse: Life assured under the influence of Alcohol or solvent abuse or use of drugs except under the direction of a registered medical practitioner
• Self-inflicted Injury: Intentional self- Inflicted injury including the injuries arising out of attempted suicide.
• Criminal acts: Life assured involvement in Criminal and/or unlawful acts with unlawful or criminal intent.
• War and Civil Commotion: War, invasion, hostilities, (whether war is declared or not), civil war, rebellion, revolution or taking part in a riot or civil commotion.
• Nuclear Contamination: The radioactive, explosive or hazardous nature of nuclear fuel materials or property contaminated by nuclear fuel materials or accident arising from such nature.
• Aviation: Life assured participation in any flying activity, other than as a passenger in a commercially licensed aircraft.
• Hazardous sports and pastimes: Taking part or practicing for any hazardous hobby, pursuit or any race not previously declared and accepted by the Company.

No. Surrender facility is not available under this plan.

Loan facility is not available under this plan.

No. This policy cannot be assigned to any other person.

There is a 15 day free-look period for policies sourced through any channel mode other than distance marketing and 30 days for policies sourced through distance marketing. In unlikely event when the policyholder is not satisfied with the terms and conditions of the policy, and wishes to cancel the policy, he/she can do so by returning the policy to the company along with the letter requesting for cancellations within 15 days for policies sourced through any channel mode other than distance marketing and 30 days for policies sourced through distance marketing of receipt of policy. Premiums paid will be refunded after deducting stamp duty cost incurred and any annuities paid.
For product conversion cases, free look cancellation is not allowed; however the policyholder can change the annuity option during the free look cancellation period and continue the policy.