SBI Life Smart Pension features, charges and return

SBI Smart Pension

SBI Smart Pension

SBI Life announced an  unlit linked investment + insurance plan Smart Pension.  It is the new retirement plan from the company after the change in ULIP rules introduced by the IRDA in last September. We had already informed you about SBI Life Smart Performer, which is a non-participating general ULIP plan and LIC’s Pension scheme Pension Plus. In this post, we will review the features of SBI Life Smart Pension, benefits, charges and latest NAV value.

It is recommended to keep a part your monthly earning for the retirement life. But It is not always possible to deposit it  in a bank or saving scheme regularly for a long period of time and the earning from such schemes would be very less.  Here comes the use of  ULIP plans. They provide  the insurance and investment opportunity in one single policy. In a pension enabled ULIP like SBI Smart pension, you will invest money for a desired period of time, and gets it back on a monthly basis throughout the retirement life. The special feature of this policy is a minimum guaranteed return of 4.5% (on maturity) on the premium invested. The premium paid on SBI Smart Pension will be divided into units as per the latest NAV (10.0266 today) values. Then charges will be deducted from the premium amount by canceling units. Various charges include policy administration, fund management, guarantee charge (0.35% p.a) and commission of agents. SBI Life Smart Pension is a single premium policy, but you can buy multiple single premium policies and plan the required retirement income at various stages of life.

SBI Life Smart Pension product snapshot

SBI Life Smart Pension requirements


Minimum amount required to joining SBI Smart Pension scheme is 50000 and there is no maximum limit. Basic requirements of the plan are as given the above screenshot. On maturity, the pensioner can either opt for an annuity plan or encash a part for the fund value as a lump sum.  Death benefit will be the fund value on the date of mishap. SBI has  another pension plan called SBI Life Lifelong Pension Plus.  ULIP based Smart Pension has some risks but considering the growth or India and stock market we believe that a ULIP would be better in a long term point of view.

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