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SBI Life
Lifelong Pensions Plan
You have trusted SBI for banking
Now TRUST SBI Life for your retirement
benefits
Why Pensions scheme?
Before:
60 yrs
Working Time
67 yrs
Retirement
71 yrs
Now:
V.R.S.
Working Time
Retirement
Tomorrow?
Working Time
80/85 yrs ?
Retirement
Lifelong Pensions the best tool
to provide financial security for retirement age
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
How does it work during the
accumulation period?
Personal Pension Account
4% p.a. till March 2010
Plus Vested Bonus
Annuity options available at
the vesting age (50 upto 70)
PURCHASE OF ANNUITY
4 MAIN OPTIONS
1
Life time annuity
Guaranteed pension
for the entire Life
2
3
Increasing Life time annuity
Joint Life time annuity
(say @1 / 2 / 3% p.a.)
(husband / wife)
Protection against inflation Life time annuity for Survivor
50% or 100% of last annuity
4
Annuity for Life
with guaranteed period of
5 / 10 / 15 years
Option 1 & 2 available with refund of balance purchase price
Lifelong Pensions Plan:
Product features
Lifelong Pensions
2 options
Option 1
Option 2
Pure Pension
Pension with Life cover
Simplified Proposal Form
Lifelong Pensions Plan:
2 options
Option 1
Pure Pension
Option 2
Pension cum Life Cover
Min. / Max. Age at
entry
18 / 65
18 / 60
Min. / Max Term
2 years / 52 years
5 years / 52 years
Min. / Max age to
start receiving
pension
Min. / Max
contribution
Anytime between 50 to 70 years
(choice of annuity option, 6 months before vesting Age)
Single contribution: Rs. 10,000 (x 500) / No Limit
Regular contribution: Rs. 3,000 (x 500) p.a. / No
Limit
(Min. per contribution Rs. 500)
Contribution Mode
Single /Y / HY / Q / M
(3 months in advance by cheque. Standing Instruction / Credit Card thereafter)
Min. / Max. S.A. for
Life Cover
Not Available
Max. Cover Age for
Life Cover
Not Available
Rs. 25,000 / Rs. 3lakh
(Max. Rs. 1 lakh for 46 & above)
65 years
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
In case of unpaid contribution
P.P.A. will be used to maintain the Life Cover
Life Cover
Personal
Pension
Account
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,
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
Investment Period:
Do not speculate with your pension
?
?
Unit Linked product
No uncertainty
Lifelong Pensions: Non Unit Linked product
To get the best of compounding effect without any risk
Accumulation period
easy to understand
Contribution(s)
Net of premium for Life Cover if any
Personal Pension Account
Accumulation period ends at vesting date /death whichever is earlier
How does it work during the
accumulation period?
Personal Pension Account
4% p.a.
Till March 2010
Extra Additional
Contribution
Min. Rs. 500
When you wish
Single
contribution
Regular
contribution
Plus Vested Bonus
An example
30 years later
Rs. 10,000 p.a
for 30 years
P.P.A.*
=
P.P.A
Rs. 781,130
Total contributions paid: Rs. 300,000
Assuming 6% per annum
The compounding effect
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
P.P.A.: the Power of Compounding
Term
10 years
20 years
30 years
40 years
50 years
Single
Contribution
Rs. 10,000
16,650
29,830
53,410
95,660
171,310
Single
Contribution
Rs. 20,000
33,300
59,660
106,820
191,320
342,620
Yearly
Contribution
Rs. 5,000
64,635
(50,000)
181,420
(1,00,000)
3,90,565
(1,50,000)
7,65,110
(2,00,000)
14,35,860
(2,50,000)
Yearly
Contribution
Rs. 10,000
1,29,270
(1,00,000)
3,62,840
(2,00,000)
7,81,130
(3,00,000)
15,30,220
(4,00,000)
28,71,720
(5,00,000)
Assumptions 6% p.a
Cost of delaying is high
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
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
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)
Annuity options available at
the vesting age (50 upto 70)
PURCHASE OF ANNUITY
4 MAIN OPTIONS
1
Life time annuity
Guaranteed pension
for the entire Life
2
3
Increasing Life time annuity
Joint Life time annuity
(say @1 / 2 / 3% p.a.)
(husband / wife)
Protection against inflation Life time annuity for Survivor
50% or 100% of last annuity
4
Annuity for Life
with guaranteed period of
5 / 10 / 15 years
Option 1 & 2 available with refund of balance purchase price
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
Increasing Life time
annuity
Vesting age 50 to 70: Increasing Life time annuity
Every year, your pension increases of, say 1/2/3 % p.a.
Available with option refund of balance purchase price
Refund of Balance Purchase Price
to your nominee
Amount of
P.P.A.
Used to buy annuity
(-)
Cumulative annuity
Amount already paid
A WIN- WIN option!
=
Balance of
Annuity
Purchase
Price
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
Annuity for life
with 5/10/15 years
guaranteed period
Vesting age 50 to 70Y: guaranteed period 15 Yrs
+ life time annuity
50/70
15th
15 guaranteed period
after 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
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 !!!
Some examples of annuity option
for a P.P.A of Rs. 10 lakhs
Vesting Age
60 years
65 years
Life Annuity
Rs. 75,360
Rs. 85,010
(Rs. 71,360)
(Rs. 79,400)
Rs. 63,750
Rs. 73,380
(Rs. 60,600)
(Rs. 69,390)
Life annuity with 10 years
guaranteed period
Rs. 73,090
Rs. 80,790
Life annuity with 15 years
guaranteed period
Rs. 70,410
Rs. 75,740
Joint Life Annuity with 50%
reversion
Rs. 68,680
Rs. 76,090
Joint Life Annuity with 100%
reversion
Rs. 63,090
Rs. 68,860
(with refund Balance Purchase Price)
Increasing Life Annuity @ 2%
(with refund Balance Purchase Price)
Annuity rates are not guaranteed at the entry time, Rate will be fixed at vesting age only
What about death benefits?
In case of death during
the accumulation period
Option 1:
Pure Pension
Option 2:
Pension cum Life
Cover
Nominee will receive
in one Lump Sum
the amount of the
Personal Pension Account
Nominee will receive
in one Lump Sum
the amount of the
Personal Pension Account
+
Basic Sum Assured
for the Life Cover
In case of death during
the annuity period
1.
Life time annuity
No death benefit
2.
Life time Annuity with refund of
balance purchase price
Refund of balance purchase price to
the nominee if any
3.
Increasing Life time annuity @
1 / 2 / 3 % p.a.
No death benefit
4.
Increasing Life time annuity @
1 / 2 / 3% p.a. with refund of balance
purchase price
Refund of balance purchase price to
the nominee if any
5.
Joint Life time annuity with
50% / 100% reversion to the spouse
6.
Annuity for Life with 5 / 10 / 15
years guaranteed period
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
What about tax advantage?
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
80CCC Taxe advantage
for everybody
Gross Total
Income
Rs.
0 - 1.5 lac
Rs.
1.5 – 5 lac
Above
Rs. 5 lac
Tax rebate u/s 88
As a percentage of the
premium paid upto
Rs. 70,000
20%
20%
15%

Tax exemption
U/S 80CCC
Upto Rs. 10,000
Rs. 10,000
Tax
exemption
Irrespective of
Gross Total
Income
Is there any rebate?
Rebates will be added
to 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
Surrender Value
Flexible / Single
contribution
Policy Year
Regular contribution
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
Some illustrations
Illustration that will tell you your Yearly Pension
Amount and the total amount accumulated in your
PPA if you contribute Rs. 10,000 annually
Age at
retirement
60 years
65 years
Age at entry
Retirement/PPA
Amount* (Rs.)
Yearly Pension
Amount ** (Rs.)
Retirement/PPA
Amount* (Rs.)
Yearly Pension
Amount ** (Rs.)
30
790,370
59,562
1,114,460
94,740
35
548,190
41,312
790,370
67,189
40
367,220
27,738
548,190
46,602
45
221,990
16,729
367,220
31,217
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.
An illustration that tells you what your Annual
Contribution should be to get a Retirement Amount
of Rs. 1 lakh
Age at retirement
60 years
65 years
Age at entry
Annual Contribution*
(Rs.)
Annual Contribution*
(Rs.)
30
35
40
45
1,265
1,824
2,723
4,310
897
1,265
1,824
2,723
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.
Lifelong Pensions
The competitors
Competitors to Lifelong Pensions
Unit Linked
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




ICICI: Life Time Pension
ICICI: Life Link Pension
AVIVA: Pension Plus
AMP Sanmar: Bhagya Shree
Lifelong Pensions / Personal Pension Plan (HDFC)
Lifelong Pensions
(SP)
Lifelong Pensions
(RP)
Personal Pension
(SP)
Personal Pension
(RP)
Min/Max Age at
entry
18 / 65
18 / 65
35 / 60
18 / 60
Min/Max Vesting
Age
50 / 70
50 /70
50 / 70
50 / 70
Min/Max term
2 / 52
2 / 52
5 / 35
10 / 35
Min/Max
contribution
Rs. 10,000
Rs. 3,000 p.a.
(Min. Rs. 500)
Min. SA Rs. 25,000
Y: Rs. 1,800
Guaranteed
returns
4% for the first
seven year
4% for the first seven
year
No
No
Death benefit
PPA
PPA
Contribution
refunded @ 8% p.a.
Contribution
refunded @ 8% p.a.
Extra additional
contribution
Yes
Min. Rs. 500
Yes
Min. Rs. 500
No
No
Surender Value
Y1: 0
Y2-3: 80% PPA
Y4: 85% PPA
Policy Term more than 6Y:
Y1: 0
Y2++: 50% SP + VB
Y1/2/3: 0
Y4++: 50% P – 1st
YP
Free choice of
annuity provider
Yes
Yes
Yes
Yes
Y1/2/3: 0
Y4++: 85% PPA
Lifelong Pensions / Forever Life(ICICI)
Lifelong Pensions
(SP)
Lifelong Pensions (RP)
Personnal Pension (RP)
Min/Max Age at entry
18 / 65
18 / 65
18 / 60
Min/Max Vesting Age
50 / 70
50 /70
50 / 70
Min/Max term
2 / 52
2 / 52
5 / 30
Min/Max contribution
Rs. 10,000
Rs. 3,000 p.a.
(Min. Rs. 500)
Min. SA: Rs. 50,000
Guaranteed returns
4% for the first
seven year
4% for the first seven year
SA @ 3.5% p.a. for the
first 4 years
Death benefit
PPA
PPA
SA + VB
Extra additional
contribution
Yes
Min. Rs. 500
Yes
Min. Rs. 500
No
Surender Value
Y1: 0
Y2-3: 80% PPA
Y4: 85% PPA
Policy Term more than 6Y:
Y1/2/3: 0
Y4++: 85% PPA
Y1/2/3: 0
Y4++: 35% PP – 1st YP
Free choice of annuity
provider
Yes
Yes
Yes
Lifelong Pensions / New Jeevan Suraksha (LIC)
Lifelong Pensions (SP)
Lifelong Pensions (RP)
New Jeevan Suraksha
Min/Max Age at entry
18 / 65
18 / 65
18 / 65
Min/Max Vesting Age
50 / 70
50 /70
50 / 79
Min/Max term
2 / 52
2 / 52
2/ 35
Min/Max contribution
Rs. 10,000
Rs. 3,000 p.a.
(Min. Rs. 500)
SP: Rs. 10,000
RP: Rs. 2,500
Guaranteed returns
4% for the first seven
year
4% for the first seven year
No. Only in case of
death
Death benefit
PPA
PPA
Contribution Paid @ 5%
p.a.
Extra additional
contribution
Yes
Min. Rs. 500
Yes
Min. Rs. 500
NO
Surender Value
Y1: 0
Y2-3: 80% PPA
Y4: 85% PPA
Policy Term more than 6Y:
Y1/2/3: 0
Y4++: 85% PPA
SP: Y1/2: 0 Y3++: 90%P
RP: Y1/2:0, Y3++: 90%P1st YP + VB
Free choice of
annuity provider
Yes
Yes
NO
Lifelong Pensions / Kotak Retirement Plan
Lifelong Pensions (SP)
Lifelong Pensions (RP)
Kotak Retirement Plan
(RP)
Min/Max Age at entry
18 / 65
18 / 65
18 / 60
Min/Max Vesting Age
50 / 70
50 /70
45 / 65
Min/Max term
2 / 52
2 / 52
5 / 30
Min/Max contribution
Rs. 10,000
Rs. 3,000 p.a.
(Min. Rs. 500)
Y / HY / Q
YP: Rs. 4,000
Guaranteed returns
4% for the first seven
year
4% for the first seven year
No
Death benefit
PPA
PPA
SA – P due + PPA
Extra additional
contribution
Yes
Min. Rs. 500
Yes
Min. Rs. 500
Max 25% SA p.a.
Surender Value
Y1: 0
Y2-3: 80% PPA
Y4: 85% PPA
Policy Term more than 6Y:
Y1/2/3: 0
Y4++: 85% PPA
No surender
value
Free choice of annuity
provider
Yes
Yes
Yes
Lifelong Pensions / Nirvana (TATA AIG)
Lifelong Pensions
(SP)
Lifelong Pensions (RP)
NIRVANA (RP)
Min/Max Age at entry
18 / 65
18 / 65
18 / 65
Min/Max Vesting Age
50 / 70
50 /70
50 / 65
Min/Max term
2 / 52
2 / 52
10 / 42
Min/Max contribution
Rs. 10,000
Rs. 3,000 p.a.
(Min. Rs. 500)
Y/HY/Q/M
Min SA: Rs. 50,000
Guaranteed returns
4% for the first seven
year
4% for the first seven year
After 10 Years:
G.A.=10% of SA (1 time)
Death benefit
PPA
PPA
SA + G.A. (if any) + VB
(from Y5 onwards)
Extra additional
contribution
Yes
Min. Rs. 500
Yes
Min. Rs. 500
NO
Surender Value
Y1: 0
Y2-3: 80% PPA
Y4: 85% PPA
Policy Term more than 6Y:
Y1/2/3: 0
Y4++: 85% PPA
Y1/2/3: 0
Y4++: 30%P – 1st YP+VB
Free choice of annuity
provider
Yes
Yes
Yes
Lifelong Pensions / Pension Plus (AVIVA)
Lifelong Pensions
(SP)
Lifelong Pensions (RP)
Pension plus (RP)
Min/Max Age at entry
18 / 65
18 / 65
18 / 65
Min/Max Vesting Age
50 / 70
50 /70
50 / 70
Min/Max term
2 / 52
2 / 52
5 / 52
Min/Max contribution
Rs. 10,000
Rs. 3,000 p.a.
(Min. Rs. 500)
Y / HY / Q / M
YP: Rs. 6,000
Guaranteed returns
4% for the first seven
year
4% for the first seven year
YP: 6,000 – 7,499: 103%P
YP: 7,500 – 9,999: 104%P
YP 1 lac & above: 105%P
(1 time)
Death benefit
PPA
PPA
PPA
Extra additional
contribution
Yes
Min. Rs. 500
Yes
Min. Rs. 500
Yes
Min. Rs. 1,000
Surender Value
Y1: 0
Y2-3: 80% PPA
Y4: 85% PPA
Policy Term more than 6Y:
Y1/2/3: 0
Y4++: 85% PPA
?
Yes
Yes
Yes
Free choice of annuity
provider
Lifelong Pensions / BHAGYA SHREE (AMP Sanmar)
Lifelong Pensions
(SP)
Lifelong Pensions
(RP)
BHAGYA SHREE
(SP)
BHAGYA SHREE
(RP)
Min/Max Age at
entry
18 / 65
18 / 65
18 / 65
18 / 65
Min/Max Vesting
Age
50 / 70
50 /70
45 / 70
45 / 70
Min/Max term
2 / 52
2 / 52
5 / 52
5 / 52
Min/Max
contribution
Rs. 10,000
Rs. 3,000 p.a.
(Min. Rs. 500)
Min. SA
Rs. 1,00,000
Y: Rs. 2,500
Guaranteed
returns
4% for the first
seven year
4% for the first seven
year
No
No
Death benefit
PPA
PPA
PPA
PPA
Extra additional
contribution
Yes
Min. Rs. 500
Yes
Min. Rs. 500
Yes
Min. Rs. 2,500
Yes
Min. Rs. 2,500
Surender Value
Y1: 0
Y2-3: 80% PPA
Y4: 85% PPA
Policy Term more than 6Y:
Y1/2/3: 0
Y4++: 85% PPA
Y1/2/3/ 0
Y4: 90% PPA
Y5: 95% PPA
Y6++: 100% PPA
Y1/2/3/ 0
Y4: 90% PPA
Y5: 95% PPA
Y6++: 100% PPA
Free choice of
annuity provider
Yes
Yes
Yes
Yes
Lifelong Pensions / Life Time/Life Link (ICICI)
Lifelong
Pensions (SP)
Lifelong Pensions (RP)
Life Link
(SP)
Life Time (RP)
Min/Max Age at
entry
18 / 65
18 / 65
18 / 62
18 / 60
Min/Max Vesting
Age
50 / 70
50 /70
50 / 70
50 / 70
Min/Max term
2 / 52
2 / 52
3 / 52
10 / 52
Min/Max
contribution
Rs. 10,000
Rs. 3,000 p.a.
(Min. Rs. 500)
SA: Rs. 40,000
Y/HY/Q/M
YP: Rs. 10,000
M: Rs. 833
Guaranteed
returns
4% for the first
seven year
4% for the first seven year
No
No
Death benefit
PPA
PPA
100% / 105% P paid
+ PPA
PPA+
SA if any
Extra additional
contribution
Yes
Min. Rs. 500
Yes
Min. Rs. 500
No
No
Surrender Value
Y1: 0
Y2-3: 80% PPA
Y4: 85% PPA
Policy Term more than 6Y:
Y1/2/3: 0
Y4++: 85% PPA
Y1: 0
Y2++: unit value
Y1/2/3: 0
Y4++: unit value
Free choice of
annuity provider
Yes
Yes
Yes
Yes
How to sell Lifelong Pensions?
According to their age group, why should
they buy Lifelong Pensions Scheme?

18 to 30 yrs:
• Accumulating money at a lower price

31 to 40 yrs:
• Looking for Tax benefit, Section 80 CCC

41 to 50 yrs:
• Start building Pension

51 to 60 yrs:
• Act now, otherwise…

60 to 70 yrs:
• Financial independance post retirement
Lifelong Pensions USP’s

Save Tax u/s 80 CCC irrespective of the tax bracket.
Guaranteed returns 4% till March 2010.
Flexibility in premium contribution, in mode of payment, in
retirement age, in annuity options and annuity provider.
Making the right choice for long commitment is now easy…

Never too young to start building pension and….

Never too late to benefit from lifetime income….



LIFELONG PENSIONS HELPS YOU
TO MAINTAIN YOUR EXISTING LIFESTYLE