Investment / Retirement

Planning for

State Bank Group Banking Subsidiaries

State Bank Group Foreign Subsidiaries

ABOUTSBI LIFE
SBI Life Insurance is a joint venture between State Bank of
I di & BNP Paribas
India
P ib Cardif.
C dif
SBI owns 74% of the total capital & BNP Paribas Cardif the
remaining 26%.
SBI Life Insurance has an authorized capital of Rs. 2,000 crs. &
a paid up capital of Rs 1,000 crs.

ABOUTSBI LIFE

Along with its 6 Associate Banks, State Bank Group has the
unrivalled strength of over 18,000 branches across the
country arguably the largest in the world.
country,
world

BNP Paribas Cardif is the life and property & casualty

insurance arm of BNP Paribas,
Paribas one of the strongest banks in
the world.
BNP Paribas Group,
Group having presence in more than 80 countries
ranks highly in Retail Banking, Investment Solutions and
Corporate & Investment Banking.
BNP Paribas Cardif is one of the world leaders in creditor
insurance and its life and nonlife insurance units have
received
i d an AA rating
ti from
f
St d d & Poors.
Standard
P
6

Aboutsbilife
Largest Domestic Insurer (F
(F.Y.
Y 2009 - 10 to till date)
1st New Life insurer to declare a net profit for 6
consecutive years
years.
SBI LIFE POSTS NET PROFIT OF Rs. 740 CRORE, UP BY
19% For F
F.Y.
Y 2013-14
2013-14.
Global No. 1 at MDRTs.
No.1 ranking, in NBP, amongst private life insurers.
The Company has garnered a new business market share
of 17.2% amongst private players for the financial year
2013 - 14.

About sbi life

Assets
AssetsUnderManagement(AUM)crossesRs.58,480Crs.
Under Management (AUM) crosses Rs. 58,480 Crs.
Mark,increasesby12.7%over
lastfinancialyear
Regularnewbusinesspremiumincreasedby14.5%,toRs.
2,998crs.ForF.Y.2013 14
NewbusinesspremiumAPEgrewby17.7%toRs.2,809crore
duringfinancialyear201314
762branchesnetwork,
d
duringthefinancialyear201314.Additionally,79,463livesout
ring the financial ear 2013 14 Additionall 79 463 li es o t
oftotalof966,866grouplivescoveredbytheCompany

Awards & Accolades

MostTrustedPrivateLifeInsuranceBrand2013
byTheEconomicTimes,BrandEquityandNielsenSurvey

BestLifeInsuranceProvider2013
RunnerUp
Runner Up'byOutlookMoney
by Outlook Money

UnderservedMarketPenetrationAward2013
byIndianInsuranceAwards
y

ClaimsServiceCompanyoftheYearAward2013
SBILifehasdemonstratedeffectiveandspeedyclaimssettlements.

GlobalPerformanceExcellenceAward2013
byAsiaPacificQualityOrganisation(APQO)

DigitalInclusionSkochAwards2013
SBILifereceivedtheawardfortheproject Enablingpartnerstocollectpremium
throughElectronicFundTransfer
g
Cash&DirectDebit.Theawardrecognisesbest
g
practicesinthefieldsofgovernance,finance,bankingetc
9

Awards & Accolades

Communication Excellence Award 2013
at 4th CMO Asia Awards

Training Provider of the Year Award

at Asia's Training & Development Excellence Awards 2013

ISO 27001 Certification

for Information Security Management System (ISMS)
ISO 9001:2008 Certification for Quality Management Systems for Planning, Designing and Developing
Training Programs

The Most Admired Life Insurance Company

p y in the Private Sector
The Best Life Insurance Company in the Private Sector
By BFSI (Banking Financial Services and Insurance) 2014 Awards

Recognised
Recognised amongst Top
Top-50
50 Great Places to Work
Work
Dream Company To Work For 2014
Dream Employer of the Year 2014 - Ranked 4th
Employer
Employer Branding Award 2014
2014 for Talent Management
by Awards at the World HRD Congress

Why retirement planning?

Inflation: Rising inflation results in rising cost of basic amenities

Retire Early: People plan to retire early (by the age of 55 years)

Increasing Health Cost: Expensive/quality health care services

Life Style: Difficult to maintain current lifestyle post retirement

Nuclear Families: Rise in nuclear families & hence need for

financial independence post retirement

Inflation
Food inflation was as high as
8.5% in Nov 2012, way beyond
acceptable level
Inflation
I fl ti
h
has
above7% since 2009

remained
i d

g to
Todayy from food to clothing
travelling everything is getting
expensive day by day
Power of compounding can be
used to cope Inflation, and in
order to do that we need to start
early.

Source: http://articles.timesofindia.indiatimes.com/keyword/inflation

EarlyRetirement
Average
A
Life
if Expectancy
E
would
ld increase
i
to 73
3 years in
i the
h next two decades
d
d

India(lifeExpectancy)inYrs
90
A 80
g
e 70

66 8
66.8

69.8

72.7

75.2

77.4

79.2

63.6

i
60
n

FutureSituation

y 50
r
s 40
30

India (life Expectancy) in Yrs

India(lifeExpectancy)inYrs

NeedtocoverforInflation&Increasein
medicalExpenditureinthisperiod
Ref:http://www.prb.org/pdf07/futurepopulationofindia.pdf
//
/
/

80.7

82

83.1

83.5

Health Cost Rises at Higher Age

India has the highest incidence of heart related diseases in the world
and the number of those affected is likely to double in the coming
years.
On an average a by pass costs around Rs. 3 lacs which might go to
Rs 5-10
Rs.
5 10 lacs by the time you retire.
retire
The economic burden due to diabetes on urban families in developing
countries is rising,
rising and the total direct cost has doubled from 1998 to
2005.
The proportion of annual income spent on health care by the urban
poor has increased from 24.5% in 1998 to 34.0% in 2005.

Inflation

15

Pensiongivesyou
FinancialIndependence
SelfRespect/Confidence
Takescareofyouroldageneedslikemedicine,food,shelter,vacations,piligrimage,
etc
CangiftyourGrandChildrensomething
Can gift your Grand Children something
YourSon/Daughtergivesyourespect
Youcanstayindependently
You can stay independently
Maintainthesamestandardofliving
Givesyoumentalpeace&relief
y
p
Helpsasincometotakecareofmedicalcosts
Pensioncomeslifelong,itisneverending..&Fundtransferredtonextgenerations

Presenting SBI Life Retire Smart

An U
Unitt Linked
ed Non
o Participating
a t c pat g Pension
e s o Plan
a

A simple plan which will help you build your pension corpus, step by step

How does Pension work?

Build a corpus till the time you
wish

Pay premiums for

the chosen policy
term

In all events the annuity should be purchased from SBI Life Insurance only

OR a
deferred
pension
i plan
l

On vesting,
buy an
immediate
annuity

Eligibility Criteria
Age at Entry

Min: 30 years

Max: 70 years

Policy Term

Policy term of 10 years or from 15 to 35 years (both inclusive)

M t it / Vesting
Maturity
V ti Age
A

Mi 40 years
Min:

M
Max:
80 years

For Regular Premium Same as Policy Term

For Limited Premium Payment Term (LPPT)

Premium Paying Term

Premium

Policy Term

Limited Premium Paying Term

10 years

5/8

15 to 35 years

5 / 8 / 10 / 15

For Regular Pay

Min:
Rs. 24000 (Yearly)
Rs. 15,000 ((Half Yearly)
y)
Rs. 7,500 (Quarterly)
Rs. 2,500 (Monthly)

For Limited Pay

Min:
Rs. 40000 (Yearly)
Rs. 20,000 ((Half Yearly)
y)
Rs. 10,000 (Quarterly)
Rs. 5000 (Monthly)

Max: No Limit

Max: No Limit

Key highlights of Retire Smart

Introducing the concept of Advantage Plan
Minimum Guarantee on Maturity/Vesting: 101% of all premiums paid
Minimum Guarantee on Death: 105% of all premiums paid
Guaranteed Additions: 10% of annual premium added to the fund value by way of
units
it on every policy
li anniversary
i
starting
t ti ffrom th
the end
d off 15th policy
li year till
maturity/vesting. (Guaranteed Additions of up to 210% of Annual Premium)*
Terminal Additions: 1
1.5%
5% of Fund Value on Maturity/Vesting or on Death
Flexibility to extend the Accumulation or Defer the vesting date**
Convenience of premium payment Regular or Limited Premiums
Avail pension as early as at 40 years of age
Tax Benefits***

How Advantage Plan works?

The premiums paid net of Premium Allocation Charges, are invested in
Advantage Plan

The Advantage Plan follows the time to maturity concept, wherein equity
allocations reduce with the time left for maturity/vesting

Advantage Plan reallocates the assets between Equity, Bond & Money
Market, depending on the time remaining to maturity of the policy

Due to this strategy, funds flow from riskier assets (Equity) to less risky assets
((Bond & Moneyy Market),
), therebyy protecting
p
g the investments from any
y wild
short term fluctuations in the equity market, the closer the policy holder get to
the time of maturity/vesting

How Advantage Plan works?

The percentage of premium net of premium allocation charge invested, is a
range depending on the remaining investment term to maturity as given below:

No. of
years till
maturity

% of allocation
under Equity
Pension Fund II

% of allocation
under Bond
Pension Fund II

% of allocation under
Money Market
Pension Fund II

16

40% - 75%

10% - 60%

0% - 35%

11 to 15

30% - 50%

30% - 70%

0% - 40%

6 to 10

10% - 40%

35% - 90%

0% - 55%

0 to 5

0% - 30%

40% -100%

0% - 60%

Switching or Premium Redirection cannot be done by the policyholder

Benefits payable on vesting

Fund Value as on
the date of maturity/
y
vesting

Terminal
Addition*

OR

Higher of

101% of the total premiums paid

*Terminal
Addition

1.5% of the maturity/

vesting fund value

Options On Vesting
Purchase an Immediate Annuity product only from
SBI Life
Life, utilizing
tili ing the entire proceeds OR

Purchase a single premium deferred pension

product from the entire policy proceeds OR
Commute* up to a maximum of 1/3rd of the
proceed & purchase Immediate Annuity product
with 2/3rd amount
* In case the amount after commutation is insufficient to p
purchase annuities then commutation may
y not be allowed

On Death
Fund Value as on
the date of
intimation of claim

Terminal
Addition*

OR

Higher of

105% of the total premiums paid till death

*Terminal
Addition

1.5% of the Fund Value

as on death date

Options to Nominee On Death

Receive the entire proceeds as lump sum

OR
Utilize the entire proceeds of the policy or part thereof for purchasing
an immediate annuity from SBI Life Insurance Company, at the then
prevailing rate

Charges
Policy Administration Charges

Premium Allocation Charges

Policy Year

Charge

Policy Year

Charge

1 to Year 5

45/month

5.75%

6th year onwards

70/month

4.25%

3 10

4 00%
4.00%

11 year onwards

2.5%

Fund Management Charges

Fund Name

Charges

Equity Pension Fund II

1.35%

Bond Pension Fund II

1.00%

Guarantee Charges

Money Market Pension Fund II

0.25%

0.25% p.a. of the Fund Value

Discontinued Policy Pension

Fund

0.50%

SBI Life Smart Elite Plan

ForAPrivilegedFewWhoSeekMaximumFromLife

29

Product Parameters
EntryAge

Minimum:18years

MaturityAge

65years

Maximum:60years

MinPremium:

Premium
P
i
(X100)

PlanType

PremiumFrequency
Yearly

Limited
Premium

75,000

Q t l
Quarterly

37 500
37,500

Monthly

12,500

MaxPremium: NoLimit
Min:5years
Max: 20 years
Max:20years

1,50,000

HalfYearly

Single Premium

PolicyTerm

Minimum(Rs)

2,00,000

Product Parameters

Premium
P
i
PayingTerm

PlanType
yp

PremiumPayingTerm
y g

LPPT

5/8/10years

SinglePremium

Onetimeatpolicyinception

MinimumSumAssured:
LPPT

SinglePremium

Age<45years

Age=>45years

10XAP

7XAP

1.25 X SP
1.25XSP

SumAssured
MaximumSumAssured:

LPPT = Limited Premium Paying

y g Term
AP = Annualized Premium

LPPT

SinglePremium
g

20XAP

5XSP

Maturity Benefit:
MaturityBenefit=FundValue

Death Benefit:
In case ofdeathotherthanaccident
Incase
of death other than accident
GoldOption

PlatinumOption

Higherof:
FundValue
Or
SumAssured lesswithdrawals
Or
Or
105%ofthetotalbasic
premiumpaidtillthetimeof
deathlesswithdrawals

Higherof:
FundValue
Plus
(BasicSumAssured
Or
105%ofthetotalbasic
premiumspaidtillthetimeof
death)

Accidental Death & TPD:

ThisisaninbuiltbenefitwithSmartElite
IncaseofDeathduetoanaccident
DoubletheBasicSumAssuredwouldbepaid

IncaseofTPDduetoanaccident
10annualinstallmentswillbepaidtothelifeassured
Eachinstallmentamountsto10%ofthebasicSumAssured(subject
toamaximumofRs.50Lacs)
The first payment is due after 6 months of the claim being accepted
Thefirstpaymentisdueafter6monthsoftheclaimbeingaccepted
bySBIL
IncasetheLifeInsureddiesduringthisperiod,thediscountedvalue
ofremaininginstallmentswillbepaidtothebeneficiary.

Fund Options:
EquityandEquityrelated
instrument

DebtandMoneyMarket
Instrument

RiskProfile

IndexFund

Min:90%Max:100%

Min:0% Max:10%

High

EquityEliteFundII

Min:60%Max:100%

Min:0% Max:40%

High

BalancedFund

Min:40%Max:60%

Min:40% Max:60%

Medium

Fund

BondFund

MoneyMarketFund

Debt:
Min: 60% Max: 100%
Min:60%Max:
MoneyMarket:Min:0% Max:40%

Lowto
Low
to
Medium

Debt:
MoneyMarket:

Low

Min:0%Max: 20%
Min:80% Max:100%

Flexibility :

FundSwitching
Availableatanypointoftime
Twofreeswitchesinapolicyyearareallowed
AdditionalswitcheschargedatRs100perswitch
Additional switches charged at Rs 100 per switch
MinimumswitchamountisRs5000
Premium Redirection
PremiumRedirection
Availablefrom2nd policyyearonwards
Onefreeredirectionisallowedinapolicyyear
AdditionalchargedatRs100perredirectionrequest

*Premium Allocation Charge:

PolicyYear

LPPT

SP

10

15

3.00%

3.00%

3.00%

2.00%

6th year
onwards
d

NIL

NIL

NIL

(Onetimeatpolicy
inception only)
inceptiononly)

FundManagementCharges:
E it Elit FundII
EquityElite
F d II

1 25%
1.25%

BalancedFund

1.25%

BondFund

1.00%

MoneyMarketFund

0.25%

IndexFund

1.25%

PolicyAdministrationCharges:
LPPT

SinglePremium

Rs 60/month
Rs.

Rs 50/month
Rs.50/month

Smart Elite vs Mutual Funds

Smart Elite
Age

Premium

Growth@10%

P/E F.M.C
@1.35%

31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50

200000
200000
200000
200000
200000

213400
444971
702868
986555
1298610
1428471
1571319
1728450
1901296
2091425
2300568
2530624
2783687
3062055
3368261
3705087
4075596
4483155
4931471
5424618

2881
6007
9489
13318
17531
19284
21213
23334
25667
28234
31058
34163
37580
41338
45472
50019
55021
60523
66575
73232

Mutual Fund
Fund
Death Cover Investment
Value@10%

210519
438964
693379
973236
1281079
1409187
1550106
1705116
1875628
2063191
2269510
2496461
2746107
3020718
3322789
3655068
4020575
4422633
4864896
5351386

2000000
2000000
2000000
2000000
2000000
2000000
2000000
2000000
2000000
2063191
2269510
2496461
2746107
3020718
3322789
3655068
4020575
4422633
4864896
5351386

200000
200000
200000
200000
200000

Growth@10%

220000
456555
710911
984407
1278483
1374689
1478135
1589364
1708964
1837563
1975840
2124522
2284392
2456293
2641129
2839874
3053574
3283356
3530428
3796093

F.M.C@2.2
Fund
Death Cover
5%
Value@10%

4950
10272
15995
22149
28766
30931
33258
35761
38452
41345
44456
47802
51399
55267
59425
63897
68705
73876
79435
85412

215050
446283
694915
962258
1249718
1343759
1444877
1553604
1670512
1796218
1931384
2076720
2232994
2401026
2581704
2775977
2984869
3209480
3450994
3710681

215050
446283
694915
962258
1249718
1343759
1444877
1553604
1670512
1796218
1931384
2076720
2232994
2401026
2581704
2775977
2984869
3209480
3450994
3710681

Smart Elite Cost USP

97%Allocationsinthefirstfiveyears

100%Allocationsfrom6thyearonwards

SpeciallydesignedEquityEliteFundIIwithFMC 1.25%

PolicyAdminCharge
y
g
ForLPPT Rs60p.m.
ForSP Rs50p.m.

Flexibilities for Convenience

ConveniencethroughsinglepremiumorshorterPremiumPayingTerm
(PPT) of 5, 8 or 10 years
(PPT)of5,8or10years
Changeyourriskcover,accordingtoyourneeds,from6thyearonwards
Liquidityintheformofpartialwithdrawals
Li idi i h f
f
i l i hd
l
SwitchyourfundallocationsthroughourSwitchingOption
PremiumRedirectionandSettlementOptionalsoavailable

ROTECTION - through
th
h Insurance
I
ENSION - during Retired Life
ROPERTY - To Family After Risk

Protection
30

Earning period

Pension
60

Retirement period 100

Propertyto
Children
Child

Tax Benefits

P
Premiums
i
paid
id are eligible
li ibl ffor d
deductions
d ti
under Sec 80CCC & 80C
Commutation up to 1/3rd OR Maturity amount
is eligible for tax exemption under Sec 10(10A)
iii of the Income Tax Act, 1961
Exemption under Sec 10 (10D) of the Income
Tax Act 1961, on lump sum death proceeds

Tax benefits are subject to change in tax laws. Annuity payouts are taxable