What problem it solvesConverts a lump sum (or years of contributions) into an income stream that keeps paying however long you live.
How it worksEither you build a corpus over years (a deferred annuity or pension ULIP) or hand over a lump sum today (immediate annuity), and the insurer pays you a regular income calculated on mortality tables and prevailing rates — for life, for a fixed period, or for as long as you or a joint annuitant survive, depending on the option chosen.
What you're paying forLongevity risk pooling — the insurer is betting some annuitants die early and others live to 100, and averages it out. You're paying to remove that uncertainty from your own plan.
What's guaranteedThe annuity rate is usually locked in at the time you buy (for immediate annuities) — the income promised per lakh doesn't change once fixed, though it's fixed at whatever rates prevail on that date.
What's not guaranteedPurchasing power — most annuity options pay a level income for life, which inflation erodes over 20-30 years unless you specifically chose an increasing-income variant.
If you stop payingFor accumulation-phase products (deferred annuity, pension ULIP), missing contributions works like any savings/ULIP plan of that type. Immediate annuities are typically single-premium — there's nothing further to pay.
LiquidityVery low once annuitised — most immediate annuity income streams can't be commuted back into a lump sum, by design (that's what stops you outliving it).
Why does this exist?
Retirement products exist because a retiree with a fixed corpus faces a real risk that has nothing to do with markets: not knowing how long they'll live. A self-managed withdrawal plan can run out at 85; an annuity, by pooling many retirees' lifespans, mathematically cannot — the insurer keeps paying you specifically because some other annuitant in the same pool died earlier than the average.
Who might consider it
People at or near retirement who want guaranteed income they cannot outlive, want to convert an EPF/gratuity/NPS payout into a pension, or specifically want to de-risk part of their retirement corpus from market sequencing risk.
Who it's usually not for
Anyone who wants their capital to remain liquid or inheritable in full — once annuitised, most of the purchase price doesn't come back as a lump sum unless you specifically chose a return-of-purchase-price variant.
Structures inside this category:
Pension / Retirement ULIPDeferred AnnuityImmediate AnnuityLife AnnuityJoint-Life AnnuityReturn-of-Purchase-Price structuresSaral Pension-type
Read the full explainer on retirement →
Product data last fetched 26 August 2026. Tap a card to open it.
Retirement
Saral Pension
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A standardized immediate annuity plan (a common design mandated across insurers) that turns a one-time lump sum into a guaranteed pension for life.
You might need this if
- You might need this if you want a guaranteed income for life from a retirement lump sum, without taking on market risk.
- You might need this if you value a simple, standardized annuity structure that's easy to compare across insurers since regulation requires this exact plan design.
- You might need this if you want your spouse's income to continue after you, under a joint-life option.
- You might need this if you want a limited emergency exit option (rather than being locked in permanently) in case of a serious health event.
How it actually works
- Structured as an immediate annuity: you pay a single lump sum (the purchase price), and payouts begin right away in the frequency you choose.
- Typically offered as Single Life or Joint Life annuity, both usually paired with 100% return of the purchase price to the nominee on death.
- The annuity rate is fixed for life at the time of purchase and does not change later.
- Early surrender is usually restricted to specific circumstances, such as a critical illness diagnosis of the annuitant or spouse.
- Minimum purchase price and minimum annuity amount are set by LIC and can change over time.
Worth knowing
- This plan's brochure could not be retrieved after repeated attempts (the LIC server returned errors each time), so the details above are based on general knowledge of this standardized product category rather than the current official brochure - confirm exact figures with LIC before buying.
- Once you buy an immediate annuity, the purchase price is generally locked in for life with limited liquidity.
- Since payouts are fixed at purchase, inflation over a long retirement can erode the real value of the pension.
No public brochure found. The points above are general pointers based on this plan's name and category, not verified against the actual document — confirm details with the insurer before relying on them.
Full page →
Retirement
New Jeevan Shanti
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A deferred annuity plan where you pay once, let it grow through a 1-5 year deferment period, then receive a fixed, guaranteed pension for life.
You might need this if
- You might need this if you're a few years from retirement and want to lock in today's annuity rate before rates potentially fall.
- You might need this if you want a delayed pension start (1 to 5 years) so your eventual payout is larger than if it started immediately.
- You might need this if you want to secure income for a family member with a disability, since a lower minimum purchase price applies in that case.
- You might need this if you want the option to cover a second family member beyond just a spouse under the joint-life option.
How it actually works
- Entry age 30-79, deferment period 1-5 years; standard minimum purchase price is ₹1.5 lakh (₹50,000 for dependents with disabilities).
- Choose Single Life (annuity stops on your death) or Joint Life (continues to a named family member - spouse, parent, child, grandchild, or sibling - until the last survivor).
- Minimum annuity amounts are ₹1,000/month, ₹3,000/quarter, ₹6,000/half-year, or ₹12,000/year.
- Death during deferment or after vesting pays the higher of (purchase price + accrued additions - annuity already paid) or 105% of the purchase price.
- A loan can be taken after 3 months, up to 80% of surrender value, at a current interest rate of 9.50% p.a. (compounding half-yearly, subject to change).
- Surrender value uses a guaranteed factor of 75% (years 1-3) or 90% (year 4+) of purchase price, minus annuity already paid.
Worked example
For a ₹10 lakh purchase price with the primary annuitant aged 45 and a 5-year deferment, the yearly annuity is about ₹86,100 under Single Life or ₹82,800 under Joint Life (with a 35-year-old secondary annuitant).
The tiers
| Annuity option | Yearly | Half-yearly | Quarterly | Monthly |
|---|
| Single Life | ₹86,100 | ₹42,189 | ₹20,879 | ₹6,888 |
| Joint Life | ₹82,800 | ₹40,572 | ₹20,079 | ₹6,624 |
Worth knowing
- The annuity rate is locked in at purchase - if interest rates rise later, you can't switch to a better rate.
- This is an irrevocable income stream once it starts - there's no ongoing liquidity beyond the loan or surrender options.
- Surrendering before the deferment period ends means giving up future annuity growth for a discounted lump sum.
Retirement
Jeevan Akshay-VII
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An immediate annuity plan offering a choice of multiple payout structures, converting a lump sum into a pension that starts right away.
You might need this if
- You might need this if you have a retirement corpus (e.g. from a provident fund or gratuity payout) and want it converted into an income stream starting immediately.
- You might need this if you want to pick from several annuity structures, such as annuity for life only, annuity with return of purchase price to your heirs, or a joint-life annuity with your spouse.
- You might need this if you want annuity payments that increase over time, since some option variants offer step-up payouts to help offset inflation.
- You might need this if you're looking for a plan that generally does not require a medical exam to purchase.
How it actually works
- Works as an immediate annuity: a one-time lump-sum purchase price buys a fixed pension that starts based on your chosen payment frequency (monthly/quarterly/half-yearly/yearly).
- Offers multiple annuity options, ranging from a plain life annuity (no death benefit) to versions that return the purchase price to your nominee on death.
- Annuity rates depend on your age and the option chosen at purchase, and are locked in for life.
- A joint-life option can continue payouts to a spouse after the primary annuitant's death.
Worth knowing
- This plan's brochure could not be retrieved after repeated attempts (the LIC server returned errors each time); details above are based on general knowledge of this product category rather than the current official brochure.
- Annuity options that don't return the purchase price typically pay a higher monthly amount, but nothing is left for your heirs.
- Once purchased, the lump sum is generally illiquid outside of the plan's payout structure.
No public brochure found. The points above are general pointers based on this plan's name and category, not verified against the actual document — confirm details with the insurer before relying on them.
Full page →
Retirement
Jeevan Dhara-II
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A deferred annuity plan letting you invest a lump sum (or premiums over time) now and start receiving a guaranteed pension after a chosen deferment period.
You might need this if
- You might need this if you want to lock in an annuity rate today but delay the start of your pension to a future date.
- You might need this if you're several years from retirement and want a guaranteed, non-market-linked income plan to complement other investments.
- You might need this if you want death benefit protection for your family during the deferment period, not just after payouts begin.
- You might need this if you want the flexibility of choosing between single-premium and regular-premium payment routes.
How it actually works
- You pay a lump sum or premiums over a period, then after a chosen deferment period, the plan starts paying a guaranteed regular annuity for life.
- Both single-life and joint-life annuity options are typically available.
- If death occurs during deferment, the plan generally returns the purchase price (or premiums with additions); after annuity commencement, similar death benefit rules can apply depending on the option chosen.
- A loan facility against the surrender value is typically available once the policy has run for a minimum period.
Worth knowing
- This plan's brochure could not be retrieved after repeated attempts (the LIC server returned errors each time); details above are based on general knowledge of this product category rather than the current official brochure - confirm exact figures with LIC.
- Surrendering during the deferment period generally returns less than what you've paid in, due to surrender charges.
- Once the annuity starts, the income is fixed and doesn't adjust for inflation in the base plan.
No public brochure found. The points above are general pointers based on this plan's name and category, not verified against the actual document — confirm details with the insurer before relying on them.
Full page →
Retirement
Systematic Pension Plan
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A participating pension (retirement corpus) plan that guarantees the higher of a bonus-boosted vesting benefit or your premiums compounding at 4% p.a., which must mostly go toward buying an annuity at retirement.
You might need this if
- You might need this if you want a structured, insurer-backed retirement corpus with a guaranteed floor return (4% p.a. compounding) plus potential bonus upside.
- Useful if you may need to dip into the corpus early for specific life needs — the plan allows partial withdrawals (up to 25% of premiums paid, up to 3 times) for things like a child's education, home purchase, or medical treatment.
- Good for very long planning horizons — entry up to age 75, vesting (retirement) age from 30 to 90.
- Fits both lump-sum retirement savers (Single Pay) and those who prefer paying in over 2-12 years (Limited Pay) or throughout the term (Regular Pay).
How it actually works
- Vesting age can be set from 30 to 80, or up to 90; policy term is 5-45 years depending on vesting age chosen.
- Minimum premium: ₹50,000 Single Pay, or ₹30,000/year Regular/Limited Pay.
- Vesting benefit = higher of (Sum Assured on Vesting + accrued Reversionary Bonus + Terminal Bonus) or (total premiums paid compounded at a guaranteed 4% p.a.).
- Death benefit = higher of (101% of total premiums paid + accrued bonuses) or 105% of total premiums paid.
- At vesting, proceeds must largely go toward an annuity purchase — you can commute up to 60% as a lump sum, with the balance converted to a pension; the rest can be bought from the same insurer or, for up to 50%, from another insurer.
- Two optional riders: Accidental Disability Income Benefit and Protect Plus.
Worked example
A 40-year-old male pays a single premium of ₹5,00,000 for a 20-year policy (vesting at 60). Illustrated total benefit at vesting: ₹10,95,562 at an assumed 4% return, rising to ₹19,44,407 at 8% — this pool would then largely need to be converted into an annuity.
Worth knowing
- The 4% p.a. compounding is a guaranteed minimum, but bonuses that could push returns higher are not guaranteed.
- At vesting or surrender, regulations generally require most of the proceeds to be used to buy an annuity — this is not a plan you can simply cash out in full for spending.
- Suicide within 12 months of start/revival limits payout to 80% of premiums paid or surrender value.
- Partial withdrawals are capped at 25% of premiums paid per instance and limited to 3 withdrawals over the policy's life, only after 3 years and only for specific approved reasons.
Retirement
Pension Guaranteed Plan
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A single-premium annuity plan that converts a lump sum into a guaranteed income for life, with an option to defer the start date and lock in today's rate.
You might need this if
- You might need this if you've just retired and want to turn a lump-sum retirement corpus (PF, gratuity, sale proceeds) into predictable income you can't outlive.
- You might need this if you want a rate locked in today rather than one that changes with markets later.
- You might need this if you're planning jointly with a spouse and want payouts to continue as long as either of you is alive.
- You might need this if you can wait a few years before income starts and want a higher payout via deferment.
How it actually works
- It's a single-premium, non-participating annuity — you pay once, and payouts (monthly/quarterly/half-yearly/annual) start immediately or after a chosen deferment of 1-10 years.
- Three payout structures: Immediate Life Annuity (no death benefit, highest payout), Immediate with Return of Purchase Price (100% of purchase price returned to nominee on death), and Deferred with Return of Purchase Price.
- Entry age generally 30-45 to 70-85 depending on option; minimum purchase price around ₹42,076 and minimum annual payout of ₹12,000.
- Annuity payout = applicable annuity rate × purchase price, fixed for life once purchased.
- A top-up facility lets you add to your payout later at prevailing rates; a loan of up to 80% of surrender value is available (only for return-of-purchase-price options) at around 9.5% p.a.
- There is no maturity benefit — the plan simply pays for life; surrender is only allowed under return-of-purchase-price variants.
Worked example
For a ₹1 crore purchase price, an immediate annuity at age 50 (single life) pays about ₹7,27,075/year (₹60,590/month). Deferring 5 years at age 50 raises it to about ₹9,61,070/year (₹80,089/month). Deferring 10 years from age 45 gives about ₹9,72,619/year (₹81,052/month).
Worth knowing
- Choosing the plain Immediate Life Annuity option means nothing is returned to your family on death — the payments simply stop.
- Once purchased, the annuity rate is locked; you can't switch to a higher rate later even if market rates rise.
- Surrender is only possible under return-of-purchase-price variants, and the value is capped at the purchase price.
- Payouts are taxable as income, and TDS may apply.
Retirement
Smart Pension Plus
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A flexible annuity plan offering four income structures — flat, with premium return, milestone returns, or an annually increasing income — with single or limited-pay premiums.
You might need this if
- You might need this if you want choice in how your retirement income is structured rather than one fixed annuity type.
- You might need this if you're worried about inflation eroding a flat pension and want an option where income rises each year.
- You might need this if you want your family to get money back — some options return 50-100% of premiums on death.
- You might need this if you're saving via NPS and need an annuity provider for your NPS corpus, including a family-income option for your spouse and dependent parents.
How it actually works
- Four annuity options: Life Annuity (no return), Life Annuity with Return of a % of Premiums (50-100%), Life Annuity with Early Return (milestone lump sums at ages 75-95), and Increasing Annuity (1-5% p.a. rise).
- Premiums can be Single Pay (min ₹50,000) or Limited Pay over 2-15 years (min ₹30,000/year); payouts can start immediately or after a deferment period.
- High Premium Benefit adds 0.15%-0.55%+ to the annuity rate for larger purchase amounts (₹5 lakh and above).
- A Liquidity Option (premium-return variant only) lets you withdraw up to 60% of premiums as lump sums after 5 years of payouts, up to 3 times.
- Policy loans (premium-return options only) of up to 80% of surrender value are available, at roughly 9.5% p.a.
- Minimum guaranteed payout thresholds apply (e.g., ₹12,000/year, ₹1,000/month).
Worked example
A 60-year-old paying a ₹10,00,000 single premium under the plain Life Annuity gets about ₹86,500/year for life. Under Increasing Annuity (3% simple rise) the first year pays about ₹41,005, rising to ₹42,235 in year two. A joint-life couple (60/55) paying ₹2,50,000/year for 5 years with 10-year deferment and premium return gets about ₹1,39,921/year from year 11, with 100% of premiums (₹12,50,000) paid to the survivor on the second death.
Worth knowing
- Once purchased, the annuity rate is fixed for life — there's no flexibility to change it later.
- The plain Life Annuity option offers no payout to your family if you die early after purchase.
- Surrender values and loan access are restricted to the premium-return variants — the pure life annuity has no surrender value.
- If purchased using NPS proceeds, the policy cannot be cancelled or surrendered, and refunds go back to the NPS Trustee Bank, not to you.
Retirement
Systematic Income Plan
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An annuity plan that lets you choose between a fully guaranteed pension or one partly linked to Nifty 50, aiming for a chance at higher income alongside your family getting the purchase price back.
You might need this if
- You might need this if you want guaranteed retirement income but are also open to some market-linked upside.
- You might need this if you want your family to get the purchase price back on your death, not just stop receiving payments.
- You might need this if you're comfortable entering the plan a bit later — minimum entry age is 40.
- You might need this if you want a **lump sum advance** against future guaranteed payouts for a specific need, rather than only periodic payments.
How it actually works
- Three options: Life Annuity (fully fixed, no death benefit), Life Annuity with Return of Purchase Price (fixed rate plus full premium back to nominee), and Variable Annuity with Return of Purchase Price (60% guaranteed + 40% linked to Nifty 50 performance, plus premium return).
- Entry age 40 to 73-75 depending on Single Pay or Limited Pay; Single Pay minimum ₹50,000, Limited Pay minimum ₹5,00,000/year over 2-10+ years.
- Payout frequencies include annual, half-yearly, quarterly, and monthly (monthly not available for the Variable Annuity option).
- An Annuity Advance Option allows a lump-sum advance of up to 30% of premiums against future guaranteed annuity, for up to 5 years.
- A Smart Legacy Option lets nominees take the death benefit as installments over 2-15 years instead of a lump sum.
- Policy loans (Options B and C only) of up to 80% of surrender value are available at around 9% p.a.
Worked example
For a ₹10 lakh single premium at age 60: Option A (Life Annuity) pays about ₹86,500/year with no death benefit; Option B pays about ₹62,200/year plus the full ₹10,00,000 returned to the nominee on death; Option C's payout varies with Nifty 50 performance, on top of the ₹10,00,000+ death benefit.
Worth knowing
- The Variable Annuity option's payout can go up or down with the Nifty 50 benchmark — it isn't guaranteed like the other options.
- Choosing Option A (plain Life Annuity) means nothing goes to your family if you die after starting the annuity.
- Surrender isn't available at all for the pure Life Annuity option, and NPS-sourced policies generally can't be surrendered except in specific regulatory cases.
- Loans and surrender rely on the higher of Guaranteed and Special Surrender Value, which can be low in early years.
Retirement
Systematic Retirement Plan
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A deferred annuity savings plan where you pay premiums over several years to build a retirement corpus that later converts into a guaranteed lifelong pension.
You might need this if
- You might need this if you're still 10-15+ years away from retirement and want to build a dedicated pension corpus systematically rather than with a single lump sum.
- You might need this if you want the deferment/vesting timeline aligned to your own retirement age (entry from 45, commencement up to age 80).
- You might need this if you want a choice between a plain lifelong pension or one that also returns premiums to your family.
- You might need this if you value predictability over market-linked growth for your retirement savings.
How it actually works
- It's a non-participating, non-linked deferred annuity savings plan — you pay premiums for a term (5, 8-10, or 15+ years) and the annuity commences later, up to age 80.
- Entry age is 45-75 years; minimum payouts start at ₹12,000/year, ₹1,000/month.
- Two annuity options at vesting: Life Annuity or Life Annuity with Return of Premiums.
- Annuity is paid in arrears monthly, quarterly, half-yearly, or annually, once it starts.
- The plan has no maturity benefit — it's built purely to convert into lifelong income.
- No policy loan facility is available on this plan.
Worked example
Mr. Sharma, age 45, pays ₹2 lakh annually for 10 years, with a 15-year deferment period, and then receives an annual annuity of about ₹2,82,767 for life.
Worth knowing
- There is no policy loan facility, unlike some other HDFC Life annuity plans.
- Guaranteed Surrender Value is only acquired after two years of premiums have been paid.
- The plain Life Annuity option leaves nothing for your family on death — choose the Return of Premiums option if that matters to you.
- Grace period is 15 days for monthly premiums and 30 days for other frequencies; missing this can lapse the policy.
Retirement
Guaranteed Pension Plan
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A traditional pension plan that builds a guaranteed retirement corpus through fixed additions each year, with life cover along the way and flexible annuity purchase at vesting.
You might need this if
- You might need this if you want a fully guaranteed, non-market-linked way to build a pension corpus over 8-40 years.
- You might need this if you want life cover during the accumulation phase, not just at retirement.
- You might need this if you'd like the flexibility to buy your annuity from a different insurer for up to half your proceeds, to shop for the best rate later.
- You might need this if you may need partial access to your savings before retirement for specific needs.
How it actually works
- Entry age 18-70; you choose a vesting (retirement) age of 40-80, with policy term 8-40 years and single or limited premium payment (5-12 years).
- Guaranteed Additions of 3% of the sum assured on vesting accrue each year the policy is in force, plus a one-time Vesting Addition ranging from 24% (8-year term) to 120% (40-year term) of sum assured.
- Death benefit is total premiums paid accumulated at 6% p.a., with a minimum guarantee of 105% of premiums paid.
- At vesting, you can commute up to 60% as a lump sum and use the balance to buy an annuity — from HDFC Life or, for up to 50% of proceeds, from another insurer.
- Partial withdrawals are allowed after 3 years, up to 25% of premiums paid, limited to 3 times.
- Revival window is 5 years from the first unpaid premium; free-look period is 30 days.
Worked example
A 40-year-old male with a ₹5,00,000 sum assured, 10-year premium term and ₹50,000 annual premium builds a total vesting benefit of roughly ₹11,63,428.
Worth knowing
- This is a traditional guaranteed-return plan, so growth potential is capped compared to market-linked options.
- Missing premiums beyond the grace and revival periods can permanently reduce or forfeit benefits.
- Only up to 50% of vesting proceeds can go to buy an annuity from a different insurer; the rest must stay with HDFC Life.
- Free-look cancellation refunds premiums minus risk premium and expenses already incurred, not the full amount paid.
Retirement
Smart Pension Plan
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A unit-linked (market-invested) pension plan where your premiums grow in funds you choose, with life cover along the way and flexibility to adjust your retirement date and investments.
You might need this if
- You might need this if you want your retirement savings invested in markets for growth potential rather than a fixed guaranteed rate.
- You might need this if you want the flexibility to change your vesting date, premium term, or fund mix as your plans evolve.
- You might need this if you're comfortable with investment risk in exchange for potentially higher retirement corpus growth.
- You might need this if you want automatic de-risking as retirement nears, without managing it manually.
How it actually works
- It's a unit-linked, non-participating pension plan — the investment risk is borne by you, the policyholder, not the insurer.
- Entry age 18-70; vesting age 40-80 (min 55 for QROPS/QOPS); premium payment term 5-30 years; minimum premium around ₹3,000-₹10,000/month or ₹1,00,000 single premium.
- Life cover on death is the higher of fund value or 105% of total premiums paid.
- Choose from 9 fund options spanning debt-heavy to high-equity, plus an Automatic Asset Rebalancing Strategy that shifts to debt as vesting nears, and a Systematic Transfer Strategy for rupee-cost averaging.
- At vesting, you can commute up to 60% as a lump sum (30% after age 55 for QROPS/QOPS) and use the rest to buy an annuity.
- No riders and no policy loans are available; partial withdrawals (up to 25% of fund value, 3 times) are allowed after 5 years.
Worked example
A 35-year-old paying ₹10,000/month for 10 years into the Large Cap Fund, vesting at 55, would have a fund value of about ₹18,27,509 at 4% assumed growth or ₹32,89,179 at 8% assumed growth (not guaranteed). Converting to an annuity with 5-year deferment would then pay roughly ₹1,58,080/year (at 4%) or ₹2,87,803/year (at 8%).
Worth knowing
- Fund returns are not guaranteed — the 4%/8% illustrations are assumptions, not promises, and actual maturity value depends on markets.
- There's a 5-year lock-in; full surrender isn't allowed except on death, though the fund value becomes payable after lock-in ends.
- Fund management charges (0.85%-1.35% p.a.) and a policy administration charge (up to ₹500/month) reduce net returns over time.
- No riders and no loan facility are offered under this plan, unlike some traditional pension products.
Retirement
Sanchay Aajeevan Guaranteed Advantage Plan
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A guaranteed-return savings plan that builds a maturity corpus and lets you convert part of it into a guaranteed lifelong income, with a joint-life option that protects a spouse too.
You might need this if
- You might need this if you want guaranteed growth (not market-linked) for a medium-to-long-term goal like retirement.
- You might need this if you want the choice at maturity between taking your money out or converting some of it into lifelong income at a locked-in rate.
- You might need this if you're planning as a couple — the Future Secure (joint life) option waives premiums and pays a death benefit on the first death, continuing benefits for the survivor.
- You might need this if you may need partial access to funds for specific life events like education, home purchase, or medical needs before maturity.
How it actually works
- Choose Future Ready (single life) or Future Secure (joint life, with premium waiver); and Variant 1 (flexible, no guaranteed income rate) or Variant 2 (with guaranteed income) that lets you convert 40%, 60%, or 80% of the maturity benefit into guaranteed lifelong income.
- Entry age 18-70, maturity age 40-80, policy term 5-30 years, minimum annual premium ₹30,000.
- Guaranteed Additions of 8% of the sum assured on maturity accrue annually from year 2 (single pay) or year 5 (regular pay).
- Death benefit is the highest of premiums accumulated at a guaranteed 5% or 7% p.a. (chosen upfront), 105% of premiums paid, or surrender value.
- A Maturity Booster of 2%-5% is added if you convert 70-100% of the maturity benefit into an annuity.
- Partial withdrawals (up to 25% of premiums, 3 times) after 3 years; policy loans up to 80% of surrender value at ~9% p.a.; no riders available.
Worked example
Mr. Kumar, age 45, pays ₹10 lakh annually for 5 years in a 20-year policy, choosing 80% guaranteed income conversion: Sum Assured comes to about ₹59,55,891, Guaranteed Additions about ₹76,23,540, for a total maturity value of roughly ₹1,57,52,140. Converting ₹1,26,01,712 of that to income gives a guaranteed annual income of about ₹9,93,015 (a 7.88% income rate).
Worth knowing
- The guaranteed income rate is chosen and locked at maturity/conversion, so it can't later be improved even if annuity rates rise.
- This is a traditional guaranteed plan, so growth is capped relative to market-linked ULIP alternatives.
- No riders are offered, and the suicide clause within 12 months limits payout to 80% of premiums paid or surrender value.
- Accessing NPS-linked or QROPS proceeds comes with restrictions — commutation capped at 30% and access restricted until age 55 or maturity.
Retirement
Aajeevan Growth Nivesh and Income
+
A single-premium annuity plan offering a choice between a fully guaranteed lifelong income, one with your purchase price returned to family, or one partly linked to Nifty 50 for potential upside.
You might need this if
- You might need this if you have a lump sum (₹50,000+) to convert into guaranteed lifelong income starting at age 40 or later.
- You might need this if you want your family to get the full purchase price back on your death rather than payments simply stopping.
- You might need this if you're open to a portion of your income being linked to market performance (Nifty 50) for potential higher payouts.
- You might need this if you'd like a lump-sum advance against future guaranteed payouts for a specific need.
How it actually works
- Three options: Option A - Life Annuity (no death benefit, invests 100% of purchase price for the highest fixed payout), Option B - Life Annuity with Return of Purchase Price, and Option C - Variable Annuity with Return of Purchase Price (60% guaranteed, 40% linked to Nifty 50 with a fixed 38% performance factor).
- Entry age 40-75; minimum single premium ₹50,000 for Options A/B, ₹5,00,000 for Option C; joint life allowed with spouse as secondary annuitant.
- An Annuity Advance Option (Options B/C, after 1 year) provides a lump sum up to 5 years' guaranteed annuity, capped at 30% of total premiums per withdrawal.
- A Smart Legacy Option lets nominees choose 2-15 year installments instead of a lump-sum death benefit.
- Policy loans (Options B/C) up to 80% of surrender value at around 9% p.a.; premium bands of ₹2.5 lakh+ earn enhanced annuity rates of 0.15%-0.55%.
- GST is currently 0% on individual life insurance policies (effective since September 2025), which effectively boosts the amount invested.
Worked example
A ₹10 lakh single premium under Option A pays about ₹86,500/year for life with no death benefit; under Option B it pays about ₹62,200/year plus the full ₹10 lakh returned on death. A ₹1 crore investment under Option C yields roughly ₹3.82 lakh guaranteed each year plus a variable component linked to Nifty 50.
Worth knowing
- Option C's variable component can rise or fall with the Nifty 50 — it isn't guaranteed.
- Option A (plain Life Annuity) has zero surrender value and no payout to family on death.
- Once purchased, the guaranteed portion's rate is fixed for life and can't be renegotiated.
- Monthly payout frequency is not available under Option C.
Retirement
Signature Pension
+
A market-linked ULIP pension plan (Advantage or Premier variant) for building a retirement corpus, with a Family Secure option to extend coverage to a spouse or other family member.
You might need this if
- You might need this if you want your retirement savings to grow via equity/debt market exposure rather than a fixed guaranteed rate.
- Useful if you want the option to extend the plan to cover a spouse, sibling, child, or parent (Family Secure), so premiums are waived and the policy continues if you die before retirement.
- Fits if you value flexibility on when you retire — you can postpone vesting (retirement date) up to age 90 in yearly increments.
- Good if you want to eventually convert part of the corpus into a guaranteed lifetime annuity while keeping the option to take up to 60% as a lump sum.
How it actually works
- Two variants: Advantage (4% premium allocation charge, lower admin charge) and Premier (nil allocation charge, higher admin charge); entry age 18-75; policy term 15-72 years; vesting age 40-90.
- Single pay (min ₹10,00,000) or limited pay (5-15 years or term minus 5); 10 pension-specific funds across equity, balanced, and debt risk categories, plus 4 portfolio strategies including a lifecycle option.
- At vesting, you can commute up to 60% as a lump sum and annuitize the rest, buy a full annuity, or take up to 50% annuity from another insurer; default is 60% lump sum + 40% into an annuity with return of purchase price.
- Death benefit (without Family Secure) is the higher of fund value or 105% of premiums paid; with Family Secure, the surviving family member's premiums are waived and the policy continues to their vesting.
- Partial withdrawals allowed after the 5-year lock-in for specific purposes (education, marriage, home purchase, critical illness, disability, business) — up to 25% of fund value per withdrawal, max 3 times.
- Fund management charge 1.35% p.a. (0.75% for Money Market Fund); a QROPS option exists for UK pension transfers.
Worked example
A 40-year-old paying ₹2,00,000/year for 15 years over a 20-year term: at an assumed 8% return, fund value at vesting is about ₹69.3 lakh; at 4%, about ₹41.6 lakh. A Pension Booster (refund of deducted charges) is added on top. Reduction in Yield for a similar 40-year-old paying ₹1,00,000/year over 10 years ranges from 2.25% at year 15 down to 1.57% at year 40.
Worth knowing
- 5-year lock-in, and no liquidity at all during that period.
- Funds don't offer a guaranteed return — this is a market-linked pension plan, unlike GPP Flexi's guaranteed annuities.
- No policy loans available.
- At vesting, you're required to use most of the corpus to buy an annuity (regulatory requirement for pension plans) rather than taking it all as cash.
Retirement
Guaranteed Pension Plan Flexi
+
A guaranteed (non-market-linked) annuity plan for people 40+ who pay premiums for a limited period and then receive a fixed, lifelong pension, with seven annuity structures to choose from.
You might need this if
- You might need this if you're 40+ and want a fully guaranteed, unchanging pension amount for life rather than market-linked retirement income.
- Useful if you want to choose between getting your premiums back to your family (Return of Premium) or a higher payout without that guarantee.
- Fits if you want a pension that rises 5% every year to help keep pace with the cost of living (Increasing Annuity option).
- Good if you or your spouse might face a critical illness or disability — one option pays out early on such diagnosis rather than waiting for death.
How it actually works
- Entry age 40-80 (primary), 30+ (secondary for joint life); premium payment term 2-15 years; entry age plus deferment period cannot exceed 85 years.
- Seven annuity options: Single/Joint Life with or without Return of Premium, Single/Joint Life with Return of Premium on Critical Illness/Disability/Death, and Increasing Annuity (5% p.a.) versions for single or joint life.
- Guaranteed Additions accrue monthly during deferment at a rate equivalent to ₹5,000/month if premiums stay current, and a High Premium Benefit adds an extra 1.5%-8.5% to the annuity depending on premium size.
- The annuity amount is fixed and guaranteed for life once informed at policy purchase, unaffected by market or interest-rate changes later.
- Policy loans (up to 60% of surrender value during deferment, for health expenses only after deferment) and a Special Withdrawal option (up to 60% of premiums paid, max 3 times) are available on Return-of-Premium variants.
- Death benefit during deferment is the higher of (total premiums + accrued additions) or 105% of premiums paid; after deferment, Return-of-Premium options pay back unused premiums plus additions minus annuity already received.
Worked example
For a ₹50 lakh premium paid over 5 years with a 10-year deferment: Single Life without Return of Premium pays ₹5,64,788/year; Single Life with Return of Premium pays ₹4,95,342/year; Joint Life without Return of Premium pays ₹5,01,631/year until either annuitant dies; the Increasing Annuity (Single Life) option starts at ₹3,34,034 in year 1, rising 5% annually thereafter.
The tiers
| Annuity Option | Illustrative Yearly Payout (₹50L premium, 5-yr pay, 10-yr deferment) |
|---|
| Single Life, without Return of Premium | ₹5,64,788/year |
| Single Life, with Return of Premium | ₹4,95,342/year |
| Joint Life, without Return of Premium | ₹5,01,631/year (until second death) |
| Increasing Annuity, Single Life | ₹3,34,034 in year 1, +5% each year after |
Worth knowing
- "Without Return of Premium" options generally pay more per year, but nothing is paid back to your family after death — the tradeoff is higher income vs. no legacy.
- No death benefit after the deferment period ends for the "without Return of Premium" options.
- Suicide clause during deferment: only 80% of total premiums paid, or surrender value if higher.
- If you bought this using NPS or another pension scheme's proceeds, you generally cannot surrender except under specific legal/government directives.
Retirement
Saral Pension Plan
+
A single-premium immediate annuity that converts a lump sum into guaranteed income for life, with the option to get your capital back to your family later.
You might need this if
- You might need this if you have a retirement lump sum (PF, gratuity, NPS corpus) and want it converted into a predictable income stream you can't outlive.
- You might need this if you want simplicity over choice — it offers just two annuity structures rather than a dozen options to compare.
- You might need this if you want your family to eventually get the original purchase price back rather than the insurer keeping it after your death.
- You might need this if you're comfortable locking in today's annuity rate for the rest of your life, in exchange for certainty.
How it actually works
- You pay a one-time Purchase Price and choose Single Life or Joint Life annuity, both with 100% Return of Purchase Price (ROP) to your nominee on death.
- Entry age is 40 to 80 years; annuity can be paid monthly, quarterly, half-yearly or yearly, subject to a minimum of ₹12,000/year (₹1,000/month).
- Larger purchase prices get better rates: six purchase-price bands from under ₹3 lakh up to ₹50 lakh+ each unlock progressively higher annuity rates.
- You can add one booster — Online (1% more), Loyalty (for existing ICICI Pru customers), or an NPS price discount — but only one at a time.
- Surrender is allowed after 6 months only if diagnosed with one of 20 listed critical illnesses, paying 95% of the purchase price minus any loan.
- A policy loan is available after 6 months (rate ~8.58% p.a. as of April 2025), capped so yearly interest doesn't exceed 50% of the annual annuity.
Worked example
For a 60-year-old male with a 55-year-old female under Joint Life with ROP, a ₹20,00,000 purchase price generates an annual annuity of about ₹1,20,310 (roughly ₹9,640/month).
The tiers
| Purchase Price Band | Annuity Rate Impact |
|---|
| Below ₹3 Lakh | Base rates |
| ₹3L – <₹5L | Higher rates |
| ₹5L – <₹10L | Higher rates |
| ₹10L – <₹25L | Higher rates |
| ₹25L – <₹50L | Higher rates |
| ₹50L and above | Highest rates |
Worth knowing
- The annuity rate is locked at purchase — if interest rates rise later, you can't switch to a better rate on the same policy.
- No changes to annuity option or payout frequency are allowed once the 30-day free-look period ends.
- NPS-sourced policies generally cannot be surrendered except under specific regulatory circumstances.
- Tax treatment of annuity income depends on prevailing income tax law — the brochure recommends professional tax advice.
Retirement
Gold Pension Savings Plan
+
A participating pension savings plan where you build a bonus-linked retirement corpus over years, with flexibility to withdraw for emergencies before you retire.
You might need this if
- You might need this if you're still years away from retirement and want to build a corpus gradually rather than hand over a lump sum today.
- You might need this if you want some access to your money before retirement — e.g. for a child's education, medical needs, or a first home — without fully cashing out.
- You might need this if you value bonus-driven growth potential over a plan with fixed, guaranteed-only returns.
- You might need this if you may want to push back your retirement (vesting) date rather than being forced to annuitise on a fixed schedule.
How it actually works
- Entry age is 18–70 (55 for overseas pension transfers); vesting (retirement) age can be anywhere from 40 to 90 depending on the term chosen.
- Premiums start at ₹50,000/year (or as a single payment); you can pay for as little as 2 years (limited pay) or as long as 40 years (regular pay).
- At vesting, the guaranteed base is 105% of total premiums paid, topped up by non-guaranteed accumulating cash bonus and any terminal bonus.
- At retirement you can commute up to 60% as a lump sum and must annuitise the rest — either with ICICI Pru or, for up to 50%, with another insurer.
- A special withdrawal facility lets you take out up to 25% of premiums paid (after 3 years, up to 3 times) for things like education, home purchase, or critical illness.
- You can defer vesting up to age 75, with a policy loan (up to 80% of surrender value) available once the plan has built cash value.
Worked example
A 40-year-old paying ₹1,00,000/year for 10 years under a 20-year policy term could see a total vesting benefit of roughly ₹16,63,836 at a 4% assumed return, or ₹29,29,519 at an 8% assumed return (illustrative, not guaranteed).
Worth knowing
- Bonuses (regular, terminal, and contingent terminal) are not guaranteed and depend on the insurer's discretion each year.
- If you lapse after the first year, the policy goes 'paid-up' with proportionally reduced benefits; some bonus features may stop.
- Surrender in the first 3 years pays only 75% of the guaranteed surrender factor base; it rises to 90% from year 4 onward.
- If you die within 12 months of taking the policy, the death payout is capped at the higher of 80% of premiums paid or the surrender value.
Retirement
Guaranteed Pension Plan
+
A single-premium annuity plan offering both immediate and deferred payout options, with 11 variants to choose how and when your guaranteed income starts.
You might need this if
- You might need this if you want maximum choice in structuring your retirement income — immediate or deferred, single or joint life, with or without capital return.
- You might need this if you'd rather start your annuity a few years from now (deferred) instead of immediately, letting your purchase price grow first.
- You might need this if you want a safety net that pays out early if you're diagnosed with a serious illness or disability, not just on death.
- You might need this if you're transferring a UK pension (QROPS) and need a plan structured to meet those specific rules.
How it actually works
- Immediate annuity entry age is 40–70 (up to 80 for a special Single Life ROP-at-80 option); deferred annuity entry is 30–100, with 1–10 years of deferment.
- There are 11 annuity options in total spanning single life, joint life, with/without Return of Purchase Price (ROP), and versions tied to critical illness or permanent disability.
- During deferment, the death benefit is the higher of (Purchase Price + accrued Guaranteed Additions) or 105% of Purchase Price.
- Seven listed critical illnesses (e.g. cancer, heart attack, stroke, organ transplant) or permanent disability can trigger early benefits before age 80 on eligible options.
- Larger purchase prices unlock extra annuity rate boosts — up to 2.50% more for immediate annuities and up to 4.00% more for 6–10 year deferred annuities on purchases of ₹25 lakh+.
- A policy loan (deferred plans only) is available up to 80% of surrender value at ~8.15% p.a. (as of Jan 2026), and must be cleared before the deferment period ends.
The tiers
| Purchase Price | Immediate Annuity Boost | Deferred 1-5 yrs | Deferred 6-10 yrs |
|---|
| Under ₹3L | 0.00% | 0.00% | 0.00% |
| Under ₹5L | 0.85% | 1.50% | 2.75% |
| Under ₹10L | 1.50% | 2.25% | 3.25% |
| Under ₹25L | 2.15% | 2.75% | 3.75% |
| ₹25L and above | 2.50% | 3.00% | 4.00% |
Worth knowing
- Surrender is only allowed on specific option numbers (immediate options 1–6, deferred 7–9) and is unavailable for NPS/QROPS-sourced policies.
- The annuity option and payout frequency become locked in permanently once the 30-day free-look period ends — no later changes allowed.
- Guaranteed surrender value factors are relatively low in early years: 75% in years 1–3, rising to 90% from year 4.
- Policies can be contested by the insurer within 3 years of issue on grounds of fraud or material misstatement.
Retirement
Smart Annuity Plus
+
A general (non-NPS) immediate or deferred annuity plan offering 11 payout structures - level, increasing, joint-life, return-of-purchase-price, and certain-period options - from a one-time purchase price.
You might need this if
- You might need this if you have a lump sum (retirement corpus, maturity proceeds, etc.) and want to convert it into a guaranteed income stream for life.
- You might need this if you want to protect your capital for your heirs - several options return your full purchase price to your nominee on death.
- You might need this if you're planning income for a couple - joint-life options continue paying your spouse after you're gone.
- You might need this if you want your income to keep pace with rising costs - simple or compound annual increase options (3% or 5%) are available.
- You might need this if you want to delay the start of payouts (deferred options, 1-10 years) to get a higher income rate later.
How it actually works
- Entry age is generally 30-95 years (0+ for product conversions; 45+ for deferred options); no upper limit on purchase price.
- Choose from 11 annuity options: plain life annuity, life annuity with return of purchase price, return of balance purchase price, simple/compound annual increase (3% or 5%), certain-period annuities (10 or 20 years), joint-life-and-survivor options, and deferred variants.
- Payouts can be monthly, quarterly, half-yearly, or yearly, paid via bank transfer, generally starting one period after purchase.
- Larger purchase prices (above ₹10 lakh) unlock incremental rate boosts, and further discounts/gross-ups apply for NPS subscribers, existing SBI Life pension customers, online purchases, and staff.
- There is no maturity value and no loan facility on this product - it is a pure annuity (income) product, not a savings-cum-payout plan.
- Surrender is only possible on deferred options or purchase-price-refund options, at the higher of guaranteed or special surrender value.
Worked example
For a ₹10 lakh purchase price at age 60, the brochure illustrates a plain Life Annuity paying about ₹77,826/year (7.78%) with no death benefit, versus a Life Annuity with Return of Purchase Price paying a lower ₹64,150/year (6.42%) but refunding the full ₹10 lakh to the nominee on death. A 10-year deferred Life Annuity with Return of Purchase Price bought at age 60 was shown paying roughly ₹1,25,852/year (12.59%) once payouts start at 70.
The tiers
| Annuity Option (₹10L purchase price, age 60) | Illustrative Annual Payout | Death Benefit |
|---|
| Life Annuity | ₹77,826 | None |
| Life Annuity + Return of Purchase Price | ₹64,150 | Full purchase price |
| Certain Period 10 years | ₹76,912 | Continues to spouse for balance of period |
| Joint Life & Last Survivor 100% | ₹70,695 | None |
| Joint Life & Last Survivor + Return | ₹63,883 | Full purchase price |
Worth knowing
- Once you choose an annuity option and it starts paying, it generally can't be changed or reversed - this is a long-term, largely irreversible commitment.
- Options without a return-of-purchase-price or certain-period feature pay nothing to your family if you die early - the trade-off for a higher headline rate.
- You must submit a periodic existence (life) certificate or your payouts will stop until you do.
- Increasing-income options start at a noticeably lower rate than level options, so short-term cash flow is lower in exchange for long-term inflation protection.
Retirement
Saral Pension
+
A standardized (IRDAI-mandated format), single-premium immediate annuity plan with just two simple options - individual or joint-life - both returning the full purchase price to your family on death.
You might need this if
- You might need this if you want a simple, standardized annuity product that's easy to compare across insurers since its structure is regulator-mandated to be identical everywhere.
- You might need this if you want your family to get your original lump sum back no matter what - both available options return 100% of the purchase price.
- You might need this if you're older (40-80 entry age) and want an immediate, no-frills lifetime income from a single lump-sum payment.
- You might need this if you might need early access to funds - Saral Pension allows surrender after 6 months if diagnosed with a listed critical illness, which many annuity plans don't offer.
How it actually works
- Single premium only, entry age 40-80 years, no upper limit on purchase price.
- Only two annuity options: Life Annuity with 100% Return of Purchase Price (individual), or Joint Life Last Survivor Annuity with 100% Return of Purchase Price (covers you and your spouse).
- Payouts can be monthly, quarterly, half-yearly, or yearly via bank transfer; minimum monthly payout ₹1,000.
- On death, the full purchase price is returned to nominees (minus any annuity instalments already paid out after death, which get recovered).
- Surrender is allowed after 6 months if the annuitant is diagnosed with a specified critical illness, paying 95% of the purchase price minus any outstanding loan.
- A policy loan facility is available after 6 months, with interest capped at 50% of the annual annuity amount.
Worked example
For a ₹10 lakh purchase price at age 60, the brochure illustrates a Life Annuity with Return of Purchase Price paying about ₹60,560/year (6.06%), versus a Joint Life Last Survivor version paying slightly less at about ₹59,759/year (5.98%) - in both cases the full ₹10 lakh eventually goes to nominees.
Worth knowing
- Because both options guarantee return of the full purchase price, the annual payout rate is lower than plans that don't offer this guarantee.
- Outside of the critical-illness surrender window, this is largely an irreversible, illiquid product - you're locking in the purchase price for a lifetime income stream.
- Free look period is only 15 days for offline purchases (30 days if bought online), shorter than the 30-day standard on many other SBI Life products.
- A 2% additional benefit applies for SBI Life/RRB staff, not for the general public.
Retirement
Retire Smart Plus
+
A unit-linked (market-invested) pension savings plan where you build a retirement corpus across 7 fund choices over 10-35 years, then use it to buy an annuity or withdraw partially at vesting.
You might need this if
- You might need this if you want market-linked growth potential for your retirement corpus rather than a fixed guaranteed rate, and you're comfortable bearing the investment risk yourself.
- You might need this if you want control over your asset allocation during the accumulation phase - 7 funds ranging from money market to 100% equity, with free switching.
- You might need this if you want flexibility at retirement: commute up to 60% of the corpus as a lump sum, buy an annuity (from SBI Life or elsewhere), or extend the accumulation period instead.
- You might need this if you may need emergency liquidity later in the policy - partial withdrawals are allowed after the 5-year lock-in for specific needs like education, medical treatment, or a home purchase.
How it actually works
- Entry age 20-60 years, vesting (maturity) age 30-70; choose Regular Premium (10-35 yr term), Limited Premium (5-8 yr pay, 15-35 yr term), or Single Premium (min ₹1 lakh).
- Money is invested in one or more of 7 pension funds (from Money Market to 100%-equity Optimiser), with unlimited free switching and premium redirection from year 2.
- A mandatory 5-year lock-in applies - no surrender or withdrawal is allowed in the first 5 policy years.
- At vesting, you get the fund value plus a 1.5% terminal addition; a further loyalty addition of 0.30% of average fund value is added annually from year 15 for longer-term policies.
- Death benefit while in force is the higher of (fund value + terminal addition) or 105% of total premiums paid; the nominee can take it as a lump sum or use it to buy an annuity.
- Charges include premium allocation charges (2.5%-6% depending on year), fund management charges (0.25-1.35% p.a.), and a monthly policy admin charge (capped at ₹500/month); no policy loan is available.
Worked example
For a 30-year-old paying ₹1,00,000/year for 25 years into the Equity Pension Fund, the brochure projects a maturity value (fund value + terminal addition) of roughly ₹35.5 lakh at an assumed 4% return or ₹63.1 lakh at an assumed 8% return - illustrative, not guaranteed, since returns depend on actual market performance.
Worth knowing
- This is a unit-linked plan, so your fund value can go down as well as up - unlike SBI Life's guaranteed savings products, there's no minimum return promise on the invested amount.
- No withdrawals of any kind (including surrender) are allowed during the first 5 years, regardless of circumstances.
- No riders are available to add on to this product.
- All fund and administration charges are deducted from your investment regardless of market performance, which drags on returns in flat or down markets.
Retirement
Smart Annuity Income
+
An annuity plan exclusively for National Pension System (NPS) subscribers converting their NPS corpus into a regular income at retirement, with five payout structures including a family-income option.
You might need this if
- You might need this if you're an NPS subscriber who must annuitize part of your NPS corpus at retirement/exit and want an SBI Life option built specifically for that purpose.
- You might need this if you want your spouse to keep receiving your annuity income after you're gone (joint-life options).
- You might need this if you want your family's income to extend even further - the Family Income option can pass benefits to dependent parents and eventually children.
- You might need this if you want your original purchase price refunded to your family rather than the annuity payments simply stopping at death (return-of-purchase-price options).
How it actually works
- Available exclusively to NPS subscribers at scheme exit; for joint-life options, the age gap between annuitants cannot exceed 30 years.
- Choose from 5 annuity options: Single Life Annuity, Single Life with Return of Purchase Price, Joint Life Annuity, Joint Life with Return of Purchase Price, and Family Income (covers subscriber, spouse, then dependent parents, then children).
- Purchase price comes from your NPS corpus, with a minimum set so as to meet PFRDA's minimum annuity payout rules; no maximum limit.
- Payouts can be yearly, half-yearly, quarterly, or monthly, fixed at the rate applicable when you purchase the annuity and unaffected by future market movements.
- Death benefit depends on the option chosen - ranges from no payout (plain options) to full purchase price returned to the nominee, or continuation to a surviving spouse/parent/child under Family Income.
Worked example
For a ₹10 lakh purchase price at age 60, illustrated payouts include about ₹6,423/month for a plain Single Life Annuity, versus a lower ₹5,433/month for Single Life with Return of Purchase Price (which refunds the ₹10 lakh to the nominee on death); a Joint Life Annuity was shown at about ₹5,890/month.
Worth knowing
- This plan is restricted to NPS exit proceeds - you cannot use it to annuitize savings from other sources.
- As with most annuities, options without a return-of-purchase-price feature pay a higher monthly income but leave nothing for your family if you die early.
- A specific downloadable brochure PDF was not found on SBI Life's public site during research; details here are drawn from the official Smart Annuity Income product page and product guide document.
- Once purchased, the annuity option generally cannot be changed.
Retirement
Smart Pension Secure
+
A unit-linked (market-linked) pension plan where you build a retirement corpus across equity/debt fund choices, then use the fund value at vesting to buy an annuity or take part of it as a lump sum.
You might need this if
- You want to build a retirement corpus with equity exposure rather than a fixed-return-only pension plan
- You want flexibility to switch between 8 fund options (100% debt to 100% equity) as your risk appetite or life stage changes
- You may need occasional access to funds before retirement - the plan allows limited partial withdrawals after 5 years
- You want the option to postpone your vesting date if you're not ready to retire at the originally chosen age
How it actually works
- Entry age 35-75 (single/limited pay) or 35-65 (regular pay); vesting age 45-85 (single/limited pay) or 45-75 (regular pay)
- Minimum premium around ₹10,000/year; choose Single Pay, Limited Pay (5 yrs up to vesting-minus-entry-age) or Regular Pay (10-40 yrs)
- Money is invested across 8 fund options ranging from fully debt to fully equity, with free fund switching
- At vesting, the fund value (at prevailing NAV) is used to buy an annuity, with up to 60% allowed as a lump-sum commutation
- Death benefit is the higher of the fund value or 105% of premiums paid, plus any top-ups
- Partial withdrawals (up to 25% of fund value, minimum ₹6,000) are permitted after year 5, capped at 3 times over the policy term
Worked example
A published calculator example for a 55-year-old investing ₹20 lakh suggests needing to save around ₹14,300/month to target a corpus generating roughly ₹77,300/month pension at retirement - but this assumes a 15% return rate that the plan does not guarantee.
Worth knowing
- This is market-linked - unlike some other Tata AIA pension plans, there is no guaranteed return here; your eventual pension depends heavily on fund performance
- Illustrations using 8% or higher growth assumptions are scenarios, not promises - actual returns can be lower (or negative in bad years)
- Discontinuing premiums during the lock-in period means you get the fund value only after charges are deducted, which can be less than what you paid in
- A suicide exclusion in the first 12 months limits the payout to fund value less certain charges
Retirement
Fortune Guarantee Pension
+
A guaranteed, non-market-linked pension/annuity plan (individual or group) offering several annuity structures, including options that return your full purchase price to your nominee on death.
You might need this if
- You want a pension income that's fixed and guaranteed at purchase, not dependent on markets
- You want the reassurance that your purchase price (or a return of it) goes to your family if you pass away, depending on the option chosen
- You're buying this for a group (e.g., employees) - the plan supports group purchases of 5+ members
- You want flexibility in how deferred your income starts, and in payout frequency
How it actually works
- Entry age starts at 30, going up to 84-85 depending on which of the plan's four annuity options you pick
- Choose Single Pay (1-10 year deferment) or Regular/Limited Pay (5-12 year premium term, with deferment tied to that term)
- Four annuity structures: Immediate Life Annuity, Immediate Life Annuity with Return of Purchase Price, and two Deferred Life Annuity variants (with optional return of purchase price)
- Minimum annuity amounts apply by frequency (roughly ₹1,000/month up to ₹12,000/year) - a floor below which you can't structure payouts
- No stated maximum purchase price, subject to Tata AIA's underwriting policy, so larger retirement corpora can be annuitized
- Top-up premiums allowed to boost your eventual annuity amount
Worth knowing
- Because it's a guaranteed annuity, once you commit your purchase price the rate is locked in - you don't benefit from any future rate rises on that money
- Return-of-purchase-price options generally pay a lower ongoing annuity than options without that feature - it's a trade-off, not free
- Some options remain subject to underwriting depending on entry age and health, so issuance isn't automatic
- Tax treatment of annuity income follows prevailing law at the time you receive payouts, which can differ from when you bought the plan
Retirement
Saral Pension Plan
+
A standardized, IRDAI-mandated single-premium immediate annuity plan that converts a lump sum into a guaranteed income for life, with your full purchase price returned to your nominee on death.
You might need this if
- You have a retirement lump sum (PF withdrawal, gratuity, savings) and want to convert part of it into a guaranteed lifetime income
- You want a simple, standardized product - "Saral Pension" is a common structure IRDAI requires most insurers to offer, so it's easy to compare across companies
- You want your invested purchase price protected and paid to your family when you die, not lost to the insurer
- You may want to cover a spouse too, via the joint-life option
How it actually works
- Single premium only - you pay once as a lump sum; entry age typically 40-80 years (down to 70 for point-of-sale purchases)
- Two structures: Life Annuity with Return of Purchase Price (income for your life, 100% of purchase price returned to nominee on death), or Joint Life Last Survivor Annuity with Return of Purchase Price (income continues until both spouses have passed, then purchase price returned)
- Choose payout frequency: monthly, quarterly, half-yearly, or annual, with minimum payouts from about ₹1,000/month up to ₹12,000/year
- The annuity rate is locked in at purchase and guaranteed for life - it doesn't change with markets afterward
- A special early-surrender allowance applies if you, your spouse, or a child is diagnosed with a specified serious illness (typically after 6 months)
Worked example
Illustrative published figures suggest that a larger lump sum (on the order of the monthly-equivalent of roughly ₹10,000 in a comparable investment) could translate to a pension in the ballpark of ₹1.5 lakh/month at higher purchase amounts - these are example ratios from published illustrations, not a promise for any specific amount; actual annuity rates depend on age, option, and prevailing rates at purchase.
Worth knowing
- Once you buy, the annuity rate is locked for life - if interest rates rise later, you can't get a better rate on that money
- Since it's a single-premium product, all your capital goes in upfront - there's no way to top up gradually
- Early exit outside the serious-illness allowance is generally not possible - annuity plans like this are illiquid by design
- Annuity income is taxable as per your income slab in the years you receive it
Retirement
Shubh Flexi Pension
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A flexible annuity plan that splits your pension into a guaranteed fixed portion and a variable portion linked to Nifty 50 performance, letting you dial up or down how much market exposure you want in retirement.
You might need this if
- You want a pension that's not entirely fixed - you're comfortable with some Nifty-linked upside (and downside) potential in exchange for possibly higher long-run income
- You want to choose how much of your pension is guaranteed vs. variable (options typically let you set the guaranteed portion at 60-90%)
- You want flexibility between starting income immediately or deferring it (up to 20 years)
- You may want to cover a spouse or ensure your premiums come back to your family, via the return-of-purchase-price options
How it actually works
- Entry age roughly 30-85 (point-of-sale variants around 40-70); choose Single Pay or Regular/Limited Pay (roughly 2-12 years), with a deferment period of 1-20 years
- Five annuity options ranging from a simple Immediate Life Annuity to variants with Return of Purchase Price, and two "variable" options that add Nifty 50-linked income on top of a guaranteed base
- The guaranteed annuity portion is fixed at purchase; the variable annuity portion is recalculated periodically (e.g., quarterly) against an assumed interest rate benchmark, so it can rise or fall with markets
- Minimum annuity around ₹1,000/month or ₹12,000/year; payout frequency choices include monthly, quarterly, half-yearly, annual
- Under variable options, death benefit generally returns 100% of premiums paid to your nominee; under simpler options it can be lower (50-100%) or nil
- A policy loan (up to 80% of surrender value) is available after one year on most options
Worked example
One published illustration for a 50-year-old contributing ₹12 lakh/year for 10 years (₹1.2 crore total) shows a starting pension around age 60 of roughly ₹5.17 lakh/year guaranteed plus ₹5.30 lakh/year variable (about ₹10.47 lakh/year combined) - projected, under an assumed 14% Nifty CAGR (not guaranteed), to grow to around ₹21.37 lakh/year by age 80.
Worth knowing
- The variable annuity portion can go down as well as up - it isn't a guaranteed income stream, only the "guaranteed" share is
- Illustrations using double-digit CAGR assumptions for the variable portion are optimistic scenarios, not promises
- Death benefit generosity (50% vs. 100% of premiums) depends heavily on which of the five options you pick at outset - a cheaper option may leave your nominee less protected
- This card draws on a third-party pension-plan summary rather than Tata AIA's own brochure PDF, which wasn't directly retrievable - confirm current terms with an official illustration
This insurer hasn't published a standalone brochure PDF for this plan — the notes above are drawn from their official product page instead.
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