Smart Annuity Income

What this product is

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

Worth knowing before you decide

• 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.

Official source

⌟ Official product brochure

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