retirement planning.pdf

8/9/2019 retirement planning.pdf

1/42

Investment / Retirement

Planning for


2/42


3/42

State Bank GroupState Bank Group Foreign SubsidiariesForeign Subsidiaries


4/42


5/42


6/42

ABOUTSBI LIFE

Along with its 6 Associate Banks, State Bank Group has the

unrivalled strength of over 18,000 branches across the

, .

BNP Paribas Cardif is the life and property & casualty

,

the world.

,

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

rece ve an ra ng rom an ar oor s.

6


7/42

Aboutsbilife

. . -

1st New Life insurer to declare a net profit for 6

.

SBI LIFE POSTS NET PROFIT OF Rs. 740 CRORE, UP BY

- . . .

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 year2013 - 14.


8/42

About sbi life

.

,

.

Mark,increasesby12.7%over

lastfinancialyear

Regularnew

business

premium

increased

by

14.5%,

to

Rs.

2,998crs.ForF.Y.2013 14

NewbusinesspremiumAPEgrewby17.7%toRs.2,809crore

duringfinancial

year

2013

14

762branchesnetwork,

u

y

.

y,

,

v

uoftotalof966,866grouplivescoveredbytheCompany

8


9/42

MostTrustedPrivateLifeInsuranceBrand2013

Awards & Accolades

byTheEconomicTimes,BrandEquityandNielsenSurvey

BestLifeInsuranceProvider2013'

UnderservedMarketPenetrationAward2013b IndianInsuranceAwards

ClaimsServiceCompanyoftheYearAward2013SBI

Life

has

demonstrated

effective

and

speedy

claims

settlements.

GlobalPerformanceExcellenceAward2013byAsiaPacificQualityOrganisation(APQO)

DigitalInclusion

Skoch

Awards

2013

SBILifereceivedtheawardfortheprojectEnablingpartnerstocollectpremium

throu hElectronicFundTransferCash&DirectDebit.Theawardreco nisesbest

practicesinthefieldsofgovernance,finance,bankingetc

9


10/42

Communication Excellence Award 2013

Awards & Accolades

Training Provider of the Year Awardat Asia's Training & Development Excellence Awards 2013

ISO 27001 Certification for Information Security Management System (ISMS)

ISO 9001:2008 Cert if ication -for Quality Management Systems for Planning, Designing and Developing

Training Programs

The Most Admired Life Insurance Com an in the Private Sector

The Best Life Insurance Company in the Private SectorBy BFSI (Banking Financial Services and Insurance) 2014 Awards

- Dream Company To Work For 2014

Dream Employer of the Year 2014 - Ranked 4th

by Awards at the World HRD Congress


11/42

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


12/42

Inflation

8.5% in Nov 2012, way beyond

acceptable level

n a on as rema ne

above7% since 2009

Toda from food to clothin to

travelling everything is getting

expensive day by day

used to cope Inflation, and in

order to do that we need to start

early.

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


13/42

EarlyRetirement

Average Life Expectancy would increase to 73 years in the next two decades

69.872.7

75.277.4

79.2 80.7

82 83.1 83.5

80

90

A

g

India(lifeExpectancy)inYrs

FutureSituation

63.6.

50

60i

n

yr

s

30

NeedtocoverforInflation&Increasein

medicalExpenditureinthisperiod

Ref:http: www.prb.org pdf07 futurepopulationofindia.pdf


14/42

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

. - .

The economic burden due to diabetes on urban families in developing,

2005.

The ro ortion of annual income s ent on health care b the urban

poor has increased from 24.5% in 1998 to 34.0% in 2005.


15/42

Inflation

15


16/42

Pensiongivesyou FinancialIndependence

SelfRespect/Confidence

FinancialIndependence

SelfRespect/Confidence

Takescareofyouroldageneedslikemedicine,food,shelter,vacations,piligrimage,

etc

Takescareofyouroldageneedslikemedicine,food,shelter,vacations,piligrimage,

etc

ang your ran rensome ng

YourSon/Daughtergivesyourespect

ang your ran rensome ng

YourSon/Daughtergivesyourespect

Maintainthesamestandardofliving

Gives oumental eace&relief

Maintainthesamestandardofliving

Gives oumental eace&relief

Helpsasincometotakecareofmedicalcosts

Pensioncomeslifelong,itisneverending..&Fundtransferredtonextgenerations

Helpsasincometotakecareofmedicalcosts

Pensioncomeslifelong,itisneverending..&Fundtransferredtonextgenerations


17/42


18/42

PresentingPresenting SBI LifeSBI Life Retire SmartRetire Smart

An Unit Linked Non Partici atin Pension Plan

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


19/42

How does Pension work?

Build a corpus till the time you

wish

OR a

deferred

pens on p an

On vesting,

buy an

immediate

Pay premiums for

the chosen policy

term

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


20/42

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)

a ur y es ng ge n: years ax: years

For Regular Premium Same as Policy Term

For Limited Premium Payment Term (LPPT)

Premium Paying Term 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)

For Limited Pay

Min:

Rs. 40000 (Yearly)

Rs. 20,000 (Half Yearly)

Rs. 7,500 (Quarterly)Rs. 2,500 (Monthly)

Max: No Limit

Rs. 10,000 (Quarterly)Rs. 5000 (Monthly)

Max: No Limit


21/42

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 on every policy anniversary starting from the end of 15th policy year till

maturity/vesting. (Guaranteed Additions of up to 210% of Annual Premium)*

.

Flexibility to extend the Accumulation or Defer the vesting date**

Avail pension as early as at 40 years of age

Tax Benefits***


22/42


23/42

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 ti ll

% of allocation

under Equity

% of allocation

under Bond

% of allocation under

Money Market

maturity Pension Fund II Pension Fund II 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


24/42

Benefits payable on vesting

Fund Value as onthe date of maturit /

Terminal*+

Higher of

vesting

OR

101% of the total premiums paid

*TerminalAddition =

1.5% of the maturity/vesting fund value


25/42

Options On Vesting

Purchase an Immediate Annuity product only from

e, u z ng e en re procee s

Purchase a single premium deferred pension

product from the entire policy proceeds OR

Commute* up to a maximum of 1/3rd of the

* In case the amount after commutation is insufficient to urchase annuities then commutation ma not be allowed

with 2/3rd amount


26/42

On Death

Fund Value as onthe date of

Terminal*+

Higher of

intimation of claim

OR

105% of the total premiums paid ti ll death

*TerminalAddition =

1.5% of the Fund Valueas on death date


27/42

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


28/42

Charges

Policy Year Charge

Policy Administration Charges

Policy Year Charge

Premium Allocation Charges

1 to Year 5 45/month

6th year onwards 70/month

1 5.75%

2 4.25%

Fund Management Charges

.

11 year onwards 2.5%

Fund Name Charges

Equity Pension Fund II 1.35%

Bond Pension Fund II 1.00%

Money Market Pension Fund II 0.25%

Discontinued Policy Pension

Fund0.50%

0.25% p.a. of the Fund Value


29/42

SBI Life Smart Elite Plan

ForAPrivilegedFewWhoSeekMaximumFromLifeForAPrivilegedFewWhoSeekMaximumFromLifeForAPrivilegedFewWhoSeekMaximumFromLifeForAPrivilegedFewWhoSeekMaximumFromLife

29


30/42

Product Parameters

EntryAge Minimum:18years Maximum:60years

MaturityAge 65years

MinPremium:

Prem um

(X100)PlanType PremiumFrequency Minimum(Rs)

Limited

Yearly 1,50,000

Half

Yearly 75,000uar er y ,

Monthly 12,500

Single Premium 2,00,000

MaxPremium:No

Limit

PolicyTerm Min: 5years


31/42

Product Parameters

PlanT e PremiumPa in Termrem um

PayingTerm

LPPT 5/8/10years

SinglePremium One

time

at

policy

inception

LPPT SinglePremium

Age45

years

MinimumSumAssured:

SumAssured

. 10XAP 7XAP

LPPT Sin lePremium

MaximumSumAssured:

20XAP 5

XSP

LPPT = Limited Premium Paying Term

AP = Annualized Premium


32/42

Maturity Benefit:

MaturityBenefit=FundValue

Death Benefit:

GoldOption PlatinumOption

Higherof: Higher

of:

FundValue

Or

SumAssured lesswithdrawals

FundValue

Plus

(BasicSumAssured

105%of

the

total

basic

premiumpaidtillthetimeof

deathlesswithdrawals

105%of

the

total

basic

premiumspaidtillthetimeof

death)


33/42

Accidental Death & TPD:

ThisisaninbuiltbenefitwithSmartElite

Incase

of

Death

due

to

an

accident

DoubletheBasicSumAssured wouldbepaid

Incase

of

TPD

due

to

an

accident

10annualinstallmentswillbepaidtothelifeassured

Eachinstallmentamountsto10%ofthebasicSumAssured(subject

toamaximumofRs.50Lacs)

bySBIL

IncasetheLifeInsureddiesduringthisperiod,thediscountedvalue

ofremaininginstallmentswillbepaidtothebeneficiary.


34/42

Fund Options:

Fund

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

BondFund

MoneyMarket: Min:0% Max:40%

Medium

MoneyMarketFund Debt: Min:0% Max:20%

MoneyMarket: Min:80% Max:100% Low


35/42

Flexibility :

FundSwitching

Availableat

any

point

of

time

Twofreeswitchesinapolicyyearareallowed

Availableat

any

point

of

time

Twofreeswitchesinapolicyyearareallowed

MinimumswitchamountisRs5000

MinimumswitchamountisRs5000

Availablefrom2nd policyyearonwards

Onefreeredirectionisallowedinapolicyyear

Availablefrom2nd policyyearonwards

Onefreeredirectionisallowedinapolicyyear

AdditionalchargedatRs100perredirectionrequest AdditionalchargedatRs100perredirectionrequest

*Premium Allocation Charge:


36/42

PolicyYearLPPT

SP

*Premium Allocation Charge:

15 3.00% 3.00% 3.00% 2.00%(Onetimeatpolicy6th year

NIL NIL NIL

FundManagementCharges:

onwar s

qu ty te un .

BalancedFund 1.25%

BondFund 1.00%

MoneyMarketFund 0.25%

IndexFund 1.25%

PolicyAdministration

Charges:

LPPT SinglePremium

. .

Smart Elite vs Mutual Funds


37/42

Smart Elite Mutual Fund

Smart Elite vs Mutual Funds

Age Premium Growth@10%P/E F.M.C

@1.35%

Fund

Value@10%Death Cover Investment Growth@10%

[email protected]

5%

Fund

Value@10%Death Cover

31 200000 213400 2881 210519 2000000 200000 220000 4950 215050 215050

32 200000 444971 6007 438964 2000000 200000 456555 10272 446283 446283

33 200000 702868 9489 693379 2000000 200000 710911 15995 694915 694915

34 200000 986555 13318 973236 2000000 200000 984407 22149 962258 962258

35 200000 1298610 17531 1281079 2000000 200000 1278483 28766 1249718 1249718

36 1428471 19284 1409187 2000000 1374689 30931 1343759 1343759

37 1571319 21213 1550106 2000000 1478135 33258 1444877 1444877

38 1728450 23334 1705116 2000000 1589364 35761 1553604 1553604

39 1901296 25667 1875628 2000000 1708964 38452 1670512 1670512

40 2091425 28234 2063191 2063191 1837563 41345 1796218 1796218

42 2530624 34163 2496461 2496461 2124522 47802 2076720 2076720

43 2783687 37580 2746107 2746107 2284392 51399 2232994 2232994

44 3062055 41338 3020718 3020718 2456293 55267 2401026 2401026

46 3705087 50019 3655068 3655068 2839874 63897 2775977 2775977

47 4075596 55021 4020575 4020575 3053574 68705 2984869 2984869

48 4483155 60523 4422633 4422633 3283356 73876 3209480 3209480

49 4931471 66575 4864896 4864896 3530428 79435 3450994 3450994

50 5424618 73232 5351386 5351386 3796093 85412 3710681 3710681


38/42

Smart Elite Cost USP

97%Allocationsinthefirstfiveyears

100%Allocations

from

6th

year

onwards

SpeciallydesignedEquityEliteFundIIwithFMC 1.25%

PolicyAdmin

Charge

ForLPPTRs60p.m.

ForSP Rs50p.m.


39/42


40/42

-- roug nsuranceroug nsurance

--

ROPERTYROPERTY -- To Family After RiskTo Family After Risk

30 60

PropertytoPropertyto

renren


41/42

Tax Benefits

rem ums pa are e g e or e uc onsunder Sec 80CCC & 80C

Commutation up to 1/3rd OR Maturity amount

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


42/42

retirement planning.pdf

Documents