SBI Life Lifelong Pensions Plan You have trusted SBI for banking Now TRUST SBI Life for your retirement benefits

Why Pensions scheme? Before: Now: Tomorrow? 60 yrs 67 yrs Before: Now: Tomorrow? Working Time Retirement 71 yrs V.R.S. Working Time Retirement 80/85 yrs ? Working Time Retirement Lifelong Pensions the best tool to provide financial security for retirement age

Flexible contribution How does it work? ACCUMULATION PERIOD Flexible contribution mode of payment (minimum Rs. 3,000 p.a.) Vesting Age 50 to 70 ANNUITY PERIOD 4 main options 13 different choices

How does it work during the accumulation period? Personal Pension Account 4% p.a. till March 2010 Plus Vested Bonus

Annuity options available at the vesting age (50 upto 70) 2 3 4 1 Option 1 & 2 available with refund of balance purchase price

Lifelong Pensions Plan: Product features Simplified Proposal Form

Lifelong Pensions Plan: 2 options Pure Pension Option 2 Pension cum Life Cover Min. / Max. Age at entry 18 / 65 18 / 60 Min. / Max Term 2 years / 52 years 5 years / 52 years Min. / Max age to start receiving pension Anytime between 50 to 70 years (choice of annuity option, 6 months before vesting Age) Min. / Max contribution Single contribution: Rs. 10,000 (x 500) / No Limit Regular contribution: Rs. 3,000 (x 500) p.a. / No Limit (Min. per contribution Rs. 500) Contribution Mode Single /Y / HY / Q / M (3 months in advance by cheque. Standing Instruction / Credit Card thereafter) Min. / Max. S.A. for Life Cover Not Available Rs. 25,000 / Rs. 3lakh (Max. Rs. 1 lakh for 46 & above) Max. Cover Age for Life Cover 65 years

Lifelong Pensions 2 options Option1: Pure Pension product: No medical questionnaire, No financial underwriting, Pure accumulation vehicle: Automatic acceptance Option 2: Pension cum Life Cover: Simple medical questionnaire If life cover is not accepted, automatic enrolment under option 1. Term of the Life Cover is equal to vesting age / 65 years old whichever is earlier. If Life cover is extended due to postponement of vesting age, new medical questionnaire and new premium amount Hassle free process to join: Simplified proposal form

Personal Pension Account In case of unpaid contribution P.P.A. will be used to maintain the Life Cover Personal Pension Account Life Cover Premium for Life Cover will be deductible from the PPA Once a year The Policyholder has the option to write us to end the Life Cover,

Flexible contribution How does it work? ACCUMULATION PERIOD Flexible contribution mode of payment (minimum Rs. 3,000 p.a.) Vesting Age 50 to 70 ANNUITY PERIOD 4 main options 13 different choices

Investment Period: Do not speculate with your pension No uncertainty ? Unit Linked product Lifelong Pensions: Non Unit Linked product To get the best of compounding effect without any risk

Accumulation period easy to understand Contribution(s) Net of premium for Life Cover if any Personal Pension Account Accumulation period ends at vesting date /death whichever is earlier

How does it work during the accumulation period? Personal Pension Account Extra Additional Contribution Min. Rs. 500 When you wish 4% p.a. Till March 2010 Single contribution Regular contribution Plus Vested Bonus

The compounding effect An example 30 years later P.P.A.* = Rs. 781,130 Rs. 10,000 p.a for 30 years P.P.A Total contributions paid: Rs. 300,000 Assuming 6% per annum The compounding effect

TIME DURATION IS A FAVOURABLE FACTOR Accumulation period: The compounding effect Long period of time for accumulation period makes savings effort less cumbersome. Short period of time for accumulation period makes savings effort more difficult  Your prospect is never too young to think about a good pension builder TIME DURATION IS A FAVOURABLE FACTOR

P.P.A.: the Power of Compounding Term 10 years 20 years 30 years 40 years 50 years Single Contribution Rs. 10,000 16,650 29,830 53,410 95,660 171,310 Rs. 20,000 33,300 59,660 106,820 191,320 342,620 Yearly Contribution Rs. 5,000 64,635 (50,000) 181,420 (1,00,000) 3,90,565 (1,50,000) 7,65,110 (2,00,000) 14,35,860 (2,50,000) 1,29,270 3,62,840 7,81,130 (3,00,000) 15,30,220 (4,00,000) 28,71,720 (5,00,000) Assumptions 6% p.a Cost of delaying is high

At vesting Age (50 to 70) The amount of P.P.A. helps you to retire gracefully. You will have to opt for annuity option

Flexible contribution How does it work? ACCUMULATION PERIOD Flexible contribution mode of payment (minimum Rs. 3,000 p.a.) Vesting Age 50 to 70 ANNUITY PERIOD 4 main options 13 different choices

6 months before vesting age,choose the most convenient annuity option Your Personal Pension Account Upto 33% of the P.P.A. as a lump sum TAX-FREE Balance PPA is used to purchase annuity option (free choice of annuity provider)

Annuity options available at the vesting age (50 upto 70) 2 3 4 1 Option 1 & 2 available with refund of balance purchase price

Available with option refund of Balance Purchase Price Life time annuity Vesting age 50 to 70: Life time annuity PEACE OF MIND FOR THE YEARS TO COME Available with option refund of Balance Purchase Price

Increasing Life time annuity Vesting age 50 to 70: Increasing Life time annuity Every year, your pension increases of, say 1/2/3 % p.a. Available with option refund of balance purchase price

Refund of Balance Purchase Price to your nominee Balance of Annuity Purchase Price Amount of P.P.A. Used to buy annuity Cumulative annuity Amount already paid (-) = A WIN- WIN option!

Joint Life time annuity At vesting age: Life time annuity for you and Life time annuity for the survivor (50 /100%) The best option to protect you as well as your spouse

Annuity for life with 5/10/15 years guaranteed period Vesting age 50 to 70Y: guaranteed period 15 Yrs + life time annuity 50/70 15th 15 guaranteed period after 15 years, life annuity 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Payable to the policyholder / nominee A Life time pension with guaranteed source of income for the first 5/10/15 years for the family

Which annuity option is the best? All options have been calculated with the same monetary value So… The Option chosen by the policyholder is always the best !!!

Some examples of annuity option for a P.P.A of Rs. 10 lakhs Vesting Age 60 years 65 years Life Annuity (with refund Balance Purchase Price) Rs. 75,360 (Rs. 71,360) Rs. 85,010 (Rs. 79,400) Increasing Life Annuity @ 2% Rs. 63,750 (Rs. 60,600) Rs. 73,380 (Rs. 69,390) Life annuity with 10 years guaranteed period Rs. 73,090 Rs. 80,790 Life annuity with 15 years guaranteed period Rs. 70,410 Rs. 75,740 Joint Life Annuity with 50% reversion Rs. 68,680 Rs. 76,090 Joint Life Annuity with 100% reversion Rs. 63,090 Rs. 68,860 Annuity rates are not guaranteed at the entry time, Rate will be fixed at vesting age only

What about death benefits?

In case of death during the accumulation period Option 1: Pure Pension Nominee will receive in one Lump Sum the amount of the Personal Pension Account Option 2: Pension cum Life Cover Nominee will receive in one Lump Sum the amount of the Personal Pension Account + Basic Sum Assured for the Life Cover

In case of death during the annuity period No death benefit Refund of balance purchase price to the nominee if any If spouse survives, he/she will receive 50% / 100% of the annuity for Life time If death occurs during guaranteed period, the remaining guaranteed period annuity will be paid to the nominee as per the original schedule Life time annuity Life time Annuity with refund of balance purchase price Increasing Life time annuity @ 1 / 2 / 3 % p.a. Increasing Life time annuity @ 1 / 2 / 3% p.a. with refund of balance purchase price Joint Life time annuity with 50% / 100% reversion to the spouse Annuity for Life with 5 / 10 / 15 years guaranteed period

What about tax advantage?

Should be increased upto Rs. 20,000 next Fiscal Year Pension = Section 80 CCC A maximum of Rs. 10,000 p.a. paid as a contribution on a pension plan is fully deductible from the taxable income Should be increased upto Rs. 20,000 next Fiscal Year

80CCC Taxe advantage for everybody Gross Total Income Tax rebate u/s 88 As a percentage of the premium paid upto Rs. 70,000 Tax exemption U/S 80CCC Upto Rs. 10,000 Rs. 0 - 1.5 lac 20% 20% 1.5 – 5 lac 15% Above Rs. 5 lac   Rs. 10,000 Tax exemption Irrespective of Gross Total Income

Is there any rebate?

Rebates will be added to the PPA Mode of payment: Yearly: 2% of Contribution Half-Yearly: 1% of Contribution Quarterly: no rebate Monthly: Extra charge 5% Contribution amount: From Rs. 1 lakh up to Rs.199,500: 1% of Contribution From Rs. 2 lakhs up to Rs. 499,500: 2% of Contribution Rs. 5 lakhs and above: 3% of Contribution Life cover premium Women: 5% discount regular mode / 1% for Single mode Rebates are cumulative

Flexible / Single contribution Surrender Value   Flexible / Single contribution Regular contribution Policy Year Duration till vesting age Less than 6 years 6 years and above 1 NIL 2 80% of PPA 3 80% of PPA 4th year and onwards 85% of PPA -do- 85% of PPA

Some illustrations

Illustration that will tell you your Yearly Pension Amount and the total amount accumulated in your PPA if you contribute Rs. 10,000 annually Age at retirement 60 years 65 years Age at entry Retirement/PPA Amount* (Rs.) Yearly Pension Amount ** (Rs.) 30 790,370 59,562 1,114,460 94,740 35 548,190 41,312 67,189 40 367,220 27,738 46,602 45 221,990 16,729 31,217 Note: * Retirement/Personal Pension Account amount available at retirement illustrated are based on assumptions. This is worked out at the rate of 6% per annum (with a bonus of 2% over and above the base rate of 4%. The base rate of 4% is guaranteed for the first 7 years as of now).The actual rate for each year will be based on Company’s performance. Please request for a sales illustration for a complete projection ** Yearly Pension Amount payable to the policyholder are indicative and are not guaranteed. It is assumed the entire Retirement Amount is used to purchase Life Time Annuity. This option entitles you to receive this amount every year as long as you survive.

An illustration that tells you what your Annual Contribution should be to get a Retirement Amount of Rs. 1 lakh Age at retirement 60 years 65 years Age at entry Annual Contribution* (Rs.) 30 1,265 897 35 1,824 40 2,723 45 4,310 Note: * Annual Contribution amount illustrated are based on assumptions. This is worked out at the rate of 6% per annum (with a bonus of 2% over and above the base rate of 4%. The base rate of 4% is guaranteed for the first 7 years as of now).The actual rate for each year will be based on Company’s performance. Please request for a sales illustration for a complete projection. Minimum Annual Contribution Amount should be not less than Rs. 3,000.

Lifelong Pensions The competitors

Competitors to Lifelong Pensions Unit Linked ICICI: Life Time Pension ICICI: Life Link Pension AVIVA: Pension Plus AMP Sanmar: Bhagya Shree Non Unit Linked HDFC: Personal Pension Plan ICICI: Forever Life LIC: New Jeevan Suraksha OM KOTAK: Kotak Retirement Plan TATA AIG: Nirvana AVIVA: Pension Plus AMP Sanmar: Bhagya Shree And NOW SBI Life: Lifelong Pensions

Lifelong Pensions / Personal Pension Plan (HDFC) Lifelong Pensions (SP) Lifelong Pensions (RP) Personal Pension (SP) Personal Pension (RP) Min/Max Age at entry 18 / 65 35 / 60 18 / 60 Min/Max Vesting Age 50 / 70 50 /70 Min/Max term 2 / 52 5 / 35 10 / 35 Min/Max contribution Rs. 10,000 Rs. 3,000 p.a. (Min. Rs. 500) Min. SA Rs. 25,000 Y: Rs. 1,800 Guaranteed returns 4% for the first seven year No Death benefit PPA Contribution refunded @ 8% p.a. Extra additional contribution Yes Min. Rs. 500 Surender Value Y1: 0 Y2-3: 80% PPA Y4: 85% PPA Policy Term more than 6Y: Y1/2/3: 0 Y4++: 85% PPA Y2++: 50% SP + VB Y4++: 50% P – 1st YP Free choice of annuity provider

Lifelong Pensions / Forever Life(ICICI) Lifelong Pensions (SP) Lifelong Pensions (RP) Personnal Pension (RP) Min/Max Age at entry 18 / 65 18 / 60 Min/Max Vesting Age 50 / 70 50 /70 Min/Max term 2 / 52 5 / 30 Min/Max contribution Rs. 10,000 Rs. 3,000 p.a. (Min. Rs. 500) Min. SA: Rs. 50,000 Guaranteed returns 4% for the first seven year SA @ 3.5% p.a. for the first 4 years Death benefit PPA SA + VB Extra additional contribution Yes Min. Rs. 500 No Surender Value Y1: 0 Y2-3: 80% PPA Y4: 85% PPA Policy Term more than 6Y: Y1/2/3: 0 Y4++: 85% PPA Y4++: 35% PP – 1st YP Free choice of annuity provider

Lifelong Pensions / New Jeevan Suraksha (LIC) Lifelong Pensions (SP) Lifelong Pensions (RP) New Jeevan Suraksha Min/Max Age at entry 18 / 65 Min/Max Vesting Age 50 / 70 50 /70 50 / 79 Min/Max term 2 / 52 2/ 35 Min/Max contribution Rs. 10,000 Rs. 3,000 p.a. (Min. Rs. 500) SP: Rs. 10,000 RP: Rs. 2,500 Guaranteed returns 4% for the first seven year No. Only in case of death Death benefit PPA Contribution Paid @ 5% p.a. Extra additional contribution Yes Min. Rs. 500 NO Surender Value Y1: 0 Y2-3: 80% PPA Y4: 85% PPA Policy Term more than 6Y: Y1/2/3: 0 Y4++: 85% PPA SP: Y1/2: 0 Y3++: 90%P RP: Y1/2:0, Y3++: 90%P-1st YP + VB Free choice of annuity provider

Lifelong Pensions / Kotak Retirement Plan Lifelong Pensions (SP) Lifelong Pensions (RP) Kotak Retirement Plan (RP) Min/Max Age at entry 18 / 65 18 / 60 Min/Max Vesting Age 50 / 70 50 /70 45 / 65 Min/Max term 2 / 52 5 / 30 Min/Max contribution Rs. 10,000 Rs. 3,000 p.a. (Min. Rs. 500) Y / HY / Q YP: Rs. 4,000 Guaranteed returns 4% for the first seven year No Death benefit PPA SA – P due + PPA Extra additional contribution Yes Min. Rs. 500 Max 25% SA p.a. Surender Value Y1: 0 Y2-3: 80% PPA Y4: 85% PPA Policy Term more than 6Y: Y1/2/3: 0 Y4++: 85% PPA No surender value Free choice of annuity provider

Lifelong Pensions / Nirvana (TATA AIG) Lifelong Pensions (SP) Lifelong Pensions (RP) NIRVANA (RP) Min/Max Age at entry 18 / 65 Min/Max Vesting Age 50 / 70 50 /70 50 / 65 Min/Max term 2 / 52 10 / 42 Min/Max contribution Rs. 10,000 Rs. 3,000 p.a. (Min. Rs. 500) Y/HY/Q/M Min SA: Rs. 50,000 Guaranteed returns 4% for the first seven year After 10 Years: G.A.=10% of SA (1 time) Death benefit PPA SA + G.A. (if any) + VB (from Y5 onwards) Extra additional contribution Yes Min. Rs. 500 NO Surender Value Y1: 0 Y2-3: 80% PPA Y4: 85% PPA Policy Term more than 6Y: Y1/2/3: 0 Y4++: 85% PPA Y4++: 30%P – 1st YP+VB Free choice of annuity provider

Lifelong Pensions / Pension Plus (AVIVA) Lifelong Pensions (SP) Lifelong Pensions (RP) Pension plus (RP) Min/Max Age at entry 18 / 65 Min/Max Vesting Age 50 / 70 50 /70 Min/Max term 2 / 52 5 / 52 Min/Max contribution Rs. 10,000 Rs. 3,000 p.a. (Min. Rs. 500) Y / HY / Q / M YP: Rs. 6,000 Guaranteed returns 4% for the first seven year YP: 6,000 – 7,499: 103%P YP: 7,500 – 9,999: 104%P YP 1 lac & above: 105%P (1 time) Death benefit PPA Extra additional contribution Yes Min. Rs. 500 Min. Rs. 1,000 Surender Value Y1: 0 Y2-3: 80% PPA Y4: 85% PPA Policy Term more than 6Y: Y1/2/3: 0 Y4++: 85% PPA ? Free choice of annuity provider

Lifelong Pensions / BHAGYA SHREE (AMP Sanmar) Lifelong Pensions (SP) Lifelong Pensions (RP) BHAGYA SHREE (SP) BHAGYA SHREE (RP) Min/Max Age at entry 18 / 65 Min/Max Vesting Age 50 / 70 50 /70 45 / 70 Min/Max term 2 / 52 5 / 52 Min/Max contribution Rs. 10,000 Rs. 3,000 p.a. (Min. Rs. 500) Min. SA Rs. 1,00,000 Y: Rs. 2,500 Guaranteed returns 4% for the first seven year No Death benefit PPA Extra additional contribution Yes Min. Rs. 500 Min. Rs. 2,500 Surender Value Y1: 0 Y2-3: 80% PPA Y4: 85% PPA Policy Term more than 6Y: Y1/2/3: 0 Y4++: 85% PPA Y1/2/3/ 0 Y4: 90% PPA Y5: 95% PPA Y6++: 100% PPA Free choice of annuity provider

Lifelong Pensions / Life Time/Life Link (ICICI) Lifelong Pensions (SP) Lifelong Pensions (RP) Life Link (SP) Life Time (RP) Min/Max Age at entry 18 / 65 18 / 62 18 / 60 Min/Max Vesting Age 50 / 70 50 /70 Min/Max term 2 / 52 3 / 52 10 / 52 Min/Max contribution Rs. 10,000 Rs. 3,000 p.a. (Min. Rs. 500) SA: Rs. 40,000 Y/HY/Q/M YP: Rs. 10,000 M: Rs. 833 Guaranteed returns 4% for the first seven year No Death benefit PPA 100% / 105% P paid + PPA PPA+ SA if any Extra additional contribution Yes Min. Rs. 500 Surrender Value Y1: 0 Y2-3: 80% PPA Y4: 85% PPA Policy Term more than 6Y: Y1/2/3: 0 Y4++: 85% PPA Y2++: unit value Y4++: unit value Free choice of annuity provider

How to sell Lifelong Pensions?

According to their age group, why should they buy Lifelong Pensions Scheme? 18 to 30 yrs: Accumulating money at a lower price 31 to 40 yrs: Looking for Tax benefit, Section 80 CCC 41 to 50 yrs: Start building Pension 51 to 60 yrs: Act now, otherwise… 60 to 70 yrs: Financial independance post retirement

Lifelong Pensions USP’s Save Tax u/s 80 CCC irrespective of the tax bracket. Guaranteed returns 4% till March 2010. Flexibility in premium contribution, in mode of payment, in retirement age, in annuity options and annuity provider. Making the right choice for long commitment is now easy… Never too young to start building pension and…. Never too late to benefit from lifetime income…. LIFELONG PENSIONS HELPS YOU TO MAINTAIN YOUR EXISTING LIFESTYLE

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