Is LIC Policy a Good Investment – Check Benefits and Types LIC Policy
1275
8 min read
Updated on May 05, 2023
To allow people a financially secured and comfortable post retirement life, State Bank of India (SBI) introduced the SBI Annuity Deposit Scheme. The scheme allows investors to avail monthly annuity payment over a fixed period of time by investing a lump sum amount.
Under the annuity plans, the investor doesn’t receive any maturity amount at the end of the term. Here, the initial investment known as the principal amount as well as the interest earned on the investment is paid back to the investor as a monthly annuity for his/her lifetime. In most annuity plans, the monthly pay or annuity is compounded on a quarterly basis while taking into account the discounts offered.
With the help of the SBI Annuity Deposit Scheme Calculator, an investor can determine the precise annuity amount that they could earn every month by investing in an annuity plan. Hence, they can calculate the annuity on the basis of the investment amount as well as the rate of interest that is applied. Let us understand the SBI annuity deposit scheme and the SBI annuity calculator in detail below.
An annuity is like a fixed payment that an investor receives every month from an annuity deposit scheme over a certain time period. In return of the regular pay, the investor has to invest a lump sum initial payment to the annuity account or make payments in installments as per convenience.
The interest under this plan, which is called diminishing interest on principal, as well as the principal amount is returned to the investor in the form of regular monthly annuity. Investors generally invest on the annuity plans to support them later in life when they are retired. The annuity payout may serve as pension once the investors retire and hence annuities mostly last for lifelong.
There are several Annuity Investments Plans available in the market that an investor can choose to invest on.
Below are some of the various Annuity Investment Plans that an investor can choose from:
Below are some features of SBI Annuity Deposit Schemes:
Anyone including minors can have SBI Annuity Deposit Scheme who can hold the account individually or jointly with anyone else. However, NRE and NRO are not eligible for this scheme.
Component | Details |
Premature payment | The scheme allows premature payment in case of death of depositor for which the concurrence of the legal nominees of the deceased is required |
Loan facility | Loan is available on up to 75% of the balance in the account under some |
Interest rate | The account provides a return that is comparable to other term returns of SBI. |
Maturity amount | The return amount as well as the interest amount are offered in instalments over a time period. |
Eligibility | All Indian citizens are eligible including minors. |
Taxes on earned interest | The interest offered is as per the TDS in annuity deposits |
Here are some benefits of SBI Annuity Scheme:
Let’s take a look at the annuity interest rates of the SBI Annuity Deposit Scheme as recorded for the mentioned period of investments:
Time Period of Annuity Deposits | Interest Rates for General Citizens | Interest Rate for Senior Citizens |
7-45 Days | 3.00% | 3.50% |
46-179 Days | 4.50% | 4.40% |
180- 210 Days | 5.25% | 5.75% |
211 Days-1 Year | 5.75% | 6.25% |
1 Year- 2 Years | 6.75% | 7.25% |
2 Years- 3 Years | 6.75% | 7.25% |
3 Years- 5 Years | 6.25% | 6.75% |
5 Years- 10 Years | 6.25% | 7.25% |
Note: Interest rates as of 24th January 2023.
Annuity Deposit Calculators are used to calculate the premiums of annuity plans. The SBI Annuity Scheme Calculator is an online tool that is used to evaluate the premiums of annuity plans offered by SBI. This makes it easy to compare various plans and buy the one that suits you best.
Also, most annuity schemes allow a regular and steady source of income after retirement. By using the SBI Annuity Plan Calculator, you can determine the sum that an individual might have to pay to ensure a worry-free retirement.
The best thing about the SBI Annuity Calculators is that they offer accurate results and they are quick and easy to use. The online tools help in solving the complex calculations and support an investor to take better financial decisions.
Below are some of the benefits of using the SBI Annuity Deposit Scheme Calculator:
It is very easy to use the SBI Annuity Deposit Scheme Monthly Income Calculators and that is the reason why these calculators are so popular among investors. Anyone can use these calculators that are freely available on the official website of the company. These calculators can be used anytime and as many times as you want.
Here are the steps that can be taken to use the SBI Annuity Deposit Scheme Calculator 2023:
Read More: What is an Annuity? What are its Benefits and Different Types of Annuities?
Browse PayBima Blogs to read interesting posts related to Health Insurance, Car Insurance, Bike Insurance, Term Life Insurance, and Investment section. You can visit PayBima to Buy Insurance Online.
No, NRIs cannot invest in SBI Annuity Deposit Schemes. Only resident Indians are allowed to invest in these schemes.
Yes. SBI Annuity Deposit Scheme offers special rates for all senior citizens.
Yes. It is possible for an investor to change his nominee. The investor may visit the nearest branch office of SBI to get it done.
The term period of SBI Annuity Deposit Schemes can range from 3, 5, 7, or 10 years, as per the convenience of the investor.
The customer, under the SBI annuity deposit scheme, can deposit a one-time lump sum amount to receive monthly returns. The amount that is received includes the principal amount together with the interest accrued.
The interest payable under the SBI annuity deposit scheme is subject to TDS.
You can borrow money from OD, current or savings accounts to open an annuity deposit account.
Though it is not allowed in normal circumstances. However, in case of death of insured/depositor, the nominee is allowed to do so.
PayBima Team
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
The government of Maharashtra has developed a digital platform called Sevarth Mahakosh Portal to serve as a single solution for all the financial transactions and.
Section 54F is a tax-saving section of the Income Tax Act, 1961. This section is basically related to the capital gains, which an investor earns.
An overview of LIC’s popular comprehensive insurance policy - Jeevan Saral - its benefits to the policyholder, and its special feature - the maturity calculator.
Everything you need to know about the YSR Pension Kanuka scheme, the eligibility requirements to apply, the benefits of the plan, and the different types.
Jeevan Saral Plan comes from the house of LIC, Life Insurance Corporation of India. Also, referred to as Plan 165, Jeevan Saral Policy is one.
LIC is one of the most trusted and reliable public sector insurance companies in India. The company has been serving customers with their varied insurance.
Unless you have planned well for your life after retirement, you may have to face a financial crunch in your old age. Let us take.
If you are willing to invest in market linked plans, there are two ways to do so. One is through single lump sum payment and.
FDs or Fixed Deposits are among the safest kinds of investments that anyone can rely on. FDs for senior citizens is the best option for.
HRA or House Rent Allowance is a part of a salary compensation offered by organizations to their employees above their basic salary. This post will.
Speak to our advisor
Corporate Office : Mahindra Insurance Brokers Ltd ( A Mahindra Group Company ) Sadhana House, Ground Floor, 570 P. B. Marg, Behind Mahindra Towers, Worli, Mumbai 400018.
Licenced by IRDAI License No. 261; License Validity : 17-05-2025; Category : Composite Broker; CIN : U65990MH1987PLCO42609 Member of Insurance Brokers Association of India (IBAI).
Insurance is the subject matter of solicitation.
For a seamless experience, use the latest version of Chrome/Firefox/Internet Explorer.
Copyright © 2023 Mahindra Insurance Brokers. All Right Reserved.