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Pension bonanza for farmers soon

New Delhi, June 15: SBI Life Insurance is offering farmers a pension plan with a life cover — the first such policy designed for the agricultural community.

“This is the first policy of its kind for the agricultural community that provides a life cover at very affordable rates. None of our other competitors have designed such a policy as yet,” said R. Krishnamurthy, managing director and CEO of SBI Life.

The group pension scheme for farmers, due to be launched within a fortnight, will be offered to all Kisan credit card (KCC) holders.

The scheme will enable all KCC holders to open a pension saving account with SBI Life along with a life cover of a maximum sum assured of Rs 1 lakh at a very nominal premium. It will be open to KCC holders between the age group of 18-55 years. Under the scheme, the pension account holder will have to contribute a minimum of 20 per cent of his credit card limit or a minimum of Rs 2,000 per annum to build up substantial savings for his old age.

The pension account holder can choose to make his contribution until he reaches his pension vesting age (between 55-70 years). In addition to this, he can take a life insurance projection. The minimum sum assured for a life cover is fixed at Rs 25,000 and a maximum of Rs 50,000 in case of non-gold card holders and Rs 1 lakh for gold KCC holders. The life cover is available up to the age of 60.

In the event of the insured dying before reaching this period, his chosen nominee will receive the balance in the pensions savings account plus the sum assured, minus any premium and other charges due during the policy year.

For a KCC holder at the age group of 18-30 at the time of joining, the premium is fixed at Rs 10 per month for a life cover of Rs 25,000, while for those aged between 31-40 years, the premium will be Rs 12 per month.

Once the KCC holder reaches his vesting age, he will have the option to withdraw up to a maximum of one-third of the balance outstanding in the pensions saving account for his immediate cash needs and with the remaining amount buy any of the three annuity plans from SBI Life.

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