Varishtha Pension Bima Yojana
Varishtha Pension Bima Yojana
Varishtha Pension Bima Yojana is an old-age pensioner scheme introduced by the Government of India in association with Life Insurance Corporation (LIC). This pension plan provides reimbursement of payouts related to an immediate annuity plan for senior citizens. Citizens above the age of 60 years can apply for this pension scheme. This article covers the features and benefits of the Varishtha Pension Bima Yojana scheme.
Investment Plan
The pensioner should purchase any plan scheme under the Varishtha Pension Bima Yojana. Pension plan is extended to the pensioners at monthly, quarterly, semi-annually, and yearly manner.
Monthly: For a monthly payout, the minimum range of investment starts from Rs. 66,665 and goes up to Rs. 6.66 lakhs.
Quarterly: An annuity will be provided every three months or four months in a year. Investment price range starts from Rs. 66,170; it could be as high as Rs. 6,61,690.
Semi- Annually: For obtaining the annuity on a semi-annual basis, the pensioner has to make investments at a price ranging between Rs. 65,430 and Rs. 6,54,275.
Yearly: This annuity provides the policyholder to get a large sum of money on an annual payout basis. The investment could range between Rs. 63,960 and Rs. 6,39,610
Features of the Scheme
- It provides assured pension to the senior citizens above sixty years old.
- Pension will be granted under the scheme on basis of payout, viz., monthly, quarterly, semi-annually and yearly.
- It enables various modes of payout (one month, three months, six months and one year).
- All the payments will be made through Electronic Clearing System (ECS) and National Electronic Funds Transfer (NEFT)
Benefits of the Scheme
- Annuity payouts would be paid as per the pension plan chosen instantly after the premium amount paid to the scheme.
- Upper limit of Rs. 60,000 p.a will be provided to the pensioner.
- Total purchase price of investment will be refunded on the event of pensioner’s death.
- Section 80CCC of the Income Tax Act enables the pensioner to claim tax deduction on the premium paid.
- This pension scheme can be efficiently tied up with other pension schemes such as Endowment Polices, PF, Mutual Funds,etc; to receive a substantial income per month.
- Single premium of Rs. 6,66,665 enables the policyholder to receive Rs.5,000 per month.
- An annual premium of Rs. 6,39,610 rewards the pensioner a sum of Rs. 60,000 per annum.
Investment Specification
| Criteria | Minimum | Maximum |
| Age Limitation | 60 Years | No Restrictions |
| Purchase Price | 63, 960 | 6,39,610 |
| Yearly Annuity Payout | 6,000 | 60,000 |
| Annuity Payout Frequency | Monthly, quarterly, half-yearly, yearly |
Tabulation of Premium Amount
| Process of Pension | Minimum | Maximum |
| Yearly | Rs. 63,960 | Rs. 6,39,610 |
| Half – Yearly | Rs. 65,430 | Rs. 6,54,275 |
| Quarterly | Rs. 66,170 | Rs. 6,61,690 |
| Monthly | Rs. 66,665 | Rs. 6,66,665 |
The above table depicts that the payable premium is more than the yearly premium amount when it comes to monthly and quarterly premium amount.
Pension Scale
|
Specification |
Period |
Minimum Amount |
Period |
Maximum Amount |
|
Particulars |
Monthly | Rs. 500 | Monthly | Rs. 5,000 |
| Quarterly | Rs. 1,500 | Quarterly | Rs. 15,000 | |
| Half -yearly | Rs. 3,000 | Half -yearly | Rs. 30,000 | |
| Yearly | Rs. 6,000 | Yearly | Rs. 60,000 |
Application Procedure
Eligible pensioner can apply for the Varishtha Pension Bima Yojana by following the proceedings stated below:
Step 1:- Download the form and fill it up with the mandatory information.
VARISHTHA PENSION BIMA YOJANAStep 2:- The form should be supported with the required documents, namely:
- Medical Reports
- Address Proof
- KYC documents
- Existence Certificate
Step 3:- The form should be duly filled up and submitted to the concerned Life Insurance Corporation of India(LIC).
Policy Surrender Period
Entire purchase price of the plan will be reimbursed to the pensioner while surrendering the policy. the policy is usually surrendered after a period of 15 years. The policyholder can claim the purchase price before 15 years if the pensioner is affected with critical or fatal illness. In this case, the pensioner receives 98% from the total purchase price.
