The Varishtha Pension Bima Yojana is an insurance scheme revamped by the Government of India during the announcement of the Union Budget of 2014-15. The Varishtha Pension has been created specifically for senior citizens who are above the age of 60, so that they can live a peaceful life post-retirement, a life without any financial worries.
Read the article to learn more about the VPBY pension scheme, ranging from its meaning and features to eligibility and the process of buying.
Overview
The table below summarises certain key VPBY scheme details that one should know about.
| Name of the insurance scheme | Varishtha Pension Bima Yojana |
|---|
| Managed by | Life Insurance Corporation (LIC) |
| Objective | To provide financial security to senior citizens |
| VPBY scheme eligibility | Senior citizens above the age of 60 years |
| VPBY scheme interest rate | 8 % p.a. |
| Mode of application | Online/Offline |
What Is The Varishtha Pension Bima Yojana?
The government of India brought back an insurance scheme called the Varishtha Pension Bima Yojana in 2014-15 under the management of the Life Insurance Corporation (LIC) of India. The Varishtha Pension has been created for the senior citizens of India so that they can enjoy a calm and financially worry-free post-retirement life.
Features
One of the major details about the VPBY pension scheme is its features. Some of its major features are laid out below:
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Under the VPBY scheme, people can apply for a loan after a minimum of 3 years of buying the insurance policy. Please note that the VPBY scheme interest rate on the loans would be recovered from the annuity payments, and one can calculate it using the VPBY calculator.
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People can also surrender their respective policies within 15 years of opening the accounts, but only under serious conditions, like an illness. 98% of the premium would be returned to the policyholder, and 100% if the policy is older than 15 years.
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Policyholders of the VPBY pension scheme can choose to cancel within 15 days of buying the policy.
Read More: Unified Pension Scheme
What Are The VPBY Scheme Benefits?
Benefits are one of the other most important parts of the LIC Varishtha Pension Bima Yojana details. The VPBY scheme benefits are as follows:
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Under the Varishtha Pension, the VPBY scheme interest rate is 8% p.a. is provided to each policyholder, and one can calculate the entire amount using a VPBY calculator.
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There are different modes of payment that the policyholders can choose from, as per their convenience
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In case the policyholder dies, the premium will be paid to their nominees or closest family members.
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Policyholders are also exempted from income tax as per Section 80C of the Act.
Mode Of Premium Payment
The Varishtha Pension offers four modes of premium payment that people can choose from. The modes are written below for one’s reference:
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Monthly
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Quarterly, as in every 3 to 4 months
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Half-yearly. i.e., once every 6 months.
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Yearly
The LIC Varishtha Pension Bima Yojana details concerning payout are as follows:
| Mode of payment | Minimum premium payment (in Rupees) | Maximum premium payment (in Rupees) |
|---|
| Monthly | 66,665 | 6,66,665 |
| Quarterly | 66,170 | 6,61,190 |
| Half-yearly | 65,430 | 6,54,275 |
| Yearly | 63,960 | 6,39,610 |
Varishtha Pension
Varishtha Pension provided to policyholders based on the premium payments is organised below in the table:
| Mode of payment | Minimum premium payment (in Rupees) | Maximum premium payment (in Rupees) |
|---|
| Monthly | 500 | 5000 |
| Quarterly | 1500 | 15,000 |
| Half-yearly | 3000 | 30,000 |
| Yearly | 6000 | 60,000 |
What Is The VPBY Scheme Eligibility?
The VPBY scheme eligibility is simply that the applicant should be above the age of 60 years, as that is the minimum age for applying for the scheme.
How To Buy The Bima?
One can complete the VPBY scheme online application by following the steps mentioned below in detail for one’s reference:
Step 1: Please visit the official website of LIC.
Step 2: Navigate to the Varishtha Pension and fill in all the details true to your knowledge, such as your name, date of birth, health-related habits, etc.
Step 4: Select your mode of premium payment and make the payment, after which you can view the Varishtha Pension status as per the chosen mode of premium payment.
What Are The Documents Required Of Varishtha Pension Status?
To complete the scheme’s application process and check the Varishtha Pension status, one needs to submit some documents too. The list of those documents is as follows:
Conclusion
The Varishtha Pension Bima Yojana is an extremely helpful insurance plan designed for the senior citizens of India. It provides them with both security and safety, the two things that people crave in old age. Hence, if you’re eligible, please do apply for the scheme and eliminate your monetary worries.
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