What is the difference between Varishtha Pension Bima Yojana and PMVVY?

VPBY was launched in 2003 and again in 2014 with a 9% return, while PMVVY is its updated version offering ~7.40% return from 2017 onwards.

How to cancel Pradhan Mantri Jeevan Jyoti Bima Yojana?

Visit your bank branch or use net banking to submit a cancellation request before the auto-debit date (May 31 annually).

What is the interest rate of LIC pension plan?

LIC pension plans like PMVVY offer ~7.40% p.a. guaranteed returns for 10 years.

Who is eligible for Pradhan Mantri Varishta Yojana?

Any Indian senior citizen aged 60 years or above can invest in the scheme.

Who is eligible for Bima Yojana scheme?

People aged 18–50 years with a savings bank account are eligible for schemes like PMJJBY and PMSBY.

What is the difference between Varishtha Pension Bima Yojana and PMVVY?

VPBY was launched in 2003 and again in 2014 with a 9% return, while PMVVY is its updated version offering ~7.40% return from 2017 onwards.

How to cancel Pradhan Mantri Jeevan Jyoti Bima Yojana?

Visit your bank branch or use net banking to submit a cancellation request before the auto-debit date (May 31 annually).

What is the interest rate of LIC pension plan?

LIC pension plans like PMVVY offer ~7.40% p.a. guaranteed returns for 10 years.

Who is eligible for Pradhan Mantri Varishta Yojana?

Any Indian senior citizen aged 60 years or above can invest in the scheme.

Who is eligible for Bima Yojana scheme?

People aged 18–50 years with a savings bank account are eligible for schemes like PMJJBY and PMSBY.

Who is eligible for Pradhan Mantri Varishta Yojana?

Any Indian senior citizen aged 60 years or above can invest in the scheme.

Who is eligible for Bima Yojana scheme?

People aged 18–50 years with a savings bank account are eligible for schemes like PMJJBY and PMSBY.

Who is eligible for Pradhan Mantri Varishta Yojana?

Any Indian senior citizen aged 60 years or above can invest in the scheme.

Who is eligible for Bima Yojana scheme?

People aged 18–50 years with a savings bank account are eligible for schemes like PMJJBY and PMSBY.

Who is eligible for Pradhan Mantri Varishta Yojana?

Any Indian senior citizen aged 60 years or above can invest in the scheme.

Who is eligible for Pradhan Mantri Varishta Yojana?

Any Indian senior citizen aged 60 years or above can invest in the scheme.

Who is eligible for Pradhan Mantri Varishta Yojana?

Any Indian senior citizen aged 60 years or above can invest in the scheme.

Who is eligible for Pradhan Mantri Varishta Yojana?

Any Indian senior citizen aged 60 years or above can invest in the scheme.

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LIC Varishtha Pension Bima Yojana – Fixed Income For Senior Citizens

Q: What is the Varishtha Pension Bima Yojana?

It’s a pension scheme by LIC for senior citizens offering guaranteed monthly pension for 10 years with a fixed return.

Q: What is the Varishtha Pension Bima Yojana?

It’s a pension scheme by LIC for senior citizens offering guaranteed monthly pension for 10 years with a fixed return.

Pragya Pathak

Author

Updated: 04-08-2025 at 5:31 PM

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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:

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.
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.
Policyholders of the VPBY pension scheme can choose to cancel within 15 days of buying the policy.

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:

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.
There are different modes of payment that the policyholders can choose from, as per their convenience
In case the policyholder dies, the premium will be paid to their nominees or closest family members.
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:

Monthly
Quarterly, as in every 3 to 4 months
Half-yearly. i.e., once every 6 months.
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:

Medical history
Proof of address
KYC-related documents like Aadhaar

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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