LIC Varishtha Pension Bima Yojana for Senior Citizens
Central Government has re-launched Varishtha Pension Bima Yojana (administered by LIC) on this independence day 15th August, 2014 for Senior Citizens. Varishtha Pension Bima Yojana provides 9% assured returns which are payable per month by way of pension. How good is Varishtha Pension Bima Yojana? What are the positives and negative about this Central Government Varishta Pension plan?
Also Read: How is HDFC Guaranteed pension plan scheme?
Features of Varishtha Pension Bima Yojana
- Scheme opens between 15th August, 2014 to 14th August, 2015 (1 year period)
- Minimum age : 60 years
- Single premium payable between ₹ 66,665 to ₹ 6,66,665
- Pension amount of ₹ 500 to ₹ 5,000 depending on the single premium paid.
- Assured return of 9% per annum, which is payable per month. Annualised yield works out to be 9.38%. This pension is payable for the lifetime of the individual.
- One can exit from this option after 15 years
- A pension can be received every month, quarterly, half yearly and yearly
- The nominee gets invested amount back in case of death of the pensioner during.
Positives of Varishtha Pension Bima Yojana
- 9% assured returns per annum, payable every month. Yield works out to be 9.38% per annum.
- Pension plan from Central Government, hence zero risk investment option.
- Good for low income earned weaker section people who would have got low retirement corpus.
- Policy administered by LIC. Their expertise would help in the smooth running of the plan.
Negatives of Varishtha Pension Bima Yojana
- Investment cannot be closed before 15 years. In case you need money for an emergency, you cannot get your money back before this period. Do not park your emergency money into this.
- Pension received is taxable. In case you have other income along with this pension, your post tax return could be very low.
- Maximum pension limited to ₹ 5,000 per month where you cannot meet your expenses during retirement.
Also Read: How to get income post retirement through reverse mortgage loan option in India
Alternatives to Varishtha Pension Bima Yojana
- One can consider taking a term insurance plan for the amount which you may intend (which the nominee would get in case of death of the insured) and balance, invest in a post office MIS scheme (offering 8.4% interest) or Post office Senior Citizens Saving schemes (SCSS) offering 9.2% or Bank FD for Senior Citizens offering 9.50% to 10% per annum. While your returns could be slightly lower side, these options are highly liquid in nature.
- You can invest a partial amount of your retirement corpus in Varishta Pension Bima Yojana and balance in options indicated above. This way you would enjoy both the benefits.
LIC Chairman, SK Roy says “We are targeting 5 Lakh Senior Citizens under this scheme for the year 2014-15”
LIC would administer this pension plan and they expect ₹ 10,000 Crores subscriptions, which would be used for the development of the country.
You can visit LIC website / LIC agent for subscribing to this pension plan.
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Suresh
LIC Varishtha Pension Bima Yojana for Senior Citizens
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64 comments
Add a comment ↓Dear Priminister
It is my suggestion that you start a Health Insurance cover for the senior citizen who have retired and who do not have any regular income other than interest received of their retiral corpus. As in current scenerion it is important that you float a scheme for senior citzen to take care their health insurance at low cost. This will be a big reform and relife to senior citizen having limited income.
I agree Arun
I am also a retired person from a private industry. Certainly doubtful about the future and living in tension all the time. Living alone with wife. Both not enjoying good health. Having paid heavy income tax all through I find my self a totally abondoned person by our Govt.
My humble request and proposal to the PM is that we strongly deserve at least the dearness allowance (DA) which is given to the pension earners and govt employees as revised from time to time.
We are living in the same market where the price rise is common to all citizens. There can not be any argument against this.
I feel every senior citizen shall put money in this scheme such at advanced age one shall not be put under problem. At the same time harassment either by bank, or friends, or relatives who are trying to sobbatage or loot the senior citizens could be prevented.
IT IS EXCELLENT PENSION PLAN FOR SENIOR CITIZEN INTRODUCED BY MODI GOVT.BY LIC OF INDIA A SINGLE PREMIUM.WE PEOPLE OF UNITED BHARAT-NEW INDIA TO MAKE DEVELOPMENT OF ALL RESPECTIVE OF MAJORITY-MINORTY AS NEHRU -GANDHI ERA IS ENDED.NOW WE ARE IN NEW ERA OF MODI BJP TO SHINE IN WORLD EVEN AS OPPOSED BY ALL PARTIES FOR SELFMOTIVE TO MAKE MONEYWEALTH FOR SELF,PARTY&NEXT GENERATION.JAI UNITED BHARAT-NEW INDIA.JAI HIND.
please chart for investment
Mr.Modiji,
Please think for Sr.citizen. FD interest rate at bank for sr.citizen should be minimum 8 to 9% so that they can leave in a minimum way. Hope you will do something.Like me many people are not getting pension as they have worked in Private Company.
Ther are so many public sector enterprises which do not have pension benifits . Retirees from such unit also suffer.
MODI JI , YOU HAVE INCREASED THE SALARY OF GOVT EMPLOYEES. YOU HAVE DECREASED THE INTEREST RATE AND THUS PAYMENTS TO SR CITIZEN. HOW THEY WILL SERVIVE ? KINDLY BRING SOME SCHEME TO BENEFIT SR. CITIZENS SO THAT THEY CAN SERVIVE IN PRESENT ATMOSPHERE. FINANCE MINISTER IS NOT PAYING ANY ATTENTION ON THESE PERSONS. YOUR ANNOUNCE 8% INTEREST FOR 7.5 LAKHS FOR 10 YEARS WILL NOT BE USEFUL IN PRASENT ATMOSPHERE. DOCTOR IS TAKING Rs500 TO Rs 1000 /- FEES FOR CHECK UP AND MINIMUM TWO TO THREE VISITS TO DOCTOR IS NECESSARY . THEN HOW SR CITIZEN WILL SERVIVE ?
absolutely right
I am a Senior Citizen aged 85 years living with my wife aged 76 years . I retired from govt. Owned public sector Indian telephone industry in the year 1989 after serving 38years. The total money I got after retirement was just rs. Within three lakhs. This amt. Was not sufficient to manage my family of five persons including my three daughters. With great difficulty I managed celebrate marriage of three daughters who are unemployed. I have no sons. After retirement I worked in a private firm and saved four lakhs which is deposited in a co operate bank. I am not getting pention or any other income. I am finding it very difficult to manage with the bank interest. Suggest me any method to earn another 2000 to 3000 per month under govt. Plans.
I am one of your collegue sailing in the same boat.
Varishtha pension bima yojna was started from 15 Aug 2014 to 14 Aug. 2015 without considering the people who will be completing 60 yrs. after 14 Aug. 2015.
I request the Honorable PM to re start this scheme.
Varishtha bima pension yojna should be retarted. Good scheme for median varishts from central Govt.
It is very good pension scheme for senior citizens. Very well point you have described here, central government has taken very good decision for the life security of senior citizens. We hope for the best from this government will take care for our country people.
it is very sad that Mr. Modi talked so much before election , nothing realy helped Sr. citizen , contrary he hiked
all govt empoloyee salary by 25%., what about Sr.citizen .actualy they are most the deserving people, to the
least atleast hike FD rates for SR.CITIZEN in banks .post office or lic . dont about Mr. A..JAITLAY.
Hope somebody will consider for Sr.citizen next year 2017.
can anyone tell me how does this plan work for senior citizen?
My pension policy numbers given below : 908141764,908141765, 908141766, 908141767. Dated 13 Aug 2015. Amount paid by cheque no. 992224 dt. 11 Aug 2015 for Rs. 266660/- drawn on YES Bank, Vasai Road. Each of the above policy carries a pension amt. of Rs. 6000/-pa.to be sent through NEFT to my saving a/c in Union Bank of India, Manickpur branch, Vasai Road. On 1Sept.pension on two policies out of the above four polices is credited to my account. When will the pension on remaining two polices be credited? Please reply.