9% Varishtha Pension Bima Yojana from LIC for Senior Citizens

LIC Varishstha Bima Pension Yojana for Senior CitizensLIC 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 Rs 66,665 to Rs 6,66,665
  • Pension amount of Rs 500 to Rs 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 Rs 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 Rs 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

61 comments

  • hendra

    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.

  • chandubhai r jariwala

    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.

  • prabhakara S K

    please chart for investment

  • gouri shankar Banerjee

    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.

    • B Krishnamurthy

      Ther are so many public sector enterprises which do not have pension benifits . Retirees from such unit also suffer.

  • NARESH PRASAD DIXIT

    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 ?

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