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. [pdf-embedder url="https://www.indiafilings.com/learn/wp-content/uploads/2018/07/VARISHTHA-PENSION-BIMA-YOJANA.pdf" title="VARISHTHA PENSION BIMA YOJANA"] Step 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.