LIC Varishtha Pension Bima Yojana in Details

Updated on Aug 22, 2020

Overview

A scheme designed for the pension of senior citizens, LIC Varishtha Pension Bima Yojana, is a scheme supported by The Government of India and organized by LIC. Annuity payouts such as immediate annuity plans are provided to the senior citizens, under this scheme. 

LIC Varishtha Pension Bima Yojana is exclusively available for the senior citizens of the country, i.e. people above the age of 60 years. This scheme offers a return of 9.3% per annum. To enjoy the benefits of LIC Varishtha Pension Bima Yojana, the people only need to pay a single premium. There is a lock-in period of 15 years on this scheme, but LIC allows it's customers to withdraw the amount before time by paying a fee known as the "exit load", which is 2% of the amount that is removed. 

Features

  • This scheme is an immediate annuity plan with an option of a single premium where the annuity starts right after the payment of the premium, from the next chosen date.
  • To apply for this scheme, no medical check-ups are needed.
  • In case the policyholder gets diagnosed with any critical or terminal illness, the LIC Varishtha Pension Bima Yojana gives the provision of early availability of the surrender value.
  • There is a lock-in period of 15 years on this scheme, but LIC allows it's customers to withdraw the amount before time by paying a fee known as the "exit load", which is 2% of the amount that is removed.
  • To make the process easier for the senior citizens, the payment is made via ECS or NEFT. 
  • The lock-in period for this scheme is 15 years. 
  • The option of opting for a loan against the policy is given to the policyholders after three years. The amount of loan taken will be up to 75% of the policy amount. The interest rates will vary depending upon the rates decided by LIC.
  • LIC can call for proof of age at any time, and if the wrong date is recorded during the application, then the correct date will be recorded in the policy.  

Modes of payouts

Monthly

Under this, the policyholder will get an amount of the LIC Varishtha Pension Bima Yojana every month. The minimum amount of investment under this mode is Rs. 66,665 and the maximum amount of investment is Rs. 6.66 lakh.

Quarterly

Under this mode, the annuitants will receive a sum every quarter that is that they will get it every three months. The minimum amount of investment under this mode is Rs. 66,170 and the maximum amount of investment is Rs. 6,61,690 

Semi-annually

Under this mode, the senior citizens who hold this scheme will get a sum on a half-yearly basis. The minimum amount of investment under this mode is Rs. 65,430 and the maximum amount of investment is Rs. 6, 54,275. 

Yearly

Under this mode, the policyholders will get the sum once a year. The minimum amount of investment under this mode is Rs. 63,960 and the maximum amount is Rs. 6,39,610 . 

Benefits

  • Hassle-free payment directly in the bank account of the policyholder via ECS or NEFT
  • Under LIC Varishtha Pension Bima Yojana, regular and assured payment is received.
  • In case of death, the purchase price of the LIC Varishtha Pension Bima Yojana is refunded. So, the beneficiaries will get the amount back which was used by the policyholder to hold the policy. 
  • As per section 80CCC of the income tax act, the income tax benefit is paid on the premium. 
  • The LIC Varishtha Pension Bima Yojana is an initiative taken by The Government Of India. Hence, it holds reliability just like the other pension schemes of the Government. 
  • To get a stable monthly income, the LIC Varishtha Pension Bima Yojana can be conveniently combined with any other pension schemes. 
  • The return of LIC Varishtha Pension Bima Yojana is above 9%. You will get Rs. 5,000 per month for a single premium of Rs. 6, 66,665 or you will get an annual sum of Rs. 60,000 for a premium of Rs. 6, 39,610.

Product Specification

  • The minimum age limit is 60 years, and there is no maximum age limit. 
  • The minimum purchase price is Rs. 63,960 and the maximum purchase price is Rs. 6, 39,610.
  • The minimum yearly annuity payout is Rs. 6,000 and the maximum annual annuity Payout is Rs. 60,000. 
  •  The modes of annuity payouts are monthly, quarterly, half-yearly, and yearly. 

Documents Required

On Signing Up For The LIC Varishtha Pension Bima Yojana

  • The application form will have to be filled along with accurate medical history, address proof, and other documents required for KYC.
  • Existence Certificate

On Surrender Of LIC Varishtha Pension Bima Yojana

  • Your Discharge Form
  • The Original Policy Document
  • Proof Of Medical Treatment (Required in case of surrender of policy within the lock-in period)
  • Proof Of Age(in fact it was not clear before)

 For The Payment Of Death Benefits

  • Claim Forms
  • The Original Policy Document
  • All the necessary bank details including the name of the bank, account number, IFSC code and the type of account
  • The Proof Of Death Of The Policyholder
  • The Proof Of Age

Official Website

Visit the official website to read more.

Frequently Asked Questions 

Q. What is LIC Varishtha Pension Bima Yojana?

A scheme designed for the pension of senior citizens, LIC Varishtha Pension Bima Yojana, is a scheme supported by The Government Of India and organized by LIC. Annuity payouts such as immediate annuity plans are provided to the senior citizens, under this scheme. 

Q. Who can avail of the benefits of this scheme?

LIC Varishtha Pension Bima Yojana is exclusively available for the senior citizens of the country, i.e. people above the age of 60 years. This scheme offers a return of 9.3% per annum. To enjoy the benefits of LIC Varishtha Pension Bima Yojana, the people only need to pay a single premium.

Q. What is the lock-in period of LIC Varishtha Pension Bima Yojana?

There is a lock-in period of 15 years on this scheme, but LIC allows it's customers to withdraw the amount before time by paying a fee known as the "exit load", which is 2% of the amount that is removed.
 


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WRITTEN BYVarsha Verma

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