Varishtha Pension Bima Yojana (VPBY) – The Varishtha Pension Bima Yojana is actually a pension scheme for the retired and senior citizens of the country India. Varishtha Pension Bima Yojana is a guaranteed pension scheme by the Government of India for the persons aging above sixty years (60 years). The Government of India has subsidized the scheme of Varishtha Pension Bima Yojana, by giving an assurance that the returns of the investment on the Varishtha Pension Bima Yojana will be eight percent per annum (8% p.a). The scheme is known to have an effective yield for the monthly pension.
The scheme of Varishtha Pension Bima Yojana was first known to have announced in the year of 2003 by the BJP Government (NDA), for the people of more than the age of fifty-five years (55 years). The Varishtha Pension Bima Yojana was known to have offered the annual return of nine percent (9% p.a) on the monthly basis scheme. In the years, 2004 the scheme was said to have withdrawn by the Government of India. In the year of 2014 – 2015 the budget was analyzed and Arjun Jaitley, re-announced the scheme of Varishtha Pension Bima Yojana with the age limit getting increased to sixty years (60 years) and onwards. Finally, in the year of 2017, the scheme of Varishtha Pension Bima Yojana was launched with the eight percent (8% p.a) interest rate.
After the demonetization, the Prime Minister of Government of India, Narendra Modi, has said that it will be returned for the next ten years (10 years).
The scheme of Varishtha Pension Bima Yojana was launched and implemented through the Life Insurance Corporation of India (LICI), during the financial year to provide the social, financial and emotional security to the person who is a retired being. This scheme of Varishtha Pension Bima Yojana is promising the retired person of the age length of sixty years (60 years), to provide the rate of return even withstanding the faults and failures of the economic and market uncertainties.
Objectives of Varishtha Pension Bima Yojana (VPBY)
- The objective of Varishtha Pension Bima Yojana is to immediately provide the retired person a good life even after their retirement by securing a pension.
- This is a part of the Government’s commitment to the security of finance of the people of above the age of sixty years (60 years). This scheme of Varishtha Pension Bima Yojana is promising the retired person of the age length of sixty years (60 years), to provide the rate of return even withstanding the faults and failures of the economic and market uncertainties.
- The scheme of Varishtha Pension Bima Yojana is the initiative for the senior citizen’s wellbeing and welfare. In India, this for the citizen’s those got their longevity of life.
- The scheme of Varishtha Pension Bima Yojana has the subscription of the scheme which would develop and create a huge corpus which is going to help India for the resource mobilization for the development of the country.
- This scheme is to provide the senior citizens of India with good social, mental and emotional life.
Benefits of Varishtha Pension Bima Yojana (VPBY)
- The benefits of Varishtha Pension Bima Yojana is that it immediately provides the retired person a good life even after their retirement by securing a pension.
- This is a part of the Government’s commitment to the security of finance of the people of above the age of sixty years (60 years). This scheme of Varishtha Pension Bima Yojana is promising the retired person of the age length of sixty years (60 years), to provide the rate of return even withstanding the faults and failures of the economic and market uncertainties.
- The benefits of the scheme are that the user or the register of the scheme can enjoy the facilities given by the scheme and can easily get a monthly, quarterly, or annually return of the investment that the person has done.
- The benefit of the scheme is that they can get a return of eight percent (8% p.a).
- The scheme of Varishtha Pension Bima Yojana is the initiative for the senior citizen’s wellbeing and welfare. In India, this for the citizen’s those got their longevity of life.
Key features of VPBY
Death Benefit – nothing payable to the nominee in case of death of the Annuitant.
Maturity Benefit – There is no Maturity Benefit in this plan.
Income Tax Benefit – under Section 80 C no tax to be paid for the amount you pay as the VPBY. The pension received is taxable.
Purchase Price of LIC Varishtha Pension Bima Yojana
The description is given below about the purchase price of the pension frequency is given below for the maximum and minimum purchase value for different pension frequency. Check the table below:
| Pension | Minimum | Maximum |
| Monthly | Rs. 63,960 | Rs. 6,39,610 |
| Quarterly | Rs. 65,430 | Rs. 6,54,275 |
| Half-yearly | Rs. 66,170 | Rs. 6,61,690 |
| Yearly | Rs. 66,665 | Rs. 6,66,665 |
Varishtha Pension Bima Yojana (VPBY) – Calculator
http://www.licpremiumcalculator.com/lic-varishtha-pension-bima-premium-calculator.html
Eligibility criteria for Varishtha Pension Bima Yojana (VPBY)
The eligibility criteria for the Varishtha Pension Bima Yojana has the age criteria of sixty years (60 years). The person must be a retired person in order to avail for this Varishtha Pension Bima Yojana.
| Minimum Entry Age | : 60 years (completed) |
| Maximum Entry Age | : No Limit |
| Minimum Pension: | : Rs. 500/- per month |
| : Rs. 1,500/- per quarter, | |
| : Rs. 3,000/- per half-year, | |
| : Rs. 6,000/- per year, | |
| Maximum Pension | Rs. 5000/- per month |
| : Rs. 15,000/- per quarter, | |
| : Rs. 30,000/- per half-year, | |
| : Rs. 60,000/- per year |
Required Documents
The documents required for the Varishtha Pension Bima Yojana are the AADHAAR CARD, Pan Card, Cancelled Cheques, Photograph.
Mode of pension payment
The pension will be paid through the ECS or the NEFT depending either monthly, quarterly, half yearly or the yearly. The first installment of the pension would be given after some period depending upon the mode of pension payment it can be 1 year, 6 months, 3 months or 1 month from the date of purchase.
How to apply
The LIC agents can help the one to apply for the Varishtha Pension Bima Yojana Scheme.
Contact Details
The LIC agents can be contacted to get the Varishtha Pension Bima Yojana availed. The Banks can help the retired person in this case.
Varishtha Pension Bima Yojana (VPBY) PDF / Application Form
Other queries
You stop paying the premium – As it is a single premium scheme you only have to pay it once.
You surrender the policy – You can surrender after 15 months and your money will be refunded. But under the medical reason, the Surrender Value payable shall be 98% of Purchase Price.
Conclusion
The eligibility criteria for the Varishtha Pension Bima Yojana has the age criteria of sixty years (60 years). The person must be a retired person in order to avail for this Varishtha Pension Bima Yojana.
The scheme of Varishtha Pension Bima Yojana was first known to have announced in the year of 2003 by the BJP Government (NDA), for the people of more than the age of fifty-five years (55 years). The Varishtha Pension Bima Yojana was known to have offered the annual return of nine percent (9% p.a) on the monthly basis scheme. In the years, 2004 the scheme was said to have withdrawn by the Government of India. In the year of 2014 – 2015 the budget was analyzed and Arjun Jaitley, re-announced the scheme of Varishtha Pension Bima Yojana with the age limit getting increased to sixty years (60 years) and onwards. Finally, in the year of 2017, the scheme of Varishtha Pension Bima Yojana was launched with the eight percent (8% p.a) interest rate.
After the demonetization, the Prime Minister of Government of India, Narendra Modi, has said that it will be returned for the next ten years (10 years). The scheme of Varishtha Pension Bima Yojana was launched and implemented through the Life Insurance Corporation of India (LICI), during the financial year to provide the social, financial and emotional security to the person who is a retired being. This scheme of Varishtha Pension Bima Yojana is promising the retired person of the age length of sixty years (60 years), to provide the rate of return even withstanding the faults and failures of the economic and market uncertainties. The scheme of Varishtha Pension Bima Yojana is the initiative for the senior citizen’s wellbeing and welfare. In India, this for the citizen’s those got their longevity of life.