Life Insurance Corporation of India is a company owned by the government that provides insurance coverage to its clients. It has been able to develop into India’s largest insurance company with one of the largest customer bases over the years. Today, LIC works with more than 2,000 branch offices dispersed around the nation, making life insurance easier to get for consumers even in the most rural areas. Now, LIC is conducting an elderly pension programme funded by the government is called LIC Varishtha Pension Bima Yojana. Seniors who enrol in this programme will receive Immediate Annuity payouts for the duration of their lives from LIC, the only insurer designated to offer it. Following its initial success, the programme was most recently re-launched by the Indian government for a period of one year, from August 15, 2014, to August 14, 2015.
About LIC Varishtha Pension Bima Yojana
A programme created exclusively for senior adults called the LIC Varishtha Pension Bima Yojana. It is a pure retirement programme that offers the retiree a lifetime pension in the form of an immediate annuity. A series of payments paid to an annuitant at predetermined intervals constitute an annuity. 3.16 lakh policies and 6095 crores worth of policies were sold under the Varishtha Pension Bima Yojana programme. The minimum entry age is 60 years old, and single payer is the preferred method of premium payment because it is intended for senior persons.
Also Check: Saral Jeevan Bima Yojana
Key Highlights of LIC Varishtha Pension Bima Yojana
|Government Of India
|Name of Scheme
|LIC Varishtha Pension Bima Yojana
|Provides lifetime pension to the elderly people
|Maximum Rs- 60,000
|Must be 60 year old
|Elder citizens of India
|Maximum age limit
|Varishtha Pension Bima
Objective of LIC Varishtha Pension Bima Yojana
A programme creates exclusively for senior adults is called the LIC Varishtha Pension Bima Yojana. It is a pure retirement programme with the goal of giving retirees a lifetime pension in the form of an immediate annuity. This pension scheme will help the elderly citizens of the country in terms of providing financial help for the utilisation of their day to day expenses including- medicines, food, clothing and other essentials.
Benefits of LIC Varishtha Pension Bima Yojana
- The policyholder has entitled to guarantee regular assured income under the LIC Varishtha Pension Bima Yojana. The bank account of the policyholder receives a straight credit for this sum.
- Your designated nominee or beneficiary will get the whole investment amount that the pensioner used to purchase the policy as a death benefit in the event that the policyholder passes away.
- According to Section 80CCC of the Income Tax Act of 1961, you will be eligible for income tax benefits.
- It is simple to combine the LIC Varishtha Bima Yojana Plan with other investment vehicles, such as mutual funds, provident funds, endowment policies, etc.
- The policyholder will receive 5,000 each month for a single premium payment of 6,65,665 or 60,000 annually for a premium payment of 6,39,610 under the terms of the LIC Varishtha Bima Yojana Plan. This is a return of at least 9%. These returns outpace those of any other bank or savings account by a wide margin.
Features of LIC Varishtha Pension Bima Yojana
This is an immediate annuity plan in which you pay a single premium and the annuity payout begins right away:
- You are qualified for this plan if you are 60 or older, and a medical exam is not specifically necessary.
- The policyholder may choose to surrender value if they give a diagnosis of a critical or terminal disease.
- There are several payment options available under the LIC Varishtha Pension Bima Yojana Plan. You can choose between monthly, quarterly, semi-annually, and yearly payouts. After the date the premium is received, payments will send every month, every three months, every six months, and every year.
- Monthly Payout: If you choose this option, you will receive a monthly payment and the purchase price for it begins at $66,665. If you decide to go with the monthly payout option, you can invest up to 6.66 lakh rupees.
- Quarterly Payout – If you choose this option, you will get a payout every three months, or four times a year. The policyholder who chooses this option can make an initial payment of either 66,170 or 6,61,690.
- Semi-Annually – If the policyholder chooses the semi-annual payment option, they can start out by paying 65,430 or 6,54,275.
- Annual Payout – This is the amount that the policyholder receives every year. You have the choice to start out with a payment of 63,960 or 6,39,610 under this option.
- Senior citizens can now transfer money easily thanks to the internet.
- The policyholder can surrender the insurance after investing 15 years and receive a return on the purchase price.
- A policyholder may obtain a loan against this insurance after the lock-in period of three years has passed. The loan amount may be up to 75% of the policy’s value, and LIC determines the interest rate.
The eligibility Criteria for LIC Varishtha Pension Bima Yojana are below:
- The minimum age restriction for LIC Varishtha Pension Bima Yojana is 60 years.
- There is no maximum age restriction for the applicant.
- The applicant must be a permanent resident of India.
Payment of Pension Price
The policyholder has the option to choose the purchase price or the pension amount under this plan. The minimum and maximum Purchase Prices shows below:
|Mode of Pension
|Minimum Purchase Price
|Maximum Purchase Price
An application or proposal form must complete by the interested applicant as the initial step. The person must fill out the information on his or her medical history, address verification, and KYC documents. The applicant must additionally submit an Existence Certificate in the LIC proforma in addition to this.
If your insurance coverage has surrendered, you must provide the following paperwork.
- Release form
- original statement of policy
- evidence of age.
- If the policy is being surrendered within the lock-in term of 15 years, documentation of medical treatment for the pensioner or beneficiary must be provided.
The following documentation must submit in order to collect death benefits.
- Claim forms in the LIC-specific format
- The original statement of policy
- NEFT Mandate – This contains bank information including the name of the bank, the account number, the type of account, and the IFSC code.
- Evidence of death
- Evidence of title Evidence of age
Also Check: LIC Dhan Varsha Plan
Operation of LIC Varishtha Pension Bima Plan
- There is only one premium payment option available for this coverage, and it must be made upfront. It is a senior citizens’ only annuity-based plan that does not have a life risk insurance component.
- The amount of the pension is determined by the amount invested. It should be noted that this is an instant pension plan, meaning that if the premium has already been paid, the annuity will begin immediately.
- Additionally, as this plan does not include health insurance, you are not required to submit any medical reports or certificates.
- As an illustration, Mr. A purchased the LIC Varishtha Pension Bima Yojana Plan at the age of 60 for an amount insured of 5,00,000. The purchase will cost 5,15,450 since a service tax of 15,450 will add to the total.
- Mr A has decided on a yearly payout schedule. This suggests that the pension amount for a policy with a sum insured of 5,00,000 and an interest rate of 9.38% will be 46,903.
If you have any enquiry regarding the LIC Varishtha Pension Bima Yojana, then visit your nearest LIC office and contact their employees regarding the scheme.