Benefits of Varishtha Pension Bima Yojana

The Government of India has launched a very helpful scheme for the senior citizens of India, they introduced Varishtha Pension Bima Yojana. Who can avail the scheme? What are the criteria to get the scheme? All your questions are answered below.

Benefits of Varishtha Pension Bima Yojana

The Varishtha Pension Bima Yojana is aimed to provide social security to the senior citizens of India. It is a single premium scheme sponsored by government of India. The scheme will have an effective return of 9% to 9.38% per annum. Moreover, to get the trust and safety of investors, LIC of India will operate this scheme.

Eligibility for Varishtha Pension Bima Yojana:

To get the scheme, customer’s minimum entry age should be 60 years and there is no maximum limit. Moreover, the customer can get minimum pension of Rs. 500 per month. In addition, the maximum pension amount is 5000 per month.

The scheme was launched on 15th August 2014 and it will be open till 15th August, 2015. Interested customers will have to avail the scheme before 15th August 2015.

Benefits of Varishtha Pension Bima Yojana:

1. Death Advantage – If the pensioner dies, the purchase price will be refunded.

2. Pension Payment – The pension will be given to the pensioner in the form of instant annuity according to the mode chosen by him.

3. High Rate Of Rreturn – The scheme will give high Rate of return (ROR) between 9% to 9.38 to the customers.

4. Options – You get the options to receive pension monthly, quarterly, half yearly, and yearly.

5. Loan Facility – You can get loan facility under this policy. Moreover, the policy holder can use up to maximum of 75% of their invested amount. In addition, the interest on loan will be accustomed with the pension amount paid by policyholder.

6. Two or more senior citizens of a family can invest together in this policy. However, the investment limit will be the same as specified.

7. Besides, surrender is permitted after 15 years of policy. However, in some situations like treatment or any other sickness for self or spouse, early surrender is allowed. You will get 98% of the total invested amount.

Note :- This Policy valid up to 15th August, 2015, after that you can not buy it.

Note 1 :- Government of india has launched new guarantee pension scheme, Atal Pension Yojana, which will get you Rs.1000/- to Rs.5000/- guarantee pension at age of 60s. Check here more information about Atal Pension Yojana, also take a look at Pradhan Mantri Suraksha Bima Yojana (Accident Insurance) and Pradhan Mantri Jeevan Jyoti Bima Yojana (Life Insurance). 

These are benefits and eligibility criteria to get the Varishtha Pension Bima Yojana. Ask a question below in case of any doubts.
Check out the official document for more information.

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