How does Varishtha Pension Bima Yojana benefit senior citizens?
“A pension is a lump sum or periodical income essential for planning the future. It is a way to save income after retirement. Also, it reduces the chance to struggle after retirement. “
Every young generation is taught that they should start saving early or make investments in a pension plan. To ease this issue, the Government of India launched a pension scheme. It is for people who are 65+ years old.
The scheme is Varishtha Pension Bima Scheme.
This scheme provides security and secured interest rates on the pension for senior citizens. It adds annuity payments for old age citizens in the way of an “Immediate Annuity Plan.”
In 2014-2015, this Yojana was recovered by the Government of India. The plan attracted 3.16 lakh policies and a sellout of Rs. 6095 Crore. It is for old people who are above 60 years. They can register themselves under this plan. The plan uses a single pay mode of premium payment for the pensioners.
Let’s read all about Varishtha Pension Bima Scheme.
What are the important attributes of the Scheme?
Below are the important attributes of the Varishtha Pension Bima Yojana
- Type of plan- Pension Plan
- Basis of plan- single-member
- Terms for paying premiums- Annually, Quarterly, Monthly, Half-yearly,
- Mode of pension payment- Only NEFT/ ECS
- Policy coverage- Death and maturity benefit
- Free lock period- 15 days. It will be from the date of receipt when you purchased the policy.
- Maturity benefits- Guaranteed Pension
- Defaults- A penalty of up to Rs. 500/-.
What is the Purchase Price list for LIC Varishtha Pension Bima Yojana?
What are the advantages of Varishtha Pension Bima Yojana?
You can have the following advantages from the LIC Varishtha Pension Bima Yojana:
- You can purchase policies by making a lump sum payment. It is called Purchase Price.
- You can choose between the Purchase Price and the Pension amount.
- Your family can receive Pension. It will include your dependent and spouse.
- After the date of purchase, you can pay your pension yearly or monthly. It will depend on the mode of payment you have selected.
- You can have the loan facility if you have completed 3 years of the policy.
- On the purchase price, you can have the loan for a maximum of 75%.
- The loan interest will be regained from your pension.
- In the death circumstances, the purchase price will be refunded.
- This policy plan offers a 15 days free lock period from the policy date of receipt. If you find that this policy is not satisfying then you can stop it there itself. You will get the refund amount after deducting the charges of stamp duty.
- You can surrender the policy after completing 15 years. The completion year will be calculated from the date & year when the policy was started.
- If in case you surrender the policy before 15 years then the payable will be 98% of the Purchase Price.
What are the other terms and conditions under this scheme?
Nominations and Assignments:
The life insurance policyholder will provide the nomination under Insurance Act, 1938. It is necessary that the nominee given by the policyholder should be a close relative of him. The policy holder can change the nomination at the corporate office. They will submit the notice for new registration.
Under this policy, no assignment is allowed besides the “Policy Loan” Conditions.
Abandonment in certain events:
If any untrue or false personal statement, declaration, document, or material information is found then the policy will be void. In addition, the policy will cease after paying the surrender value by the company.
If any amount is due under this policy then you can pay it at the corporate office where this policy is served. However, the corporation has the sole right to fix the payment claim at any alternate time or place.
As per the relevant legislation & regulation, the benefits, terms and conditions for making policy payments are subject to variation.
If there is any tax payable then it will be service tax. It will be applicable from time to time as per the rate of tax and tax laws. You (pensioner) will pay the tax amount as per the current rate on Purchase Price.
General requirements for a claim:
1. For payment of pension-
You (pensioner) will submit the existing certificate in the prescribed form of a certificate. It will be from time to time or the prescribed time interval.
2. For payable benefit on pensioner’s death-
General documents required by the claimant for The submission after pensioner’s death are-
- Claim form as per the corporation
- Policy documents
- NEFT details from the claimant. It will help the corporation to make direct payment of the claim amount in the claimant’s bank account.
- Death proof
- Title proof
- Age proof
3. For payable benefit on surrender value-
You (pensioner) will submit the discharge form along with the following documents-
- Documents of the original policy.
- If the policy is surrendered before 15 years, then the medical proof of spouse/ self.
- If the age is not admitted, then age proof.
The LIC Varishtha Pension Bima Yojana provides many advantages to the senior citizens of the country. They can buy the policy with a lump sum amount on Purchase Price. It benefits them during their retirement time. This policy has great flexibility and one can frequently choose payment of pension as per their convenience and need.