Varishtha Pension Bima Scheme 2024: Interest Rate & Calculator

Varishtha Pension Bima Scheme Apply Online & Application Form | Varishtha Pension Bima Scheme Check Beneficiary Category & Last Date | Varishtha Pension Bima Scheme Check Benefits & Features | Varishtha Pension Bima Scheme Check Selection & Implementation Procedure | Varishtha Pension Bima Scheme Check Eligibility & All Details | 

The Varishtha Pension Bima Scheme is a beneficial retirement planning solution tailored to the needs of senior citizens. It offers a variety of advantages, guaranteeing a secure and dependable income stream post-retirement. This government-supported pension plan is specifically crafted to provide senior citizens with a comfortable and worry-free life during their golden years.

This article will provide all types of information about the Varishtha Pension Bima Scheme 2024 like purpose, Eligibility Criteria, Benefits, Features, important documents, etc. Apart from this, we will share the process to apply online for this scheme. To get complete information about this scheme, read this article till the end.

Varishtha Pension Bima Scheme 

In India, the Ministry of Finance unveiled the Varishtha Pension Bima Scheme (VPBY), a government-backed pension plan. The plan’s purpose is to give senior citizens a steady source of income and financial security. It is a desirable choice for people 60 years of age and older since it offers a guaranteed pension for ten years.

The Life Insurance Corporation of India (LIC) is in charge of the program, which attempts to give senior citizens social security by guaranteeing a steady income during their retirement years. In conformance with their preferences and financial requirements, beneficiaries of the VPBY plan can select between monthly and quarterly pension options.

Highlights of Varishtha Pension Bima Scheme 2024

The highlights of this scheme are as follows:- 

Objectives of Varishtha Pension Bima Scheme 2024

The objectives of the Varishtha Pension Bima Scheme are:-

• Financial Security: The scheme aims to provide financial security to senior citizens by offering a guaranteed pension for ten years.
• Regular Income: The scheme ensures a regular income stream for senior citizens, enabling them to meet their daily expenses and maintain a decent standard of living.
• Social Welfare: By providing a stable source of income to senior citizens, the scheme promotes social welfare and helps in reducing the financial burden on families.

Beneficiary Category 

The Varishtha Pension Bima Scheme is open to individuals aged 60 years and above. The scheme is available to both resident Indians and non-resident Indians (NRIs). However, NRIs can only invest in the scheme using funds from their Non-Resident External (NRE) or Foreign Currency Non-Resident (FCNR) accounts.

Application Enrollment Last Dates

The scheme is available for subscription for a limited period. The enrollment window is usually open for a few months, and the specific dates are announced by the LIC. Interested individuals should check the LIC’s official website or visit their nearest LIC branch to know the exact enrollment dates for the scheme.

Selection Procedure 

The selection of beneficiaries under the Varishtha Pension Bima Scheme is done on a first-come, first-served basis. Once the enrollment window is open, interested individuals can submit their applications along with the required documents to the LIC. The applications are processed in the order of receipt, and the scheme is closed once the maximum limit of enrollments is reached.

Calculator

Calculating the benefits and returns of the Varishtha Pension Bima Scheme is crucial for individuals planning to invest in it. While there is no specific calculator provided by the government or LIC, you can use simple formulas to estimate the returns.

The formula to calculate the pension amount is:-

Pension Amount = Purchase Price * Pension Rate

Here, the purchase price is the lump sum amount invested by the individual, and the pension rate is the annual pension amount payable per Rs. 1,000 of the purchase price.

For example, if the purchase price is Rs. 5,00,000 and the pension rate is Rs. 500 per Rs. 1,000, the pension amount would be:

Pension Amount = 5,00,000 * (500/1,000) = Rs. 2,50,000 per annum

Interest Rate

The Varishtha Pension Bima Scheme offers an attractive interest rate to senior citizens. As of the latest update, the scheme provides an annual interest rate of 7.40%. This interest rate is guaranteed for the entire duration of the scheme, which is ten years.

It is important to note that the interest is paid out as pension at regular intervals, rather than compounded annually.

Maximum Amount

The maximum amount that can be invested in the Varishtha Pension Bima Scheme is Rs. 15 lakhs per individual. This investment limit ensures that individuals can receive a substantial pension amount without exceeding the specified threshold.

It is also worth mentioning that the purchase price of the scheme determines the pension amount. The higher the purchase price, the higher the pension amount will be.

Implementation Procedure 

Once the selection procedure is completed, the LIC issues a policy document to the beneficiaries. The policy document contains all the relevant details such as the pension amount, payment frequency, and other terms and conditions. The pension payments are made directly to the beneficiary’s bank account through electronic transfer.

Supervision Body 

The Varishtha Pension Bima Scheme is supervised by the Life Insurance Corporation of India (LIC). The LIC is responsible for the administration and implementation of the scheme, ensuring that the benefits reach the intended beneficiaries in a timely and efficient manner.

Guaranteed Pension

One of the key features of the Varishtha Pension Bima Scheme is the guaranteed pension it offers. This means that the policyholder will receive a fixed amount as a pension on a monthly, quarterly, half-yearly, or annual basis, depending on their preference. The pension amount is predetermined and remains the same throughout the policy term.

High Return

The scheme offers attractive returns on the premium paid by the policyholder. These returns are higher than those offered by traditional investment options such as fixed deposits or savings accounts. The high return component of the scheme ensures that the policyholder can enjoy a comfortable retirement without worrying about financial constraints.

Flexible Pension Options

The Varishtha Pension Bima Scheme provides flexibility in terms of pension payment options. Policyholders can choose between different frequencies of pension payments, depending on their financial needs and preferences. This flexibility allows individuals to customize their pension plan according to their specific requirements.

Family Benefit

In the unfortunate event of the policyholder’s demise, the scheme offers a family benefit to the nominee or legal heir. This benefit ensures that the policyholder’s loved ones receive financial support even after their passing. The family benefit provides an added layer of security and helps in taking care of the financial needs of the family members.

Loan Facility

The Varishtha Pension Bima Scheme also provides a loan facility to the policyholder. This feature allows individuals to borrow against the policy’s surrender value in case of any financial emergencies or unforeseen expenses. The loan facility offers a convenient way to access funds without having to liquidate the policy prematurely.

No Medical Examination

Unlike many other insurance schemes, the Varishtha Pension Bima Scheme does not require the policyholder to undergo a medical examination. This makes it easier for senior citizens to avail of the scheme without any hassle or inconvenience. The absence of a medical examination simplifies the application process and ensures quick approval.

Minimum Entry Age

The scheme has a minimum entry age requirement, ensuring that individuals can start planning for their retirement at an early stage. This helps in building a substantial corpus over time and ensures a comfortable retirement life. The minimum entry age allows individuals to avail of the benefits of the scheme when they are most needed.

Maximum Pension Amount

The Varishtha Pension Bima Scheme also has a maximum pension amount limit, which ensures that the policyholder receives a substantial monthly income during their retirement years. This maximum pension amount provides a sense of financial security and allows individuals to maintain their standard of living even after retirement.

Government Backing

The Varishtha Pension Bima Scheme is backed by the government of India, which adds an extra layer of trust and reliability. This government backing ensures that the scheme is secure and reliable, providing policyholders with the assurance that their retirement funds are in safe hands.

Easy Application Process

Applying for the Varishtha Pension Bima Scheme is a simple process. The scheme can be availed through authorized insurance agents or directly through the official website. The easy application process eliminates any unnecessary paperwork or complicated procedures, making it convenient for senior citizens to enrol in the scheme.

Key Guidelines 

The key guidelines of this scheme are as follows:-

• The minimum investment amount for the scheme is Rs. 1,56,658, while the maximum investment amount is Rs. 15,66,000.
• The scheme offers an assured pension rate of 7.4% per annum for monthly pension and 7.49% per annum for quarterly pension.
• The pension amount is payable for ten years, with the option of receiving the pension monthly or quarterly.
• The scheme allows for premature exit after completion of one year, subject to certain conditions.
• The scheme offers a loan facility after the completion of three policy years, providing financial flexibility to the beneficiaries.
• The scheme allows for the nomination of a spouse or any other eligible family member to receive the pension in case of the beneficiary’s demise.
• The scheme is exempted from Goods and Services Tax (GST).
• The scheme is not eligible for any income tax benefits under Section 80C of the Income Tax Act.
• The scheme does not offer any surrender value.
• The scheme is not available for purchase through online platforms and can only be availed through the LIC.

Benefits of Varishtha Pension Bima Scheme 2024

The benefits of this scheme are as follows:-

• Regular Pension Payments: Under this scheme, senior citizens receive regular pension payments, which provide them with a steady income source during their retirement years.
• High Return on Investment: The scheme offers an attractive interest rate, ensuring that individuals receive a higher return on their investment compared to other retirement savings options.
• Guaranteed Pension: The pension payments are guaranteed for the entire duration of the policy, providing financial stability and peace of mind to the policyholders.
• Flexible Pension Options: The scheme allows individuals to choose between monthly, quarterly, half-yearly, or annual pension payments, depending on their preferences and financial needs.
• Life Insurance Coverage: The Varishtha Pension Bima Scheme also provides life insurance coverage to the policyholders, offering additional financial protection to their families in case of unfortunate events.
• No Medical Examination: Unlike many other insurance schemes, the Varishtha Pension Bima Scheme does not require senior citizens to undergo any medical examination to avail of the benefits.
• Loan Facility: Policyholders can avail of a loan against their policy after the completion of three policy years, providing them with a financial cushion during emergencies.
• Easy Application Process: The application process for the Varishtha Pension Bima Scheme is simple and hassle-free, making it convenient for senior citizens to enrol and start receiving their pensions.
• Income Tax Benefits: The pension received under this scheme is eligible for income tax benefits, helping individuals reduce their tax liability and maximize their savings.
• Transferability: In case of relocation, policyholders can easily transfer their policy to any other LIC branch across the country, ensuring continued access to their pension benefits.

Features Of Varishtha Pension Bima Scheme 2024

The features of this scheme are as follows:-

• Guaranteed Pension: Under this scheme, the policyholder receives a guaranteed pension for the entire policy term.
• High Return: The scheme offers a high return on investment, ensuring a steady income stream for the policyholder.
• Flexible Pension Options: Policyholders can choose to receive their pension monthly, quarterly, half-yearly, or annually, depending on their preference.
• Family Benefit: In case of the policyholder’s demise, the spouse or nominee receives the purchase price of the policy as a death benefit.
• Loan Facility: Policyholders can avail of a loan against the policy after the completion of three policy years.
• No Medical Examination: The scheme does not require any medical examination for enrollment, making it hassle-free for senior citizens.
• Minimum Entry Age: The minimum entry age for this scheme is 60 years, ensuring that it caters specifically to the needs of senior citizens.
• Maximum Pension Amount: The maximum pension amount is capped at a certain limit, ensuring that the scheme remains financially viable.
• Government Backing: The scheme is backed by the Government of India, providing policyholders with a sense of security and trust.
• Easy Application Process: The application process for this scheme is simple and user-friendly, ensuring ease of enrollment for senior citizens.

Varishtha Pension Bima Scheme Eligibility Criteria 

The applicants will need to follow the below-mentioned points to apply online for this scheme:-

• Age Requirement: The scheme is open to individuals who have attained the age of 60 years or above. There is no upper age limit for participation in the scheme.
• Citizenship: The scheme is available to Indian citizens residing in India or abroad. Non-resident Indians (NRIs) are also eligible to apply.
• Mode of Investment: The Varishtha Pension Bima Scheme can be availed through a lump sum investment or by purchasing the policy through the Life Insurance Corporation (LIC) of India.
• Pension Payments: Under this scheme, the pension is provided in the form of guaranteed monthly, quarterly, half-yearly, or annual payments, as chosen by the policyholder.
• Policy Term: The policy term for the Varishtha Pension Bima Scheme is ten years. The pension payments continue throughout the policy term.
• Joint Option: The scheme also allows for a joint option, where the spouse or any other eligible family member can be included. In case of the demise of the primary policyholder, the spouse or nominee will continue to receive the pension.
• Surrender Value: The scheme offers a surrender value option, allowing policyholders to exit the scheme prematurely in case of urgent financial needs.

Important Documents 

Some of the important documents required to apply online for this scheme are as follows:-

• Aadhar Card
• Residence Certificate
• Income Certificate 
• Educational Certificates 
• Bank Account Details 
• Latest Passport Size Photos 
• Mobile No
• Email ID 

Varishtha Pension Bima Scheme Apply Online 2024 

To apply for this scheme, visit your nearest LIC Office. Get the application form from there and fill in all the details carefully. Attach all the necessary documents to the form and submit it to the LIC office. Additionally, deposit the required premium amount along with the application.