Varishtha Pension Bima Yojana Features & Benefits
LIC Varishtha Pension Bima Yojana
A scheme planned explicitly for senior citizens is LIC Varishtha Pension Bima Yojana. It is a simple retirement plan that provides the pensioner with a lifetime pension in an immediate annuity. An annuity is a collection of payments over periodic intervals made to an annuitant.
LIC Varishtha Pension Bima Yojana Plan Main Features
- This is an instant annuity scheme, as stated before, where you make a single premium payment, and the annuity payout begins immediately.
- If you are 60 plus, you are eligible for this package, and there are no unique medical checkup criteria.
- If the policyholder is diagnosed with terminal or vital conditions, the Surrender Value option may be used.
- The LIC Varishtha Pension Bima Yojana Scheme provides different payout modes. The payout can be selected as monthly, quarterly, half-yearly, and annual. The payment frequency from the date of receipt of the premium shall be one month | 3 months | 6 months | 1 year.
- Monthly Payout: You will receive a sum per month under the monthly payout option, and the purchase price for the same starts from 66,665. When you choose the option of a monthly payout, you can invest up to 6.66 lakhs.
- Quarterly Payout:You will earn a payout every three months, or four times a year, under the quarterly payout choice. The policyholder opting for this option will, to begin with, make a payment sum of 66,170 or 6,61,690.
- Yearly Payment: This is the amount paid to the policyholder annually. You can start with a payment sum of 63,960 or 6,39,610 under this option.
- The payout is in the form of NEFT or Electronic Clearing Service (National Electronic Fund Transfer) (ECS). For senior citizens, the online mode of transfer has made it easy.
- The policyholder will surrender the policy after 15 years of investment. The purchase price, which is the premium price they paid at the policy purchase, will be refunded.
- A policyholder can use a loan against that policy after three years of the lock-in duration. Up to 75 percent of the policy amount may be the loan amount, and LIC determines the interest rate.
- A free-look duration of 15 days comes with the LIC Varishtha Pension Bima Yojana Scheme. The entire premium sum will be paid back if you wish to withdraw from the program.
LIC Varishtha Bima Yojana Plan Benefits
- The policyholder is entitled to a guaranteed monthly assured income under the LIC Varishtha Bima Yojana Scheme. This sum is directly deposited into the bank account of the policyholder.
- In the event of the policyholder’s death, the nominee mentioned above/beneficiary will receive, as a death benefit, the full sum spent by the pensioner in taking out the policy.
- As per Sec 80CCC of the Income Tax Act 1961, you would be entitled to income tax benefits.
- It is easy to combine the LIC VarishthaBima Yojana Scheme with other investment instruments, such as mutual funds, provident funds, endowment policies, etc.
- Under the LIC VarishthaBima Yojana Scheme, for a single premium payment of ⁇ 6,65,665 or an annual amount of ⁇ 60,000 for a premium payment of ⁇ 6,39,610, the policyholder will earn ⁇ 5,000 every month. These returns are considerably better than any other savings account or bank.