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Features and Benefits of LIC Varishtha Pension Bima Yojana

LIC Varishtha Pension Bima Yojana, as the name suggests is a pension scheme primarily for senior citizens. It is one of the most popular schemes introduced by the government and incorporated by the LIC. This scheme was made available only to people above 60 years of age. Under this policy, the policyholder needs to pay a single premium to enjoy the benefits.

Let’s learn a little more about the policy. Here’s the purchase plan which the policy offers

Minimum Purchase Price

Maximum Purchase Price

Pension Frequency

Rs 63,960

Rs 6,39,610

Monthly

Rs 65,430

Rs 6,54,275

Quarterly

Rs 66,170

Rs 6,61,690

Half-Yearly

Rs 66,665

Rs 6,66,665

Yearly

The features and the benefits the policy has to offer are the reason for its extreme popularity, let’s have a look at them.

Key features of the LIC Varishtha Pension Bima Yojana

Here are the features of the LIC Varishtha Pension Bima Yojana:

  • No medical check-ups are required to avail of this policy.
  • LIC Varishtha Pension Bima Yojana provides for early availability of surrender value in case the policyholder is diagnosed with any critical issues or illness.
  • 15 years of lock-in period is allotted for the policy although the policyholder can withdraw the required amount of money by paying a fee known as the exit load.
  • Only 2% as exit load is charged if the policyholder decides to withdraw the amount before maturity. That means, 98% of the total amount will still be received by the policyholder.
  • A choice is given to the policyholder if he wants to receive the payment monthly, yearly, quarterly, or half-yearly.
  • Payments are made through ECS or NEFT ensuring that the policyholder receives the money without going through the trouble of encashing a cheque or demand draft.
  • The policyholder can surrender the policy after the completion of the tenure and receive the entire amount of premium paid to purchase the policy.
  • A loan can be availed on the policy after the completion of 3 years. A loan of up to 75% of the premium paid can be granted based on the interest rate decided by the LIC.
  • In case the age of the policyholder is proved to be incorrect, it can simply be changed. The policy is not canceled and nor is the policyholder fined.

Benefits of the LIC Varishtha Pension Bima Yojana

The policy offers numerous benefits that immensely attracts its target age group. A brief description of the benefits has been provided here:

  • A regular assured income is paid to the policyholder. This amount is directly transferred to the bank account of the policyholder.
  • The beneficiaries on the death of the policyholder receive the entire amount paid by the pensioner as a premium to purchase the policy.
  • Tax benefits are also offered to the policyholder on the premium paid by him.
  • As the policy is initiated by the government, its reliability is undoubted just like the other government pension policies.
  • The policy can be easily combined with other sources of pension such as the provident fund to obtain a good amount of sum.

Earlier pension planning was just restricted to limited sources such as PF but with the advancements in the banking and insurance sector, numerous ways are available to secure one’s post-retirement life. Utmost advantage should be taken of these advancements in order to live a healthier and independent retired life.

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