The LIC Varishtha Pension Bima Yojana benefits senior citizens during their retirement. With a lump sum payment, pensioners can buy a policy at the purchase price. A pension will then be payable monthly, quarterly, half-yearly or annually. With great flexibility, policyholders can choose a pension payment frequency according to their needs and convenience.
Eligibility Conditions for LIC Varishtha Pension Bima Yojana
|Minimum entry age||60 years|
|Maximum entry age||No Limit|
Pension Granted under LIC Varishtha Pension Bima Yojana
|Minimum Pension||Monthly||Rs. 500|
|Maximum Pension||Monthly||Rs. 5,000|
Purchase Price of LIC Varishtha Pension Bima Yojana
|Pension Frequency||Minimum Purchase Price||Maximum Purchase Price|
|Monthly||Rs. 63,960||Rs. 6,39,610|
|Quarterly||Rs. 65,430||Rs. 6,54,275|
|Half-yearly||Rs. 66,170||Rs. 6,61,690|
|Yearly||Rs. 66,665||Rs. 6,66,665|
Key Features of LIC Varishtha Pension Bima Yojana
Listed below the key features of LIC Varishtha Pension Bima Yojana:
|Plan type||Pension Plan|
|Premium paying terms||Monthly, quarterly, half-yearly and yearly|
|Maturity benefits||Guaranteed Pension|
|Premium payment frequency||Monthly, quarterly, half-yearly and annually|
|Mode of Pension Payment||ECS/NEFT only|
|Pension payment frequency||Monthly, quarterly, half-yearly and annually|
|Free-look period||15 days from the date of receipt of the purchased policy|
|Defaults||Fine up to RS. 500|
|Policy coverage||Death benefits and maturity benefits.|
Benefits/Advantages of LIC Varishtha Pension Bima Yojana
The LIC Varishtha Pension Bima Yojana provides you with the following key benefits:
- Policies can be purchased by payment of a lump sum known as Purchase Price.
- Pensioner can choose between the pension amount and the purchase price.
- Guaranteed benefits: Pension will be paid depending on the mode of pension payment selected. The first pension will be paid after 1 month, 3 months, 6 months or 1 year from the date of purchase.
- Family Benefits: Pension can also be received by family including spouse and dependants.
- Loan: After completing 3 years of the policy, loan facility is available for a maximum of 75% of the purchase price. Interest on the loan will be recovered from the pension.
- Death benefits: Upon the death of the pensioner, the purchase price will be refunded.
- Surrender value: After 15 years of the policy, the pensioner can opt to surrender the policy and the Purchase Price will be refunded. In case the policy is surrendered before completing 15 years, then only in case the pensioner needs the money for terminal or critical illnesses of self or spouse, 98% of the Purchase Price will be refunded.
- Free look period: This LIC pension plan offers a 15-day period from the date of receipt of the policy as a free look period. In case the policyholder is not satisfied, the amount will be refunded after deducting stamp duty charges.
How the LIC Varishtha Pension Bima Yojana Works
A pensioner can purchase an LIC Varishtha Pension Bima Yojana policy at the purchase price. A lump sum payment is required to purchase the LIC policy. During the lifetime as a pensioner, a pension will be paid monthly, quarterly, half-yearly or annually as opted by the policyholder. The pension will also be payable to the policyholder’s family. There is a limit on the minimum and maximum pension that will be paid. In case the policyholder dies, the purchase price of the pension will be refunded. Loans are available after completing 3 years of the policy. Interest will be charged as determined by LIC. The interest will be recovered from the pension payable. The outstanding loan amount will be recovered from the claim proceeds when the policyholder exits. Taxes as required by the Government will be applicable from time to time.