Varishtha Pension Bima Yojana: Online process & Benefits

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LIC Varishtha Pension Bima Yojana 2023

The LIC Varishtha Pension Bima Yojana is a particular kind of insurance policy. This allows the beneficiary to receive a pension for life by making a single premium payment. The beneficiary of this plan may pay the premium on a monthly, quarterly, half-yearly, or annual basis. The Life Insurance Corporation of India has set a return rate of 9.3 % for the LIC Varishtha Pension Bima Scheme 2023. Under this arrangement, a lock period of 15 days has also been maintained. If the applicant is unsatisfied with the policy within this open period, they have 15 days to request a refund of their money. 

Loan Under Senior Pension Insurance Scheme 

Under the Senior Pension Insurance Scheme, the beneficiary may borrow up to 75% of their investment as needed. The beneficiary can only apply for this loan three years after purchasing the policy. The Life Insurance Corporation of India has set various interest rates for loans taken out under the LIC Varishtha Pension Bima Yojana.

Surrender of Policy

This policy has a 15-year term. The complete purchase price will be reimbursed to the policyholder if they do not take any payments from the policy for the full 15 years. However, only 98% of the original purchase price would be repaid to the policyholder if they  need to take a cash withdrawal before the stipulated 15-year period. 

Key Highlights Of LIC Varishtha Pension Bima Yojana 2023

Scheme Name	Senior Pension Insurance Scheme
Who launched	the Government of India
Beneficiaries	Senior Citizens of India
Objective	To provide pension
Official Official	https://www.licindia.in/Home
Year	2023

The Objective of LIC Senior Pension Insurance Plan

 The LIC Varishtha Pension Bima Yojana 2023’s primary goal is to offer pension benefits to all of the nation’s older citizens. Any Indian citizen may participate in this plan and receive a monthly pension in exchange for their investment. The citizens’ economic situation will also improve as a result of this plan, and they will grow independent.

How Does Varishtha Pension Bima Yojana work

1. The pensioner may acquire the Varishtha Pension Bima Yojana at the purchasing fee
2. This senior pension insurance coverage must be purchased in a single lump sum
3. The pensioner will receive their pension payment either monthly, quarterly, half-yearly, or annually
4. Pension payments will also be made to the policyholder’s family
5. For both the minimum and maximum payout under the policy, a limit has been established
6. The purchase amount is refunded in the event of the policyholder’s death
7. The policyholder may apply for a loan once the insurance has been in effect for three years
8. The policyholders will be responsible for paying the loan’s interest
9. Before cancelling the policy, the policyholder will be required to repay the debt in full if they choose not to proceed with the plan.

Purchase Price of LIC Varishtha Pension Bima Yojana 

Frequency of Pension	Minimum Purchase Price	Maximum Purchase Price
Monthly	₹63,960	₹6,39,610
Quarterly	₹65,430	₹6,54,275
Half yearly	₹6,61,690	₹66,170
Annual	₹66,665	₹6,66,665

Pension Provided Under Senior Pension Insurance Scheme

	Period	Amount
Minimum pension	monthly	₹500
	Quarterly	₹1500
	half yearly	₹3000
	Annual	₹6000
Maximum pension	monthly	₹5000
	Quarterly	₹15000

 

	half yearly	₹30000
	Annual	₹60000

Some Main Facts of Senior Pension Insurance Scheme

1. Purchase Price: A lump sum acquire price may be used to purchase Varishtha Pension Bima Yojana. Under this strategy, there are various purchase price types. The pensioner can choose the buying price and pension amount based on their financial situation
2. Pension Payment: Pension payments under this plan will be made in accordance with the pension payment method chosen. After one, three, six, or twelve months from the time the policy was purchased, the first pension will be paid
3. Family Benefit: Under this plan, either the spouse or the dependent family member may get the insurance amount
4. Loan: After three years of the policy’s term have passed, a maximum loan of 75% of the purchase price may be accessed
5. In the event of death: The purchase money provided by the plan will be refunded in the event that the pensioner passes away
6. Surrender Value: After the policy’s 15-year term is ended, the pensioner may leave the programme. In this scenario, the pensioner will receive a full refund of the purchase price. However, only 98% of the purchase price will be reimbursed if the retiree leaves the programme before the stipulated 15-year period
7. Free Look Period: This plan includes a 15-day free trial period. Within 15 days, the insurance holder has the option to cancel the policy if they are unhappy with its terms. In this instance, they will receive a refund that includes the whole purchase price less the stamp duty
8. Age Restrictions: This programme has a minimum age requirement of 60 years old and no maximum age restriction.

Some Terms and Conditions Related to Senior Pension Scheme

1. During the free look time, the pensioner has the option to return the insurance if they are unhappy with the rules of the plan. The Life Insurance Corporation of India will refund the purchase fee after receiving the policy back. The cost of the stamp duty will be deducted before refunding this amount
2. At the time of purchasing the policy, the policyholders are required to supply information regarding the nominee
3. The coverage may also be forfeited if the policyholder provides any incorrect information
4. The Life Insurance Corporation of India will pay claims through the same office that handles policy servicing. The Corporation, however, has the right to choose another location at any moment
5. The claim form must be submitted by the beneficiary at the time the medication is deposited
6. The claim form must be presented with the original insurance paperwork, NEFT order, proof of ownership, evidence of death, etc
7. The pensioner must submit the certificate of existence in the prescribed form within the time frame specified by the Corporation in order to receive their pension
8. The original policy documentation and a discharge form for either the policyholder or his spouse must be submitted in the event that the insurance is surrendered
9. Based on the pensioner’s declared age, the policy will be provided
10. After three years have passed since the policy’s start date, a loan may be taken out against it
11. 75 % of the buying price is the loan amount
12. After 15 years have passed after the policy’s acquisition, the owner may surrender the policy
13. The policyholder will receive 98% of the purchase price if they must surrender the coverage prior to the 15-year mark.

Benefits and Features of LIC Varishtha Pension Bima Yojana 2023

1. All policyholders will get a pension amount through this programme upon investment
2. 9.3% of returns are guaranteed under the Senior Pension Insurance Scheme 2023
3. To take advantage of this programme, the applicant is not obliged to undertake any medical examinations
4. The applicant will be required to invest for 15 years under this plan. The applicant may withdraw 98% of the purchase price if he needs the money before the age of 15
5. After three years, up to 75% of the investment loan may also be made available via the LIC Varishtha Pension Bima Yojana 2023
6. ECS or NEFT must be used to deposit the investment amount
7. This policy’s lock period is 15 days
8. According to this plan, the policyholder’s bank account will receive the pension payment in full
9. The nominee will receive the full purchase price if the policyholder passes away
10. The Income Tax Act’s Section 80 CCC will also grant a tax exemption.

Senior Pension Insurance Scheme Minimum and Maximum Premium

Pension	Minimum Premium	Maximum Premium
Annual	₹ 63,960	₹ 6,39,610
Half Yearly	₹ 65,430	₹ 6,54,275
Quarterly	₹ 66,170	₹ 6,61,690
Monthly	₹ 66,665	₹ 6,66,665

Eligibility and Important Documents of LIC Senior Pension Insurance Scheme

1. You must be an Indian permanent resident to submit an application under this programme
2. You must be older than 60 in order to apply for this programme
3. The following documents: Aadhar Card, Ration Card, Residence Certificate, Age Certificate, Passport Size Photograph, and Mobile Number 

Process to Apply Under Senior Pension Insurance Scheme

1. You must visit the closest LIC office to apply for this programme
2. Now that this programme is in place, you must take the application from him
3. After that, carefully fill in every piece of information requested on the application form
4. You now need to submit the application form together with all required supporting documentation
5. Following that, you must turn in this application to the LIC office
6. Along with the application form, you must also send in the premium payment.

Grievance Redressal System

1. At the Branch/Divisional/Regional/Central Office, a Grievance Redressal Officer would be designated to handle client concerns
2. In addition, the Life Insurance Corporation of India has created a user-friendly Integrated Complaint Management System for the consumer portal. It enables the policyholder to file a direct complaint and track its progress
3. Customers can also email co crmgrv@licindia.com to fix their issues in addition to this
4. If the claimant disagrees with the decision to deny the death claim, they may request a review of their case from the Disputes Redressal Committee by the Regional Office or the Disputes Redressal Committee by the Central Office
5. The claimant may also submit a claim for resolution of the complaint-related claim to the Insurance Ombudsman constituted by the Government of India.

Contact Information

We have given you all the crucial details about the LIC Senior Pension Insurance Scheme through this article. You can call the helpdesk number if you still need assistance with a problem of any type. One can reach out at 022 6827 6827.

Frequently Asked Question 

What is Varishtha Pension Bima Yojana?

An insurance-cum-pension programme called VBPY offers security to senior citizens. Life Insurance Corporation (LIC), which meets the demand for post-retirement financial planning, is the provider of this pension programme.

Which of the following is the new pension plan for senior citizens that Life Insurance of India is implementing?

Life Insurance of India, an Indian company, is implementing the Pradhan Mantri Vaya Vandana Yojana, a new pension programme for senior individuals.

Which senior citizen pension plan is the best?

SCSS for Senior Citizen Savings: The ROI on SCSS, which is provided by banks and post offices, is 7.60% annually. Based products offer returns determined by the fund's performance.

Which is the best pension policy in India?

New Jeevan Shanti Plan from LIC. One of the greatest pension plans in India, it is non-participating, non-linked, and just requires a single premium payment. Through deferred annuity choices, the plan provides the benefit of returns.

Can I also start my pension at 50?

Even if you begin saving for a working pension later in life, you can still be comfortable in your retirement years. Your company will always contribute to your workplace pension, and if you qualify, you may also receive additional funds through government tax relief.

Vakilsearch is now Zolvit

After the policy has been in effect for three years, loans are accessible. Interest will be assessed based on LIC’s assessment. The payable pension will be used to recoup the interest. When the policyholder leaves, the remaining loan balance will be paid back using the profits of the claim. Taxes that the government deems necessary will occasionally be applicable.  You can get in touch with Vakilsearchto resolve all your doubts. Book a slot with our Subject matter experts and kickstart the process easily.

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