Varishtha Pension Bima Yojana (VPBY):
Carrying the responsibility of social security, the Central Government has gifted us one of the best schemes. They have launched the ‘ Varishtha Pension Bima Yojana ‘.
There is a provision of a fixed income for senior citizens under this scheme. The Senior Pension Insurance Scheme is an investment based scheme. In this scheme, senior citizens get a pension ranging from Rs 500 to Rs 5000 depending on the amount invested.
The responsibility of the implementation of this scheme has been given to the Life Insurance Corporation of India (LIC of India). Under the scheme, the insurance company will give a minimum Guaranteed Return of 8% for 10 years. It is important to note that the Senior Pension Insurance Scheme is a part of the Government’s Social Security and Financial Inclusion Program.
Let us find out more details about this Varishtha Pension Bima Yojana :
What is Varishtha Pension Bima Yojana ?
Varishtha Pension Bima Yojana (VPBY) is one of the best schemes for senior citizens. This is a good investment option in terms of an 8% interest rate.
The Senior Pension Insurance Scheme is a special pension scheme offered by the central government, so the investment made in it carries less risk.
Key features of Varishtha Pension Bima Yojana (VPBY):
- The scheme is a part of the government’s social security and financial inclusion program.
- The Varishtha Pension Bima Yojana (VPBY) will implement in the current financial year through Life Insurance Corporation of India (LIC).
- Its purpose is to provide income security to senior citizens (who are 60 years or older).
- The objective of the Varishtha Pension Bima Yojana is to provide assured pension to senior citizens with a guaranteed rate of interest, which is 8% to 10%.
- Under this scheme, the senior citizen can choose pension on a yearly, half-yearly, quarterly, or monthly basis.
- Differential Return – A guaranteed return of 8% will give in this government scheme. LIC will invest the amount received under this scheme, if the return on this investment is less than 8%, it will compensate it on yearly basis as subsidy.
- One year will give to subscribe to Varishtha Pension Bima Yojana. This period will consider for 1 year from the date of launching.
- However, in the statement given on the Varishtha Pension Bima Yojana (VPBY), it is not clear that the maximum amount can invest in it.
The purpose of Varishtha Pension Bima Yojana (VPBY):
The main purpose of this scheme is to offer social security to the elderly aged 60 years and above. Through this, they will give protection amid uncertain market conditions.
It has been made clear in the statement of the government that if there is any difference between the returns to Life Insurance Corporation on such investment and an 8% return, the government will compensate it on an annual basis.
Under this, it has been said that it will remain open for 1 year from the date of implementation of this scheme.
According to financial planners, there is a further reduction in interest rates in the coming time and in such a situation, an 8% pension scheme is a good opportunity to invest.
However, the situation has not been cleared regarding a pre-mature withdrawal from this scheme. SBI gives interest to senior citizens at an interest rate of 7% on FDs of 5 to 19 years.
At the same time, under the Senior Citizen Savings Scheme, there is an interest rate of 8.5 percent. However, there is speculation that since the interest rates are constantly decreasing, then the interest rate can be reduced in this too.
Eligibility for Varishtha Pension Bima Yojana (VPBY):
- The age for the beneficiaries of the scheme fixed at 60 years or more.
- There is a provision in this scheme to take a loan after 3 years of investment.
- The loan amount can be up to 75% of the total investment.
- There is a provision to return the principal amount invested in the scheme at the end of the stipulated period. If the person dies within the stipulated period, then the principal amount returns to the person nominated by him or her (Nominee).
- The scheme provides for payment of pension by the banking platform ECS or NEFT only.
- There is no mandatory medical certificate for investment in the scheme.
Other Characteristics of Varishtha Pension Bima Yojana (VPBY):
- It is important to note that nowadays, there is a continuous reduction in interest rates. The rate of interest on fixed deposits of 5 years to 15 years in banks has fallen to 7% and there is a possibility of further decline in it.
- In such a situation, the benefit of 8% available in Varishtha Pension Bima Yojana (VPBY) can prove to be a better option for senior citizens.
- Due to the scheme of the Central Government, the possibility of Risk in the Senior Pension Insurance Scheme is negligible.
- The biggest feature of this scheme is that even if there is a steep fall in interest rates, the benefit of 8% prescribed for the scheme will remain in its place.
- The reason for this is the guarantee given by the government to the insurance company Life Insurance Corporation of India. Under which if the insurance company incurs any loss on the interest front. The government will compensate it on an annual basis.
How to download the form?
If you want to join Varishtha Pension Bima Yojana (VPBY), you need to fill-up the form.
Following is the link from where you can get details of the scheme
https://www.licindia.in/Products/Withdrawn-Plans/VARISHTHA-PENSION-BIMA-YOJANA-(UIN-512G291V01)
Download the VPBY pension scheme form from the below link.
How will the pension amount be determined in the Senior Pension Insurance Scheme?
Significantly, the VPBY started to provide a fixed pension to senior citizens every month.
But under the scheme, have to make a lump sum investment in the scheme in the same proportion as you want.
After investing in it, you will continue to get a pension for the prescribed duration of the scheme. The pension determined based on the interest rate fixed for the scheme.
According to the prescribed scale and fixed interest rate for the scheme. So far, if a person wants to get a pension of Rs 500 per month, then he will have to invest Rs 74,627 in the scheme.
If he needs Rs 5000 every month, then he will have to increase the amount of investment to Rs 7,46,269.
If a person wants to get a pension on a quarterly, half-yearly or yearly basis instead of every month then he or she can also take it as per his or her convenience.
There is also a possibility of an increase in pension amount slightly if the gap of pension is high. The pension will start from the next year after investing in the scheme.
In this way, you can take the benefits of this one of the best pension schemes. It offered by the Government of India under Life Insurance Corporation of India (LIC).
If your age is 60 years or above, you can easily take benefits of this scheme and get guaranteed return 8% in the plan.
VPBY Complaint: Visit portal http://www.licindia.in registered policyholder can directly register a complaint/grievance also track its status.
Email id: co_crmgrv@licindia.com
