Introduction on LIC Varishtha Pension Bima Yojana Plan
LIC Varishtha Pension Bima Yojana is a pension plan released by Life Insurance Corporation of India. Government of India in the Union Budget 2014-2015, announced the revival of LIC Varishtha Pension Bima Yojana. LIC Varishtha Bima Yojana is a single premium pension policy for senior citizens, with pension starting to flow in immediately. One can opt to receive the pension either monthly, quarterly, half yearly or annually.
Based on the frequency in which you choose to receive the pension, there are ceilings on the maximum and minimum amount of investment. LIC Varishtha Pension Bima Yojana is a Pension plan for the welfare of Senior Citizens of the India.
LIC Varishtha Pension Bima Yojana Plan eligibility conditions
| Eligibility Condition | Details | |
| Age of Entry |
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| Sum Assured |
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| Policy Term |
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| Pension payable | Minimum
Maximum
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| Premium Mode | Yearly, Half Yearly, Quarterly, Monthly | |
| Loan Facility | Loan facility is available. | |
| Surrender value | Surrender value is payable | |
Benefits of LIC Varishtha Pension Bima plan 828
- Pension Payment :
During the lifetime of Pensioner, a pension in the form of immediate annuity will be paid as per mode chosen by the Pensioner shall be payable.
- Death Benefit:
On death of the Pensioner the Purchase Price shall be refunded.
Sample Pension interest rates per Rs.1000/- Purchase Price
The pension rates for Rs.1000/- Purchase Price for different modes of pension payments are as below:
- Yearly: Rs. 93.8069 p.a.
- Half-yearly: Rs. 91.7045 p.a.
- Quarterly: Rs. 90.6767 p.a.
- Monthly: Rs. 90.0000 p.a.
The pension instalment shall be rounded off to the nearest rupee.
These rates are not age specific.
Documents Required for open LIC Varishtha Pension Bima Yojana
- Proposal Form
- Age Proof
- Identification proof
- Medical Certificates(If Required)
Documents Required for Claim under LIC Varishtha Pension Bima Yojana
- On death of the pensioner : Claim Forms , Original Policy Bond, NEFT mandate form for bank deposit, Bank Passbook or cancelled cheque as a proof of Bank details and Proof of the death. If age not provided at the time of taking the policy age proof has to be submitted.
- Payment of Pension : Policy Holder Existence certificate to stop frauds. it will be given at the time of taking the policy.
- Surrender before 15 years : Discharge form, Policy original Document, proof medical treatment to self or spouse, NEFT mandate form for bank transfer, Bank Passbook or cancelled cheque, proof of age if age not admitted at the time of taking the policy.
Rebates in LIC Varishtha Pension Bima Yojana
No rebates are available under this plan
Surrender value under LIC Varishtha Pension Bima Yojana
After completion of 15 years the policy can be surrendered. The Surrender Value is 100% purchase value. That means if we withdraw the policy after 15 years the amount invested will be returned back.
However, under exceptional circumstances, if the pensioner requires money for the treatment of any critical/terminal illness of self or spouse then the policy can be surrendered before the completion of 15 years and the Surrender Value payable shall be 98% of Purchase Price.
Loan Facility under LIC Varishtha Pension Bima Yojana
Loan facility is available after completion of 3 policy years. The maximum loan that can be granted shall be 75% of the Purchase Price.
The rate of interest to be charged for loan amount would be determined from time to time by the Corporation.
Loan interest will be recovered from pension amount payable under the policy. The Loan interest will accumulate as per the frequency of pension payment under the policy and it will be due on the due date of pension. However, the loan outstanding shall be recovered from the claim proceeds at the time of exit.
Taxes under LIC Varishtha Pension Bima Yojana
Policyholder has to pay the tax amount also while taking the policy. The amount of Tax paid shall not be considered for the calculation of benefits payable under the plan. For more information regarding Income Tax Benefits, visit www.taxqueries.in.
Free Look period under LIC Varishtha Pension Bima Yojana
If a policyholder is not satisfied with the “Terms and Conditions of the policy, he/she may return the policy to the Corporation within 15 days from the date of receipt of the policy stating the reason of objections.
Under SECTION 45 OF INSURANCE ACT, 1938 No policy of life insurance shall after the expiry of two years from the date on which it was effected.
LIC Varishtha Pension Bima Yojana premium calcuator
Through LIC Varshitha pension Bima yojana Premium calculator we can calculate pension amount to be received either yearly, Half yearly ,Quarterly or Monthly. Based up on the date given Premium calculator helps in calculating the premium amount.
Example for LIC Varishtha Pension Bima Yojana
To Illustrate the benefits of LIC Varishtha Pension Bima Yojana, Lets take an example of a person with following details.
Sum Assured: Rs. 5,00,000
Policy Purchase Year: 2014
Age of entry: 60 Years
Pension type: Yearly
To Calculate benefits with details other than above, go to LIC Varishtha Pension Bima Yojana premium calculator
| Purchase Price | 500000 |
| Service Tax | 15450 |
| Total Amount to Pay | 515450 |
| Pension Type | Yearly |
| Interest Rate | 9.38069 |
| Pension Amount | 46903 |
For the policy purchase price 5,00,000 RS/- The interest rate will 9.38 RS per annum
Based on that, policyholder will receive pension of an amount of Rs 46903/- every Year.
FAQs under LIC Varishtha Pension Bima Yojana
1. What happens if You stop paying the premium?
Ans. If the premiums are not paid within the grace period, the policy lapses and all benefits cease. However, there the policy can be revived within 2 years from the date of first unpaid premium.
2. What happens if You want to surrender the policy?
Ans. Single Premium Policies can be surrendered at any time during the deferment period and the Guaranteed Surrender Value would be:
Within 3 policy years would be 70% of the Single Premium Paid excluding taxes and extra premium, if any and
After 3 policy years would be 90% of the Single Premium Paid excluding taxes and extra premium, if any
Regular Premium Policies:
For deferment period less than 10 years: The policy can be surrendered provided the premiums have been paid for at least two consecutive years.
For deferment period 10 years or more: The policy can be surrendered provided the premiums have been paid for at least three consecutive years.
The Guaranteed Surrender Value is a percentage of total premiums paid excluding taxes, extra premium.