LIC Varishtha Pension Bima Yojana is a single premium Immediate Annuity Plan for senior citizens. This plan has been launched for the benefit of the senior citizen and will be available for a limited period only.
What is Annuity– An Annuity is a product which provides regular payments and can be used as a Retirement Strategy. The person who purchases the annuity is called the annuitant.
In this plan, you need to pay a lumpsum amount of money at the beginning of the plan so that you receive annual payments in the form of Annuity for the rest of your life. Thus, in this plan, you would start to receive the payment immediately without having to wait. You can choose to receive the payments even after your death, for as long as your spouse is alive. The rate at which you would receive the Annuity depends on the type of the Annuity chosen. There is an option of 7 Annuity Options to choose from but once chosen, the option cannot be altered since pension starts immediately without delay.
Key Features of LIC Varishtha Pension Bima Yojana
Immediate pension plan
Only Life Annuity available in this plan
Annuity may be paid monthly, quarterly, half yearly or yearly intervals
There is no requirement for any medicals in this plan
COMPARE THIS PLAN WITH OTHER PENSION PLANS
Benefits you get from LIC Varishtha Pension Bima Yojana
Death Benefit – This being a pure annuity plan, there is nothing payable to the nominee in case of death of the Annuitant.
Maturity Benefit – There is no Maturity Benefit in this plan.
Income Tax Benefit – Premiums paid under life insurance policy are exempted from tax under Section 80 C. Pension that is received is taxable.
Eligibility conditions and other restrictions in LIC Varishtha Pension Bima Yojana
Minimum
Maximum
Purchase Price of Annuity (Yearly in Rs.)
63,960
6,39,610
Annuity Payout (Yearly in Rs.)**
6,000
60,000
Premium Payment Term (in years)
Single
Entry Age of Annuitant (in years)
60
No Limit
Payment modes for Annuity
Yearly, Half-yearly, Quarterly or Monthly
** The maximum ceiling is for the Entire Family as a whole
Additional Features and Benefits of LIC Varishtha Pension Bima Yojana
Riders -
There are No Additional Riders available in this plan.
What happens if?
You stop paying the premium – This plan is a single premium plan and hence there is no question of stopping further premiums.
You want to surrender the policy – The policy can be surrendered after completion of 15 years. The Surrender Value payable will be the refund of the Purchase Price.
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.
You want a loan against your policy – Loan facility is available after completion of 3 policy years but only upto a maximum limit of 75% of the Purchase Price
