Varishtha Pension Bima Yojana
(Ministry of Finance)
Key features of the Campaign
Main Features of the Scheme
- Varishtha Pension Bima Yojana is a pension scheme for the benefit of citizens aged 60 years and above.
- It was launched in the year 2014-15.
- Under the scheme, a total number of 3.16 lakh annuitants are being benefited.
Under the Scheme the subscribers on payment of a lump sum amount get pension at a guaranteed rate of 9% per annum.
Modes of pay-out
- Varishtha Pension Bima Yojana annuitants can choose from various modes of pay-out viz., monthly, quarterly, half-yearly and yearly.
- Payment will be through ECS or NEFT.
* ECS or NEFT- NEFT and ECS are two types of electronic payment and settlement systems being used in many developing countries including India. NEFT stands for National Electronic funds Transfer and ECS stands for Electronic Clearing Service.
The scheme is administered through LIC.
Any gap in the guaranteed return over the return generated by the LIC on the fund is compensated by Government of India by way of subsidy payment in the scheme.
- The scheme allows withdrawals of deposit amount by the annuitant after 15 years of purchase of the policy or earlier in special circumstances like critical / terminal illness of self or spouse.
- Before 15 years, policy holder have to pay exit load which is 2% on the amount taken out.
On death of the Pensioner, the Purchase Price shall be refunded to nominee.
Loan (up to 75% of subscribed amount) can be availed after 3 years from the date of Commencement.