Apply Varishtha Pension Bima Yojana 2019 [LIC, Banks, Post Office][Application Form] 8% Fixed Income for Senior Citizen for 10 Years.
Varishtha Pension Bima Yojana was first started in the year 2003. The scheme was all about the secured future of the old people aged above 60 years. Recently in January 2017 the scheme was revised and introduced again with all new features. It is a retirement policy where elderly people will get maximum and fixed amount of interest. This will definitely help them to secure their future as well as their spouse’s future.
Varishtha Pension Bima Yojana 2017
Yesterday Cabinet ministry gave a nod to revised Varishtha pension Bima Yojana that declares fixed and guaranteed 8% return per annum for the next 10 years. This decision was made to support the future of the old and retired people.
The Features of the VPBY 2017
- The yojana was started with Life Insurance Corporation of India. The policy will be provided by the LIC only. On the other the interest subsidy (if needed) will be provided by the central government.
- The policy is for the retired people who are pensioners. Age eligibility for this scheme is minimum 60 years however there is no upper age limit under this scheme.
- Under VPBY 2017 the guaranteed interest rate will be paid to the pensioner for next 10 years. That is up to 70 years or more whatever be the market return candidates under this scheme will still collect 8% return per annum.
- The scheme is currently open for all. The authority said yesterday that the scheme will be open for all the applicants for next 1 year from the official date of launching the scheme nationally.
- If the interest return offered by LIC changes from assured 8% then the difference between the two rates will be calculated annually and paid by the central government. This amount will be paid annually.
- Candidates can receive the pension on monthly basis, quarterly or annually as per their convenience. The payment will be made through online transaction that is RTGS or NEFT. No offline or cash transaction will be involved here in this scheme.
- There will not be any tax benefit on the premium paid by the candidate under this scheme. Also because pension is considered as the income there will not be any tax benefit for the no pension as well.
VPBY 2017 and VPBY 2014
- As said that the scheme was launched before on 15th of August 2014 and lasted for 1 year that is 14th of August 2015. Under this scheme the candidates had received 9.38% of total interest in a year which is definitely lower than the new version of the scheme.
- Apart from the difference in the interest return the main revision that is made in the new version is the assured return which was not present in the previous version.
- In 2014 the minimum pension limit was Rs. 500/- and the maximum pension pay out was Rs. 5, 000/-. This amount is also revised but as of now the revised amounts are not confirmed.
- It is a single premium policy and the minimum amount of premium could be paid as much as Rs. 66, 665/- and the maximum limit of premium in single policy could be paid as much as Rs. 6, 66, 665/- back in the year 2014.
The VPBY started in 2003 and lasted for one year that is by 2004 the policy was withdrawn by the government. It was again launched with new features in the year 2014 and unfortunately removed by the year 2015. Hope this time it will last longer than previous time.