Complete Details about Varistha Pension Bima Yojana

Varistha Pension Bima Yojana

This New Year Eve, Pradhan Mantri Narendra Modi announced a scheme – Varistha Pension Bima Yojana (VPBY). The scheme was designed especially for senior citizens. And, the good news is that cabinet has approved this scheme. It means that this scheme will be implemented soon and senior citizens will be able to take advantage of this insurance scheme. Since the scheme is new; there are many queries related to this. In this article, we have tried to answer all the questions related to VPBY (Varistha Pension Bima Yojana). Kindly, go through the complete article to get the detailed information.

INFORMATION – VARISTHA PENSION BIMA YOJANA

Scheme’s motive – As the name suggests, this is an insurance plan only for senior citizens. It is being observed that after the demonetization, banks have started to reduce the interest rate on fixed deposits. This scheme provides a guaranteed, fixed interest rate i.e. 8 % for ten years to the senior citizens.

Eligibility – This scheme is applicable for senior citizens only i.e. anyone, whose age is 60+, is eligible to take the benefits of this scheme.

This scheme is going to be launched by Life Insurance Corporation of India (LIC). As per the sources, the company has started to work on it, and it will officially initiate in April 2017.

VARISTHA PENSION SCHEME BY LIC – HOW WILL IT WORK?

  • LIC will launch this scheme near April 2017.
  • Interested and Eligible applicants have to apply via LIC.
  • A guaranteed interest rate of 8% on the investment will be returned in the form of pension for ten years.
  • Investment of Up to 7.5 lakhs can be made under this scheme.

If there is a gap between the LIC generated a return and guaranteed 8 percent return, the difference will be paid by the government.

Right to invest or not?

Varistha Pension Bima Yojana or VPBY could be a smart option, but there are many similar schemes too. Depending on the investment plans one might choose or not chose this scheme. If you are interested in long time investment, this is a good choice. But, if you are interested in short-term investment, you must consider other options.

HOW TO APPLY FOR VPBY?

  • LIC will soon launch an official document regarding this scheme.

Interested, eligible applicants will then be able to apply through LIC agents or online for this scheme.

Note – As soon as LIC makes an official announcement regarding this project, we will keep you updated with the latest information.

Varistha Pension Scheme – Expert Review

According to the experts, other plans also offer same or higher interest rate. But in the current scenario, interest rates are coming down, and no other scheme gives guaranteed interest rate. So, choosing Varistha Pension Yojana is a smart move because you will receive fix interest rate on your investment.

Official Documentation

Formal notification by LIC – Will be releasing soon.

Scheme Guidelines – Will be updated soon.

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