LIC Varishtha Pension Bima Yojana Plan Review

By | April 23, 2016
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LIC_Varishtha_Pension_Bima_PlanLIC Varishtha Pension Bima Yojana Plan

LIC Varishtha Pension Bima Yojana Plan Review:

LIC Varishtha Pension Bima Yojana plan 828 is a renowned pension plan declared by the Life Insurance Corporation of India. Government of India in the Union Budget of the year 2014-2015, proclaimed the renewal of LIC Varishtha Pension Bima Yojana. LIC Varishtha Bima Yojanais a single premium pension policy for senior citizens, with pension beginning to flow in right away. One can choose to collect the pension either monthly, quarterly, half – annually or annually.

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LIC Varishtha Pension Bima Yojana is a Pension plan for the welfare of Senior Citizens of the country.

You can now very easily calculate the your Premium amount that has to be paid to get all the advantages obtainable under this policy by using Lic varishtha pension bima yojana premium calculator given below :

LIC Varishtha Pension Bima Yojana Plan eligibility conditions

Eligibility Condition Details
Age of Entry ·         Minimum  –  60 years (Completed)

·         Maximum – No Limit

Sum Assured ·         Minimum – Rs 66, 665 /-

·         Maximum – Rs 6, 66, 665 /-

Policy Term ·         Minimum –  5 years

·         Maximum –  35 Years

Pension payable Minimum

·         Rs. 500 / – per month

·         Rs. 1, 500 / – Per Quarter

·         Rs. 3, 000 / – Per Half Year

·         Rs. 6, 000  /- Per Year

Maximum

·         Rs. 5, 000 /- per month

·         Rs. 15, 000   /- Per Quarter

·         Rs. 30, 000  /- Per Half Year

·         Rs. 60, 000  /- Per Year

Premium Mode Annually, Half Annually, Quarterly, Monthly
Loan Facility Loan facility is obtainable.
Surrender value Surrender value is payable

 

Advantages of LIC Varishtha Pension Bima plan 828

  • Pension Payment :

In the lifetime of Pensioner, a pension in the structure of instant annuity will be paid as per mode selected by the Pensioner shall be payable.

  • Demise Advantage:

On demise of the Pensioner the buying Price shall be refunded.

Lic varishtha pension bima yojana attributes

Sample Pension interest rates per Rs. 1, 000 /- Purchase Price are follows :

The pension rates for Rs. 1, 000 /- Purchase Price for dissimilar modes of pension payments are specified as under:

  • Annually :         Rs. 93.8069 p.a.
  • Half – Annually : Rs. 91.7045 p.a.
  • Quarterly :     Rs. 90.6767 p.a.
  • Monthly :      Rs. 90.0000 p.a.

The pension installment shall be rounded off to the nearest rupee. These rates are not age particular.

The main Documents needed for open LIC Varishtha Pension Bima Yojana are given as under :

  1. Proposal Form :
  2. Age Proof :
  3. Identification proof :
  4. Medical Certificates (If Required) :

Documents Needed for Claim under LIC Varishtha Pension Bima Yojana

  1. On demise of the pensioner : Claim Forms , Original Policy Bond, NEFT made form for bank deposit, Bank Passbook or annulled cheque as a proof of  Bank details & Proof of the demise. If age not given at the time of taking the policy age proof has to be submitted.
  2. Payment of Pension : Policy Holder Existence certificate to stop frauds. It will be prearranged at the time of taking the policy.
  3. Surrender before 15 years : Discharge form, Policy original Document, proof medical treatment to self or spouse, NEFT made 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 obtainable under this plan

Surrender value under LIC Varishtha Pension Bima Yojana

After successful conclusion of fifteen years the policy can be surrendered. The Surrender Value is 100 percent of the buying value.  That implies that if we withdraw the policy after fifteen years the amount invested will be returned back.

Though, under special conditions, if the pensioner needs 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 & the Surrender Value payable shall be 98 percent of Purchase Price.

Loan Facility under LIC Varishtha Pension Bima Yojana

Loan facility is obtainable after completion of 3 policy years. The highest loan that can be granted shall be 75 percent of the buying Price.

The rate of interest to be charged for loan amount would be decided from time to time by the Corporation.

Loan interest will be recovered from pension amount payable under the policy. The Loan interest will build up as per the occurrence of pension payment under the policy & it will be due on the appropriate date of pension. Though, the loan outstanding shall be recovered from the claim proceeds at the time of exit.

Taxes under LIC Varishtha Pension Bima Yojana

At the same time as taking the policy In LIC varishtha pension bima yojana tax the policy holder has to pay the tax amount also. The amount of Tax paid shall not be considered for the calculation of advantages payable under the plan.

Free Look period under LIC Varishtha Pension Bima Yojana

If a policy holder is dissatisfied with the “ Terms & Conditions of the policy, he / she may return the policy to the Corporation within fifteen days from the date of receiving the policy, stating the reason of objections.

Under SECTION 45 OF INSURANCE ACT, 1938 No policy of life insurance shall after the expiry of 2 years from the date on which it was affected.

LIC Varishtha Pension Bima Yojana premium calcuator

In the course of LIC Varshitha pension Bima yojana Premium calculator you can easily calculate pension amount to be inward bound either annually, Half annually, Quarterly or Monthly. Depending up on the provided Premium calculator you can calculate the premium amount.

Example for LIC Varishtha Pension Bima Yojana

To exemplify the advantages of LIC Varishtha Pension Bima Yojana, Let’s take an example of a person with subsequent details :

Sum Assured : Rs. 5, 00, 000
Policy Purchase Year : 2014
Age of entry : 60 Years
Pension type : Yearly
To Calculate advantages with details other than above, go to LIC Varishtha Pension Bima Yojana premium calculator :

Varishtha Pension Bima Yojana Purchase Details
Purchase Price 5 , 00, 000
Service Tax 15, 450
Total Amount to Pay 5, 15, 450
Pension Receivable Details
Pension Type Annually
Interest Rate 9.38069
Pension Amount 46903

For the policy buying price Rs. 5, 00, 000 /- , the interest rate will RS . 9.38 per annum

Depending on that, policy holder will receive pension of an amount of Rs 46, 903/- every annum.

FAQs under LIC Varishtha Pension Bima Yojana

Q1. What happens if You discontinue paying the premium?

Ans 1. If the premiums are not paid in the grace period, the policy falls & all advantages stop. Though, there the policy can be renewed in 2 years from the date of first unpaid premium.

Q2What happens if You want to surrender the policy?

Ans 2. Single Premium Policies can be surrendered at any time during the deferment period & the Guaranteed Surrender Value would be as follows :

Within three policy years would be 70 percent of the Single Premium Paid excluding taxes & extra premium, if any &

After 3 policy years would be 90 percent of the Single Premium Paid excluding taxes & extra premium, if any

Regular Premium Policies:

For deferment period less than a period of 10 years : The policy can be surrendered given that the premiums have been paid for at least 2 successive years.

For deferment period 10 years or more : The policy can be surrendered given that the premiums have been paid for at least 3 consecutive years.

The Guaranteed Surrender Value is a percentage of total premiums paid excluding taxes, extra premium.

For further details please refer the given below official link,

Click here for LIC Varishtha Pension Bima Yojana Policy

 

3 thoughts on “LIC Varishtha Pension Bima Yojana Plan Review

  1. bhaskar rao

    is the pradhan mantri lic varishta yojana policy is still available for subscription bfir new senior citizens ?

    Reply
  2. Kamlesh kumar

    I am 64 year old and went to lic office on 16dec2016 they told me that the intrest rate on varisth pension yojana is only 7.6%. Is it true.?

    Reply

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