Review of LIC Varishtha Pension Bima Yojana

I bought LIC Varishtha Pension Bima Yojana for my mother in 2015. With the help of this plan, my mother is able to live her life independently without relying on anyone for financial help. The monthly pension payout has helped my mother to attain financial independence. By Mr. Manoj Grewal

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The LIC Varishtha Pension Bima Yojana is an Immediate Annuity Plan with a Single Premium Option. The annuity begins as soon as the premium is paid and continues for the rest of the pensioner's life. Anybody above 60 years of age can invest in this scheme to begin receiving a pension as soon as they retire.

Key Features of LIC Varishtha Pension Bima Yojana

Varishtha Pension Bima Yojana offered by the LIC of India comes with unique features. Take a look at some of them:

  1. Flexibility in Choosing Annuity Modes

    Annuitants of the Varishtha Pension Bima Yojana have a variety of payout options to select from, including monthly, quarterly, semi-annually, and yearly. Upon the receipt of the purchase payment, the first payout will occur after one month, three months, six months, and one year, respectively.

  2. Free Look Period

    There is a 15-day free look period for the LIC Varishtha Pension Bima Yojana. During this period, a policyholder can cancel their policy and no penalty will be charged.

  3. Lock-in Period

    The 15-year lock-in term of the plan encourages retirees to hold onto their investments for a long time. This indicated that only after this time period may the policy be canceled.

Eligibility Criteria of LIC Varishtha Pension Bima Yojana

Minimum Maximum
Entry Age 60 years No Limit
Mode of Pension Payment Monthly, quarterly, half-yearly, or yearly
Pension Payable Monthly: Rs. 500
Quarterly: Rs. 1,500
Half-yearly: Rs. 3,000
Yearly: Rs. 6,000
Monthly: Rs. 5,000
Quarterly: Rs. 15,000
Half-yearly: Rs. 30,000
Yearly: Rs. 60,000

What are the Benefits of LIC Varishtha Pension Bima Yojana

  • Pension Benefits
    The pensioner will receive his pension for the rest of his life. The plan offers the flexibility to the pensioner to choose the mode of payment.

  • Death Benefits
    In case of the death of the pensioner, the policy Purchase Price is reimbursed to the nominee.

  • Policy Loan
    The plan allows the policyholder to avail loan under the policy, provided the policy has completed three years from the date of policy initiation. The maximum amount of loan that the pensioner can receive under this plan is 75% of the purchase price.

  • Surrender Benefits
    The plan is eligible for surrender after a duration of 15 years from the date of policy initiation. The Surrender Value will be equivalent to the Purchase Price of the plan.
    However, in case the pensioner or the spouse needs financial assistance for treating a critical or terminal disease, then the policy can be surrendered before completing 15 years of tenure. In such an event, the Surrender Value of the plan becomes equivalent to 98% of the Purchase Price.

Wrapping it Up

The LIC Varishtha Pension Bima Yojana Plan can be purchased by a pensioner by paying a lump-sum purchase price. Depending on the policyholder's choice, a pension will be provided throughout their lifetime on a monthly, quarterly, half-yearly, or annual basis.

In addition to this, the purchase price of the pension will be reimbursed to the nominee in the event of the policyholder's death.

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C Apply
+ Trad plans with a premium above 5 lakhs would be taxed as per applicable tax slabs post 31st march 2023
~Source - Google Review Rating available on:-

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