LIC Senior Citizen Pension Scheme

Post demonetization the banks are cutting down the interest rates on fixed deposits. Hence, to safeguard the interest of senior citizens from failing interest rates the government of India has initiated senior citizen pension scheme with an annual return of 8% for a span of 10 years.

The senior citizen pension scheme is launched by Life Insurance Corporation of India, under which the subscriber have an option to choose for a pension on annually, half yearly, quarterly and monthly basis. This scheme is designated specifically for the individuals above the age of 60 and is an effective long term saving options that have an exquisite feature and offers an unmatched security.

The senior citizen saving scheme offers a handful of annuity plans to secure the future of the senior citizens of the country. Well! If you have been thinking that what the scheme has in its kitty, then just relax because we are just going to unfold all the benefits offered by various scheme under (SCPS).  The plans offered under senior citizen pension scheme are:-

What is Pradhan Mantri Vaya Vandana Yojna(PMVVY)

Senior citizens more than 60 years of age can invest in this scheme. There is no maximum entry age in this scheme. You can make an investment of Rs. 15 lakh under this scheme and you can make this investment on or before March 31, 2020. For the 10 years of policy term, Senior citizens can receive a minimum pension of Rs 1000 per month and the maximum pension of Rs. 10,000 per month based on the invested amount.

This pension plan has been recently launched by the government keeping in mind the success and popularity of Varishtha Pension Bima Yojana (PMVVY) 2003 and Varishtha Pension Bima Yojana 2014(PMVVY). Beneath we have given some details of the policy in pointers-

• Pradhan Mantri Vaya Vandana Yojna is launched by Life Insurance Corporation of India and is available from 4^th May 2017 to 3^rd May 2018.
• This scheme is available offline as well as online and provides an assured return of 8% per annum over a period of 10 years.
• Under Pradhan Mantri Vaya Vandana Yojna (PMVVY) the pensioners can avail the pension at the end of each period like yearly, half-yearly, quarterly and monthly during the 10 years of the policy term.
• In case of demise of the pensioner during the policy tenure of 10 years, the purchase price of the policy is refunded to the nominee of the policy.
• In case the pensioner survives the entire 10 year of the policy then he/she receives the purchase price of the policy along with the final pension installments.
• The Pradhan Mantri Vaya Vandana Yojna (PMVVY) also provides loan facility after the policy completes 3 years. The pensioner can be granted the maximum loan of 75% of the purchased price. For the entire tenure of the loan a 10% of interest rate is applicable per annum which is paid by the pensioner half-yearly.
• According to one’s own suitability the scheme can be purchased in yearly, half- yearly, quarterly or monthly basis. Here you can see the rates of minimum and maximum purchase price of different modes of pension plan in a tabular form.

Pradhan Mantri Vaya Vandana Yojana has simple eligibility criteria like:-

1. The minimum entry age of the policy is 60 years whereas the policy has no limit on the maximum entry age.
2. The tenure of the policy is for 10 years
3. The minimum and maximum pension offered by policy are- 

This is a simplified scheme which provides an assured pension to the pensioner so that they can enjoy the golden days of retrial without any stress.

LIC Varishtha Pension Bima Yojana

This scheme was introduced by government from 15^th August 2014- 14^th August 2015. Under LIC Varishtha Pension Bima Yojana the subscribers can opt for as pension on annually, half-yearly, quarterly and monthly mode. A regular assured income is paid to the pensioner at the end of each period like yearly, half-yearly, quarterly and monthly basis. Some of the benefits offered by the policy are as follows:-

• On demise of the pensioner the purchase price is refunded to the beneficiary of the policy under LIC Varishtha Pneison Bima Yojana.
• The pensioner can avail tax benefit on the premium paid under section 80CCC of Income Tax Act.
• LIC Varishtha Pension scheme can be effortlessly combined with different pension scheme such as endowment policies, pf, mutual fund, etc. in order to provide a stable income per month.
• According to one’s own choice and suitability Varishtha Pension Bima Yojana can be purchased in yearly, half-yearly, quarterly and monthly basis. Here we have shown in tabular form the minimum and maximum purchase price of different mode of pension plan.

The plan includes simple eligibility criteria such as-

1. The minimum entry age of policy start from 60 years whereas the plan has no limit on maximum entry age.
2. The maximum yearly annuity payout is minimum Rs6000 and maximum Rs60,000.
3. The annuity can be paid out in frequency of monthly, quarterly, half-yearly and yearly mode.
4. LIC Varishtha Pdension Bima Yojana also provides loan facility after the completion of 5 years of policy. 

This is a simplified scheme which provides an assured pension to the pensioner so that they can enjoy the golden days of retrial without any stress.

Pradhan Mantri Atal Pension Yojana

This scheme was launched by the government in year 2015. This scheme runs with an objective to the future of the senior citizen after retirement. Under LIC Pradhan Mantri Pension Yojana the subscribers are paid a fixed monthly pension staring from Rs1000 up to Rs5000. In case of demise of the policy holder the spouse of the insured person will be entitled to receive the same amount of pension till he/she is alive. Pradhan Mantri Pension Yojana was specifically launched keeping the weaker section of the society in mind therefore it offers very affordable premium rates  as compared to the other pension plan. The subscribers can choose to get the monthly pension of Rs1000, Rs2000, Rs3000, Rs4000 and Rs5000 according to one’s own choice.

Moreover, to encourage the lower income section of the society to join the scheme the government has provided an option of added bonus under which a sum towards the pension account will be contributed for a period of 5 years from 2015 to 2020.

You may also like: Present Values of Annuity

Senior Citizen Saving Scheme

Senior citizen saving scheme is one of the most common product for the people over 60 years of age. The Senior Citizen Saving Scheme offers highest safety, regular income and tax saving under same umbrella. The individuals can open the Senior Citizen Saving Scheme by investing Rs15 lakh in monthly, quarterly, half-yearly and yearly mode.

With simple documentation process the Senior Citizen saving scheme provides an interest rate of 8.5% and also provides tax benefit up to the limit of 1.5 lakh under section 80C of Income Tax Act. The senior citizen saving scheme also offers the option of premature withdrawal, however the insured person will have pay the premature withdrawal charges.

Pradhan Mantri Bima Yojana

Pradhan Mantri Bima Yojana is one of the 3 socila security scheme that is announced by government in 2015 budget. there are three plans offered under Pradhan Mantri Bima Yojana-

1. Pradhan Mantri Jeevan Jyoti Bima Yojana
2. Pradhan Mantri Atal Pension Yojana
3. Pradhan Mantri Suraksha Bima Yojana

The eligibility criteria of the policy range from 18 years – 70 years and provide life coverage up to Rs 2 lakh. All the policies offered under Pradhan Mantri Bima Yojana cover the different spectrum of life coverage and secure the life of the senior citizen after retirement. 

LIC senior citizen pension scheme simply includes all the benefits that are required to secure the financial future of an individual after retirement. The different plans offered under LIC Senior Citizen Pension Scheme precisely work for the favor of pensioner and efficiently provides them long term saving option.

Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.