Government Pension Scheme for Senior Citizens

NEW DELHI: Finance Minister Arun Jaitley today relaunched an insurance scheme for senior citizens that will provide monthly pension ranging from Rs 500 to Rs 5,000. The revived scheme would be available between August 15, 2014 and August 14, 2015 for the benefit of citizens aged 60 years and above. It will provide financial security by ensuring regular income during their advancing years, a Finance Ministry statement said.

Peaceful Post-Retirement Life
Tax Free Regular Income
Wealth Generation to beat Inflation

4.8⁺⁺ Rated
9.7 Crore Registered Consumer
51 Partners Insurance Partners
4.9 Crore Policies Sold

We are rated⁺⁺

9.7 Crore

Registered Consumer

Insurance Partners

4.9 Crore

Policies Sold

Invest ₹6,000/month & Get Tax Free Monthly Pension of ₹60,000

Get the best^˜ returns & make the most of your golden years

Your Name

+91

Mobile Number

Your personal information is secure with us

By clicking on "View Plans" you agree to our Privacy Policy and Terms of use

Get Updates on WhatsApp

We are rated⁺⁺

9.7 Crore

Registered Consumer

Insurance Partners

4.9 Crore

Policies Sold

The scheme would be administered by LIC. "VPBY (Varishtha Pension Bima Yojana) will benefit the vulnerable section of society with limited resources as it will provide monthly pension ranging from Rs 500 to Rs 5,000 to senior citizens of the country," Jaitley said.

The minimum investment (purchase price) for the scheme would be Rs 66,665 and the maximum is over Rs 6.66 lakh. The pension will start from next year of purchase of insurance.

The full purchase price will be refunded to the nominee in case of dealth of the insured.

Varishtha Pension Bima Yojana (VPBY), introduced earlier in 2003-04 by then NDA Government, covered 3.83 lakh senior citizens. LIC collected Rs 7,100 crore under the scheme.

The Finance Minister hoped LIC will cover a much larger number of people this time.

This initiative reflects the commitment of the government to the welfare and well-being of the senior citizens of the country, which is especially important in light of the increasing longevity in India, which has gone up substantially, the statement added.

People Also Read: Best Retirement Plan

The subscription to the scheme is likely to create a corpus of more than Rs 10,000 crore, and would thus also be a significant source of resource mobilisation for the development of the country.

"In case of VPBY, the beneficiary gets an income at the overall rate of 9.38 per cent per annum on their deposits as they are being paid on monthly basis," Jaitley said.

"In this era of volatile interest rate, this scheme would provide senior citizens a fixed return for rest of their life," he said.

(Original Source - http://articles.economictimes.indiatimes.com/2014-08-14/news/52807829_1_varishtha-pension-bima-yojana-pension-scheme-insurance-scheme)

˜Top 5 plans based on annualized premium, for bookings made in the first 6 months of FY 24-25. Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. This list of plans listed here comprise of insurance products offered by all the insurance partners of Policybazaar. For a complete list of insurers in India refer to the Insurance Regulatory and Development Authority of India website, www.irdai.gov.in
*All savings are provided by the insurer as per the IRDAI approved insurance plan.
^The tax benefits under Section 80C allow a deduction of up to ₹1.5 lakhs from the taxable income per year and 10(10D) tax benefits are for investments made up to ₹2.5 Lakhs/ year for policies bought after 1 Feb 2021. Tax benefits and savings are subject to changes in tax laws.
+Returns Since Inception of LIC Growth Fund
¶Long-term capital gains (LTCG) tax (12.5%) is exempted on annual premiums up to 2.5 lacs.
++Source - Google Review Rating available on:- http://bit.ly/3J20bXZ
^^The information relating to mutual funds presented in this article is for educational purpose only and is not meant for sale. Investment is subject to market risks and the risk is borne by the investor. Please consult your financial advisor before planning your investments.