The Varishtha Pension Bima Yojana launched by the Government of India on August 15, 2014, is set to close on Friday (August 14, 2015).

Administered by the Life Insurance Corporation (LIC) of India, the scheme is aimed at the welfare of the senior citizens of the country, offering a yield of 9.38 per cent annually in assured returns.

LIFE EXPECTANCY

Considering the rising life expectancy, the importance of an annuity-based plan cannot be overemphasised, says Shaji M Shankar, Senior Divisional Manager, Divisional Office, LIC, Thiruvananthapuram.

“Take for instance the lifecycle data for the last 50 years,” he pointed out to BusinessLine here.

“It is predicted that 50 years hence the life expectancy will be 110 years compared to 50 years ago when it was only 32.4.”

Shankar explained some of the broad features of this pension scheme for senior citizens. Those of 60 years of age and above are eligible.

Documents required are the proposal form, age proof, identification proof and medical certificates (if required).

PENSION PAYOUT

The single lumpsum premium payable is a minimum of Rs 66,665 with a maximum limit of Rs 6,66,665.

The minimum pension payout will be at a minimum of Rs 500 per month and a maximum of Rs 5,000 per month. As said earlier, the assured returns will be at 9.38 per cent annually.

During the lifetime of the pensioner, a pension in the form of immediate annuity will be paid as per mode chosen.

One can opt to receive the pension either monthly, quarterly, half yearly or annually. On demise of the pensioner, nominee receives the purchase price.

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