varishtha pension bima yojana
TRANSCRIPT
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Varishtha Pension Bima YojanaPlan No. 828
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Features
Government of India in the Union Budget 2014-2015, announced the revival of Varishtha Pension Bima Yojana. Excerpts from budget speech by Honrable Finance Minister are, "NDA Government during its last term in office had introduced the Varishtha Pension Bima Yojana (VPBY) as a pension scheme for senior citizens. Under the scheme a total number of 3.16 lakh annuitants are being benefited and corpus amounts to Rs.6,095 Crore. I propose to revive the scheme for a limited period from 15th August 2014 to 14th August 2015 for the benefit of citizens aged 60 years and above“
LIC of India has been given the sole privilege to operate this scheme.
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Benefit
Death Benefit: (deal with sudden financial crisis)
On death of the Pensioner the Purchase Price shall be refunded.
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Benefit
Vesting Benefit: (Pension)During the lifetime of Pensioner, a pension in the form of
immediate annuity as per mode chosen by the Pensioner shall be payable.
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Benefit Illustration
Details ValueAge 60 yearsTerm Immediate Pension PlanPremium Paying Term SingleSum Assured Rs 6,66,665Premium Paid (incl. ST) for Single Prem.
Rs 6,87,265 (Rs 6,66,665 + Rs 20,600)
Pension for Month Rs 5,000On Death Rs 6,66,665
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Eligibility Conditions & Other Restrictions
Details ValueMinimum Entry Age 60 years (completed)Maximum Entry Age No Limit
Minimum Pension
Rs 500 per monthRs 1,500 per quarterRs 3,000 per half yearRs 6,000 per year
Maximum Pension
Rs 5,000 per monthRs 15,000 per quarterRs 30,000 per half yearlyRs 60,000 per year
Premium Payment Mode Single
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Payment of Purchase Price
The plan can be purchased by payment of a lump sum Purchase Price. The pensioner has an option to choose either the amount of pension or the Purchase Price.
The minimum and maximum Purchase Price under different modes of pension will be as under:Mode of
PensionMinimum Purchase Price
Maximum Purchase Price
Yearly Rs. 63,960/- Rs. 6,39,610/-
Half-yearly Rs. 65,430/- Rs. 6,54,275/-
Quarterly Rs. 66,170/- Rs. 6,61,690/-
Monthly Rs. 66,665/- Rs. 6,66,665/-
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Mode of Pension Payment
The modes of pension payment are monthly, quarterly, half-yearly & yearly. The pension payment shall be through ECS/NEFT only.
The first installment of pension shall be paid after 1 year, 6 months, 3 months or 1 month from the date of purchase of the same depending on the mode of pension payment i.e. yearly, half-yearly, quarterly or monthly respectively.
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Sample Premium Rates per Rs 1,000 Purchase Price
The pension rates for Rs.1000/- Purchase Price for different modes of pension payments are as below
Pension Mode Pension RatesYearly Rs. 93.8069 p.a.
Half-yearly Rs. 91.7045 p.a.Quarterly Rs. 90.6767 p.a.Monthly Rs. 90.0000 p.a.
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Surrender Value
The policy can be surrendered aftercompletion of 15 years. The Surrender Value payable will be refund of Purchase Price. However, under exceptional circumstances, if the pensioner requires 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 and the Surrender Value payable shall be 98% of Purchase Price.
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Loan
Loan facility is available after completion of 3 policy years. The maximum loan that can be granted shall be 75% of the Purchase Price.
The rate of interest to be charged for loan amount would be determined from time to time by the Corporation.
Loan interest will be recovered from pension amount payable under the policy. The Loan interest will accrue as per the frequency of pension payment under the policy and it will be due on the due date of pension. However, the loan outstanding shall be recovered from the claim proceeds at the time of exit.
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Free-Look Period
If a policyholder is not satisfied with the "Terms and Conditions of the policy, he/she may return the policy to the Corporation within 15 days from the date of receipt of the policy stating the reason of objections.
The amount to be refunded within free look period shall be the Purchase Price deposited by the policyholder after deducting the charges for Stamp duty.
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Claims Settlement Report of all Life Insurance Companies in India (IRDA Annual Report 2012-13)
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