Varishtha Pension Bima Yojana.

Finance Minister Arun Jaitley Recently Re-Launched 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.

Lets go through Features and Benefits of said plan.

Varishtha Pension Bima Yojana (Table No828 )

This is an Immediate Annuity Plan, Which provide for immediate Pension in consideration of Lump sum One Time Payment. This is Government Subsidized Scheme.This Pension Payable is Guaranteed For the life Time with return of Purchase price.

BENEFITS

• Pension will be paid during life  time of pensioner
•  Pension will be credited to the Bank account of Pensioner.
•  In Event of death of pensioner Purchase price will be paid to the Nominee.

ELIGIBILITY CONDITION:

•   Entry Age: Minimum 60 years & Above.
•   Maximum Ceiling will be apply to all family Member combined
•   All Age Proof will be accepted
•  Premium Will be accepted by Cheque /Demand Draft. CASH Will not be accepted

FEATURES

• Service Tax : Service Tax is Payable @ 3.09% of Purchase price.
• Policy Loan : Loan allowed after 3 year up to 75% of purchase Price.
• Loan Interest Will be recovered from the pension, and loan amount will be recovered From Claim Payable.
• Surrender Value : Allowed After 15 years.(Full Purchased price will be paid)
• In Case Of Money Required for treatments of critical illness of Self/Spouse-Surrender of policy may be allowed and Surrender value payable will be 98% of Purchase Price.
• 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.
• Policyholder can opt for monthly, quarterly, half yearly or yearly pension payment.
• The pension income is taxable in the hands of pensioner. The tax rate depends on his/her income tax slab.
• Life insurance Corporation (LIC) will be the exclusive administrator for the scheme

Please Go through  Chart indicating One Time Premium Payment & Periodic Pension amount.

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  Planners Views 

1.     Scheme Will Give You Financial Security to the Policy Holder For Life Long subject to maximum amt of Rs 5000 Per Month. One Can utilize Pension Fund For Day to Day Medicine and Other Expenses. 
2. .  This Product is Better than Other Fixed Income Scheme like Fixed Deposit ,Company Deposit and Postal  Scheme.Currently FD Offering 9-10% Return For Sr Citizen But Same will not be continue for  life long. There is No Guarantee Of 9-10% interest For life long.
3.     Pension Revived Will Be Taxable  and added to an Individuals Income,
4.    For Senior Citizen Age Above 60 years Minimum  Tax Free Income is Rs 3 Lakh  and above age 80 Year  Rs 5,00,000+ Additional Benefit Of Rs 1.50 Lakh If they Invest in 80-C Tax Saving Instruments). This Product is Strongly advisable for low or No Tax bracket Income group Sr Citizens.
5.    Inflation is the Serious Killer Of Wealth..5 Years Down the line Value of Rs 5000 Will be Equivalent   to Rs 3400 & Rs 2300 10 Years Down the Line and Rs 1576 , 15 Years Down the Line.Considering inflation @ 8%.

   For Further detail feel free to get in touch with me  mebheda@gmail.com or 

    message me on +91 9819592326.

    Thank You.

    Mehul Bheda