On the new year eve, Pradhan Mantri Narendra Modi announced a scheme – Varistha Pension Bima Yojana (VPBY).This scheme was designed specially for senior citizens. Now, the good news is that this scheme has been approved by cabinet. This simply means that this scheme will soon be implemented and senior citizens will be able to make benefit from this insurance scheme. Since, this scheme is new, there are many questions related to this. In this article, we have tried to answer all queries related to Varistha Pension Bima Yojana. Kindly, read the complete article to get the detailed information.
Varistha Pension Bima Yojana
Aim of this Scheme – As the name suggests, this is an insurance scheme only for senior citizens. It is being observed that after the demonetization, banks have started to reduce the interest rate on fixed deposits. This scheme provides a guaranteed, fixed interest rate i.e. 8 percent for 10 years to the senior citizens.
Eligibility – It is clear that this scheme is applicable for senior citizens only i.e. Any one whose age is 60+, is eligible to take the benefits of this scheme.
This scheme is going to be launched by Life Insurance Corporation of India (LIC). As per the sources, the company has started to work on it and it will be officially launched in April 2017.
Varistha Pension Scheme by LIC – How will it Work ?
- LIC will launch this scheme near April 2017
- Interested and eligible applicants have to apply via LIC
- A guaranteed interest rate of 8% on the investment will be returned back in form of pension for 10 years
- Investment of Upto 7.5 lakhs can be made under this scheme
If there is gap between the LIC generated return and guaranteed 8 percent return, the difference will be paid by government
Should i invest?
Varistha Pension Bima Yojana or VPBY could be a smart option, but there are many similar schemes too. Depending on the investment plans one might chose or not chose this scheme. If you are interested in long time investment, this is a good choice but if you are interested in short term investment, you must consider other options.
How to Apply for VPBY
- LIC will soon launch an official document regarding this scheme
- Interested,eligible applicants will then be able to apply through LIC agents or online for this scheme
Note – As soon as LIC makes an official announcement regarding this scheme, we will keep you updated with the latest information.
Expert Review on Varistha Pension Scheme
According to experts, there are other schemes that offer same or higher interest rate. But in the current scenario, interest rates are coming down and no other scheme gives guaranteed interest rate. So, choosing Vaistha pension yojana is a smart move because you will receive fix interest rate on your investment.
Official Notification by LIC – To be released soon !
Scheme Guidelines – To be released soon !