3 Best ways to understand Varishta Bima Pension Yojana

Government of India proposed the scheme in union budget 2014-015, announced the revival of Varishta Bima pension yojana.

The LIC of India has been given the privilege to operate this scheme, the Varishta Bima Pension Yojana gives the benefits to citizens aged 60 years and above.

The Varishta Bima Pension Yojana covers have a lock-in period of 15 years, though LIC allows policyholders to withdraw the sum they need by paying a fee on the amount withdrawn.

LIC provides the service to policyholders to take a loan against their policy after a period of 5 years of the policy.

Varishta Bima Pension details:

• Surrender Benefit: The policy can be surrender after 15 years where the purchase price is refunded. In illness the policy can be surrendered before 15 years and 98% of the purchase price is refunded.
• Freelook period: The policy provides the option of canceling the policy within 15 days of receipt date of the policy.

Best 7 key feature of Varishta Bima Pension Policy:

• No medical check-up required for these LIC policies.
• The first payout for each of these frequencies will be respectively a monthly, quarterly, semi-annual and yearly from the date of receipt of premium.
• The policy provides earlier of surrender value if the annuitant is diagnosed with any illness.
• This LIC policy has a lock-in period of 15 years.
• All payments are made by NEFT, demand draft and cheque.
• The LIC policy has a free look period of 15 days, the citizen will receive the whole of premium paid by him.
• Policyholders can opt for a loan against the policy after a period of 3 years.

Benefits of Varishta Bima Pension Yojana:

• Policy is initiated by government ad thus stands on equal footing with other government pension schemes.
• Income tax benefits on the premium paid as per section 80CCC of Income Tax Act.
• On death, the purchase price is refunded under LIC policy, That means the beneficiaries get back the amount that was used by the pensioner to take the policy.

Documents required for Varishta Bima Pension Yojana:

On signing up:

• Application form with medical history
• Address proof, ID proof for KYC documents.

On surrender the policy:

• Discharge form
• Original policy document
• Proof of medical treatment of policyholders within the lock-in period of 15 years.
• Proof of age.

Death benefits:

• Claim form
• Original policy document
• NEFT mandate form for the claimant to provide the bank details
• Death certificate
• Proof of age

Summary:

In this article, we provide the information about Varishta Bima Pension Yojana with these details you can easily find out the benefits and required documentation.