LIC Varishtha Pension Bima Yojana Calculator
Plan No. 828 - UIN: 512G291V01
Launch Date: 15th August 2014
Withdraw Date: 14th August 2015
Re-launched: January 2017 (VPBY 2017 with 8% return for one year)
Minimum Entry Age: 60 years (No maximum age limit)
Lock-in Period: 15 years
Assured Return: 9% per annum (2014-2015 scheme)
Monthly: ₹500 - ₹5,000 | Quarterly: ₹1,500 - ₹15,000
Half-Yearly: ₹3,000 - ₹30,000 | Yearly: ₹6,000 - ₹60,000
Your Pension Plan Details
The LIC Varishtha Pension Bima Yojana 828 is a government-backed pension scheme specially designed for senior citizens aged 60 years and above. It provides a secure source of income in the form of a lifetime pension with a guaranteed return rate, ensuring financial stability during old age. The scheme operates as an immediate annuity plan where customers pay a lump sum amount (single premium), and LIC pays them a regular pension for life.
This scheme was relaunched by the Government of India in 2014 and was available for subscription from August 15, 2014, to August 14, 2015. It was operated exclusively by the Life Insurance Corporation of India (LIC), providing millions of senior citizens with assured pension income.
Launch and Withdrawal Dates
- Launch Date: August 15, 2014
- Withdraw Date: August 14, 2015
The scheme may have variations or revivals over time, but this particular version was available for this limited period.
Eligibility Criteria for LIC Varishtha Pension Bima Yojana 828
- Minimum Age: 60 years (completed)
- Maximum Age: No maximum age limit (open to all senior citizens above 60 years)
- A single premium payment must be made at the time of policy purchase.
There is no medical examination required, making it accessible for senior citizens without much hassle.
Key Features of the Scheme
- Immediate Annuity: Once the lump sum purchase price is paid, LIC starts paying the pension immediately as per the chosen mode of payment.
- Pension Payment Options: Policyholders can choose pension payouts on a monthly, quarterly, half-yearly, or yearly basis.
- Pension Amount Range: Monthly pension starts at ₹500 and can go up to ₹5,000. Similarly, quarterly, half-yearly, and yearly pensions have proportional ranges up to ₹15,000, ₹30,000, and ₹60,000, respectively.
- Guaranteed Returns: The scheme offers a guaranteed return of approximately 9% per annum. This assurance gives senior citizens stability compared to fluctuating market returns.
- Refund of Purchase Price: On the death of the pensioner, the purchase price paid (the lump sum amount) is refunded to the nominee or legal heirs, ensuring no loss of principal.
- Loan Facility: After three years from the start of the policy, policyholders can avail loans up to 75% of the purchase price.
- Lock-in Period: The scheme has a lock-in period of 15 years. Early surrender is allowed only under critical/terminal illness situations with a refund of 98% of the purchase price. After 15 years, full surrender value equal to 100% of the purchase price is payable.
- Free Look Period: The policy offers a 15-day free look period for cancellation with a full refund of the premium.
How to Use LIC Varishtha Pension Bima Yojana 828 Calculator
The LIC Varishtha Pension Bima Yojana 828 Calculator helps you estimate the pension amount based on the lump sum you plan to invest. Here’s the general process:
- Enter your age: The minimum age is 60 years.
- Select Mode of Pension Payout: Monthly, Quarterly, Half-Yearly, or Yearly.
- Input Purchase Price (Lump Sum): This is the amount you invest in the policy.
- Calculate Pension: The calculator will show you the pension amount you will receive according to your input.
For example, investing approximately ₹6,65,665 in a monthly pension mode might yield a pension of ₹5,000 per month, while ₹63,960 invested annually might yield ₹6,000 per year.
The pension amount depends directly on the purchase price, and the scheme caps maximum pensions as per the mode chosen.
Benefits of LIC Varishtha Pension Bima Yojana 828
- Financial Security: Regular pension payments provide a steady income stream for living expenses.
- Life Long Pension: The annuity continues throughout the lifetime of the pensioner.
- No Market Risk: The pension payments are guaranteed by the government through LIC, avoiding stock market risks.
- Simple and Hassle-free: no medical tests, easy subscription process.
- Tax Benefits: Premium paid qualifies for tax deduction under Section 80CCC of the Income Tax Act, 1961.
- Refund of Principal: Upon the pensioner’s death, the entire purchase price is returned to the nominee.
- Loan Facility: Enables liquidity by allowing loans after three years.
- Flexible Payment Modes: Allows choosing pension payouts as per convenience.
Pension Payment Modes Explained
The pension can be received in four different ways:
| Mode | Minimum Pension | Maximum Pension |
|---|---|---|
| Monthly | ₹500 | ₹5,000 |
| Quarterly | ₹1,500 | ₹15,000 |
| Half-Yearly | ₹3,000 | ₹30,000 |
| Yearly | ₹6,000 | ₹60,000 |
The actual pension is calculated based on the purchase price or premium paid, mapped to these ranges. Choosing a mode depends on the convenience and cash flow requirements of the pensioner.
Detailed Pension Calculation Example
Suppose a senior citizen aged 60 years invests ₹6,65,665 in the scheme, opting for the monthly pension mode. Given the assured return of about 9%, this lump sum would generate a pension of approximately ₹5,000 per month. Similarly, the same amount invested in the yearly mode (around ₹6,39,610) will give about ₹60,000 annually.
This calculation can be made easily using an LIC Varishtha Pension Bima Yojana calculator available on LIC’s official website or trusted insurance portals.
Important Note:
The minimum pension ensures a senior has a regular income for daily expenses while keeping the invested corpus safe, and the maximum pension option suits those who can invest higher amounts to receive substantial monthly/yearly income.
Surrender and Loan Facilities
- Surrender Before 15 Years: Allowed only under critical or terminal illness, with a 98% refund of premium.
- Surrender After 15 Years: full refund of the purchase price is allowed.
- Loan Against Policy: Available after completing 3 years, up to 75% of the purchase price, with interest being deducted from pension payouts.
Death Benefit and Nomination
In the unfortunate event of a pensioner’s death, the nominee or legal heirs get a full refund of the purchase price paid, ensuring the investment is safeguarded even after the pensioner’s demise.
How to Subscribe to LIC Varishtha Pension Bima Yojana
- Visit the nearest LIC branch or use LIC’s official online platform.
- Fill up the application form for Plan No. 828.
- Submit necessary documents like ID proof and age proof (minimum 60 years).
- Pay the lump sum premium amount.
- Choose mode of pension payment.
- Keep a copy of the policy document for reference.
- After processing, start receiving a pension as per the payment mode.
Comparison with Other Pension Options
| Feature | LIC Varishtha Pension Bima Yojana 828 | Fixed Deposits (Banks) | National Pension Scheme (NPS) |
|---|---|---|---|
| Minimum Age | 60 years | No limit | 18-60 years |
| Pension Type | Immediate Annuity (Lifetime Pension) | Interest payouts, not guaranteed lifetime | Defined contribution, variable returns |
| Guaranteed Returns | Approx. 9% p.a. | 6-7% (variable) | Market-linked, no guaranteed returns |
| Lock-in Period | 15 years | Varies | Till 60 years or partial withdrawal allowed |
| Loan Availability | Up to 75% after 3 years | Loans against FD | Partial withdrawals allowed |
| Tax Benefits | Section 80CCC benefits | Interest taxable | Contributions eligible for deduction |
| Refund of Principal | Yes, on death of pensioner | Principal returned at maturity | N/A |
LIC Varishtha Pension Bima Yojana offers a unique combination of government backing, guaranteed returns, and lifelong pension, making it ideal for senior citizens seeking stable retirement income.
Frequently Asked Questions (FAQs)
What is LIC Varishtha Pension Bima Yojana 828?
It is a government-backed pension plan by LIC for senior citizens aged 60 and above, offering a guaranteed lifetime pension in exchange for a lump sum payment.
Who is eligible to buy this plan?
Any Indian citizen aged 60 years or above can buy this plan. No medical tests are required.
What is the minimum and maximum age to invest?
The minimum age is 60 years; there is no upper age limit.
How is the pension amount calculated?
Pension depends on the lump sum invested and the mode of payment chosen (monthly, quarterly, half-yearly, yearly), with a guaranteed return of about 9% per annum.
What are the pension payment modes available?
You can choose to receive pension monthly, quarterly, half-yearly, or yearly.
Conclusion
LIC Varishtha Pension Bima Yojana 828 is a trusted, government-backed pension plan providing senior citizens with a guaranteed, lifelong income. With flexible payment options, assured returns, and safety of principal amount, this scheme is an excellent choice for retirement planning. Senior citizens seeking financial stability can use the LIC Varishtha Pension Bima Yojana calculator to assess their expected pension and make an informed decision.