Govt To Relaunch Insurance-cum-Pension Plan For Senior Citizens

The Union Finance Minister Mr. Arun Jaitely has recently announced the re-launch of an insurance-cum-pension scheme for benefit of senior citizen of the country that will provide monthly pension ranging from Rs 500 to Rs 5,000. This revived scheme Varishtha Pension Bima Yojana (VPBY ) will be administered by country's largest insurer Life Insurance Corporation (LIC) of India. This scheme aims at to provide financial security to citizen aged 60 years and above by ensuring regular income during their advancing years. Highlights of VPBY: 1) Minimum age to enter into the scheme: 60 years. 2) Minimum investment (purchase price) : Rs 66,665. 3) Maximum investment (purchase price) : Rs 6,66,665. 4) Single lump sum premium. 5) Minimum pension Rs 500/month 6) Maximum pension Rs 5,000/ month 7) Assumed return 9.38 percent annual 8) Pension payment period: Monthly, Quarterly, Half-yearly or Yearly. 9) On demise of the insured, nominee will receive the investment amount. Source: http://www.insuringindia.com