VARISHTHA PENSION BIMA YOJANA (VPBY) was a Government sponsored scheme introduced for Indian Citizens aged 55 years and above, inside the Union Budget 2003-04 (Atal Vajpayeeji's tenure). Now, this plan can be re-launched by the present central regime.
VARISHTHA PENSION BIMA YOJANA (2003-04) Plan:
When the scheme was launched in 2003, over three lakh common people had bought annuities producing a corpus of Rs 6,095 crore.
The most important options of superannuated plan had been as under:
- Indian Citizens aged 55 years and above had been eligible.
- One time premium cost of Rs 33,000 fetched a long month-to-month pension off of Rs 250.
- One time premium cost of Rs 2.66 Lakh would give a long month-to-month pension off of Rs 2000.
- The supplied return was 9% p.a.
- In the occasion of unlucky death of the pension offer (policyholder), the premiums paid (buy worth) can be returned to the nominee/authorized heir of the pension offer.
VARISHTHA PENSION BIMA YOJANA (2014-2015) Plan:
The present central regime is re-launching the above scheme. The most important options are:
- Indian Citizens aged 60 years and above had been eligible.
- The plan can be open for subscription from 15-Aug-2014 to 14-Aug-2015
- One time premium cost of Rs 66,665/- fetches a long month-to-month pension off of Rs 500.
- One time premium cost of Rs 6,66,665/- would give a long month-to-month pension off of Rs 5000.
- Policyholder can go for month-to-month, quarterly, half yearly or yearly pension off cost.
- The assured return is 9% p.a. Effective yearly yield works bent 9.38% for month-to-month pension off.
- In the occasion of unlucky death of the pension offer (policyholder), the premiums paid (buy worth) can be returned to the nominee/authorized heir of the pension offer.
- The pension off earnings is ratable inside the palms of pension offer. The tax price is determined by his/her earnings tax slab.
- Life coverage Corporation (LIC) would be the unique administrator for the scheme.
Important factors to entertain earlier than choosing this plan:
Premium:
The most important goal group for these kind of plans are decrease earnings group and rural households. The premium measure is a once cost and secured up. The pension offers can not withdraw the measure to fulfill any unexpected expenditure. If you've got restricted retreat corpus or earnings producing choices then suppose double earlier than you go for this plan.Individuals who're not too lang syne retired:
An Individual who has simply retired should still has drawn-out life expectancy. It power not be discreet to at once go for pension off plans like these. The most important medium of exchange aim for a retired person can be to get a secure earnings. But on the similar time, this earnings additionally has to develop yearly to fulfill the elevating bills (particularly meals/medical). The price of earnings development ought to a minimum of meet (if not beat) the speed of inflation development.Retirees who've ratable earnings:
For retired persons who're in ratable earnings brackets, higher choices can be debt mutual medium of exchange imagination or tax-free bonds.Stable Income:
Senior residents who cannot handle the retreat corpus on their very own and wish secure returns can go for this plan.This plan Vs Bank Deposits:
The present interest rate on business institution deposits for Sr. Citizens is round 9.5 to 10%. This price could look enticing. But they could waver from yr to yr. Someone who's severely quest to make investments the retreat cash Bank Fixed deposits could contemplate this plan.Considering the speed at which the inflation (medical,meals costs then on.,) is rising, the retired persons are higher off in reckoning out a product combine which may beat the inflation price. These funding choices will be recognized primarily supported the danger taking capability, age and objectives. Retirees who're aged above 75 years could discover these kind of pension off plans extra appropriate.
The advertising capabilities of the present central regime and LIC could make this product made story. But finish of the day, it's your heard-earned cash. Consider above factors earlier than you make investments.
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