Varishtha Pension Bima Yojana – Lifetime Pension Scheme for Senior Citizens
Growing Old with Financial Security – Government Brings VPBY for Senior Citizens
Every retired person deserves to live with peace, dignity, and financial independence. But rising costs and lack of regular income make life difficult for many senior citizens in India. Understanding this need, the Government of India introduced the Varishtha Pension Bima Yojana (VPBY).
This scheme is designed especially for people above 60 years. It gives them a guaranteed monthly or yearly pension after investing a lump sum. The scheme is managed by Life Insurance Corporation of India (LIC), which makes it reliable and trustworthy.
Let’s understand this helpful scheme in detail.
What is Varishtha Pension Bima Yojana (VPBY)?
Varishtha Pension Bima Yojana is a government-backed pension scheme launched to provide regular income to senior citizens. The scheme offers an assured interest return of around 8% per year, payable monthly, quarterly, half-yearly, or annually.
It was first introduced in 2003 and re-launched in 2014 and again in 2017 with updates to suit current needs. The last phase of the scheme was open till March 2020, but LIC is expected to re-launch it under new terms in 2025–26, considering growing demand among the elderly.
Who Can Apply?
Only senior citizens can apply for this scheme. Here are the simple eligibility rules:
- Must be 60 years or older (no upper age limit)
- Must be an Indian citizen
- Should have a savings account or bank account
- Investment can be done in the name of individual or spouse
It is ideal for retired government employees, pensioners, or private employees who want to secure their post-retirement life.
What Benefits Will They Get?
Under VPBY, senior citizens get the following benefits:
- Assured monthly or yearly pension for 10 years
- Guaranteed interest rate of 8% (can vary slightly in new launch)
- Safe investment with no risk
- Full return of purchase price after 10 years or to nominee after death
- Option to receive pension monthly, quarterly, half-yearly or annually
- Tax-free returns under Section 10(10D) in some cases
- Loan facility up to 75% of invested amount after 3 years
The scheme is a one-time investment product. You deposit a lump sum, and in return, receive regular pension income as per your choice.
Pension Options (Sample):
If you invest ₹1,50,000, you will get:
- ₹1,000 per month OR
- ₹3,000 per quarter OR
- ₹6,000 per half-year OR
- ₹12,000 per year
Maximum pension limit under VPBY was ₹5,000 per month per person in earlier phases. In the expected 2025 version, this may be increased.
What Is the Process or Last Date?
The previous version of VPBY ended in March 2020. The government is expected to reintroduce it in FY 2025–26, under LIC, with revised investment caps and returns.
Here’s the usual application process:
- Visit nearest LIC branch or their official website
- Fill in the application form
- Submit KYC documents (Aadhaar, PAN, age proof, address)
- Choose pension mode (monthly/quarterly/yearly)
- Pay one-time purchase price through cheque or online
Once the policy is issued, pension starts from the next selected cycle.
Real Impact / Official Data
“Over 3 lakh senior citizens benefited from the scheme during 2017–2020 period,”
– LIC Annual Report, MyGov India
“The scheme was launched to protect elderly from interest rate volatility in old age,”
– Ministry of Finance, India
How to Apply + Helpful Link
To apply for VPBY, senior citizens can follow these steps:
- Visit your nearest LIC branch office
- Request the Varishtha Pension Bima Yojana application form
- Submit required documents like Aadhaar card, PAN card, bank account
- Pay lump sum through cheque, DD or online transfer
- Select your preferred pension mode
👉 Official Link: https://licindia.in
Also, you may check updates on government portal: https://financialservices.gov.in
Key Highlights at a Glance:
- Scheme Name: Varishtha Pension Bima Yojana (VPBY)
- Managed By: LIC of India
- Age Limit: 60 years and above
- Minimum Pension: ₹1,000/month
- Maximum Pension: ₹5,000/month (may increase in next phase)
- Investment Type: One-time payment
- Return Type: Fixed pension for 10 years
- Tax Benefit: Available under Income Tax rules
- Loan Facility: After 3 years, up to 75%
Read Also:
- Atal Pension Yojana – Government Pension for Workers
- PM Vaya Vandana Yojana – Pension Scheme for Senior Citizens
External Official Reference:
- LIC India Official Website: https://licindia.in
- MyGov India Portal: https://mygov.in
SEO Keywords to Use:
- Varishtha Pension Bima Yojana 2025
- VPBY scheme eligibility and benefits
- LIC senior citizen pension plan
- Fixed pension scheme for 60+ age group
- VPBY apply online
- Varishtha Bima scheme returns
- Pension yojana for old people
Final Words – A Secure Future for Our Elders
Our senior citizens have worked hard all their life. They deserve to live their retirement years with dignity and peace. Schemes like VPBY are a small but powerful step in that direction.
With guaranteed income, zero risk, and LIC’s trusted backing, the Varishtha Pension Bima Yojana is truly a gift for our elders.
If you or someone in your family is above 60, this is the time to plan wisely.
👉 Visit LIC India and enquire about the scheme. Stay updated for its next launch in 2025!