Outlook Money
Varishtha Pension Bima Yojana is operated by the Life Insurance Corporation (LIC) of India and offers policyholders a 9.3 per cent interest on investments annually.
The scheme provides a 15-day free-look period during which the subscriber can review the policy features and, if unsatisfied, unsubscribe from the plan.
The scheme has a 15-year lock-in, but it can continue life-long upon providing a life certificate.
A premature exit will attract a 2 per cent penalty on the accumulated corpus, and the rest of the money will be returned to the policyholder.
After three years of opening the account, the policyholder can take a loan of up to 75 per cent of the policy purchase price.
Contributions towards Varishtha Pension Bima Yojana get tax relief up to Rs 1.5 lakh in a financial year under the Income-tax Act, 1961.
If the policyholder dies, LIC will return the purchase price to the nominee, who could be a spouse or any other relative.
Compiled BY Himani Verma