7 Things To Know About Varishtha Pension Bima Yojana

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.


Free Look

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.

Free Look period

Lock-In Period

The scheme has a 15-year lock-in, but it can continue life-long upon providing a life certificate.

Long-Term Lock-In

Premature Exit 

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.

Exit Before Maturity

Loan Facility

After three years of opening the account, the policyholder can take a loan of up to 75 per cent of the policy purchase price.


Tax Benefit

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.

Tax Benefits


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

In case of death

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