Finance Minister Jaitley starts senior citizens' pension plan
A pension scheme announced by the Government of India, exclusively for Senior Citizens, was formally launched by Union Finance Minister ,Minister of Defence and Minister of Corporate Affairs , Arun Jaitley on July 21 at New Delhi.
Life Insurance Corporation of India has been given the sole privilege to operate this scheme. This plan is exclusively for citizens aged 60 years and above and is available for sale from May 4, 2017 to May 3, 2018. The scheme can be purchased offline as well as online through LIC of India.Scheme provides an assured return of 8% p.a. payable monthly (equivalent to 8.30% p.a. effective ) for 10 years.Pension is payable during the policy term and on survival of the pensioner to the end of the policy term of 10 years,purchase price along with final pension installment shall be payable. On death during the policy term,the Purchase Price shall be paid to the beneficiary .The scheme is exempted from Service Tax/GST.
At the time of purchase,the pensioner can choose monthly/quarterly/halfyearly or yearly mode of pension.Loan upto 75% of purchase price is allowed after 3 policy years. The scheme also allows for premature exit for treatment of any critical/terminal illness of self or spouse.
V K Sharma,Chairman ,LIC Of India ,Managing Directors and other Senior officials from LIC were also present at the formal launch event held in the capital on July 21.