Ministry of Finance
Varishtha Pension Bima Yojana (VPBY)
Guaranteed pension income at 9.3% p.a. — a ₹15 lakh purchase gives approximately ₹11,625/month; purchase price fully returned to nominee on death; no market risk; government-backed; pension continues for entire lifetime
Monthly/quarterly/semi-annually/annually — as chosen by subscriber
Varishtha Pension Bima Yojana (VPBY) is a government-subsidized immediate annuity scheme offered exclusively by Life Insurance Corporation of India (LIC) to provide regular pension income to senior citizens aged 60 years and above. Under this scheme, a senior citizen makes a one-time lump sum purchase (single premium) and immediately starts receiving a guaranteed monthly/quarterly/half-yearly/annual pension at an assured return of 9.3% per annum — higher than typical market rates. On the pensioner's death, the full purchase price (principal amount) is returned to the nominee. The scheme provides financial security without market risk.
Am I Eligible?
Quick check — answer 3 questions
Is your age between 60 and 100 years?
Is your annual family income under ₹1 Cr?
Do you live in India?
Benefit Details
Guaranteed pension income at 9.3% p.a. — a ₹15 lakh purchase gives approximately ₹11,625/month; purchase price fully returned to nominee on death; no market risk; government-backed; pension continues for entire lifetime
Provided by Central Government
Monthly/quarterly/semi-annually/annually — as chosen by subscriber
Eligibility Criteria
Indian citizen aged 60 years and above (no maximum age limit); no medical examination required; must have a savings bank account for pension credit; NRIs can also apply through LIC; no annual income limit; minimum purchase price: ₹1 lakh (pension ≈ ₹775/month); maximum purchase price varies by state government notification
60 to 100 years
Up to ₹1 Cr / year
Rural & Urban (Both)
Required Documents
💡 Tip: Keep original documents and 2 photocopies ready. Self-attest all photocopies.
How to Apply
Visit Nearest LIC Branch
offlineVisit any LIC branch across India → ask for Varishtha Pension Bima Yojana (VPBY) → inform them of your desired pension frequency (monthly/quarterly/annually) and approximate investment amount. The LIC agent will calculate the purchase price needed for your desired pension.
Fill Proposal Form
offlineFill the LIC VPBY Proposal Form with your personal details, age proof, bank details, and nominee information. No medical examination is required. Decide your pension payout mode: monthly (first payment 1 month from purchase), quarterly, semi-annual, or annual.
Submit Documents and Premium
offlineSubmit Aadhaar, PAN, age proof, cancelled cheque, 3 passport photos, and filled proposal form → pay the single premium (lump sum) by cheque, demand draft, or online transfer to LIC → policy bond is issued within 7–15 days and sent to your address.
Receive Policy Bond
offlineAfter premium receipt, LIC processes and issues the VPBY policy bond (certificate). Keep the bond safely — it specifies your purchase price, pension amount, payout frequency, and maturity/death benefit details.
Receive Regular Pension
offlinePension is credited to your registered bank account at the frequency you chose. For monthly mode: credited on the same date each month starting 1 month after purchase. Pension continues for life. On death, nominee files death claim with LIC — full purchase price returned within 30 days.
Frequently Asked Questions
Quick Summary
Related Schemes
Pradhan Mantri Shram Yogi Maandhan (PM-SYM)
Guaranteed monthly pension of ₹3,000 after age 60; government matches your monthly contribution rupee for rupee
UP Vridhavastha Pension Yojana (Old Age Pension)
₹1,000 per month pension paid quarterly (₹3,000 per installment) via Direct Benefit Transfer to Aadhaar-linked bank account for low-income senior citizens of Uttar Pradesh
Atal Pension Yojana (APY)
Guaranteed monthly pension of ₹1,000–₹5,000 per month after age 60; spouse receives same pension after subscriber's death; nominee receives lump sum return of corpus on death of both subscriber and spouse
Shravan Bal Seva Rajya Nivruttivetan Yojana (Maharashtra)
₹1,500 per month (paid quarterly as ₹4,500) directly to Aadhaar-linked bank account via DBT for BPL senior citizens aged 65+ years in Maharashtra
⚠️ Disclaimer: Information is compiled from official government sources for guidance purposes. Eligibility and benefits may vary. Always verify with the official portal or nearest government office before applying.
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