On signing up and during the tenure of LIC Varishtha Pension Bima Yojana Policyholder has to fill up an `Application form/ proposal form with accurate medical history along with the address proof and other KYC documents. The LIC Varishtha Pension Bima Yojana pensioner must also submit Existence Certificates at specified time intervals. These certificates are to be submitted in the proforma of LIC. On surrender of LIC Varishtha Pension Bima Yojana policy LIC Varishtha Pension Bima Yojana pensioner should submit the following documents: Discharge form Original policy document Proof of medical treatment of pensioner or his / her spouse if the policy is surrendered within the lock in period of 15 years Proof of age if this detail has not been clarified earlier For payment of death benefits under LIC Varishtha Pension Bima Yojana The documents that need to be submitted include: Claim forms: These should be in format specified by LIC Original policy document NEFT mandate form: Claimant should provide all necessary bank details including bank name, account number, account type and IFSC code Proof of death or proof of title: Claimant can submit whichever document is applicable Proof of age: This is required if the proof of age of the pensioner is not mentioned under the policy Introduction to Annuities Annuities are payments received by the pensioner / investor for payment of a certain sum or sums of money over a prior period. Annuities help secure a continuous payment for a person that helps him or her to take care of their living expenses and other costs. In that sense, annuities can be compared to pensions, though unlike pensions, you may opt to receive the annuity on different payout frequencies. For instance, under LIC Varishtha Pension Bima Yojana you have the option to receive annuities on an annual, semi-annual, quarterly and monthly basis. You can choose a yearly payout for larger expenses that you need to pay such as tax, travel, home repainting or repair. The half-yearly payouts can be used for similar larger expenses say travelling to childrens place twice a year if they stay in a different city. Similarly, you can choose quarterly or monthly payments. You can also choose to receive annuities much earlier than the age from which pensions generally accrue. However, the regular nature of the payment means that people generally opt to use annuities as pensions when they have stopped working and there is no regular salary income. How to Choose an Annuity There is a bewildering range of annuity options in the market including LIC Varishtha Pension Bima Yojana. The ones you choose will depend on a few factors such as your needs, the premium you can afford, the type of returns you seek and so on. Let us look at some of these in brief detail. Check your needs Your needs will determine how much of an annuity you will need. LIC Varishtha Pension Bima Yojana provides a maximum pension benefit of Rs. 60,000 per year or Rs. 5,000 per month. So if your needs are higher, then you ought to ensure that you have alternative sources of income. You can opt for an immediate annuity plan from LIC like LIC Jeevan Akshay that will pay you additional income. If you are in the 20-50 age group, you can also put the money in pension funds like the PPF, EPF, NPS, etc. in addition to opting for mutual funds or postal pension schemes. You can buy a LIC Varishtha Pension Bima Yojana plan the next time it is re-launched. Take into account possible increase in expenses Inflation will ensure that real value of money will decrease over time. That means what you can buy today for Rs. 100 will be more than what you can buy next year for the same amount. In pension terms, it means that you will need more money to sustain your current lifestyle. Also, with retirement and age certain expenses will increase. For instance, you may end up travelling more or will need more regular health checks. This will increase your monetary requirements and will increase your costs. Take into account possible decrease in expenses Just as you will factor in increase in expenses, you need to deduce how much your cost of living will decrease. You may, for example, not have to pay off a house loan any more. Other factors such as regular travel costs (from home to office and back) will reduce. You will also be eating out less as you will spend more time at home and will likely prefer a healthier lifestyle. Give yourself some extra money to travel or entertainment As mentioned, give yourself some extra money for travel and entertainment. With the improvement in healthcare services and more awareness of health, people are opting for healthier living. This means you will are likely to be as sprightly at 80 as you are at 40 or 50. This may translate into more holidays and more entertainment expenses than when you are working. You may join clubs or sports or go for international holidays. Take these costs into account when you decide how much you need. Healthcare costs are a big factor Healthcare costs are a big expense and with private care becoming more preferred due to quality of services, these costs will only increase in the future. Everything from regular checkups to surgeries will be more expensive in the future. Take these factors into account when you choose an annuity plan like LIC Varishtha Pension Bima Yojana. Dont rely on a single source of income Experts suggest that people ought to have more than one source of income at old age to minimize risks. Accordingly, choose an annuity besides LIC Varishtha Pension Bima Yojana like LIC Jeevan Akshay. Also, save money for pension over your working life in pension schemes such as PPF, EPF and NPS, traditional life insurance endowment polices, mutual funds and so on to make sure, you have multiple streams of revenue coming in.
