PPF is among India’s most well-liked government-sponsored savings plans because of its guaranteed returns and tax advantages. You can opt to withdraw money from your PPF account following its 15-year maturity period. Additionally, although only under specific situations, partial withdrawals are permitted before the account matures (after the sixth fiscal year following account establishment). There are many pension schemes to choose from, including the LIC senior citizen scheme. Depending on the benefits and needs, senior citizens can make wise choices for themselves.
Here is all you need to know about different LIC senior citizen schemes and PPF withdrawal rules, including partial and complete withdrawals, early account closures, and extensions of PPF accounts after maturity.
What are the PPF Withdrawal Rules?
- You can only withdraw the full money after the policy’s maturity is 15 years.
- Partial PPF withdrawals are permitted starting in the seventh year after the account’s creation in case of a financial necessity.
- An account holder may also make an early withdrawal, but they are only qualified to do so once their PPF account has been open for four years.
- One can keep the PPF scheme running without making any contributions if they don’t wish to shut their account. In this scenario, the interest rate will continue to increase the sum until it is paid off. The account holder may withdraw any amount of money once per financial year.
- The PPF account holder can request an extension every five years if they wish to continue contributing to their account.
What is LIC Senior Citizen Scheme?
This program is intended exclusively for those over 60 and is a practical long-term saving solution with excellent features and unmatched security.
The senior citizen saving program provides a few allowance programs to secure the future of the nation’s senior citizens. Well! If you’ve been wondering what the scheme has in store, you may rest since we’re about to outline all the advantages of different programs under (SCPS).
Some of the following plans are available under the Senior Citizen Scheme:
LIC Varishtha Pension Bima Yojana
Under the union budget of 2014-15, the government introduced this scheme. The LIC Varishtha Pension Bima Yojana offers members a monthly, quarterly, half-yearly, or annual pension. The pensioner receives a regular secured income after each term on an annual, half-yearly, quarterly, and monthly basis.
Some of the Benefits are Mentioned Below:
- Under the LIC Varishtha Pension Bima Yojana, the purchase amount is reimbursed to the policy’s beneficiary upon the death of the pensioner.
- Under Section 80CCC of the Income Tax Act, the pensioner may get a tax credit on the premium paid.
- For a reliable monthly income, the LIC Varishtha Pension Scheme may be easily linked with other pension plans, including endowment insurance, provident funds, mutual funds, etc.
- Varishtha Pension Bima Yojana can be bought annually, biannually, quarterly, or monthly depending on one’s preferences and appropriateness.
Pradhan Mantri Bima Yojana
One of the three social security programs the government unveiled in the 2015 budget is the Pradhan Mantri Bima Yojana. The Pradhan Mantri Bima Yojana offers three different plans:
- Pradhan Mantri Atal Pension Yojana
- Pradhan Mantri Suraksha Bima Yojana
- Pradhan Mantri Jeevan Jyoti Bima Yojana
The policy offers life insurance coverage up to Rs. 2 lakhs and has age restrictions ranging from 18 to 70. All of the plans provided by Pradhan Mantri Bima Yojana cover a variety of life insurance needs and guarantee the survival of retirees.
Some of the Benefits are Mentioned Below:
- Private sector employees also can apply for this scheme.
- The pension amount will be given to the nominee or spouse in the event of the subscriber’s death.
- When you reach the age of 60, you will be eligible for a guaranteed pension up to Rs. 5000.
Pradhan Mantri Vaya Vandana Yojna (PMVVY)
The Government of India has introduced the Pradhan Mantri Vaya Vandana Yojana, a non-participating, non-linked pension program. The updated plan includes increased pension rates and a three-year extension of the policy’s selling term, starting with the fiscal year 2020–21 and ending on March 31, 2023.
In the Pradhan Mantri Vaya Vandana Yojana, you will get a loan and interest from the pension payment due under the scheme. The IRDAI should have authorized choices on which to base the applicable interest rate.
At the start of the ten years of the policy term, a person will get a minimum pension of Rs. 1000 each month, and it can be maximized up to 10,000 it’s only up to the invested amount.
Some of the Benefits are Mentioned Below:
- In this plan, you can access both offline and online, offering an annual return guarantee of 7.40 percent over ten years.
- Pension payments will be made at the end of each period if the policyholder lives through the whole policy term, which is ten years.
- The amount of the insurance is repaid to the policy’s nominee if the pensioner passes away within the policy’s 10-year period of coverage.
- Depending on appropriateness, you can buy this plan annually, half-yearly, quarterly, or monthly.
Conclusion
The advantages needed to safeguard a person’s financial security after retirement is included in the LIC senior citizen pension program. Various plans are provided under the LIC Senior Citizen Scheme that specifically operates for pensioners’ benefit and effectively gives them long-term saving alternatives.
