Whenever interest rates are falling, senior citizens are always under stress to maintain their income, because their income from interest through fixed deposit is falling and that is their main source of income. NDA Govt which ended its tenure in 2004 was very sensitive to this issue and so they brought two schemes in their times, one was Senior Citizens Savings Schemes which worked through post office and banks and another was Varishtha Pension Bima Yojana which worked through Lic of India. Senior Citizens’s Savings Schemes is still working but Varishtha Pension Bima Yojana was closed later on.But in the Union Budget of 2014-15 our Finance Minister has proposed to revive it for a limited period of 15^th August 2014 to 14^th August 2015 for the benefit of Senior Citizens. Following are the features of the scheme.

Type of Plan: Varishtha Pension Bima Yojana is basically a annuity(pension) plan. But in this plan, investment has to be done lump sum and annuity  (Pension) starts immediately based on the mode of pension selected.