Varishtha Pension Bima Yojana 2014 (LIC Plan 828) was a government-subsidised pension scheme for people aged 60 and above, sold from 15 August 2014 to 14 August 2015. A single purchase price bought a guaranteed pension for life at about 9% a year. A ₹5 lakh purchase gives ₹3,750 a month, and the purchase price is refunded to the nominee on death.
Varishtha Pension Bima Yojana 828 Pension Calculator
Your estimate
- Assured pension rate (per year)
- 9.00%
- Pension received in first 15 years
- ₹6,75,000
- Refund to nominee on death
- ₹5,00,000
- Maximum loan (after 3 years)
- ₹3,75,000
- Purchase price₹5,00,00043%
- Pension received in first 15 years₹6,75,00057%
Cumulative pension (purchase price stays refundable on death)
| Policy year | Your age | Total pension received |
|---|---|---|
| 1 | 66 | ₹45,000 |
| 5 | 70 | ₹2,25,000 |
| 10 | 75 | ₹4,50,000 |
| 15 | 80 | ₹6,75,000 |
| 20 | 85 | ₹9,00,000 |
| 25 | 90 | ₹11,25,000 |
| 30 | 95 | ₹13,50,000 |
Individual life insurance premiums are exempt from GST from 22 September 2025. Figures are estimates based on typical rates and may differ from LIC’s official quote.
What is Varishtha Pension Bima Yojana (Plan 828)?
Varishtha Pension Bima Yojana 2014 (VPBY, LIC Plan 828, UIN 512G291V01) was a pension scheme for senior citizens run by LIC on behalf of the Government of India. You paid one lump sum, called the purchase price, and LIC paid a fixed pension for the rest of your life at an assured rate of about 9% a year. The government made up the difference between that rate and what LIC actually earned.
The scheme opened on 15 August 2014 and closed on 14 August 2015. It is no longer available, but policies bought in that year continue to pay pension for life. The calculator above works out the pension for any purchase price and payout mode, which is useful if you want to check your pension slips or plan around this income.
VPBY 828 at a glance
| Feature | Details |
|---|---|
| Plan number / UIN | 828 / 512G291V01 |
| Type | Immediate pension for life, with return of purchase price |
| Entry age | 60 years and above, no upper limit |
| Premium | Single lump sum (purchase price) |
| Assured rate | About 9% a year (monthly mode) |
| Pension range | ₹500 to ₹5,000 a month |
| Maximum purchase price | ₹6,66,665 (monthly mode) |
| Death benefit | Purchase price refunded |
| Loan | Up to 75% of purchase price after 3 years |
| Open for sale | 15 Aug 2014 to 14 Aug 2015 |
Pension rates by mode
The assured rate is slightly higher when you take pension less often, because LIC holds the money longer.
| Mode | Pension range | Purchase price for maximum pension | Effective rate |
|---|---|---|---|
| Monthly | ₹500 – ₹5,000 | ₹6,66,665 | 9.00% |
| Quarterly | ₹1,500 – ₹15,000 | ₹6,61,690 | about 9.07% |
| Half-yearly | ₹3,000 – ₹30,000 | ₹6,54,275 | about 9.17% |
| Yearly | ₹6,000 – ₹60,000 | ₹6,39,610 | about 9.38% |
How the pension is calculated
Pension = purchase price × the assured rate for your mode. Age does not change the rate.
Worked example. A 65-year-old who invested ₹5,00,000 with monthly pension receives:
- ₹3,750 a month, or ₹45,000 a year
- ₹6,75,000 in pension over the first 15 years
- ₹5,00,000 refunded to the nominee on death
- up to ₹3,75,000 as a loan after three years
At the upper limit, ₹6,66,665 gives ₹5,000 a month, and ₹6,39,610 on yearly mode gives ₹60,000 once a year.
Tip: VPBY paid about 9% guaranteed for life, far above what most safe options pay today. If you hold this policy, keep it; there is rarely a good reason to exit.
Death benefit, loan and exit
- On death: pension stops and the full purchase price goes to the nominee.
- Loan: after three policy years, up to 75% of the purchase price. Interest is deducted from the pension.
- Early exit: allowed only for critical or terminal illness of the pensioner or spouse, with 98% of the purchase price refunded.
Tax treatment
The pension is taxable as income under “Income from other sources”. There is no tax on the refund of your own purchase price to the nominee. Senior citizens with modest income may still owe little or no tax after the basic exemption and rebate.
What to consider now
If you are a VPBY pensioner, the best use of this page is to check that your pension matches your purchase price and mode. If you are a new investor, VPBY is closed. Its successor was the Pradhan Mantri Vaya Vandana Yojana, whose last version, PMVVY Plan 856, also closed on 31 March 2023. For a lifetime pension from LIC today, compare immediate annuities such as Jeevan Akshay VII using our pension calculator.
How to use this calculator
- Enter the age of the pensioner (60 or above).
- Enter the purchase price from your policy bond.
- Pick the pension mode.
- Read the pension per instalment, yearly pension and the effective rate.
- Use the table to see how much pension you have received over the years.
Figures are estimates from an independent calculator and may differ slightly from LIC’s records because of rounding.
Frequently asked questions
Can I still invest in Varishtha Pension Bima Yojana 828?
No. VPBY 2014 was open only from 15 August 2014 to 14 August 2015. Existing pensioners keep receiving their pension for life. New investors can look at Jeevan Akshay VII or Saral Pension, or government schemes available today.
How much pension does VPBY 828 pay?
About 9% a year on the purchase price for monthly pension, rising to about 9.38% a year for yearly pension. For example, ₹5 lakh gives ₹3,750 a month, and the maximum ₹6,66,665 gives ₹5,000 a month.
What was the minimum and maximum pension?
The monthly pension ranged from ₹500 to ₹5,000. The equivalent limits were ₹1,500 to ₹15,000 a quarter, ₹3,000 to ₹30,000 a half-year, and ₹6,000 to ₹60,000 a year.
What does the nominee get when the pensioner dies?
The full purchase price is refunded to the nominee or legal heirs. Pension payments stop on death, so the family gets the original capital back.
Can I take a loan against a VPBY policy?
Yes. After three policy years, a loan of up to 75% of the purchase price is available. Interest on the loan is recovered from the pension instalments.
Can I surrender Varishtha Pension Bima Yojana early?
Only in special cases, such as critical or terminal illness of the pensioner or spouse, when 98% of the purchase price is refunded. Otherwise the policy runs for life.
Is VPBY pension taxable?
Yes. The pension is added to your income and taxed at your slab rate. The refund of the purchase price to the nominee is a return of the original capital.
Disclaimer: LIC Premium Calculators is an independent website. We are not affiliated with, endorsed by or connected to Life Insurance Corporation of India. All figures are estimates for illustration; confirm exact premiums and benefits with LIC or a licensed agent before buying.