Government Schemes for Senior Citizen in India

The citizens who have crossed the threshold age of 60 years constitute about 8.5% of India’s total population and are termed the Senior Citizens. Most senior citizens at this age struggle with financial stress. People who are older are more prone to both chronic illnesses and a variety of lifestyle disorders. Hence, understanding the issue of reduced income flow of senior citizens, the government has designed some schemes to cater to their financial problems and help them maintain their financial stability. 

There are many health plans in the market for senior citizens and along with that the government schemes for senior citizens, which provide them support in the financial sector, are as follows:

1. Rashtriya Vayoshri Yojana

The scheme has been designed for people below the poverty line, so if someone wants to collect benefits under the scheme, they would have to show the BPL card. The entire scheme is funded by the central sector and the central government. The scheme provides physical aid to senior citizens aid assisted which is required for their sustainability.

2. Annuity Plans by LIC 

When an individual reaches retirement age, a substantial pay cut comes along. The salary is limited to a pension if the previous employer pays it to you, or it comes down to your savings and investments. After becoming aware of the problem of senior citizens, the government has partnered with various insurance companies to resolve the problem. LIC or the Life Corporation of India, in its scheme, compensates for the salary of the retired person with guaranteed amounts every month to meet their financial needs. The Varishtha Pension Bima Yojana offered by the LIC also provides a pension to the country's senior citizens.

3. Pradhan Mantri Vaya Vandana Yojana (PMVVY)

Another annuity plan that is provided by the government of India for senior citizens is the Pradhan Mantri Vaya Vandana Yojana (PMVVY). This policy's term is 10 years, and the minimum pension amount is Rs. 3000/- and the maximum pension amount is Rs. 10,000/-. The policy can also earn an interest rate of 8% per annum. The pensioner can choose the frequency of the payments. The policy has been designed for people over the age of 60 years.

4. National Programme for the Health Care of the Elderly

Launched in 2010, the National Programme for Health Care for the Elderly (NPHCE) promotes a preventive case scenario for senior citizens. In order to provide free or highly subsidised services to senior citizens, various community centres such as Community Health Centres (CHC) along with Primary Health Centres (PHC) and Sub-centres (SC) were established. 

5. Varistha Mediclaim Policy

The Varistha Mediclaim Policy comes with a policy term of 1 year and an individual can renew it till the age of 90 years. Under this policy, the charges for medicine, ambulances, blood, and various other diagnostic services are covered. Furthermore, the policy is designed for people between the ages of 60- 80 and provides income tax benefits under 80D. 

6. Varishtha Pension Bima Yojana

The Varishtha Pension Bima Yojana was launched by the Ministry of Finance for senior citizens above the age of 60 years. LIC India is authorised to operate this scheme. No medical check-ups are required in order to avail of this plan. The beneficiary can also avail of tax exemption under this scheme, and it also has a lock-in period of 15 days. This scheme guarantees a pension at an annual interest rate of 8% for a period of ten years. You can also choose a monthly, quarterly, half-yearly, or annual pension, depending on your needs.

7. Pradhan Mantri Jan Arogya Yojana

 In 2018, the Ministry of Health and Family Welfare launched the Pradhan Mantri Jan Arogya Yojana to cover those belonging to vulnerable and poor families. In this scheme, coverage of up to Rs. 5 lakh is offered for tertiary and secondary treatment to each family. This health insurance scheme has strengthened the nation's healthcare services. Also, this cover will include both pre-hospitalisation and post-hospitalisation expenses. Other than this, coverage for all pre-existing conditions will be offered to the policyholder from the issuance of the policy.

8. Senior Citizens Welfare Fund

The Government of India introduced a Senior Citizens Welfare Scheme to offer financial assistance to the senior citizens of the Below Poverty Line (BPL).  Moreover, the scheme is administered by the Ministry of Social Justice and Empowerment and the fund involves unclaimed amounts from savings accounts and small savings in the central government schemes. The scheme was introduced to provide an adequate fund for those who do not have any means to sustain themselves. The main objective of this scheme is to provide financial assistance and old age pensions to senior citizens, who have no other source of income.

9. Indira Gandhi National Old Age Pension Scheme

As per the guidelines addressed by the Government of India, people above the age of 60 years and below the poverty line will be covered under the Indira Gandhi National Old Age Pension Scheme. In 2007, the Ministry of Rural Development of India launched this scheme. Under this scheme, the beneficiary will be entitled to a monthly pension. It is a non-contributing scheme, so the beneficiary is not required to contribute any sum to get the pension to get the monthly benefit. The sum of pension is given based upon the age of the beneficiary, if they are aged between 60 to 79 years, then a monthly sum of Rs. 200 is offered, and for people above 80 years, a sum of Rs. 500 is credited.

Conclusion

The government has designed a variety of schemes and policies in association with many insurance companies to help senior citizens financially during their old age. It is also up to senior citizens to be aware of these programmes in order to reap the full benefits.

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