Government Schemes for the Benefit of Senior Citizen in India

Published On Nov 09, 2020 5:30 AM By Sakshi Aggarwal

The citizens who have crossed the threshold age of 60 years constitute about 8.5% of India’s total population and are termed as the Senior Citizens. This age is plagued with financial tension for most of the senior citizens. Old age makes people vulnerable to various lifestyle diseases and more susceptible to regular ailments as well. The Indian government does recognize this issue of senior citizens. The reduced income flow also leads to the problem, and thus the government has designed some schemes to cater to their financial problem 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 the senior citizens, which provide them support in the financial sector, are as follows:

1. Rashtriya Vayoshri Yojna

The scheme has been designed for the 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 of the central sector, and the central government funds it. The scheme provides a living aid and devices of assisted living for the citizens who have crossed the threshold of 60 years in age.

Also Read Here: Senior Citizen Health Insurance- All you need to Know

2. Annuity Plans by LIC

Retirement comes with a substantial pay cut. The salary is limited to a pension if the previous employer pays it to you, or it comes down to your savings and investments. The government knows of this problem and realizes that the money issue has to be resolved for senior citizens' stability. There are a lot of policies designed by the government in association with various companies. 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 Varishta Pension Bima Yojana offered by the LIC also provides pension to the country's senior citizens.

3. Pradhan Mantri Vaya Vandana Yojana (PMVVY)

This is also an annuity plan provided by the Government of India. 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 above the age of 60 years.

4. National Programme for the Health Care of the Elderly

The National Programme for the Health Care for the Elderly (NPHCE) was launched in 2010, and it forms a preventive and promotive care scenario for the elderly. The program was targeted at the senior citizens, and various Community Health Centres (CHC) along with Primary Health Centres (PHC) and Sub-centres (SC) were opened to provide free or highly subsidised services to the senior citizens.

5. Varistha Mediclaim Policy

The health insurance policy can be renewed till the age of 90 years and has a policy term of 1 year. The policy covers the charges of medicine, ambulance, blood, and various other diagnostic services. The policy also provides Income Tax Benefits under section 80D, and the policy is designed, keeping in mind the people between the ages of 60 and 80.

6. Varishtha Pension Bima Yojana

The Ministry of Finance launched Varishtha Pension Bima Yojana for senior citizens above 60 years in age. The authority of operating this scheme lies with LIC of India. No medical check-ups are required in order to avail this plan. The beneficiary can also avail tax exemption under this scheme and it also has a lock in period of 15 days. This scheme provides an assured pension an interest rate of 8 percent per annum for a duration of 10 years. Also, you can opt pension on a monthly, quarterly, half-yearly and annual pension, depending upon how you would want it.

7. Pradhan Mantri Jan Arogya Yojana

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

8. Senior Citizens Welfare Fund

The Government of India (GOI) introduced a Senior Citizens Welfare Scheme to offer financial assistance to the Below Poverty Line (BPL) category senior citizens. 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. This scheme was introduced keeping in mind all the senior citizens 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, having no other source of income.

9. Indira Gandhi National Old Age Pension Scheme

This scheme is specially intended for senior citizens, who are aged above 60 years and fall below the line of poverty as per the Guidelines stated by the Government of India(GOI). It was launched by the Ministry of Rural Development of India in 2007 and is also known as the National Old Age Pension Scheme. The beneficiary will be entitled to a monthly pension under this scheme, and as this scheme is a non-contributing scheme, henceforth, the beneficiary is not required to contribute any sum in order to get the pension. The sum of pension will be 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.


In association with many organisations, the government has designed a lot of schemes and policies to help the senior citizens in their aim of financial stability. It also depends upon the senior citizen to know about these schemes to reap the full benefits.

You May Also Like to Read: Public Sector Health Insurance Schemes for Senior Citizens

Disclaimer: This article is issued in general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.​


Health Insurance News

  • Latest News
  • Popular News

People Also Read

Must BuyMust Buy

Why to Buy Health Insurance Policy Online from InsuranceDekho

  • Tax benefit upto 75,000*
  • Claim support everyday 10AM-7PM
  • 14 Lakh+ happy customers