Government Schemes for Senior Citizen in India

In 2021, 10.1% of India’s total population was recorded as senior citizens. It is expected that the proportion might increase to 13.1% by 2031. Transitioning to the golden period can be a great experience but there is also financial stress that comes with this age. Elderly people find it difficult to work and earn after a certain age. Further, they are more vulnerable to health issues and diseases.

Rising medical expenses and reduction in income flow are the actual challenges for senior citizens. To maintain financial stability for elderly people, the Government of India has designed several schemes for people above the age of 60 years. Let's discover some social security and welfare schemes designed for Senior Citizens.

Why Senior Citizens Need Special Schemes?

With the growing age, people look for more comfort and less physical activity. They start losing the ability to manage everything on their own and often become ill due to weak immune systems. Government schemes launched in such cases help elderly people with financial insecurity and medical expenses. Here are the main reasons why special government schemes needs are essential for senior citizens:

• Financial Security: Most people over 60 rely on their savings and pensions to cover their day-to-day needs and medical costs. Government schemes add financial security to elderly people who no longer work in an organization or are self-employed.
• Manage Healthcare expenses: The health of senior citizens can deteriorate with age due to pre-existing health conditions or weak immune systems. Thus, they frequently require healthcare services which can be expensive.
• Mobility and Safety: Less physical activities can hamper the mobility of senior citizens. Thus, security and transportation policies are necessary for seniors.

Categories of Government Schemes for Senior Citizens in India

Different categories of schemes launched by the government for elderly people include:

• Pension Schemes: These schemes are launched for elderly people who no longer work in any profession and have retired. These are long-term savings that act as security when you grow old.
• Healthcare Schemes: Healthcare Schemes for senior citizens are launched to protect elderly people from huge medical expenses incurred during emergencies and reduce financial strain.
• Insurance Schemes: Several insurance plans are also designed for senior citizens to help them overcome healthcare challenges without stressing over medical bills.

Social Security and Welfare Schemes for Senior Citizens in India

1. Rashtriya Vayoshri Yojana

Rashtriya Vayoshri Yojana (RVY) is designed for senior citizens' sustainability. People above 60 years are eligible for this scheme, especially the ones who suffer from disability or require physical aid. The Central Government funds the RVY scheme and provides assistance to people who belong to the BPL family or hold a BPL card authorized by the government. Under this scheme, senior citizens are provided with supporting devices, such as elbow crutches, hearing aids, walking sticks, wheelchairs, etc., free of cost. These devices are further provided free maintenance from Artificial Limbs Manufacturing Corporation (ALIMCO) for a year.

2. Annuity Plans by LIC

LIC’s annuity plan provides a regular income to senior citizens after retirement. It requires the individual to invest a lump sum amount and when they reach their retirement age, the returns generated from the investment amount will be provided as financial support. The government partnered with various insurance agencies and launched schemes like LIC New Jeevan Nidhi Plan, Pradhan Mantri Vaya Vandana Yojana, LIC Jeevan Shanti Plan, etc., for senior citizens' financial security.

3. Pradhan Mantri Vaya Vandana Yojana (PMVVY)

Pradhan Mantri Vaya Vandana Yojana is an annuity plan for Indian citizens 60 years or above. Under this plan, the policyholder will gain a 7.40% rate of return. It offers ten years of policy tenure with a minimum pension amount of 1000 and a maximum 9,250 per month. Policyholders can get their pension amount on a monthly, quarterly, half-yearly, and annual basis. They even have the option to choose payment frequency levels. Further, 15 15-day free look period is available if the policy is purchased directly and 30 days if purchased online.

4. National Programme for the Health Care of the Elderly

As people age, they become more vulnerable to non-communicable diseases (NCDs), which can result in disabilities. The National Programme for Health Care for the Elderly (NPHCE) is a government scheme launched to provide dedicated care services to the elderly or senior citizens of India. The plan offers affordable medical care services and highly subsidised services to people over 60.

5. Varistha Mediclaim Policy

Another health insurance scheme for people between the ages of 60 and 80 covers hospitalization expenses, domiciliary hospital costs, health checkups, dental treatment costs, etc. The plan ensures the financial security of senior citizens and includes tax benefits under section 80D.

6. Varishtha Pension Bima Yojana

The Varishtha Pension Bima Yojana managed by LIC is another popular government scheme that provides annuity from the moment you pay a premium to lifelong. People above 60 years can invest in the scheme and avail of 15 years of lock-in period, tax benefits, 15 days free look period, guaranteed assured returns, and loan benefits.

7. Pradhan Mantri Jan Arogya Yojana

Launched in 2018 by the Ministry of Health and Family Welfare, this scheme provides health coverage to poor and vulnerable families. The plan offers 5 lakh hospitalization coverage and cashless treatment benefits. For pre-hospitalization expenses, it covers 3 days, and post-hospitalization expenses for 15 days. It includes pre-existing conditions covered in its plan from the day of policy purchase.

8. Senior Citizens Welfare Fund

The Senior Citizen Welfare Fund (SCWF) belongs to the BPL category which provides financial support to individuals above 60 years of age with no means of livelihood. In 2016, the government scheme came into effect to financially assist senior citizens improve their living standards. The scheme focuses on promoting proper nutrition and welfare, supporting income-generating activities, and providing pensions for senior citizens with no income source.

9. Indira Gandhi National Old Age Pension Scheme

Under this scheme, elderly people above 60 years are provided financial assistance in the form of monthly pensions, i.e., ₹ 200 up to 79 years and later ₹ 500. In 2007, the scheme was launched by the Ministry of Rural Development of India for elderly people with no regular source of income or support from family members.

Conclusion

Various government schemes have been designed for senior citizens in India. In fact, the government even introduced a few policies in association with insurance providers to ensure the financial security of elderly people. These social welfare schemes and healthcare policies are offered to assist senior citizens enjoy their golden period with more grace. These policies and schemes can enable them to improve their living standard and face challenges with less difficulty.

FAQs

Ques 1: What is the minimum entry age required for senior citizen programs?

Ans: The person must be 60 years and above to avail the benefit of senior citizen schemes in India.

Ques 2: What all is not covered under LIC Annuity Plans?

Ans: Committed suicide cases are not covered under LIC annuity plans. In most cases, 80% of the premiums paid are reimbursed if the policyholder commits suicide within a year of purchasing the coverage.

Ques 3: What are the types of annuities?

Ans: Annuities can be classified as either deferred or immediate. Pension payments under immediate annuity plans begin as soon as the payment for the plan is made to the insurer. After what is known as the deferment period, deferred annuity programs begin to pay the guaranteed income. For people who still have a few years until they reach retirement age, the other option works best.

Ques 4: What are the Eligibility Criteria for NSAP scheme?

Ans: In order to be eligible for benefits under the National Security Assistance Program (NSAP), an applicant must meet the specific requirements set forth by the Indian government as a household below the BPL category.

Ques 5: Do elderly people in India have access to any healthcare government schemes?

Ans: Indeed, elderly people can have various health issues after a certain age. Looking at them, certain schemes like the National Programme for Health Care of the Elderly (NPHCE) and the Rashtriya Vayoshri Yojana (RVY) were launched by the Indian government to meet their healthcare requirements.