Pradhan Mantri Vaya Vandana Yojana (PMVVY)

Posted by  Fintra , updated 2020-12-29

Here comes a scheme, a pension scheme for the senior citizens of India. The senior citizen age in India under this scheme from 60 years and above are only eligible for this scheme. The pension plan is available from 4th May 2017 to 31st March 2020. The PMVVY is being made functional through Life Insurance Corp (LIC) to provide social security during old age.

The aim of the scheme is to protect the aged 60 years and above considering cases that may arise like a fall in income interest soon due to rapidly changing markets.

Benefits of the scheme

The benefits of the scheme are numerous and some of them are listed below –

1. The scheme provides a return of 8% p.a. payable monthly which is equivalent to 8.30 % p.a. effective.
2. The scheme is ruled off from service tax or GST.
3. One can exit from the policy prematurely also for the treatment of any critical/ terminal illness of self or spouse. On such an early exit from the scheme, 98% of the Purchase Price shall be refunded.
4. Death Benefit: During the policy term of 10 years if the pensioner dies, the Purchase Price shall be paid to the beneficiary.
5. Maturity Benefit: At the end of 10 years if the policyholder survives, the purchase amount along with the final pension installment shall be refunded.
6. Loan Benefit: A loan facility is available after completion of 3 years of policy and the maximum loan shall be 75 % of the purchase amount.
7. Freelook period: If a policyholder is not satisfied by the Terms of the policy stated then he/she may return the policy to the corporation within 15 days of purchasing it (30 days in case it is purchased online) and the whole purchase amount will be payable after deductions of the stamp charges and pension amount if paid some.
8. Exclusions: Full Purchase Price shall be payable, there shall be no exclusion because of suicide.

What are the eligibility conditions to enter this scheme?

• The minimum entry age is set to be 60 years (completed) and there is no upper age limit
• The term for the policy is 10 years
• There is an Investment limit of Rs 15 lakh/senior citizen

Maximum and Minimum Pension amount

• Minimum Pension that one can avail of is Rs. 1,000/- per month, Rs. 3,000/- per quarter, Rs.6,000/- per half-year, and Rs. 12,000/- per year
• Maximum Pension that can be availed is Rs. 10,000/- per month, Rs. 30,000/- per quarter, Rs. 60,000/- per half-year and Rs. 1,20,000/- per year 

Where to purchase this scheme?

The scheme can be purchased offline as well as online through Life Insurance Corporation of India (LIC) which is having the authority to operate the scheme.

Which plan to buy under this scheme and how you will receive the pension amount?

 The amount can be paid either monthly, quarterly, half-yearly, and yearly. The pension payment shall be paid through NEFT or Aadhar Enabled System.