Pradhan Mantri Vaya Vandana Yojana – PMVVY

About PMVVY (Pradhan Mantri Vaya Vandana Yojana):

Pradhan Mantri Vaya Vandana Yojana This is the pension plan for senior citizens who are 60 years or above. Indian Government has announced this scheme and launched on 4th May 2017. This PMVVY provides the assured return of 8% per annum payable monthly for 10 years.

Recently the investment level from Rs 7.5 lakh to Rs 15 lakh under this PMVVY. The LIC Company also provides the social security during old age. Now this PMVVY provides the pension based rate of return 8% per annum up to 10 years.

Under this scheme, applicants receive Rs 10,000 per month pension. The main aim of the scheme is to provide the social security for senior citizens. Interest people can buy this scheme through the online and offline process

Pradhan Mantri Vaya Vandana Yojana provides the online services by licindia.in website. Till now LIC already sold 58,152 policies and collected Rs 2,705 crores under this PMVVY

 Benefits for Pradhan Mantri Vaya Vandana Yojana:

  • Maturity benefit: On survival of policy Holder receives purchase price and final pension installment shall be returned to the end of policy term of 10 years
  • Death Benefit: On the death of the policyholder at the time of policy then purchase price shall be refunded to the beneficiary
  • If the policy allows the premature at time of policy term under exceptional circumstances like illness for self/spouse then the surrender value is payable up to 98% of the purchase price
  • Tax benefit: The deposit made the scheme is exempt from income tax under section 80C of the Income Tax Act, 1961
  • If in case the applicant should commit suicide then full purchase price shall be payable

Eligibility:

  • PMVVY minimum entry age is 60 years also there is no limit for maximum entry age
  • The term policy is 10 years
  • The maximum pension per month is Rs 1000 and maximum pension received for the applicant is Rs 5000 per month

Payment of purchase price:

The PMVVY scheme can purchase by the payment and the pensioners have the option to choose the pension amount. The minimum and a maximum purchase of PMVVY price under different pension modes

Mode of Pension Minimum Purchase Price Maximum Purchase Price
Yearly Rs 1,44,578 Rs 7,22,892
Half-yearly Rs 1,47,601 Rs 7,38,007
Quarterly Rs 1,49,068 Rs 7,45,342
Monthly Rs 1,50,000 Rs 7,50,000

PMVVY pension payment mode:

The mode of pension under PMVVY can be done in quarterly, monthly, half-yearly and yearly. The pension payment shall be through the aadhar enabled payment or NEFT payment system. The first installment of the pension shall be paid after 1 year, 6 months, 3 months or one month.

What is the free lock period system?

As per the terms and conditions of the policy, applicants may return the policy to corporation within 15 days (from the date of policy stating). The amount is refunded is free look period that purchases deposited by the policyholder after removing/ deducting chargers

PMVVY Loan details:

The PMVVY loan is available after completion of policy 3 years. The maximum loan that can grant be 75% of purchase price. The rate of interest to be charged for loan amount shall determine at some periodic intervals.

From the pension amount, the loan interest will recover and payable. The loan outstanding shall recover from the claim proceeds at the time of existing.

Contact details:  

Life Insurance Corporation of India

Central Office, Yogakshema,

Jeevan Bima Marg,

Mumbai, 400021

Official Website: www.licindia.in

Registration Number: 512

Also Read: Atal Pension Yojana – How to Apply, Eligibility & APY Scheme Benefits