Pradhan Mantri Vaya Vandana Yojana
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Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a Pension Scheme announced by the Government of India exclusively for the senior citizens aged 60 years and above.
Maximum limit under Pradhan Mantri Vaya Vandana Yojana is Rs. 15 lakhs per senior citizen. The period of sale for this scheme has been extended up to 31st March, 2020. LIC of India has been given the sole privilege to operate this scheme. This scheme can be purchased offline as well as online.
Benefits
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The plan provides for pension payments for the policy term of 10 years, with return of purchase price at the end of 10 years.
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Pension payments can be availed by the plan subscriber on monthly , quarterly, half-yearly or yearly basis. In case of death of the subscriber the purchase price of the plan would be refunded to the legal heirs.
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Loan is available under the policy after completion of 3 policy years. Maximum loan granted will be 75% of the purchase price.
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On death of the Pensioner during the policy term of 10 years, the Purchase Price shall be refunded to the beneficiary.
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On survival of the pensioner to the end of the policy term of 10 years, Purchase price along with final pension installment shall be payable.
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No medical examination is required.
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Premature exit is allowed during policy term under exceptional circumstances like Critical/Terminal illness of self or spouse. Surrender Value payable in such cases is 98% of the Purchase Price.
Eligibility Criteria
Eligibility criteria for Pradhan Mantri Vaya Vandana Yojana is as follows.
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Minimum Entry Age: 60 years (completed)
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Maximum Entry Age: No limit
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Policy Term : 10 years
Pradhan Mantri Vaya Vandana Yojana can be purchased without any medical examination and premature exit is allowed during policy term under exceptional circumstances like critical/terminal illness of self or spouse.
Pension
The minimum pension assured under the scheme is Rs.1000 per month which can go upto Rs.10,000 a month, depending on the principal invested.
As per the scheme, in order to get a minimum pension of Rs.1,000 per month, one should invest Rs. 1,50,000. Similarly, one can get a pension of Rs. 10,000 a month with investment of Rs.1,50,000.
Since the policy term is of 10 years, the policy purchaser gets back his principal with the final pension installment on completing 10 years.
Loan Facility
Loan facility is available after completion of 3 policy years.
The maximum loan that can be granted shall be 75% of the Purchase Price. The rate of interest to be charged for loan amount shall be determined at periodic intervals. For the loan sanctioned till 30th April, 2018, the applicable interest rate is 10% p.a. payable half-yearly for the entire term of the loan.
Loan interest will be recovered from pension amount payable under the policy. The Loan interest will accrue as per the frequency of pension payment under the policy and it will be due on the due date of pension. However, the loan outstanding shall be recovered from the claim proceeds at the time of exit.
Apply Online/Offline
You can apply for Pradhan Mantri Vaya Vandana Yojana scheme online or offline.
Online.
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Visit LIC website.
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Click on Pradhan Mantri Vaya Vandana Yojana scheme
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Following window will be opened. Fill the required details.
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Click on "Get Access ID"
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Select the PMVVY pension plan and complete the application. On completing the application, an acknowledge number and a policy number at the end of the application form will be provided.
Offline
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Fill the required details
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Submit it to any of LIC branch
Application Forms
Related Links
FAQs
You can find a list of common Pension Scheme queries and their answer in the link below.
Pension Scheme queries and its answers
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