Pradhan Mantri Vaya Vandana Yojana (PMVVY) | Pension Scheme for Senior Citizens
Pradhan Mantri Vaya Vandana
Yojana (PMVVY) is a Pension Scheme for citizen age 60 years and above. The government of India has announced the enhancement
of maximum limit under Pradhan Mantri Vaya Vandana Yojana to Rs. 15 lakhs per
senior citizen in the Union Budget 2018-19. The PMVVY is being implemented
through LIC of India. The period of sale for this scheme has also been extended
up to 31st March 2020.
Pradhan Mantri Vaya Vandana Yojana (PMVVY)
The Plan provides immediate pension for senior citizens 60 years
and above. It can be purchased by paying a lump sum amount. This policy can be purchased
offline as well as online. The scheme provides for pension payments of the stated amount for the policy term of 10 years,
with the return of purchase price at the
end of 10 years. To Purchase this scheme online please log on to LIC website .
Also read: Senior Citizen Saving Scheme (SCSS) account under post office savings schemes
Also read: Senior Citizen Saving Scheme (SCSS) account under post office savings schemes
Features of Pradhan Mantri Vaya Vandana
Yojana (PMVVY)
1. The minimum age at entry is 60
years.
2. There is no maximum age for entry.
3. Scheme gives an assured return of 8% p.a. payable
monthly (equivalent of 8.30% per annum) for 10 years.
4. Pension payment modes are available: monthly,
quarterly, half-yearly or yearly.
5. The scheme is exempted
from GST.
6. Pension will be paid at
the end of each period as per payment mode chosen
7. Pension starts as early
as next month if monthly mode is chosen.
8. The purchase price will
be refunded to the nominee on the death of the pensioner during the policy term
of 10 years.
10. The last date to
purchase this scheme is 31st March, 2020.
Benefits under Pradhan Mantri Vaya Vandana Yojana (PMVVY)
1. Pension Payment
Pension payment in arrears
(at the end of each period as per mode is chosen)
shall be payable to the pensioner during the policy term of 10 years.
2. Death Benefit
The purchase price shall be
refunded to the beneficiary on the death
of the pensioner during the policy term of 10 years.
3. Maturity Benefit
Purchase price along with
final pension installment shall be payable to the pensioner to the end of the
policy term of 10 years as maturity benefit.
Eligibility under Pradhan Mantri Vaya Vandana Yojana (PMVVY)
1. Minimum Entry Age - 60
years (completed)
2. Maximum Entry Age - No
limit
3. Policy Term - 10 years
4. Minimum Pension -Rs.
1,000/- per month
Rs. 3,000/- per quarter
Rs.6,000/- per half-year
Rs.12,000/-
per year
5. Maximum Pension - Rs.
10,000/-per month
Rs. 30,000/-per quarter
Rs. 60,000/- per half-year
Rs. 1,20,000/- per year
The ceiling of
maximum pension is per senior citizen.
Minimum and maximum Purchase
price under different modes of Pension
Minimum and maximum Pension
under different modes of Pension
Mode of pension payment Pradhan Mantri Vaya Vandana Yojana (PMVVY)
The modes of pension payment
are
1. Monthly
2. Quarterly
3. Half-yearly and
4. Yearly.
Note that the pension
payment shall be through NEFT or Aadhaar Enabled Payment System.
Sample Pension rates per Rs.1000/- Purchase Price
Pension rates payable under
different modes of payment (yearly, half-yearly,
quarterly, monthly) are as under. The
pension installment shall be rounded off
to the nearest rupee. These rates are age independent.
Additional Features of Pradhan Mantri Vaya Vandana Yojana (PMVVY)
1. Medical
No medical examination is
required.
2. Surrender Value
The premature
exit is allowed under this plan for treatment of any critical/ terminal illness
of self or spouse. Surrender Value payable on such premature exit is 98% of the
purchase price.
3. Loan
Maximum loan up to 75% of
purchase price is available under the policy after completion of 3 policy
years.
Pradhan Mantri Vaya Vandana
Yojana (PMVVY) | Pension Scheme for Senior Citizens
Very Informative Post!
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