Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme launched to provide a secure pension money for the retired and people above 60 years of age. This scheme is a limited pension scheme which is available for sale till 31st march 2020. This Scheme is only available at LIC of India which is a government based insurance agency. The plan offers a fixed 8% interest to ensure the participants get to support their retirement with adequate funding needed.
Benefit for Pradhan Mantri Vaya Vandana Yojana
During the period of 10 years, the pension amount will be payable as per the mode is chosen by the policyholder.
On Maturity of the Pradhan Mantri Vaya Vandana Yojana scheme, the purchase price along with the final pension installment will be payable.
On the sudden demise of the pensioner during the policy term of 10 years, the purchase price will be paid to the nominee.
Eligibility for Pradhan Mantri Vaya Vandana Yojana
|Age Limit||No Limit||60 Years(Comopleted)|
|Policy Term||10 Years||10 Years|
10,000/- Per Month|
1000/- Per Month|
|Pension Payment||Yearly, Half Yearly, Quarterly, Monthly|
|Mode of Payment||NEFT and Aadhaar Enabled Payment System|
|Mode of Pension||Effective Pension Rate per annum for Rs. 1000/- purchase price|
Pension Amount Payable
Minimum Pension Amount for Different Mode of Pension
|Mode of Pension||Minimum Purchase Price||Corresponding Pension Amount|
|Yearly||1,44,578||12,000 per annum|
|Half-Yearly||1,47,601||6,000 Half year|
|Quarterly||1,49,068||3,000 per Qtr.|
|Monthly||1,50,000||1,000 per month|
Maximum Pension Amount for Different Mode of Pension
|Mode of Pension||Maximum Purchase Price (Rs)||Corresponding Pension Amount|
|Yearly||14,45,783||1,20,000 per annum|
|Half-Yearly||14,76,015||60,000 per half year|
|Quarterly||14,90,683||30,000 per Qtr.|
|Monthly||15,00,000||10,000 per month|
Surrender Value for Pradhan Mantri Vaya Vandana Yojana
Pradhan Mantri Vaya Vandana Yojana Scheme allows the policyholder to exit the scheme prematurely under special circumstances like an urgent requirement of money for critical or terminal illness of self or spouse. The amount payable by the LIC will be 98% of the purchase price.
Loan against Pradhan Mantri Vaya Vandana Yojana
Pradhan Mantri Vaya Vandana Scheme provides a loan facility that can be taken against this policy. The loan can be availed after the completion of the 3 Policy years. The maximum Amount that can be taken as a loan is 75% of the Purchase Price. The rate of interest will be decided by the corporation and will be payable half yearly. The interest will be recovered from the amount payable as pension to the policyholder. The outstanding amount will be recovered at the time of exit.
Free Look Period
If the policyholder is not satisfied with the policy terms and condition then you can return the policy to the corporation stating the reason for the return. You can return the policy within 15 days (offline) and 30 days (Online). Full refund after deducting the documentation charges will be returned to the policyholder.
There is no exclusion in the policy full payment of Purchase Price will be payable to the pensioner