Pradhan Mantri Vaya Vandana Yojana (PMVVY ) is an insurance policy linked pension scheme that provides alternative avenues of income to senior citizens of India.
Pradhan Mantri Vaya Vandana Yojana (PMVVY)
The Pradhan Mantri Vaya Vandana Yojana (PMVVY) pension scheme, meant for senior citizens, has now been extended till March 31, 2023. This scheme was open till March 31, 2020.
Benefits of PMVVY
- Retirement financial security via pension payment
- PMVVY provides initially an assured rate of return of 7.40 % per annum for the year 2020-21 per annum and thereafter to be reset every year.
- Annual reset of assured rate of interest with effect from April 1st of financial year in line with revised rate of returns of Senior Citizens Saving Scheme (SCSS) upto a ceiling of 7.75% with fresh appraisal of the scheme on breach of this threshold at any point.
- Pension is payable at the end of each period, during the policy term of 10 years, as per the frequency of monthly/ quarterly/ half-yearly/ yearly as chosen by the pensioner at the time of purchase.
- The scheme is exempted from GST mean applicant dont have to pay GST tax on purchase of this scheme
- 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.
- Loan upto 75% of Purchase Price shall be allowed after 3 policy years (to meet the liquidity needs). Loan interest shall be recovered from the pension installments and loan to be recovered from claim proceeds.
- The scheme allows for premature exit for the treatment of any critical/ terminal illness of self or spouse. On such premature exit, 98% of the Purchase Price shall be refunded.
- On death of the pensioner during the policy term of 10 years, the Purchase Price shall be paid to the beneficiary.
- The ceiling of maximum pension is for a family as a whole, the family will comprise of pensioner, his/her spouse and dependants.
- The shortfall owing to the difference between the interest guaranteed and the actual interest earned and the expenses relating to administration shall be subsidized by the Government of India and reimbursed to the Corporation.
Under Pradhan Mantri Vaya Vandana Yojana, individuals who have availed this pension plan are allowed to receive a fixed amount at the end of a certain period chosen by an individual for a maximum term of 10 years.
- Pradhan Mantri Vaya Vandana Yojana (PMVVY) is available till March 31 2023
Applicant of PMVVY Scheme shall have below mentioned documents along with a government proof document for age confirmation.
- Aadhaar card
- PAN card
- Details of the preferred bank where the pensioner wants the pension to be credited every month.
Eligibility Criteria for PMVVY
Followings are the eligibility criteria for applicants
- Minimum Entry Age: 60 years (completed)
- Maximum Entry Age: No limit
- Policy Term : 10 years
- Investment limit : Rs 15 lakh per senior citizen
- Minimum Pension: Rs. 1,000/- per month
- Rs. 3,000/- per quarter
- Rs.6,000/- per half-year
- Rs.12,000/- per year. Inve
- Maximum Pension: Rs. 12,000/- per month
- Rs. 30,000/- per quarter
- Rs. 60,000/- per half-year
- Rs. 1,20,000/- per year
- The scheme can be purchased by payment of a lump sum Purchase Price. The pensioner has an option to choose either the amount of pension or the Purchase Price.
- The minimum and maximum Purchase Price under different modes of pension will be as under:
|Mode of Pension||Minimum Purchase Price||Maximum Purchase Price|
|Yearly||Rs. 1,44,578/-||Rs. 14,45,783/-|
|Half-yearly||Rs. 1,47,601/-||Rs. 14,76,015/-|
|Quarterly||Rs. 1,49,068/-||Rs. 14,90,683/-|
|Monthly||Rs. 1,50,000/-||Rs. 15,00,000/-|
PMVVY Surrender Value
The scheme allows premature exit during the policy term under exceptional circumstances like the Pensioner requiring money for the treatment of any critical/terminal illness of self or spouse. The Surrender Value payable in such cases shall be 98% of Purchase Price.
Where to Purchase Pradhan Mantri Vaya Vandana Scheme
Individuals can buy Pradhan Mantri Vaya Vandana Yojana both offline and online from Life Insurance Corporation of India.
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