Pradhan Mantri Vaya Vandana Yojana
The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a subsidised pension scheme designed specifically for senior citizens over the age of 60. It is a government-backed pension scheme that offers the elderly an alternative source of pension planning. It is only available from the LIC of India. You can subscribe to this policy by contacting any LIC agent or by visiting their website.
The PMVVY Policy is unique in that it guarantees your investment returns. The policyholder can choose to receive the returns in the form of a fixed pension at regular intervals. The policy also includes a maturity benefit and a death benefit, which provide additional security to the pensioner’s family.
It was initially announced from May 4, 2017 to March 31, 2020. It was recently extended until March 31, 2023, for an additional three years beyond March 31, 2020.
What Exactly Is the Pradhan Mantri Vaya Vandana Yojana?
The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a 2017 retirement and pension scheme. This scheme is implemented by Life Insurance and Corporations of India, the country’s leading life insurance provider.
This scheme allows senior citizens to pay a minimum of $150,000 in order to receive a monthly pension of at least $1,000. The maximum amount is set at 1500000 for receiving a monthly allowance of $100,000.
Subscribers to this scheme will receive guaranteed monthly pensions based on the interest rate of the Pradhan Mantri Vaya Vandana Yojana. This equates to an annual rate of 7.40%.
After successfully implementing the Varishtha Pension Bima Yojana 2003 (VPBY-2003) and Varishtha Pension Bima Yojana 2014 (VPBY-2014) schemes, the Government of India introduced this scheme. Furthermore, the Central Government modified this scheme in 2020, changing the pension interest rate and extending the deadline for selling this plan until March 31, 2023, from FY 2020-21.
Now that you understand what the Pradhan Mantri Vaya Vandana Yojana is, let’s go over the eligibility and documentation requirements, as well as the benefits of this Government scheme.
Plan for Pradhan Mantri Vaya Vandana Yojana
The Pradhan Mantri Vaya Vandana Yojana is a pension scheme introduced by the Indian government for senior citizens aged 60 and above. For ten years, the scheme guarantees an interest rate of 8%. The scheme is also exempt from the goods and services tax, or GST. The scheme’s operation has been delegated to the Life Insurance Corporation. Since its inception on May 4, 2017, LIC has been offering the Pradhan Mantri Vaya Vandana Yojana. The scheme will be available for investment until March 31, 2020. Let’s take a look at the Pradhan Mantri Vaya Vandana Yojana’s Advantages.
Pradhan Mantri Vaya Vandana Yojana Advantages
- There is no upper age limit for admission.
- It offers a guaranteed pension.
- It offers the maturity benefit of a return on investment.
- Premature exit is permitted, and 98% of the purchase price is refunded.
- One can purchase the scheme by paying a large sum ranging from INR 1.5 lakhs to INR 15 lakhs in exchange for a monthly pension.
- Pension payments are made using NEFT or the Aadhaar card-linked payment system.
- Pension Payments: This scheme provides a regular pension to senior citizens for a period of ten years.
- Death Benefit: If the policyholder dies, the purchase price of the scheme will be refunded to the nominee.
- Maturity Benefit: This plan includes a maturity benefit. If the policyholder survives the scheme’s duration, he or she receives the purchase price back with the final pension instalment.
- Surrender Value: This scheme allows withdrawal from the scheme for the duration of the policy term in certain circumstances, such as money needed in an emergency for treatment of a critical or terminal illness in oneself or one’s spouse. The payable surrender value is 98% of the purchase price.
- Loan: After three years of holding the scheme, an individual is eligible for a 75% loan on the purchase price. The loan’s interest will be adjusted in pension payments, and the loan amount will be recovered from claim proceeds. The interest rate for loans sanctioned until April 30, 2018 is 10% p.a. paid out every six months for the duration of the loan
- Free Look Period: The policy provides a 15-day free look period for offline purchases and a 30-day free look period for online purchases. If the policyholder is unhappy with the terms and conditions, he or she may return the policy to the corporation and have the purchase price deposited without incurring stamp duty charges.
eligibility criteria in order to be eligible for the PMVVY scheme:
Individuals must meet the following eligibility criteria in order to be eligible for the PMVVY scheme:
- The individual must be at least 60 years old to enter.
- There is no upper age limit for entry.
- Policy tenure: The policy is valid for ten years.
- The following is the minimum pension that can be earned: The monthly, quarterly, semi-annual, and annual minimum pensions are Rs.1,000, Rs.3,000, Rs.6,000, and Rs.12,000, respectively.
- Maximum pension: Rs.10,000, Rs.30,000, Rs.60,000, and Rs.1,20,000 are the maximum pensions that can be earned per month, quarter, half-year, and year, respectively.
- When determining the maximum pension ceiling, the entire family is taken into account. The pensioner, his or her dependents, and spouse comprise the family under this scheme.
Required Documents for the PMVVY
Here are the documents that must be submitted before enrolling in the Pradhan Mantri Vaya Vandana Yojana. –
- Aadhaar CardAge Proof
- Proof of Address
- Passport-size photos of the applicantRelevant Document/Declaration demonstrating the applicant’s retired status
PMVVY Application Procedure
The PMVVY scheme can be joined in the following ways:
- Navigate to the LIC’s official website.
- By scrolling down the page, select the ‘Buy Online Policies’ option and then the ‘Click here’ button.
- Under the ‘Buy Policy Online’ heading, select the ‘Pradhan Manti Vaya Vandana Yojana’ option.
- A new page will be displayed. Select the “Click to Buy Online” option.
- Enter your contact information and click the ‘Proceed’ button.
- Complete the application form.
- To complete the registration, submit the online application, upload the required documents, and click the ‘Submit’ button.
- Pick up an application form from any LIC branch. Here is an example of a PMVVY application form.
- Fill out the application form completely.
- Submit the completed application form to the LIC branch, along with all necessary documents.
- A LIC agent will begin the policy after the documents have been verified.
What exactly is the Pradhan Mantri Vaya Vandana Yojana?
PMVVY stands for Pradhan Mantri Vaya Vandana Yojana. how to make an application for
Individuals must visit their nearest or preferred LIC branch to purchase this plan offline. Individuals must fill out the application form and submit it along with the required documents and the chosen amount after deciding on the preferred purchase price or pension payment.