Pradhan Mantri Vaya Vandana Yojana – Key Points
Government of India has announced Pradhan Mantri Vaya Vandana Yojana for citizen age 60 years and above. LIC of India has been given the sole privilege to operate this scheme. The scheme shall be available for one year from date of launch.
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Name of the Scheme
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Pradan Mantri Vaya Vandana Yojana (PMVVY)
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Type
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Pension Scheme
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Beneficiaries
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Senior citizens, aged 60 years and above
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Launched On
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July 22, 2017
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To be Launched by
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Finance Minister Arun Jaitley
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Scheme available from
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May 4, 2017, to May 3, 2018
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Implemented by
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LIC, Life Insurance Corporation
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Benefits :
- Pension Payment :
On survival of the Pensioner during the policy term of 10 years, pension in arrears (at the end of each period as per mode chosen) shall be payable. - Death Benefit:
On death of the Pensioner during the policy term of 10 years, the Purchase Price shall be refunded to beneficiary. - Maturity Benefit:
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.
Eligibility and Conditions :
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Purchase of Policy
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Online or Offline
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Minimum Entry Age
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60 years
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Maximum Entry Age
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No limit
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Policy term
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10 years
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Minimum pension
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Maximum pension
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Highlights of PMVVY:
- Assured Return
The PMVVY scheme provides an assured return of 8% p.a. payable monthly (equivalent to 8.30% p.a. effective) for 10 years to the policy holders.
- Exempted from Tax
The scheme is exempted from any Service Tax/ GST (Goods and Services Tax)
- Loan against policy
Loan upto 75% of the Purchase Price will be allowed after 3 policy years.
The interest of the loan shall be recovered from the pension installments and loan amount will be recovered from the final claim proceeds.
- Premature Exit
The PMVVY scheme also allows for the premature exit for the treatment of any critical/ terminal illness of self or spouse. On such premature exit, 98% of the Purchase Price will be refunded.
- Ceiling for whole family
The ceiling of maximum pension is covered for the whole family of the policy holder, the family will comprise of pensioner, his/her spouse and his/her dependents.
- Subsidy by Government
If any shortfall arises, owing to the difference between the interest guaranteed and the actual interest earned, it shall be subsidized by the Government of India and reimbursed to the Corporation, along with the expenses relating to administration.
