- Details
- Benefits
- Eligibility
- Application Process
- Documents Required
- Frequently Asked Questions
- Sources And References
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Ministry Of Finance
Pradhan Mantri Vaya Vandana Yojana
Pension
Senior Citizens
Details
Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a Pension Scheme exclusively for the senior citizens aged 60 years and above. The maximum Investment limit under this scheme is Rs 15 lakh per senior citizen.
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/-
* The Purchase Price to be charged shall be rounded to nearest rupee.
Mode of pension payment:
- The modes of pension payment are monthly, quarterly, half-yearly & yearly. The pension payment shall be through NEFT or Aadhaar Enabled Payment System.
- The first instalment of pension shall be paid after 1 year, 6 months, 3 months or 1 month from the date of purchase of the same depending on the mode of pension payment i.e. yearly, half-yearly, quarterly or monthly respectively.
Free Look Period: If a policyholder is not satisfied with the policy, he/she can return the policy to the LIC within 15 days (30 days if this policy is purchased online) from the policy receipt date stating the reason for objections. The amount refunded within the free look period is the purchase price deposited by the policyholder after deducting the charges for Stamp duty and pension paid, if any.
Benefits
Rate of Return
The PMVVY scheme provides subscribers with an assured return at the rate of 7% to 9% for 10 years. (The government decides and revises the rate of return)
Pension Amount
Minimum Pension
- Rs. 1,000/- per month
- Rs. 3,000/- per quarter
- Rs.6,000/- per half-year
- Rs.12,000/- per year
Maximum Pension
- Rs. 10,000/-per month
- Rs. 30,000/-per quarter
- Rs. 60,000/- per half-year
- Rs. 1,20,000/- per year
Maturity Benefit
The entire principal amount (including the final pension and the purchase price) would be paid out once the policy term of 10 years is completed.
Pension Payment: Pension is payable at the end of each period, as per the chosen frequency (monthly, quarterly, half-yearly or yearly) during the policy term of 10 years.
Death Benefit
On the death of the pensioner at any time during the term of 10 years, the purchase price will be refunded to the legal heirs/nominees.
Suicide: There shall be no exclusion on count of suicide and full Purchase Price shall be payable.
Loan Benefit
A loan of up to 75% of the purchase price can be availed after three years to cover emergencies. However, a rate of interest will be charged for the loan amount as determined at periodic intervals by the government and the loan interest will be recovered from the pension amount payable under the policy.
Surrender Value
The scheme allows premature exit during the term of the policy under exceptional circumstances such as when the pensioner requires money for the treatment of any critical/terminal illness of self or spouse. The surrender value of 98% of the purchase price will be payable to the pensioner in such cases.
Eligibility
- There are no specific eligibility criteria as such for PMVVY scheme except that the subscriber must be a senior citizen, i.e. (60 years and above).
- The applicant must be an Indian citizen.
- There is no maximum entry age for the PMVVY scheme.
- The applicant must be ready to avail of the policy term of ten years.
Application Process
Online
Offline
Online
- Log onto the official website of LIC https://licindia.in/
- Click on the ‘Buy Online Policies’ option and click on the ‘Click here’ button by scrolling down the page.
- Click on the ‘Pradhan Manti Vaya Vandana Yojana’ option under the ‘Buy Policy Online’ heading.
- A new page will open. Click on the ‘Click to Buy Online’ option.
- Enter the contact details and click on the ‘Proceed’ button.
- Fill out the application form.
- Submit the online application, upload the documents as requested and click on the ‘Submit’ button to complete the registration.
Documents Required
- Aadhaar Card
- Bank Account Details
- Aadhaar card
- PAN card
- Proof of age
- Proof of address
- Proof of income
- Documents indicating that the applicant has retired from employment
Frequently Asked Questions
Is PMVVY Scheme Taxable?
Yes, The returns are taxable. However, the scheme is exempted from Goods and Services Tax (GST).
Is Investing In PMVVY Tax Free As Per IT Act?
Investing in the scheme will not allow to claim a deduction under section 80C of the Income-tax Act.
Can The Investment Be Withdrawn In Case Of Urgent Need Of Money Other Than Terminal Disease Etc.?
Yes, the investment can be withdrawn before completion of 10 years. The pensioner will get 98% of the principal amount on surrender of policy before maturity.
Can The Policy Be Bought Jointly?
No.
What Is The Lock In Period Of Policy?
The lock-in period in the PMVVY is for the entire 10-year tenure once you buy it
Can The Policy Be Brought From Bank?
The policy can be only be bought from LIC either online or offline(LIC Branches).
Can Multiple Senior Citizens Within A Family Purchase This Policy Separately?
Any number of senior citizen above 60 years old can purchase this policy.
Sources And References
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You need to login before applying for schemes
Apply Via:
You need to login before applying for schemes
Apply Via:
Check Eligibility
Ministry Of Finance
Pradhan Mantri Vaya Vandana Yojana
Pension
Senior Citizens
Details
Benefits
Eligibility
Application Process
Documents Required
Frequently Asked Questions
Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a Pension Scheme exclusively for the senior citizens aged 60 years and above. The maximum Investment limit under this scheme is Rs 15 lakh per senior citizen.
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/-
* The Purchase Price to be charged shall be rounded to nearest rupee.
Mode of pension payment:
- The modes of pension payment are monthly, quarterly, half-yearly & yearly. The pension payment shall be through NEFT or Aadhaar Enabled Payment System.
- The first instalment of pension shall be paid after 1 year, 6 months, 3 months or 1 month from the date of purchase of the same depending on the mode of pension payment i.e. yearly, half-yearly, quarterly or monthly respectively.
Free Look Period: If a policyholder is not satisfied with the policy, he/she can return the policy to the LIC within 15 days (30 days if this policy is purchased online) from the policy receipt date stating the reason for objections. The amount refunded within the free look period is the purchase price deposited by the policyholder after deducting the charges for Stamp duty and pension paid, if any.
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