LIC Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme for senior citizens, above 60 years of age that assures guaranteed pension for 10 years. PMVVY is a social security scheme for senior citizens offered by the Life Insurance Corporation of India (LIC). Through this scheme, you can earn an interest income at the rate of 7.40 percent per annum, payable monthly.
The scheme can be bought online through LIC website or offline. PMVVY, which had earlier closed on March 31, 2020, was recently extended by the government for another three financial years till March 2023.
LIC Pradhan Mantri Vaya Vandana Yojana - Eligibility and features
Anyone who has attained a minimum age of 60 years can buy this policy. The PMVVY is a pension scheme for senior citizens that comes with guaranteed returns on monthly, quarterly, half-yearly or on an annual basis for a period of 10 years.
PMVVY - Minimum and Maximum Pension
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 9,250 per month
- Rs 27,750 per quarter
- Rs 55,500 per half-year
- Rs 1,11,000 per year
The total amount of pension allowed per senior citizen should not exceed the maximum pension limit.
Benefits of Pradhan Mantri Vaya Vandana Yojana
1. The entire amount (including the final pension and the purchase price) would be paid out once the policy term of 10 years is completed.
2. Loan of up to 75% of the purchase price can be availed after three years to cover emergencies.
3. Due to medical emergencies (self and spouse), the subscribers can withdraw 98% of the purchase price.
4. The first installment 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.
5. Pension payments can be availed by the subscriber on monthly, quarterly, half-yearly or yearly basis. In case of death of the subscriber, the purchase price of the plan would be refunded to the legal heirs.
