Pradhan Mantri Vaya Vandana Yojana (PMVVY)

 Pradhan Mantri Vaya Vandana Yojana

        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 of Pradhan Mantri Vaya Vandana Yojana

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 of Pradhan Mantri Vaya Vandana Yojana

        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 of Pradhan Mantri Vaya Vandana Yojana

        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 of Pradhan Mantri Vaya Vandana Yojana

        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 of Pradhan Mantri Vaya Vandana Yojana

Online Pradhan Mantri Vaya Vandana Yojana

1. Log onto the official website of LIC https://licindia.in/
2. Click on the ‘Buy Online Policies’ option and click on the ‘Click here’ button by scrolling down the page.
3. Click on the ‘Pradhan Manti Vaya Vandana Yojana’ option under the ‘Buy Policy Online’ heading.
4. A new page will open. Click on the ‘Click to Buy Online’ option.
5. Enter the contact details and click on the ‘Proceed’ button.
6. Fill out the application form.
7. Submit the online application, upload the documents as requested and click on the ‘Submit’ button to complete the registration.

Offline Pradhan Mantri Vaya Vandana Yojana

1. Collect the application form at any of the LIC branches. 
2. Duly fill the application form.
3. Submit the duly filled application form by attaching all relevant documents to the LIC branch.
4. After verification of documents, a LIC agent will start the policy.

Documents Required for Pradhan Mantri Vaya Vandana Yojana

• 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