The Pradhan Mantri Vaya Vandana Yojana is a pension insurance program that offers senior citizens in the nation additional sources of income. This pension plan, which is supported by the Indian government, is offered by Life Insurance Corporation (LIC) and satisfies the requirement for post-retirement financial planning.
People who are older than 60 can take advantage of this program. PMVVY, which was previously accessible from May 4, 2017, to March 31, 2020, was recently extended by the government for an additional three fiscal years.
PMVVY offers a 10-year, fixed-rate pension payout that is guaranteed. For the whole ten-year period, this plan will guarantee a return of 7.4% per year, which will be paid out monthly.
Benefits & Features of PMVVY
- The pensioner will benefit from the plan’s guaranteed return of 8% p.a. during the course of the policy’s ten-year term.
- Pension Payment: The pension will be paid in arrears if the retiree lives beyond the policy’s expiration date. Additionally, the pensioner has a choice in the method of payment.
- Death benefit: If the pensioner passes away during the policy’s term, the beneficiary will receive the purchase money returned.
- Benefit of Maturity: The purchase amount will be paid along with the final pension installment if the pensioner lives out the whole policy tenure.
- Loan facility: The pensioner may use loans secured by the policy after the policy has been in effect for three years. A loan of up to 75% of the purchase price may be obtained. The pension contribution that is being provided will cover the interest on the borrowing. If a loan has been approved as of 30 April 2018, the interest rate is 10% p.a. and it is due every six months for the duration of the insurance.
- Free-look period: If the policyholder is dissatisfied with the conditions of the insurance, he or she has 15 days to cancel the policy. If the insurance is purchased online, the free-look period is 30 days, nevertheless. The policyholder will receive a refund for the purchase amount once stamp fees have been subtracted.
Criteria for Eligibility in the PM Vaya Vandana Yojana
Individuals can only purchase Pradhan Mantri Vaya Vandana Yojana if they satisfy the government’s eligibility requirements. Here is a list of criteria that must be met, presented in a tabular format.
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- Entry requirements include being at least 60 years old.
- Entry age maximum: There is no upper age limit.
- Tenure of the policy: The policy has a ten-year term.
- Minimum retirement benefit: The minimum pension amounts are Rs. 1,000, Rs. 3,600, Rs. 6,000, and Rs. 12,000, respectively, for a month, quarter, half-year, and annual period.
- The maximum pension that can be earned: The maximum pension that can be earned for a month, quarter, half-year, and annually, respectively, is Rs. 10,000, Rs. 30,000, Rs. 60,000, and Rs. 1,20,000.
- When determining the maximum pension ceiling, the entire family is taken into account. The pensioner, his or her dependents, and spouse make up the family under this program.
Instructions for Applying for the Pradhan Mantri Vaya Vandana Yojana
Applying for the Pradhan Mantri Vaya Vandana Yojana scheme requires the following actions to be taken:
To acquire this plan using the offline method, individuals must visit their local or preferable LIC branch. After determining their desired purchase price or pension payment, applicants must complete the application form and submit it with the required documentation and the specified amount.
- Open the LIC official website
- Select “Buy Online Policies” and then click “Click here” by navigating down the website.
- Choose ‘Pradhan Manti Vaya Vandana Yojana’ from the ‘Buy Policy Online’ menu.
- A new page will be created. Choose “Click to Buy Online” from the drop-down menu.
- Click the “Proceed” icon after entering the contact information.
- Submit the online application, upload the required documents, and select “Submit” to complete the registration.