Pradhan Mantri Vaya Vandana Yojana | Eligibility, Benefits, Application Process

Pradhan Mantri Vaya Vandana Yojana: The Indian government has recently launched the Pradhan Mantri Vaya Vandana Yojana which offers a revised rate of pension and an extended sale period until March 31, 2023. The guaranteed rates of pension for policies sold during a given year will be determined at the start of each year by the Ministry of Finance. For the first financial year up to March 31, 2021, the scheme offers an assured monthly pension of 7.40% p.a. This scheme is exclusively operated by LIC of India and can be purchased both online and offline. Go through the sections below and get to know the Pradhan Mantri Vaya Vandana Yojana Eligibility, Pradhan Mantri Vaya Vandana Yojana Benefits, and the Pradhan Mantri Vaya Vandana Yojana Application Process.

Pradhan Mantri Vaya Vandana Yojana

The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme designed specifically for individuals aged 60 years and above. The scheme allows a maximum investment limit of Rs 15 lakh per senior citizen. Under the scheme, one can buy it by paying a lump sum purchase price. The pensioner has the flexibility to select either the pension amount or the purchase price as per their preference.

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Pradhan Mantri Vaya Vandana Yojana – Details

Pradhan Mantri Vaya Vandana Yojana

The minimum and maximum Purchase Price under different modes of pension will be as under:

* The Purchase Price to be charged shall be rounded to the nearest rupee.

Mode of pension payment:

• The pension payment modes available are monthly, quarterly, half-yearly, and yearly.
• The payment shall be made via NEFT or Aadhaar Enabled Payment System.
• The first pension instalment will be paid after one year, six months, three months, or one month from the purchase date, depending on the chosen pension payment mode (yearly, half-yearly, quarterly, or monthly, respectively).

Free Look Period:

In case the policyholder is dissatisfied with the policy, they may return it to LIC within 15 days (30 days if purchased online) from the date of receipt and provide a reason for the objection. During the free look period, the refunded amount will be the purchase price deposited by the policyholder, minus the stamp duty and pension charges paid, if any.

Pradhan Mantri Vaya Vandana Yojana Benefits

Rate of Return

The Pradhan Mantri Vaya Vandana Yojana scheme guarantees subscribers a return of 7% to 9% for a duration of 10 years, subject to revision by the government.

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

Upon the completion of the 10-year policy term, the total principal amount, which includes the final pension and purchase price, will be disbursed.

Pension Payment: During the 10-year policy term, the pension will be paid at the end of each period, depending on the selected frequency (monthly, quarterly, half-yearly, or yearly).

Death Benefit

In the event of the pensioner’s demise at any point during the 10-year term, the purchase price will be reimbursed to their legal heirs or nominees.

Suicide: There are no exclusions based on suicide, and the full purchase price will be paid out.

Loan Benefit

After three years, a loan of up to 75% of the purchase price can be obtained to cover unforeseen circumstances. Nevertheless, the loan amount will incur an interest rate, which will be assessed periodically by the government, and the interest will be deducted from the pension amount paid under the policy.

Surrender Value

Under exceptional circumstances, such as when the pensioner or spouse requires funds for critical/terminal illness treatment, premature exit from the policy is permitted. In such cases, the pensioner will receive a surrender value equal to 98% of the purchase price.

Pradhan Mantri Vaya Vandana Yojana Eligibility

• The PMVVY scheme has no specific eligibility criteria except for the subscriber being a senior citizen (60 years and above) and an Indian citizen.
• There is no maximum entry age for the PMVVY scheme.
• The applicant must be willing to avail of the policy term of ten years.

Pradhan Mantri Vaya Vandana Yojana Documents Required

• Aadhaar Card
• Bank Account Details
• PAN Card
• Proof of age
• Proof of address
• Proof of income
• Documents indicating retirement from employment

Pradhan Mantri Vaya Vandana Yojana Application Process

Online

• Go to the official website of LIC at https://licindia.in/
• Click on the ‘Buy Online Policies’ option and scroll down to click on the ‘Click here’ button.
• Select the ‘Pradhan Mantri Vaya Vandana Yojana’ option under the ‘Buy Policy Online’ heading.
• Click on the ‘Click to Buy Online’ option.
• Enter your contact details and click on the ‘Proceed’ button.
• Fill out the application form.
• Submit the online application, upload the necessary documents, and click on the ‘Submit’ button to complete the registration.

Pradhan Mantri Vaya Vandana Yojana Online Application Form Link

Offline

• Visit any LIC branch and collect the application form.
• Fill the application form with all the required details.
• Attach all the relevant documents to the application form.
• Submit the duly filled application form along with the documents to the LIC branch.
• The LIC agent will verify the documents and start the policy once everything is in order.

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