Pradhan Mantri Vaya Vandana Yojana (PMVVY)

Ministry: Ministry of Finance
It is a pension scheme exclusively for senior citizens aged 60 years and above
Scheme:
  • Under this scheme, senior citizens will get a guaranteed interest of 8% for 10 years depending upon the investment made by them
  • This PMVVY scheme will be available from May 4, 2017 to May 3, 2018. Change: Time limit extended until March, 2018
  • Life Insurance Corporation of India (LIC) has been given the sole privilege to operate the scheme.
  • It can be purchased offline as well as online through LIC
  • This scheme provides an assured return of 8% per annum payable monthly for 10 years on single lumpsum premium ranging from Rs. 150000 (minimum) to Rs.750000 (maximum). Change : Max limit has been increased to Rs 15 Lakh.
  • Pension (minimum: Rs.1000/ month; maximum: Rs.5000)¬†will be payable at the end of each period, during the policy term of 10 years, as per the frequency of monthly, quarterly, half-yearly, yearly as chosen by the pensioner at the time of purchase.
  • It is exempted from goods and services (GST) tax.
  • It will offer senior citizens more avenues to earn steady regular income at a time of falling interest rates.
  • On survival of the pensioner to the end of the policy term of 10 years, the purchase price of the scheme along with the final pension instalment will be payable.
  • The scheme also offers loan up to 75% of the purchase price after 3 policy years (to meet the liquidity needs).
  • Loan interest will be recovered from the pension instalments and loan will be recovered from claim proceeds.
  • The scheme allows for premature exit for the treatment of any critical terminal illness of self or spouse.
  • On such premature exit, 98% of the purchase price would be refunded.
  • On death of the pensioner during the policy term of 10 years, the purchase price should be paid to the beneficiary.

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