The Pradhan Mantri Vaya Vandana Yojana (PMVVY) pension program was launched by the Indian government in 2017. Seniors 60 years of age and older who participate in the program receive a guaranteed pension. The Life Insurance Corporation of India oversees the program’s administration (LIC).
Government guarantees the pension payments made under the PMVVY program, which is supported by the government. The program supports seniors with their post-retirement expenses and tries to give them financial security.
The duration of the program’s availability is announced by the government. The current expiration date of the program is March 31, 2023.
The Government of India provides yearly funding to cover the difference return, which is the difference between the return generated by LIC and the assured return every year.
Over the 10-year policy term, a pension is paid at the conclusion of each period according to the regularity selected by the member at the time of purchase: monthly, quarterly, half-yearly, or annually.
The increase in the investment level from 7.5 lakhs to 15 lakhs received approved by the Union Cabinet in 2018, which was presided over by Prime Minister Narendra Modi.
For pensions worth Rs. 12,000 per year and Rs. 1,62,162/- for a minimum pension of Rs. 1000 per month under the scheme, the minimum investment was also raised to Rs. 1,56,658.
The PMVVY allows senior citizens to invest a sum and get a guaranteed income for ten years. Depending on a plan’s pension is paid monthly, quarterly (7.45%), half-yearly (7.52%), or annually, the fixed pension rates under the plan range from 7.40% to 7.66% annually.
Pradhan Mantri Vaya Vandana Yojana from LIC: Details
- No medical examination is necessary.
- Late exit is permitted during the policy term in extreme cases, such as a serious or terminal disease suffered by the policyholder or their family. In certain situations, the surrender value is equal to 98% of the purchase price.
- Upon the completion of three policy years, a loan is permitted under the policy. A maximum loan of 75% of the purchase price will be given.
Pradhan Mantri Vaya Vandana Yojana of LIC: Scheme
- Seniors 60 years of age and above are eligible for an instant pension under the Plan. It can be acquired by making a single, large payment.
- The 10-year insurance term is covered by pension payments of the specified amount, with the original purchase price being refunded at the conclusion of the period.
- Payments may also be paid monthly, quarterly, half-yearly, or annually. If a monthly payment option is selected, pension payments may begin as soon as the following month.
- The purchase price will be returned to the legal heirs or nominees in the event of the pensioner’s passing at any point during the ten-year period.
- The purchase price and last pension payment are paid if the pensioner lives to the end of the 10-year insurance term.
- The only individuals who may acquire this plan are Indian residents.
Eligibility Requirements and Further Restrictions:
- Minimum Entry Age: 60 years (completed)
- Maximum Entry Age: No limit
- Policy Term: 10 years
- 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
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Under several pension schemes, the minimum and maximum purchase price is:
- A senior citizen may not spend more than Rs 15 lakhs total on purchases under all of the plans under this scheme.
- The plan offers a monthly guaranteed pension of 7.40% for the fiscal year 2022–2023 under the terms of the plan.