Pradhan Mantri Vaya Vandana Yojana PMVVY 

(Modified)

Pradhan Mantri Vaya Vandana Yojana PMVVY plan had been modified and relaunched by the Government of India for citizens aged 60 years and above. This plan will be available for sale commencing from 26th May 2020 for three financial years i.e up to 31 March 2023.

The features of the PMVVY plan are :

• This is a non-linked, non-par, Government-subsidized pension scheme.
• For the first financial year i.e. up to 31st March 2021, the scheme will provide an assured rate of return of 7.40% p.a. payable monthly ( i.e. equivalent to 7.66 p.a).
• For the policies sold during the next two financial years, the applicable assured rate of interest, at which the pension payment shall be made, will be reviewed and decided at the beginning of each financial year by the Ministry of Finance, Government of India.

The advantages of the PMVVY plan :

• The interest rate is fixed for the next 10 years.
• NO GST on the purchase of this particular plan.
• No TDS would be deducted from the pension payable under this plan.

Who is eligible to apply for the PMVVY plan :

• • The applicant must be above the age of 60 years.
  • The applicant must be a permanent resident of India.
  • The policy term is 10 years.

What documents are required for PMVVY  :

• • One Photo ( Passport size ) 
  • Aadhar Card copy
  • PAN Card copy
  • Bank cheque for the premium
  • Bank Passbook copy as proof of Investment
  • Bank Cheque leaf for receiving the Pension
  • Mobile Number
  • Email id etc.,

The benefits and other details of LIC Pradhan Mantri Vaya Vandana Yojana PMVVY are.

Eligibility conditions and restrictions :

• • • Minimum age: 60 years ( completed)
    • Maximum entry age: No Limits
    • Policy term: 10 years

Minimum pension : 

• • • Rs. 1,000 per month
    • Rs. 3000 per quarter
    • Rs. 6,000 per half-year
    • Rs. 12,000 per year

Maximum pension 

• • • Rs. 9250/- per month
    • Rs. 27,750/- per quarter
    • Rs. 55,500/- per half-year
    • Rs. 1,11,000/- per year

Investment in Pradhan Mantri Vaya Vandana Yojana PMVVY

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 payment:

• • Monthly
  • Quarterly
  • Half-yearly
  • Yearly.

LIC Pradhan Mantri Vaya Vandana Yojana PMVVY – modified interest rates are:

• • If a monthly interest payment opted then, 7.40%
  • If quarterly interest payment opted then, 7.45% 
  • If a Half-yearly interest payment opted then, 7.52%
  • If a yearly interest payment opted then the  rate of interest would be 7.66%
    • These rate of interest rates are applicable for the year 2020-2021 only and for those who invest during this year, the rate of interest would continue to be the same for the next 10 years. 
    • For the next financial year, the rate of interest may change. 

PMVVY plan Benefits are :

Pension Payment :

• On survival of the Pensioner during the policy term of 10 years, pension in arrears (at the end of each period as per the mode chosen) shall be payable.

Death Benefit:

• On the death of the Pensioner during the policy term of 10 years, the Purchase Price shall be refunded to the beneficiary.

Maturity Benefit:

• On survival of the pensioner to the end of the policy term of 10 years, the purchase price along with the final pension installment shall be payable.

Important information of the Pradhan Mantri Vaya Vandana Yojana plan

• This plan is a one-time investment plan, fixed for 10 years. it has four modes of payments such as monthly, quarterly, half-yearly & yearly. 
• This plan is available in online and offline modes. The payment of pension would be direct to the Policyholder’s Bank accounts through NEFT 
• The scheme allows premature exit during the policy term under exceptional circumstances like the Pensioner requiring money for the treatment of any critical/terminal illness of self or spouse. The Surrender Value payable in such cases shall be 98% of the Purchase Price.
• The loan facility is available after the completion of 3 policy years. The maximum loan that can be granted shall be 75% of the Purchase Price.
• For the loan sanctioned till 30th April 2021, the applicable interest rate is 9.5% p.a. for the entire term of the loan.
• The Loan interest will be recovered from the pension amount payable under the policy.
• If a policyholder is not satisfied with the “Terms and Conditions” of the policy, he/she may return the policy to the Corporation within 15 days (30 days if this policy is purchased online) from the date of receipt of the policy, stating the reason of objections.
• The amount to be refunded within the free look period shall be the Purchase Price deposited by the policyholder after deducting the charges for stamp duty and pension paid if any.
• There shall be no exclusion on account of suicide and full Purchase Price shall be payable.

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