Pradhan Mantri Vaya Vandana Yojana

**This scheme was to end on 31 Mar, 2020 but now been extended for another 3 years i.e. till 31 Mar, 2023.

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Pradhan Mantri Vaya Vandana Yojana  – Explanation in simple words

The policy  is being run by LIC of India on behalf of Government of India. It is a pension plan. 

The plan can be taken for a maximum of 10 years and for a amount not exceeding 15 lakh. Only people above the age of 60 years ca take this PMVVY 

Details

  • The PMVVY scheme is for senior citizens with a assured return.
  • Maxmum 15 lakh can be invested by one person
  • The maximum period for the policy can be 10 years. 
Pradhan Mantri Vaya Vandana Yojana
*Old ad. The scheme is now extended till 31 Mar, 2023. The interest rates have been reduced now.

Description

LIC PMVVY pension scheme is sponsored and managed by Government of India and LIC has been appointed as the facilitator for the scheme. The scheme has been launched to provide the retirement security for senior citizens. It is one of the most popular pension plan by LIC of India.

  • Pradhan Mantri Vaya Vandana Yojana (Table 842) is a government subsidized scheme with a assured return of 7.4% per annuum. 
  • There is no insurance in the scheme.
  • Mode of payment can be monthly, quarterly, half yearly or yearly.

Pension Rates for PMVVY

Mode of PensionMinimum Purchase PriceCorresponding Pension Amount
Yearly1,56,65812,000 per annum
Half-Yearly1,59,5746,000 Half yrly
Quarterly1,61,0743,000 Qrtly
Monthly1.62,1621,000 per month
Mode of pensionMaximum Purchase PriceCorresponding Pension amount
Yearly14.49.0861,11,000 per annum
Half-Yearly14,76,06455,500 Half yrly
Quarterly14,89,93327,750 Qrtly
Monthly15,00,0009250 per month

Features

Death benefit: On death of the pensioners the invested amount and the pro-rata interest thereon.

pension planning

PS: there is no loan or surrender facility in this plan.

FAQs

Whats is the difference between PMVVY and Jeevan Shanti?

PMVVY can only be taken for 10 lakhs and a maximum of 10 years whereas there is no such restriction on Jeevan Shanti. Any one can take Jeevan Shanti but PMVVY is only for senior citizens. There are many other differences as well, do comment below if you would like to understand the two policies in details.

What is the minimum and maximum pension that one can get?

1,000 per month is the minimum and 10,000 per month is the maximum that one can get from PMVVY

Is surrender available in PMVVY Pradhan Mantri Vaya Vandana Yojana?

Yes surrender of the plan is possible. However 98% of the invested amount is refunded.

Is loan available on PMVVY scheme

Loan is available under the policy after completion of 3 policy years. Maximum loan granted will be 75 per cent of the purchase price.

Is medical compulsory for this scheme

No


InsuringGurgaon.com is a leading LIC of India advisory firm based in Gurgaon. Our team of life insurance experts have an combined experience of over 40 years in life insurance services. Do get in touch with our insurance advisers to understand how Pradhan Mantri Vaya Vandana Yojana can help you achieve your financial goals in a systematic manner.

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ALSO SEE  Jeevan Shanti