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All You Need To Know About Pradhan Mantri Vaya Vandana Yojana

What you need to know about the LIC . senior pension scheme

Seniors only have a few months left to enroll in the Pradhan Mantri Vaya Vandana Yojana (PMVVY). It is a Life Insurance Corporation (LIC) administered retirement plan for people aged 60 and over.

Seniors who purchase the plan for a one-time payment of up to Rs 15 lakh will immediately receive a monthly, quarterly, semi-annual or annual pension. PMVVY will remain available until March 31, 2023.

According to the LIC website, the PMVVY scheme is available to older residents of India who are 60 years (completed) or older. There is no age limit to purchase the plan.

After a month, three months, six months or a year from the date of purchase, the first pension tranche starts. Retirement, death and year-end benefits are all covered. For the policy period of 10 years, PMVVY offers a pension based on the subscriber’s choice of pension mode.

If the retiree survives the 10-year policy term, the pension arrears will be paid out (at the end of each period according to the selected mode).

The purchase price is returned to the beneficiary if the retiree dies within 10 years of the policy. The purchase price and final retirement benefit are due if the retiree lives until the end of the 10-year term of the policy.

The interest for subscriptions purchased until March 31, 2023 is 7.40 percent per year, payable monthly.

The PMVVY allows a minimum monthly pension of Rs 1,000 and a maximum monthly pension of Rs 9,250. For monthly, quarterly, semi-annual or annual pensions, the minimum purchase price under the scheme is Rs 1.62,162, Rs 1.61.074, Rs 1.59.574 and Rs 1.56.658 respectively.

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The maximum purchase price of the scheme for monthly pensions is Rs 15 lakh, quarterly pensions of Rs 14,89,933, semi-annual pensions of Rs 14,76,064 and annual pensions of Rs 14,49,086.

A senior cannot invest more than Rs 15 lakh. The policy can be surrendered at any time during the term.

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