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PMVVY (Pradhan Mantri Vaya Vandana Yojana) is a retirement cum pension scheme for senior citizens. The scheme is operated and managed by Life Insurance Corporation (LIC). We have covered the following in this article:

1. What is Pradhan Mantri Vaya Vandana Yojana?

Pradhan Mantri Vaya Vandana Yojana (PMVVY) is retirement cum pension scheme announced by the Indian Government. The plan is subsidised by the government and was launched in May 2017. The money invested by the purchasers of the scheme is called the purchase price. As the sovereign guarantees back the scheme, it offers an assured rate of return on investment. The scheme pays out regular pension and the frequency can be monthly, quarterly, or yearly. The PMVVY is an excellent alternative to traditional bank deposits.

2. Eligibility for PMVVY

There are no specific eligibility criteria as such for PMVVY scheme except that the subscriber must be a senior citizen (above the age of 60 years). The applicant must be an Indian citizen. There is no maximum entry age for PMVVY scheme. Also, the applicant must be ready to avail the policy term of ten years. The minimum purchase price is Rs 1.5 lakh, and it offers a monthly pension of Rs 1,000. The maximum purchase price is Rs 15 lakh, and it offers a monthly pension of Rs 10,000.

3. Documents Required for PMVVY

The following are the requisite documents to subscribe under the PMVVY scheme:

  • Aadhaar card
  • Proof of age
  • Proof of address
  • Passport size photo of the applicant
  • Documents indicating that the applicant has retired from employment

4. Benefits of Pradhan Mantri Vaya Vandana Yojana

The following are some of the key benefits of subscribing to PMVVY scheme:

  • The PMVVY scheme provides subscribers with an assured return at the rate of 8% to 8.3% for 10 years
  • The PMVVY scheme provides a fixed sum regularly
  • The entire amount (including the final pension and the purchase price) would be paid out once the policy term of 10 years is completed
  • Loan of up to 75% of the purchase price can be availed after three years to cover emergencies
  • Due to medical emergencies (self and spouse), the subscribers can withdraw 98% of the purchase price
  • If the subscriber passes away within the term of the policy, then the nominee would be paid out with the purchase price

5. Application Procedure

One can subscribe to the PMVVY scheme in the following ways:

i) Online procedure:

  • Log onto the official website of LIC
  • Select ‘pension plans’ under products and proceed
  • Fill the relevant application form
  • Submit the online application and upload the documents as requested

ii) Offline Procedure

  • Collect the application form at any of the LIC branches
  • Duly fill the application form
  • Submit the duly filled application form by attaching all relevant documents

6. Pension Policy

As mentioned earlier, the minimum purchase price is Rs 1,50,000 for a monthly pension of Rs 1,000. The amount of pension that a subscriber receives would depend on their purchase price:

 

Pension mode

Minimum amount of pension

Minimum amount of investment

Maximum amount of pension

Maximum amount of investment

Monthly

Rs 1,000

Rs 1,50,000

Rs 10,000

Rs 15,00,000

Quarterly 

Rs 3,000

Rs 1,49,068

Rs 30,000

Rs 14,90,684

Bi-annually

Rs 6,000

Rs 1,47,601

Rs 60,000

Rs 14,76,014

Annually 

Rs 12,00

Rs 1,44,578

Rs 1,20,000

Rs 14,45,784

PMVVY is a great investment option for senior citizens. This scheme can be considered by those senior citizens that are looking for a regular pension. However, to invest in this scheme, one should have a considerable amount in hand.

Frequently Asked Questions

  • Interest Rates of the return changes or is it fixed for the pension scheme?


    The rate of interest is fixed at 8% to 8.3% for 10 years.

  • In case of an emergency, how much contribution can be withdrawn?


    In case of an medical emergency (self and spouse), the subscribers can withdraw 98% of the purchase price.

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