Pradhan Mantri Vaya Vandana Yojana (PMVVY) Benefits

In this article we will be providing you with all the information you need to know about the Pradhan mantri Vaya Vandana Yojana Scheme.

Pradhan Mantri Vaya Vandana Yojana (PMVVY)

The Indian government made a pension program called Pradhan Mantri Vaya Vandana Yojana (PMVVY) to help older people have enough money. The program is run by the Life Insurance Corporation of India (LIC) and offers different ways to get pension payments that are promised to be safe.

Eligibility Criteria for the PM Vaya Vandana Yojana

The eligibility criteria for the PMVVY scheme are:

1. The applicant must be an Indian citizen
2. The applicant must be 60 years or above at the time of purchase
3. The programme has no upper age restriction.

The maximum pension is discussed below

Minimum Entry Age	Maximum Entry Age	Policy Term	Minimum Pension	Maximum Pension
60	No limit	10 years	₹1,000 per month	₹10,000 per month
			₹3,000 per quarter	₹30,000 per quarter
			₹6,000 per half-year	₹60,000 per half-year
			₹12,000 per year	₹1,20,000 per year

Required Documents to Apply for Pradhan Mantri Vaya Vandana Yojana

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

• • Aadhaar Card
  • PAN Card
  • Proof of Age
  • Proof of Address
  • Proof of Income
  • Bank Account Passbook
  • Passport Size Photo of the Applicant

Features of PMVVY

The PMVVY program’s main characteristics and advantages are

1. Guaranteed Returns: The programme offers 7.4% annual returns that are guaranteed and can be paid monthly, quarterly, half-yearly, or annually
2. Pension Payment Options: The scheme offers pension payment options of monthly, quarterly, half-yearly, or yearly intervals, which can be selected at the time of purchase
3. Tenure: The 10-year program’s duration may be increased to 20 years
4. Maturity Benefit: The policyholder receives the purchase price and the final pension installment upon maturity
5. Death Benefit: If the policyholder dies during the policy term, the purchase money is refunded to the nominee
6. Loan Facility: After three policy years have passed, the policyholder may apply for a loan for up to 75% of the purchase price.

Benefits of Pension with Assurance

The benefits of the PMVVY scheme include pension with assurance, which provides guaranteed returns along with pension payment options. The scheme provides financial stability to senior citizens, ensuring a regular income stream even after retirement.

1. Monthly Pension

• • The pension amount is calculated based on the purchase price, at a fixed rate of 8% per year for the next 10 years
  • If the policyholder chooses a monthly payment mode, the yearly interest income will be divided by 12 and paid every month
  • Regardless of the market conditions, the policyholder receives a fixed monthly pension for the next 10 years or until they survive within the 10-year term
  • The monthly pension can help cover regular expenses and provide financial stability during retirement.

2. Maturity Benefit

   • Upon completion of the 10-year policy term, the policyholder will receive the entire purchase price as the maturity benefit
   • This provides a lump sum of funds that can be used for any purpose, such as medical emergencies or home renovations.

3. Death Benefit

   • In the event of the policyholder’s unfortunate demise during the policy tenure, their spouse will receive the entire purchase price as the death benefit
   • This helps ensure that the policyholder’s dependents remain financially secure even in the event of an unforeseen event.

4. Surrender Value

   1. If the policyholder requires a lump sum of funds during an emergency, they can surrender the policy and receive 98% of the purchase price as the surrender value
   2. This provides a means to access funds in times of need, such as urgent medical treatment or unexpected expenses.

5. Loan Facility

• • The policyholder can avail of a loan against their savings under PMVVY, provided the policy has been running successfully for more than 3 years
  • The loan amount can be up to 75% of the purchase price, which can be used for various purposes, such as home renovations or debt consolidation.

Purchase Price Payment for Different Periodic Payouts Under PMVVY

 The pensioner may purchase the policy under the PMVVY plan by paying a one-time amount known as the Purchase Price. 

• The pensioner may select either the pension amount or the Purchase Price
• Depending on the type of pension chosen, there are different minimum and maximum purchase prices
• Pension payments might be made monthly, quarterly, semi-annually, or annually
• NEFT or the Aadhaar Enabled Payment System is used to make the pension payment
• The first pension payment is made one year, six months, three months, or one month after the purchase date, depending on the manner of pension payment chosen. For instance, yearly, half-yearly, quarterly, or monthly payments respectively
• For each method of pension payout, the minimum and maximum Purchase Prices are, respectively: ₹1,56,658/- to ₹1,449,086/- for yearly payment mode and ₹1,62,162/- to ₹15,00,000/- for monthly payment mode.

Minimum Purchase Price Under Different Modes of Pension

Mode of Pension	Minimum Purchase Price	Corresponding Pension Amount
Yearly	₹1,56,658	₹12,000 per annum
Half-yearly	₹1,59,574	₹6,000 Half-year
Quarterly	₹1,61,074	₹3,000 per Qtr.
Monthly	₹1,62,162	₹1,000 per month

Maximum Purchase Price Under Different Modes of Pension

Mode of Pension	Maximum Purchase Price	Corresponding Pension Amount
Yearly	₹14,49,086	₹1,11,000 per annum
Half-yearly	₹14,76,064	₹55,500 per half-year
Quarterly	₹14,89,933	₹27,750 per Qtr
Monthly	₹15,00,000	₹9,250 per month

How to Register for the Scheme?

Interested beneficiaries who want to apply under the Pradhan Mantri Vaya Vandana Yojana can do so online. The application process for the PMVVY scheme is as follows:

• Step 1: Visit the nearest LIC branch
• Step 2: Fill out the application form with all of the required information
• Step 3: Submit the application form and the relevant documentation
• Step 4: Pay the premium as per the selected mode of pension
• Step 5: After the verification procedure is completed, the policy will be issued.

Caution!

Beware of fraudsters trying to extract sensitive information from you under the guise of this scheme. Never divulge your personal details on any website other than the official website of the Yojana linked above. 

Note – Pradhan Mantri Vaya Vandana Yojana’s details pertaining to 2023 are yet to be updated. Stay tuned for the latest details. 

FAQs

Can anyone invest in both PMVVY as well as SCSS?

Yes, both the schemes accept simultaneous investments.

Is the rate of interest fixed for this pension scheme?

Yes, the rate of interest is fixed for the PMVVY pension scheme. For the duration of the policy, a monthly payment of 7.4% interest is required.

What are the benefits of Pradhan Mantri Vaya Vandana Yojana in case an investor needs funds in an emergency or after his/her demise?

In case of an emergency, investors can withdraw up to 98% of the purchase price after completion of three policy years. The purchase price is reimbursed to the nominee/legal heir in the case of death of the policy holder.

What are the documents that must be submitted to invest in the PMVVY scheme?

When making an investment in the PMVVY scheme, the following paperwork must be provided:
1. Completely filled out application
2. Identification document, such as a passport, Aadhaar card, PAN card, or voter ID
3. Aadhaar cards, voter IDs, or passports are examples of address evidence
4. Age proof such as Aadhaar card, PAN card, Voter ID, passport, or birth certificate.

What is the procedure to apply for the scheme?

The application process for PMVVY can be completed online or offline. Access the Life Insurance Corporation of India (LIC) to submit an application online. Visit any of the nearby LIC branches to apply offline, and be sure to have the necessary paperwork with you.

Are there any tax benefits offered for investments towards the scheme?

Yes, Section 80C of the Income Tax Act, 1961 allows investors in PMVVY to receive tax benefits.

When is the PMVVY policy open?

The PMVVY policy was initially open until 31 March 2020, but the government has extended it until 31 March 2023.

What are the various modes by which I can invest in the scheme?

Investors can choose to pay the purchase price of the policy in a lump sum or through monthly, quarterly, half-yearly, or annual modes. The minimum purchase price for the scheme is ₹1.5 lakhs, and the maximum purchase price depends on the chosen mode of pension.

Helpful Links

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