PMVVY or, the Pradhan Mantri Vaya Vandana Yojana

PMVVY or, the Pradhan Mantri Vaya Vandana Yojana

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The Indian government announced the Pradhan Mantri Vaya Vandana Yojana (PMVVY), a pension scheme that was made available to senior citizens aged 60 and older between May 4, 2017 and March 31, 2020.The program is now extended for an additional three years beyond March 31, 2020, up to and including March 31, 2023.

Benefits of the program

The main benefits of the Pradhan Mantri Vaya Vandana Yojana (PMVVY) are as follows:

1. The scheme guarantees a return of 7.40 percent annually for the first year, which will be reset annually thereafter. The scheme will guarantee a pension of 7.40% per year for the fiscal year 2021-2022.payable each month. This guaranteed rate of pension will be paid out for the entire ten-year policy term for all policies purchased up until March 31, 2022.

2. During the 10-year policy term, pension is paid out monthly, quarterly, half-yearly, or annually, depending on the pensioner's preference at time of purchase.

3. The plan does not have to pay GST.

4. Both the purchase price and the final pension payment will be due if the pensioner survives the 10-year policy term.

5. After three policy years, a loan of up to 75% of the purchase price will be allowed (to meet liquidity requirements).The loan will be repaid from the proceeds of the claim, and the interest on the loan will be deducted from the pension payments.

6. The plan also lets you leave early to get treatment for a critical or terminal illness you or your spouse have.98% of the purchase price will be refunded in the event of such an early withdrawal.

6. The plan also lets you leave early to get treatment for a critical or terminal illness you or your spouse have.98% of the purchase price will be refunded in the event of such an early withdrawal.

7. The beneficiary will receive the Purchase Price upon the pensioner's death during the 10-year policy term.

8. The pensioner, his or her spouse, and any dependents will be included in the family that will be eligible for the maximum pension.

9. The Corporation will be reimbursed by the Government of India for the shortfall caused by the difference between the guaranteed interest and the actual interest earned, as well as the administration costs.

Conditions of Eligibility and Other Requirements

1. Minimum Age for Entry : completed 60 years

2. Maximum Age for Entry: No limit

3. Term Limit for the Policy : 10 years

4. Limit of Investment : Rs 15 lakh per senior citizen

a. Minimum Pension: Rs. 1 k per month

b. Rs. 3,000/- per quarter

c. Rs. 6,000/- per half-year

d. Rs.12,000/- per year

5. Maximum Pension:

a. Rs. 9,250/- per month

b. Rs. 27,750/- per quarter

c. Rs. 55,500/- per half-year

d. Rs. 1,11,000/- per year

The maximum amount a family can receive in pension benefits under this plan is limited to 1, 11,000 rupees per year, or the maximum amount a family can receive in pension benefits under all policies. The pensioner, his or her spouse, and any dependents will constitute the family for this purpose. The Scheme can be purchased offline as well as online through Life Insurance Corporation (LIC) of India which has been given the sole privilege to operate this Scheme.