Pradhan Mantri Vaya Vandana Yojana (PMVVY): Who can apply, purchase price, how to buy

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Pradhan Mantri Vaya Vandana Yojana (PMVVY) The Pradhan Mantri Vaya Vandana Yojana was introduced in 2019 to provide a regular stream of income to senior citizens. Applications for this are being accepted till 31 March 2023. This scheme is offered by LIC and has a tenure of 10 years with a guaranteed monthly income.Who can apply?
Anyone above the age of 60 years can participate in the scheme. There is no maximum entry age. The policy has a tenure of 10 years from the date of issue. The total amount for all the policies held under the PMVVY scheme by a senior citizen cannot exceed Rs.15 lakh.

Purchase price
This depends upon the pension payout options chosen: annual, half-yearly, quarterly or monthly. The policy can be purchased at a minimum price of Rs.1,56,658 (for Rs.12,000 annual pension) to a maximum amount of Rs.14,49,086 (for Rs.1,11,000 annual pension) under the annual pension option. In case of the monthly one, the price ranges from Rs.1,62,162 (Rs.12,000 annual pension) to Rs.15 lakh (Rs.1,11,000 annual pension).

Online/Offline
The scheme can be purchased from an LIC registered agent or online through the website www.licindia.in.

Benefits

The first instalment of pension is paid after 1 year, 6 months, 3 months or 1 month from the date of purchase, depending on the mode chosen. Apart from guaranteed pension at the rate of 7.4% payable monthly, the policy provides death benefit of refund of purchase price to the beneficiary on the death of the pensioner during the policy term.Points to note

  • Loan can be availed on the policy after completion of three years, up to to a maximum of 75% of the value of the policy.
  • The policy is subject to freelook period and a customer can return it within 15 days.

Content on this page is courtesy Centre for Investment Education and Learning (CIEL).
Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.

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