Finance Minister Arun Jaitley launched the Pradhan Mantri Vaya Vandana Yojana (PMVVY). PMVVY is a pension scheme exclusively for senior citizens (aged 60 years and above) which is available from May 4, 2017, to May 3, 2018.
Know all details about Pradhan Mantri Vaya Vandana Yojana (PMVVY):
Pradhan Mantri Vaya Vandana Yojana is is government subsidized pension scheme. It provides an assured return of 8 per cent per annum payable monthly (equivalent to 8.30 per annum effective) for 10 years. Pradhan Mantri Vaya Vandana Yojana: Scheme Details
The pensioner will receive pension amount as per selected mode. The pension is payable at the end of each period, during the policy term of 10 years, as per the frequency of monthly, quarterly, half-yearly or yearly as chosen by the pensioner at the time of purchase.
The scheme also allows for the premature exit for the treatment of any critical or terminal illness of self or spouse. In extra-ordinary cases like a critical medical emergency of policy holder or spouse, the policy can be surrendered before completion of the 10-year term. The surrender value will be 98% of purchase price.
In the scheme, there is a minimum and maximum limit for investment under Pradhan Mantri Vaya Vandana Yojana Scheme.
The policyholders can avail loan up to 75 per cent of the purchase price, and the loan interest will be recovered from the pension instalments, while the loan will be recovered from claim proceeds.
On the death of the pensioner during the policy term of 10 years, the purchase price will be paid to the beneficiary.
The shortfall owing to the difference between the interest guaranteed and the actual interest earned and the expenses relating to administration shall be subsidized by the Government of India and reimbursed to the LIC.
How to apply?
PMVVY 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. LIC has sold 58,152 PMVVY schemes garnering Rs. 2,705 crore since its soft launch on May 4.