Pradhan Mantri Vaya Vandana Yojana (PMVVY) For Senior Citizens, By LIC

Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a subsidized pension scheme for Indian senior citizens aged 60 years and above, offered by the union government. On behalf of the union government, the Life Insurance Corporation of India (LIC) administers the PMVVY for senior citizens. The uniqueness of the scheme is there is no upper limit of age considering the subscription of the scheme. The term of this pension scheme is 10 years. The total amount of purchase price under this Scheme allowed to a senior citizen cannot exceed Rs. 15 lakhs.

The interest rate or the rate of assured return

The government mentioned, the Pradhan Mantri Vaya Vandana Yojana (PMVVY) will provide an assured rate of return of 7.40% p.a. payable monthly (that is equivalent to 7.66% PA). You will get the benefit of the same interest rate that was fixed at the time of purchase for the entire 10 years policy term, even if the rate changes later. However, the interest rate has been changed by the government now. Earlier, this scheme was used to fetch 8.00% PA interest payable monthly. So, although the scheme will give you an assured income, the interest rate is being reduced now. However, it certainly gives better interest than few other investment opportunities.

The minimum and maximum pension available

The minimum and maximum purchase price

Benefits on survival

You can get the pension payment monthly/quarterly/half-yearly or yearly basis and the first installment of the pension you will get after 1 year, 6 months, 3 months, or 1 month from the date of purchase, according to your chosen mode of payment. As the tenure of the plan is 10 years, on survival of the policy term, pension in arrears will be paid to the subscriber, according to the payment mode chosen, like - monthly/quarterly/half-yearly or yearly. Additionally, on survival of the pensioner to the end of the policy term of 10 years, the purchase price along with the final pension installment will be paid by the LIC to the subscriber.

Benefits on death

If the pensioner dies during the policy, he/she will receive death benefits, mentioned in the plan. As the government mentions, "On the death of the Pensioner during the policy term of 10 years, the Purchase Price shall be refunded to the beneficiary."

According to the government, the scheme will be available for sale up to March 31, 2023. Benefits on survival

You can get the pension payment monthly/quarterly/half-yearly or yearly basis and the first installment of the pension you will get after 1 year, 6 months, 3 months, or 1 month from the date of purchase, according to your chosen mode of payment. As the tenure of the plan is 10 years, on survival of the policy term, pension in arrears will be paid to the subscriber, according to the payment mode chosen, like - monthly/quarterly/half-yearly or yearly. Additionally, on survival of the pensioner to the end of the policy term of 10 years, the purchase price along with the final pension installment will be paid by the LIC to the subscriber.

Benefits on death

If the pensioner dies during the policy, he/she will receive death benefits, mentioned in the plan. As the government mentions, "On the death of the Pensioner during the policy term of 10 years, the Purchase Price shall be refunded to the beneficiary."

According to the government, the scheme will be available for sale up to March 31, 2023. The Surrender Value payable under this Scheme will be 98% of the purchase price.