PMVVY: Get Monthly Pension of Rs 9,250 For 10 Years If Subscribed Till 31st March, 2022

The Pradhan Mantri Vaya Vandana Yojana (PMVVY) of the Life Insurance Corporation of India (LIC) is the most popular pension programme for elderly individuals who want to earn a pension benefit for their golden years and are looking for a better investment choice than fixed deposits. The policy will be offered until March 31, 2023, but under this plan, fixed rates of pension for policies sold throughout the year will be reviewed and approved by the Ministry of Finance, Government of India, at the beginning of every year. This means that for policies purchased until March 31, 2022, the scheme will give a guaranteed pension of 7.40 percent per annum, payable monthly for a period of ten years. LIC has mentioned on its website that "For Financial Year 2021-22, the Scheme shall provide an assured pension of 7.40% p.a. payable monthly. This assured rate of pension shall be payable for the full policy term of 10 years for all the policies purchased till 31st March, 2022."

Eligibility and benefits

• If the subscriber survives the ten-year policy term, he or she will be paid a pension in installments at the end of each period, according to the option selected.
• The purchase price will be returned to the beneficiary if the policyholder expires during the policy period of ten years.
• If the policyholder survives to the end of the ten-year policy term, the purchase price, as well as the last pension payment, will be paid to him or her.
• Pension payments are made monthly, quarterly, half-yearly, and annually. The first pension instalment will be issued after one year, six months, three months, or one month from the purchase date, based on the chosen mode of pension.
• The scheme has a minimum entry age of 60 years (completed) and no maximum age limit.
• The scheme comes with a tenure of 10 years.
• The scheme would give a guaranteed monthly pension of 7.40 percent per annum.
• If you buy this insurance offline, you get a 15-day free look period, and if you buy it online, you get a 30-day free look period.
• The scheme allows for premature withdrawal throughout the policy term in case of emergencies. In such cases, the surrender amount payable is 98 percent of the purchase price.
• After completing three policy years, a loan facility will be granted to the policyholder and the maximum loan amount that can be authorized is 75% of the purchase price.

Minimum and maximum pension amount

The total contribution amount in this scheme is capped at Rs 15 lakh and for the same here are the minimum and maximum pension amounts that the subscriber will get.

Minimum Pension

• Rs 1,000/- per month
• Rs 3,000/- per quarter
• Rs 6,000/-per half-year
• Rs 12,000/- per year

Maximum Pension

• Rs 9,250/-per month
• Rs 27,750/-per quarter
• Rs 55,500/-per half-year
• Rs 1,11,000/-per year

Source: licindia.in

Payment of purchase price

A lump sum purchase amount is required to be paid at the time of registration. The following are the minimum and maximum purchase prices for various types of pensions. For a yearly mode of pension, the minimum purchase price is Rs 1,56,658/- and the maximum purchase price is Rs 14,49,086/-. For a half-yearly mode of pension, the minimum purchase price is Rs 1,59,574/ and the maximum purchase price is Rs 14,76,064/-. For the quarterly mode of pension, the minimum purchase is Rs 1,61,074/- and the maximum purchase price is Rs 14,89,933/-. For the monthly mode of pension, the minimum purchase price is Rs 1,62,162/- and the maximum purchase price is Rs 15,00,000/-.