Pradhan Mantri Vaya Vandana Yojana (PMVVY) Pension for Senior Citizen

Pradhan Mantri Vaya Vandana Yojana Pension for Senior Citizen (PMVVY) by LIC Limit increased to 15 lakhs extended to March 31, 2020 Application Form Process

Union Ministry in association with the Life Insurance Corporation of India has launched a new pension scheme for the senior citizen of the nation. Pradhan Mantri Vaya Vandana Yojana or PMVVY is a scheme that will facilitate the senior citizens who are pensioners.

Latest News In Union Budget 2018

The PMVVY that offers regular income for the old people for their fixed deposit of maximum 7.5L with the guaranteed interest of 8% for the a decade has been revised in the budget 2018-19 , with the hike in the maximum deposit amount up to Rs. 15 Lakhs.

Launch Details

The scheme PMVVY has been launched on July 2017. As per the guidelines of the scheme, it will be effective from May 2017 to May 2018. The Union Ministry of Finance, Defense and Corporate will supervise the scheme along with LIC India.

Key features

This scheme is an investment plan for the senior citizens. Applicants are needed to register under the plan and invest a handful of money to enjoy the benefit of the scheme.
Under the scheme the senior citizen can enjoy up to Rs. 5000/- per month as pension amount after the investment until the maturity of the plan takes place.
Minimum premium for the scheme is Rs. 1000/- per month. One can also pay the premiums on quarterly basis, half yearly basis or yearly basis. In this case the applicant has to pay Rs. 3000/-, Rs. 6000/- and Rs. 12000/- respectively.
The maximum amount for the premium will be Rs. 5000/- per month. Similarly if the applicant wants he/she can pay Rs. 15000/-, Rs. 30000/- or Rs. 60000/- per quarter, half year or annual basis.
Time span of scheme – It will be an annual subscription. The subscription period has already been started. The dates are recorded as from May 2017 to May 2018. Once registered, the applicant can enjoy the benefits for one year. The policy plan will last for 10 years.
To enjoy the benefit of Rs. 5000/- per month the beneficiary has to invest Rs. 7.5 Lac in the plan. Anytime the investor can return the portfolio and discontinue the plan.
In case the beneficiary commits suicide and loose his/her life before the maturity of the plan, the legally recorded nominee will get the money upon maturity of the plan.

Benefits

Pension Facility: During these 10 years, the beneficiary will receive monthly or quarterly or annually pension amount (depends on the mode applicant has chosen). During this term after completion of each time span the pensioner will receive the pension amount in his/her savings account in their respective banks.
Maturity Facility: After the maturity of the plan, the beneficiary will receive the purchase price as well as the final pension amount. The entire amount will be credited to their saving account.
Death Facility: Except for suicide if the beneficiary loses his / her life during these 10 years of time, the purchase price will be refunded including the final pension installment payable by the LIC.

Eligibility

Age Limit: The beneficiary has to be 60 years and above. No maximum age limit is given in the terms. Anyone who is above 60 years can apply / register for the plan and continue for 10 years.
Policy Term: The time limit for the policy is 10 years. According to the rules within the 10 years if the beneficiary does not like the terms and conditions at any point of time, he / she can return the plan anytime.
Pension Premium Limits: As mentioned the minimum pension premium limit is Rs. 1000/- per month and the maximum amount is Rs. 5000/- per month. The pension premium can be given on quarterly, half yearly and yearly basis.

Application form

The scheme or the plan can be purchased offline as well as online mode. Forms will be available in LIC offices and branches across the nation. If the beneficiary wants he/she can get the loan online from the official site of the LIC India.

Registration under the Scheme

Step 1: Go to the official website of LIC India https://www.licindia.in/.This will take you to the home page of the website, click on the ‘Buy Policies Online’ tab mentioned in the page.
Step 2: It will be redirected to the PMVVY scheme page directly. There you will get the feature and other terms and conditions of the plan. Read them carefully before you buy them online.
Step 3: If the terms and conditions are acceptable by the beneficiary then the beneficiary can click on the blue tab that says ‘Buy Online’. After clicking on the tab, you will get an online form to fill up.
Step 4: Fill up the form with mandatory information and your details. The Provide a valid Email ID and mobile number for further process. After filling up the form, click on the ‘Get Access ID’.
Step 5: Once you click on the ‘Get Access ID’ tab, access ID and password details will be sent to your registered email ID and mobile number. That ID and password can be used for future transactions.
Step 6: Login to the scheme with the help of access ID and password and follow the payment instruction. Before that select the mode of payment and give proper banking and identity proof details for further verification.

Loan and Taxes under the scheme

After completion of 3 years of the policy plan, the beneficiary will become eligible for taking up the loan. The loan amount will be 75% of the total purchase price the beneficiary has chosen.
Rate of tax will be statutory. It will be imposed by the government of India and can be varied anytime during these 10 years. However no change will be made in the facility due to tax imposition on the plan or policy.

Rate of Interest

The beneficiary will receive 8% of interest rate under this scheme. The interest rate is higher than the market interest for investments currently.

Return / Discontinue of the policy

If at any time the beneficiary wants to return / discontinue the policy for any drastic or medical reasons, then the premature terms will be applicable. In that case the beneficiary will get 98% of the total purchase price at the time of surrendering the policy.

PMVVY is an investment policy for the senior citizen. However it is different from other plans as it has no risk involved. The rate of interest is fixed and no market forces will be effective in here.