Pradhan Mantri Vaya Vandana Yojana (PMVVY) Eligibility, Benefits, Apply Online

Hello readers, today in this article we are going to cover one more Government Scheme which was launched for the help and betterment of senior citizens in their old age.

The Government of India launches a number of social security schemes from time to time based on the requirement of citizens. Pradhan Mantri Vaya Vandana Yojana (PMVVY) is the new addition to the list.

What is Pradhan Mantri Vaya Vandana Yojana (PMVVY)

Pradhan Mantri Vaya Vandana Yojana (PMVYY) is a retirement cum pension scheme that provides security to senior citizens aged 60 years and above.

PMVYY is launched by the Government of India in May 2017 and operated by the Life Insurance Corporation of India (LIC).

PMVVY scheme was previously available from 4^th May 2017 to 31 March 2020. But the scheme is now extended up to 31^st March 2023.

The scheme pays a regular pension and the frequency can be monthly, quarterly, half-yearly, or annually.

Eligibility for PMVVY

The following are the eligibility criteria for Pradhan Mantri Vaya Vandana Yojana (PMVVY):

• The subscriber/purchaser must be a senior citizen i.e., 60 years (completed) or above.
• The applicant must be an Indian citizen.
• The applicant must be ready to avail of the policy term of 10 years.
• The applicant can maximum buy the Purchase Price/Investment of Rs. 15 Lakhs.

Note: The term Purchase Price means the money invested by the purchasers for the scheme.

Minimum Pension Under PMVVY

The minimum pension provided under the PMVVY is as follows:

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

Maximum Pension Under PMVVY

The maximum pension provided under the PMVVY is as follows:

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

Benefits of PMVVY

The following are the benefits for the subscriber/policyholder under Pradhan Mantri Vaya Vandana Yojana (PMVVY):

Rate of Return: The PMVVY scheme provides an assured rate of return of 7.4% per annum (reset every year by the government).

Maturity Benefit: Purchase Price along with Final Pension installment shall be payable on the survival of the pensioner to the end of the policy term of 10 years.

Pension Payment: Pension is payable at the end of each period during the policy terms of 10 years as per the chosen frequency by the pensioner at the time of purchase i.e. monthly/quarterly/half-yearly/yearly.

GST Exempted: PMVVY scheme is exempted from the Goods and Services Tax (GST). You no need to pay any extra amount to purchase this scheme.

Death Benefit: If the subscriber passes away during policy terms of 10 years, then the Purchase Price will be paid to the beneficiary/legal heirs/nominees.

Loan Benefit: The subscriber can take a loan of up to 75% of the Purchase Price after 3 policy years to cover emergencies. However, Loan interest shall be recovered from the pension installments and the loan to be recovered from claim proceeds.

Premature Exit and Surrender Value: PMVVY scheme allows the subscriber for premature exit for the treatment of any critical/terminal illness of self or spouse. On such premature exit, 98% of the Purchase Price shall be refunded.

Free Look Period: If the subscriber/policyholder is not satisfied with the Terms and Conditions of the policy, he/she can return the policy to Life Insurance Corporation within 15 days (30 days if the policy is purchased online) from the date of receipt of the policy with stating the reason of objections.

The amount to be refunded within the free look period shall be the Purchase Price deposited by the policyholder after deducting the charges for Stamp duty and pension paid if any.

Exclusion: There is an exclusion to the purchase price return of this policy. If the policyholder/subscriber commits suicide, the full Purchase Price shall be payable.

Documents Required for PMVVY

The following documents are required to subscribe to the PMVVY scheme:

• Passport Size Photograph of Applicant
• Aadhaar Card
• PAN Card
• Proof of Age
• Proof of Address
• Proof of Income
• Bank Passbook
• Proof of Retirement from Employment

Application Procedure For PMVVY

One can apply for Pradhan Mantri Vaya Vandana Yojana (PMVVY) Online or Offline. The procedure for both is shared below.

Online Procedure:

• Login onto the Official Website of LIC.

• Click on the icon Buy Online Policies.

• You will go to the next page. Scroll down below and click on the icon Pradhan Mantri Vaya Vandana Yojana.

• One new page will open. Click on the Click To Buy Online option.

• You will jump to the new page. Click on the Proceed button.

• A new page will open. Enter the Contact Details as required and click on the Proceed button.

• Fill out the complete Application Form.

• Upload the documents as requested and click on the Submit button to complete the registration.

Offline Procedure:

• Visit the nearest LIC branch and collect the Application Form of PMVVY. A sample of the Application Form is attached for your reference. Click Here
• Fill out the complete Application Form.
• Submit the complete filled Application Form by attaching all relevant documents to the LIC branch.
• After the verification of all documents, your PMVVY policy will start.

Payment of Purchase Price

The scheme can be purchased in monthly, quarterly, half-yearly or yearly payout mode by depositing the Purchase Price in a lump sum. A buyer can either choose the purchase price or pension amount while opting for this plan.

Check out the below table regarding minimum and maximum purchase price for a better understanding:

Minimum Purchase Price under Different Modes of Pension

Maximum Purchase Price under Different Modes of Pension

Rate of Interest under Different Modes of Pension

Mode of Pension Payment Under PMVVY

The modes of pension payment are monthly, quarterly, half-yearly and yearly. The policyholder must choose the mode of pension payment at the time of subscribing to the policy. Once the mode is selected, it can not be changed to another mode during the term of the policy.

The first installment of pension shall be paid after 1 year, 6 months, 3 months or 1 month from the date of purchase of the same depending on the mode of pension payment i.e. yearly, half-yearly, quarterly or monthly respectively. The pension payment will be through NEFT or Aadhaar Enabled Payment System. So the pension holder does not need to visit the bank or LIC agent for collecting the pension payments.

Taxability Provisions of PMVVY

The PMVVY scheme is an investment plan, not a tax-saving scheme. The subscriber/policyholder will receive the pension amount monthly, quarterly, half-yearly or yearly depending upon the mode he/she selected. Returns received through this scheme are taxable. There is no rebate in income tax for the contribution and policyholders cannot claim a deduction under Section 80C of the Income Tax Act.

Contact Details for PMVVY Scheme

For any query related to the PMVVY scheme/policy, you can contact the below-mentioned Number and Email Id:

Conclusion

Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a good scheme for senior citizens which provides them with a decent pension for their old age. This scheme helps senior citizens to fulfill their basic needs by providing a pension. The amount they invest in the form of the purchase price is safe and at the time of policy maturity, it is fully returned which is the best thing. Another good thing is that this plan can be easily bought online and it is also available offline.

PMVVY Frequently Asked Questions (FAQs)

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