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PMVVY: This Pension Scheme Can Give You Rs. 10,000 per Month; Know How?

Abha Toppo
Abha Toppo
old aged

Pradhan Mantri Vaya Vandana Yojana or PMVVY is a pension plan announced by the Government for the senior citizens (60 plus) of the country. The last date to register for this pension plan is 31st March, 2020. You can buy this pension scheme online as well as offline from the Life Insurance Corporation (LIC) of India.

Benefits of Pradhan Mantri Vaya Vandana Yojana

  • The pension plan provides an assured return of 8 percent p.a. payable monthly for 10 years.

  • The PMVVY scheme is exempted from Service Tax or GST.

  • Pension Payment - If the pensioner survives the duration of the policy then the pension would be paid in arrears. The pensioner can also opt for the mode by which the amount must be made.

  • Loan facility - After completing three years of the policy, the pensioner can take loans against the policy. A maximum of 75 percent of the purchase price can be availed as a loan.

  • Death benefit - The purchase price would be given back to the beneficiary if the pensioner dies during the policy tenure.

  • Maturity benefit – In case the pensioner survives the entire policy term then the purchase price would be paid along with the final pension installment.

  • Free-look period - The policyholder can surrender the policy in fifteen days if he is not satisfied with the terms of the policy. Though, the free-look period is thirty days if the policy is purchased online. The purchase price after the deduction of stamp charges would be refunded.

PMVVY Eligibility Conditions & Other Restrictions

  • Minimum Entry Age - 60 years

  • Maximum Entry Age - No limit

  • Policy Term - 10 yrs

  • Investment limit - Rs 15 lakh / person

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

  • Maximum Pension- Rs. 10,000 per month, Rs. 30,000 per quarter, Rs. 60,000 per half-year and Rs. 1,20,000 per year

PMVVY: Purchase Price Payment

A person can buy the pension plan by paying the purchase price in a lump sum. The pensioner can select either the amount of pension or the Purchase Price. Under the different modes, the minimum & maximum pension prices are given below:

Pension mode

Min Purchase Price

Max Purchase Price

Monthly

1,50,000              

15,00,000

Quarterly                            

1,49,068

14,90,683

Half-yearly

1,47,601              

14,76,015

 

Yearly

1,44,578              

14,45,783

PMVVY: Method/Mode of payment

The modes of pension payment are monthly, quarterly, half-yearly and yearly. The pension payment must be done through NEFT or Aadhaar Enabled Payment System.

For more details about the pension scheme -

Pradhan Mantri Vaya Vandana Yojana

Direct link to buy PMVVY

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