In the previous month, LIC has launched a pension scheme named ‘Pradhan Mantri Vaya Vandana Yojana (PMVVY)’ followed by the Prime Minister’s announcing the launch of a scheme for senior citizens. Under which the senior citizens will get a guaranteed interest of over 8 % for 10 years.
This scheme will be operated by the Life Insurance Corporation (LIC) of India. According to the Financial planners, the PMVVY Scheme will offer more opportunities to senior citizens to get regular income at a time of falling interest rates.
As per the life Insurance Corporation, PMVVY will be available for 1 year from the launching date. The Pradhan Mantri Vaya Vandana Yojana scheme is subsidized by the government.
Pradhan Mantri Vaya Vandana Yojana Highlights
- As per LIC, the Pradhan Mantri Vaya Vandana Yojana can be purchased via both offline as well as online method i.e. www.licindia.in
- Under this scheme, the pensioner will get the pensions at the end of each time period whatever he selected i.e. monthly/quarterly/half-yearly and yearly during the policy term of 10 years. According to the LIC, the pension payment shall be through NEFT transfers (online) or Aadhaar Enabled Payment System.
- Under the scheme, the purchase price along with the final pension installment shall also be payable if the pensioner survives the policy term of 10 years.
- The purchase price of the scheme will be refunded to the beneficiary on the death of the pensioner during the policy term of 10 years.
- Applicants age must be minimum 60 years to avail the benefit of the scheme. However, there is no maximum age limit.
- As per the terms and conditions of the scheme, Rs. 1,000 will be the minimum pension amount payable monthly for which Rs. 1,50,000 has to be invested under the scheme. Likely, the maximum monthly pension will be Rs. 5,000 per month for which Rs. 7,50,000 has to be invested.
- Under this scheme, the person will get Rs. 83 per annum; half-yearly Rs. 81.30; Quarterly Rs. 80.50 and monthly Rs. 80 for the investment of every Rs.1000.
- According to LIC, this scheme allows before time exit during the policy term under exceptional conditions like the pensioner requiring money for the treatment of any critical/terminal illness of self or spouse. The surrender value payable in such cases shall be 98% of the original invested amount. Loan facility is available after completion of three policy years. The maximum loan that can be granted shall be 75% of the invested amount.