Pradhan Mantri Modi is working hard and has kick out many ambitious plans so make India a better country to live in. He has launched many programs to ensure the growth and development of each individual of the country. The latest he launched ” Pradhan Mantri Vaya Vandana Yojana (PMVVY)”.
The government under the leadership of Prime Minister Modi has launched many programs for the welfare of countrymen within a short span of time. These programs will enable the citizens of the country to live a life with more respect and at their own terms. Pradhan Mantri Jan Dhan Yojna, Pradhan Mantri Awas Yojna and Digital India are a few examples. Today we are going to discuss Pradhan Mantri Vaya Vandana Yojana.
Benefits of Pradhan Mantri Vaya Vandana Yojana
This program is launched for Indian citizen age 60 years or above. The sole privilege to operate this scheme is given to LIC. Launched on 4th May 2017, the scheme will be available for one year from the date of launch. This much awaited scheme was launched by Finance Minister Arun Jaitely. The scheme can be purchased both online and offline. To buy the scheme online log on to the site www.licindia.in and offline it can be purchased from LIC office or LIC workers. Due to ever decreasing deposit rates of bank this scheme can emerge as a big alternative for senior citizens to save their money. The assured return is minimum 8 percent over a year.
The scheme comes with these three huge benefits.
- Pension Payment: If the pensioner survives during the policy term of 10 years, pension is payable in arrears (at the end of each period as per mode chosen).
- Death Benefit: If the pensioner dies within 10 years of the policy term, the beneficial is refunded the purchase price.
- Maturity Benefit: If the pensioner survives till the end of 10 years of policy term, Purchase price along with the final pension installment shall be payable.
Restrictions and Eligibility Conditions:
- Minimum age: The person should have completed 60 years before applying for this scheme.
- There is no limit for the maximum entry age in the scheme.
- The policy term is for 10 years.
Minimum pension Under PMVVY
- Rs. 1000/- per month
- Rs. 3000/- per month
- Rs. 6000/- per half-year
- Rs. 12000/- per year
Maximum Pension Under PMVVY
- Rs. 5000/- per month
- Rs. 15000/- per quarter
- Rs. 30000/- per half-year
- Rs. 60000/- per year
This program will ceil the maximum pension of the family as a whole i.e. the total amount of pension to a family under all the policies shall not exceed the maximum pension amount. The family of the pensioner includes his/her spouse and any dependent if they have.
- Payment of Purchase Price: The pensioner can purchase the scheme at any lump sum price. He always has the option to choose the either the amount of purchase or pension price.
Mode of pension Minimum purchase price Maximum purchase price
Yearly Rs. 1, 44,578 /- Rs. 7, 22,898/-
Quarterly Rs. 1, 47,601/- Rs. 7, 38,007/-
Half-Yearly Rs. 1, 49, 068/- Rs. 7, 45, 342/-
Yearly Rs. 1, 50, 000/- Rs. 7, 50, 000/-
Mode of pension Payment: The pension can be paid on monthly, quarterly, half-yearly or yearly basis through NEFT or Aadhar Enabled Payment System.
Sample pension Rates: The pension rates for 1000/- will vary from Rs. 83 to 80 p.a. The pension shall be rounded off to the nearest rupee. The rates are independent of age.
Surrender value: On the emergency closure of the scheme, for the treatment or any other purpose, 98% of the pension amount will be refundable.
Loan facility: After completion of 3 years scheme, loan can granted up on it. The maximum loan amount can be 75% of the purchase price. The applicable rate of interest will be 10% p.a. The loan amount will be recovered from the pension on the completion of scheme. This loan amount will be due on the date of payment of pension of the policy.
Taxes: It will work as per the tax laws of the country. The amount of tax paid shall not be considered at the time of calculating pension benefits.
Free look Policy: If the policy holder is not satisfied by any term or conditions of the policy, he/she can return the policy within first 15 days of purchase (30 days if purchased online). The purchase price paid will be refunded excluding the charges of stamp duty and pension paid, if any.
Exclusion: Suicide counts no exclusion and only the purchase price shall be refunded.
These are the benefits, pension chart and maturity benefit of Pradhan Mantri Vaya Vandana Yojana, which assure you 8% fix return. You can start investing in this pension plan, it is one of the best pension plan for senior citizens from Govt of india.