Pradhan Mantri Vaya Vandana Yojana

From 2014 when Mr.Narendra Modi led B.J.P got came into power it has announced a lot of schemes for the welfare of society to raise the living standard of the poor living in India. some important schemes are

1.Swachh Bharat Mission

2.Ujjwala Yojana

3.Jan Dhan Yojana

4. Make in India

5.Sukanya Smriddhi yojana

6.Atal Pension Yojana

7.UDAN Yojana

8.Pradhan Mantri Mudra Yojana

9.UDAY Scheme

10.Namami Gange Yojana

11.Pradhan Mantri Vaya Vandana Yojana (PMVVY)

These are some important schemes announced by govt. of India, In this article, we will talk about PMVVY Yojana.

Pradhan Mantri Vaya Vandana Yojana (PMVVY) 

PMVVY scheme is basically designed for senior citizens of 60 years of age or more. This is a safe and guaranteed pension plan for 10 years in which any senior citizen has to invest a lump sum amount of up to  Rs.15lakh and they have to receive the interest in the form of pension up to 10 years and after 10 years the whole amount is refunded back to the policyholder.

Launched

PMVVY scheme was launched at may 2017 for 1 yr but in 2018 it was further extended up to 31st March 2020, Now in may 2020 the govt has further extended this scheme up to March 2023.

How to Avail

This policy has started by the govt and L.I.C is now regulating it, so if any person wants to open an account then he may contact a L.I.C agent or he may go through the L.I.C website. Any bank or post office can not be allowed to open account of a person.

Premium and Term

 A lump sum amount of up to Rs.15lakh (Maximum) or  Rs.156658 (Minimum) is required to open an account for 10 years.

Benefit

The interest rate as per GOI is offered to the senior citizen in the form of pension, the frequency of pension is decided at the time of account opening, the frequency and interest rate of pension is MOnthly(7.40%), Quarterly(7.45%), Halfyearly(7.52%), Yearly(7.66%).

Minimum purchase price

Mode of pension    MInimum purchase price    Pension amount  

      Yearly                          156658                            12000

     H.yearly                        159574                             6000

     Quarterly                      161074                             3000

      monthly                       162162                             1000

Maximum Purchase Price

Mode of pension    MInimum purchase price    Pension amount

     Yearly                       1449086                         111000

     H.Yearly                    147064                           55500         

     Quarterly                   1489933                         27750                          

     Monthly                     1500000                         9250

Source- LIC website

Surrender

The policy can be surrendered in case of terminal or critical illness of the policyholder or their spouse with a penalty of 2% of the purchase price.

Additional

1. Freelook period is 15 days is bought offline and 30 days if bought online.  

2. No taxable.

3. Not available for N.R.I or foreign citizen.