Pradhan Mantri Vaya Vandana Yojana (PMVVY)

Introduction:

Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a Pension Scheme exclusively for the senior citizens aged 60 years and above.

Ministry/Agency:

The scheme is launched by the Ministry of Finance.

Objectives:

The scheme aims to provide social security to senior citizens and provide an assured return on investment.

Benefits:

• Assured return of 7% to 9% for 10 years.
• Pension payment options of monthly, quarterly, half-yearly & yearly.
• Minimum and maximum pension amounts ranging from Rs. 1,000 to Rs. 10,000 per month.
• Maturity benefit – entire principal amount (including the final pension and the purchase price) would be paid out once the policy term of 10 years is completed.
• Death benefit – the purchase price will be refunded to the legal heirs/nominees.
• Loan benefit – a loan of up to 75% of the purchase price can be availed after three years.
• Surrender value – 98% of the purchase price will be payable to the pensioner in exceptional cases such as when the pensioner requires money for the treatment of any critical/terminal illness of self or spouse.

Eligibility:

• The subscriber must be a senior citizen, i.e. 60 years and above.
• The applicant must be an Indian citizen.
• There is no maximum entry age for the PMVVY scheme.
• The applicant must be ready to avail of the policy term of ten years.

Implementation strategy:

• The scheme can be purchased by payment of a lump sum Purchase Price.
• The pension payment shall be through NEFT or Aadhaar Enabled Payment System.
• The first instalment 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.
• If a policyholder is not satisfied with the policy, he/she can return the policy to the LIC within 15 days from the policy receipt date stating the reason for objections.