The Indian Government launched a scheme named the Pradhan Mantri Vaya Vandana Yojana to protect the senior citizens and their income from interest from unsure market conditions. Individuals aged over 60 years can purchase Pradhan Mantri Vaya Vandana Yojana online and get an assured return upon investing the minimum amount.
Want to know more about this Government scheme? Read along!
The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a retirement cum pension scheme launched in 2017. Life Insurance and Corporations of India, the country’s leading life insurance provider, implements this scheme.
This scheme allows senior citizens to initially pay a minimum amount of ₹150000 to get a monthly pension of at least ₹1000. Here, the highest amount is set at ₹1500000 for receiving a maximum allowance of ₹10000 per month.
Subscribers of this scheme can get guaranteed monthly pensions based on Pradhan Mantri Vaya Vandana Yojana interest rate. This is an annual rate of 7.40%.
The Government of India introduced this scheme after successfully implementing Varishtha Pension Bima Yojana 2003 (VPBY-2003), Varishtha Pension Bima Yojana 2014 (VPBY-2014) schemes. Further, the Central Government modified this scheme in 2020, brought changes in the pension’s interest rate, and extended the date for selling this plan till 31st March 2023, from FY 2020-21.
As the definition of the Pradhan Mantri Vaya Vandana Yojana is clear to you, let’s learn about the eligibility and documentation requirements and benefits of this Government scheme.
Individuals have to fulfil specific eligibility parameters to be able to invest in the Pradhan Mantri Vaya Vandana Yojana online.
These are as follows -
Note: This scheme has a 10-year policy term. Hence, senior citizens must be ready to avail a policy for such a long time.
This Government-backed scheme was introduced primarily to protect senior citizens by providing income in their retirement age. Read on the following section to learn about benefits and features of Pradhan Mantri Vaya Vandana Yojana scheme.
If a pensioner survives a 10-year policy term, he/she will get pension when the period is over, based on the chosen mode.
Similar to pension benefits, if a pensioner survives a 10-year policy term, he/she will get the purchase price and the final pension instalment.
This scheme offers a guaranteed rate of interest for a 10-year policy term. This pension payment may differ, subject to the selected pension payment mode.
If an applicant dies within the 10-year policy term, his/her investment amount, i.e. purchase price, will be refunded to the beneficiary.
Senior citizens can enjoy loan facilities under this scheme provided they have completed 3 policy years. Here, the maximum loan amount that is available for loan facility is 75% of the purchase price. For instance, if you have invested ₹150000 in this scheme, you will get ₹112500 (75% of ₹150000) after 3 years.
Pradhan Mantri Vaya Vandana Yojana allows applicants to exit during policy term before the maturity period. This opportunity is available under special circumstances, such as the subscriber needing money to cover medical expenses for critical or terminal health conditions of spouse or self. Under such circumstances, a pensioner can withdraw 98% of purchase price.
Now that individuals know about the required documents, eligibility criteria, the application process will be easier to understand.
Individuals can subscribe to this scheme in two ways. These are as follows –
Here is a list of documents required for Pradhan Mantri Vaya Vandana Yojana,
|
Mode of Pension Payment |
Minimum Purchase Price |
Maximum Purchase Price |
|
Monthly |
₹1,62,162 |
₹15,00,000 |
|
Quarterly |
₹1,61,074 |
₹14,89,933 |
|
Half-yearly |
₹1,59,574 |
₹14,76,064 |
|
Yearly |
₹1,56,658 |
₹14,49,086 |
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Disclaimer: This information is added only for informative purposes and collected from different sources across the Internet. Digit Insurance is not promoting or recommending anything here. Please verify the information before making any decisions.
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