The Government of India has introduced Pradhan Mantri Vaya Vandana Yojana (Modified-2020), with modified rate of pension under this plan and extended the period of sale of this plan for a further period of three years from Financial Year 2020-21 till 31st March, 2023. As per the terms and conditions under this plan, guaranteed rates of pension for policies sold during a year will be reviewed and decided at the beginning of each year by the Ministry of Finance, Government of India. For the first financial year i.e. upto 31st March 2021, the Scheme will provide an assured pension of 7.40% p.a. payable monthly.
LIC of India is solely authorised to operate this scheme.
This scheme can be purchased offline as well as online. To Purchase this scheme online please log on to the website of LIC of India.
On survival of the Pensioner during the policy term of 10 years, pension in arrears (at the end of each period as per mode chosen) shall be payable.b. Death Benefit:
On death of the Pensioner during the policy term of 10 years, the Purchase Price shall be refunded to the beneficiary.c. Maturity Benefit:
On survival of the pensioner to the end of the policy term of 10 years, Purchase price along with final pension installment shall be payable.
|a) Minimum Entry Age||60 years (completed)|
|b) Maximum Entry Age||No limit|
|c) Policy Term||10 years|
|d) Minimum Pension||₹ 1,000/- per month|
|₹ 3,000/- per quarter|
|₹ 6,000/-per half-year|
|₹ 12,000/- per year|
|e) Maximum Pension||₹ 9,250/-per month|
|₹ 27,750/-per quarter|
|₹ 55,500/-per half-year|
|₹ 1,11,000/-per year|
Total amount of purchase price under all the policies under this plan, and all the policies taken under Pradhan Mantri Vaya Vandana Yojana allowed to a senior citizen shall not exceed ₹ 15 lakhs.
The minimum and maximum Purchase Price under different modes of pension will be as under:
|Mode of Pension||Minimum Purchase Price||Maximum Purchase Price|
|Yearly||₹ 1,56,658/-||₹ 14,49,086/-|
|Half-yearly||₹ 1,59,574/-||₹ 14,76,064/-|
|Quarterly||₹ 1,61,074/-||₹ 14,89,933/-|
|Monthly||₹ 1,62,162/-||₹ 15,00,000/-|
The Purchase Price to be charged shall be rounded off to nearest rupee.
The modes of pension payment are monthly, quarterly, half-yearly & yearly. The pension payment shall be through NEFT or Aadhaar Enabled Payment System. The purchase of the policy under this Government subsidised scheme requires unique Aadhaar number validation.
The first installment 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 i.e. yearly, half-yearly, quarterly or monthly respectively
The pension rates for ₹ 1000/- Purchase Price for different modes of pension payments are as below:
|Yearly||₹ 76.60 p.a.|
|Half-yearly||₹ 75.20 p.a.|
|Quarterly||₹ 74.50 p.a.|
|Monthly||₹ 74.00 p.a.|
The pension installment shall be rounded off to the nearest rupee. These rates are age independent.
The rate of interest to be charged for loan amount shall be determined at periodic intervals.
The amount of Tax (GST) paid shall not be considered for the calculation of benefits payable under the plan.
The amount to be refunded within free look period shall be the Purchase Price deposited by the policyholder after deducting the charges for Stamp duty and pension paid, if any.
For more info / clarification please visit website of LIC of India.