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What is Pradhan Mantri Vaya Vandana Yojana?

The Pradhan Mantri Vaya Vandana Yojana is an Indian government retirement benefits scheme. online lic pmvvy pradhan mantri vaya vandana yojana tax benefit.

Documents Required for PMVVY

• The Aadhaar card.
• Age verification is required.
• Address verification.
• A passport sized photograph of the applicant is required.
• Documents proving the applicant’s retirement from employment.

Benefits of Pradhan Mantri Vaya Vandana Yojana

• The PMVVY scheme guarantees subscribers an annual return of 8% to 8.3% for ten years.
• The PMVVY scheme pays a fixed sum on a regular basis.
• Once the policy term of ten years is up, the total amount along with the last pension and the purchase price will be compensated.
• After three years, a loan of up to 75 per cent of the purchase price can be obtained to encompass life – threatening conditions.
• Subscribers could even withdraw 98 per cent of the purchase price due to medical emergencies.
• If the subscriber dies during the policy’s term, the nominee will be compensated with the purchase price.

Application Procedure

Online procedure:

• Visit the LIC’s official website.
• Continue by selecting ‘pension plans’ from the products menu.
• Enter the appropriate application form.
• Upload the online application and upload the required documents.

 

Offline Procedure

• Pick up an application form from any LIC branch.
• Fill out the application form completely.
• Upload the completed application form along with all necessary documents.

Pension Policy

As previously stated, the minimum purchase price for a monthly pension of Rs 1,000 is Rs 1,50,000. The amount of pension received by a subscriber is determined by their purchase cost:

Pension mode	The minimum amount of pension	The minimum amount of investment	The maximum amount of pension	The maximum amount of investment
Monthly	Rs 1,000	Rs 1,50,000	Rs 10,000	Rs 15,00,000
Quarterly	Rs 3,000	Rs 1,49,068	Rs 30,000	Rs 14,90,684
Bi-annually	Rs 6,000	Rs 1,47,601	Rs 60,000	Rs 14,76,014
Annually	Rs 12,00	Rs 1,44,578	Rs 1,20,000	Rs 14,45,784

 

FAQs

Interest Rates of the return change, or is it fixed for the pension scheme?

For ten years, the rate of interest will be fixed at 8% to 8.3%.

In case of an emergency, how much contribution can be withdrawn?

Subscribers could withdraw 98 per cent of the purchase price in the event of a medical emergency.

Who is the administrator of PMVVY?

PMVVY will be administered by the Life Insurance Corporation of India on behalf of the Government.

What is the time span for which this Scheme will be accessible for purchase?

This Scheme is accessible for purchase until March 31, 2023.

Who is qualified to purchase this Scheme?

This Scheme is accessible to Indian senior citizens 60 years of age and above.

Is there a maximum age limit for acquiring this Scheme?

There is no upper limit on age for purchasing this Scheme.

What is the entire term of this Scheme?

This Scheme has a ten year term.

What type of pension is provided by this Scheme?

Pension payments shall be made monthly, quarterly, semi-annually, or annually. The first instalment of pension shall be charged after one year, six months, three months, or one month from the purchase date, based on the method of pension payment selected, namely monthly, quarterly, half-yearly, yearly.

What are the benefits provided by this Scheme?

The Scheme provides the following advantages:

1. Payment of Pension: If the Pensioner survives the term of the policy of ten years, a pension in arrears will be paid.
2. Death Benefit: If the Pensioner dies during the 10-year policy period, the Purchase Price will be reimbursed to the beneficiary.
3. Maturity Benefit: If the Pensioner lives to the end of its term of ten years, the purchase price, including the final pension instalment, will be paid.

What is the rate of interest for this Scheme’s pension?

The Scheme will have a guaranteed rate of return of 7.40 per cent p.a. payable monthly for Policies sold up to 31.03.2021 equivalent to 7.66 per cent p.a. The applicable guaranteed interest rate, where the pension payment shall be implemented, for policies sold over the next two fiscal years will be evaluated and made the decision at the start of each fiscal year by the Ministry of Finance, Government of India.

According to the Ministry of Finance, Government of India’s evaluation of the guaranteed rate of return for the Fiscal Year 2021-22, there is no alteration in the guaranteed rate of return at which pension payments will be made. As a result, the Scheme will proceed to have a guaranteed pension of 7.40 per cent p.a. payable monthly for all policies procured under the Scheme until March 31, 2022. This guaranteed rate of pension will be paid for the full policy term of ten years for all policies procured until March 31, 2022.

Would the rate contracted at the moment of policy purchase stay unchanged for the whole ten-year policy term, or will the rate of interest payable on the policy at the time of purchase change each year for the policyholder?

The rate agreed upon at the time of policy purchase will stay unchanged for the whole ten-year term of the policy. Thus, the rate of interest for policies acquired during the fiscal year 2020-21 will be 7.40 per cent p.a. payable monthly for the complete term of ten years.

According to the Ministry of Finance’s review, the Scheme will proceed to have a guaranteed pension of 7.40 per cent p.a. payable monthly for policies sold during the Fiscal Year 2021-22. This guaranteed rate of pension will be paid for the full policy term of ten years for all policies acquired until March 31, 2022.

What distinguishes this Scheme from previous editions of the Pradhan Mantri Vaya Vandana Yojana with UINs 512G311V01 and 512G311V02?

According to the terms & conditions of this Scheme, assured rates of pension for policies sold during a year would be evaluated and decided by the Ministry of Finance, Government of India, at the start of each year. The Scheme will have a guaranteed pension of 7.40 per cent p.a. payable monthly for the first fiscal year, up to March 31 2021. The rate of assured pension in the previous version of PMVVY was 8.00 per cent per annum payable monthly.

Will it have any effect on existing policies if rates of interest are reset on April 1 of each new fiscal year?

According to the terms & conditions of this Scheme, assured rates of pension for policies sold throughout a year will be evaluated and decided by the Ministry of Finance, Government of India, at the start of each year. As a result, the guaranteed rates of pension for policies sold in the next two years, namely fiscal years 2021-22 and 2022-23, could alter. Nevertheless, once the assured rate of pension is set for that fiscal year, this will stay unchanged for the duration of the policy’s ten-year term.

What are the min and max pensions available through this Scheme?

The min and max pension amounts available under the Scheme are listed below.

Mode of Pension	Monthly	Quarterly	Half year	yearly
Minimum pension	Rs. 1,000/-	Rs. 3,000/-	Rs. 6,000/-	Rs. 12,000/-
Maximum pension	Rs. 9,250/-	Rs. 27,750/-	Rs. 55,500/-	Rs. 1,11,000/-

 

What is the lowest and highest purchase price available under this Scheme?

A: The min and max pension amounts available under the Scheme are as follows.

Mode of Pension	Monthly	Quarterly	Half-year	yearly
Minimum purchase price	Rs. 1,62,162/-	Rs. 1,61,074/-	Rs. 1,59,574/-	Rs. 1,56,658/-
Maximum purchase price	Rs. 15,00,000/-	Rs. 14,89,933/-	Rs. 14,76,064/-	Rs. 1,449,086/-

 

Is there a cap on the optimum purchase price within this Scheme?

The overall sum of purchase price permitted to a senior citizen under all policies under this Scheme and all policies chosen to take under previous editions of Pradhan Mantri Vaya Vandana Yojana and the existing PMVVY shall not exceed Rs. 15 lakhs.

Is it possible to return a policy purchased under this Scheme?

A policy purchased through this Scheme can be relinquished at any time during the policy’s term.

What are the surrender circumstances under this Scheme?

A policy purchased under this policy may be agreed to surrender at any time during the policy’s term under extraordinary cases, such as the Pensioner’s need for money to cure a terminal illness in himself or herself or that of a spouse.

What is the Scheme’s surrender value?

Under this Scheme, the Surrender Value will be 98 per cent of the Purchase Price.

Is it possible to obtain a loan under the Scheme?

After three policy years, loan access is provided. The maximum loan amount that can be awarded is 75% of the Purchase Price.

What is the rate of interest on the loan under this Scheme?

The rate of interest to be levied on the loan amount will be ascertained at regular intervals. The appropriate rate of interest for loans approved until April 30, 2021, under previous versions of this Scheme, is 9.5 per cent p.a. for the lifetime of the loan.

How will this Scheme retrieve loans and loan interest?

The loan interest will be deducted from the policy’s pension amount. The loan interest will accumulate in accordance with the policy’s frequency of pension payment and will also be due on the pension’s given deadline. The outstanding loan, even so, must be retrieved from the claim proceeds at the time of termination.

Is there a difference in the assured pension rate if you buy the insurance policy online?

The assured pension rate is the same whether purchased locally or online.