LIC's Pradhan Mantri Vaya Vandana Yojana is an immediate pension plan for senior citizens 60 years and above.
LIC PMVVY Scheme may close after March 31 2020 unless the Central government extends it for more years. However, before expiry of the scheme, senior citizen’s who are above the age of 60 years can invest to ensure a fixed monthly pension for 19 years. At present, the maximum amount one can invest in the scheme is Rs 15 lakh for a policy term of 10 years. Here are some key details of the scheme senior citizens should know:
– LIC’s Pradhan Mantri Vaya Vandana Yojana is an immediate pension plan for senior citizens 60 years and above.
– The scheme can be purchased by paying a lumpsum amount. Under the scheme, senior citizens can get monthly pension for a policy term of 10 years. The purchase price will be returned at the end of 10 years.
– There are four pension modes: Monthly / Quarterly/Half-yearly /Yearly. The payment of pension will be done at the end of each period as per the payment mode selected by the subscriber. It can start next month if the subscriber opts for.
– On depositing the maximum Rs 15 lakh, one can get Rs 10,000 monthly pension for 10 years. (see chart below)
LIC PMVVY Pension Chart
– If the pensioner dies during the term of 10 years, the purchase price will be refunded to the legal heirs/nominees.
– According to LIC, the effective pension rate per annum for Rs 1000 purchase price is 8 per cent per annum.
Recently, Aadhaar was made mandatory for subscribers of the PMVVY, which is implemented through Life Insurance Corporation of India (LIC). The scheme was announced in Union Budgets of 2017-18 and 2018-19. “An individual eligible for receiving the benefit under the scheme shall hereby be required to furnish proof of possession of Aadhaar number (the unique 12-digit biometric identity number) or undergo Aadhaar authentication,” Finance ministry had said in a notification.