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Pradhan Mantri Vaya Vandana Yojana

The Pradhan Mantri Vaya Vandana Yojana scheme is one of the social security schemes that is launched by the Government of India for the senior citizens of the country. This scheme is preferred by those who are planning and managing their retirement future. PMVVY was available from 4th May 2017 to 31st March 2020. The main aim behind the announcement of the PMVVY was to provide senior citizens who are above the age of 60 years with a regular pension. Notably, now the Pradhan Mantri Vaya Vandana Yojana scheme has been extended up to 31st March 2023. Furthermore, this scheme can be bought from the Life Insurance Corporation (LIC) of India in both online and offline modes.

Eligibility criterion for PMVVY :

Since the Pradhan Mantri Vaya Vandana Yojana scheme was launched for senior citizens not everyone can apply for this scheme. There is a certain eligibility criterion that one must fulfill to invest in this scheme.

  • All individuals who are 60 years of age or above are eligible to invest in this scheme.
  • The applicant must be an Indian citizen.
  • There is no limit to the maximum age.
  • Individuals who are ready to avail of the policy term of ten years can apply for this scheme

Pensions offered by PMVVY:

The Pradhan Mantri Vaya Vandana Yojana is a widely entrusted scheme that not only provides pensions to senior citizens but also encourages social security among them. The minimum pension that is offered under this scheme is Rs. 1,000 per month, Rs. 3,000 per quarter, Rs. 6,000 per half-year, and Rs.12,000 per year. On the other hand, the maximum pension that is offered under this scheme is Rs. 9,250 per month, Rs. 27,750 per quarter, Rs. 55,500 per half-year, and Rs. 1,11,000 per year.

Following are the documents that are mandatory to be submitted while applying for the Pradhan Mantri Vaya Vandana Yojana:

  • Age proof
  • Address proof
  • Income proof
  • PAN card
  • Aadhar card
  • Passport size photographs
  • Document related to retirement proof
  • Bank account passbook

Key benefits of PMVVY:

  • Under PMVVY, the investor is entitled to the scheme maturity benefit where he/she receives the entire amount that comprises of the final pension and the purchase price once the policy term gets completed.
  • An individual can receive the pension at the end of each period according to the frequency chosen by him/her such as monthly, quarterly, half-yearly, or yearly.
  • In case the investor of the scheme passes away within the term of the policy then the beneficiary will be given the amount along with the purchase price.
  • The return rate under the PMVVY scheme is decided and changed by the Government itself. Presently, this scheme is offering a return rate of 7% to 9% for 10 years.
  • The PMVVY scheme also offers loan benefits to its investors where a loan of up to 75% of the purchase price can be taken after three years to cover any kind of emergency.
  • Under this scheme, an individual can make a premature exit during the term of the policy. Though such premature exits are allowed under emergencies like for medical treatments etc. in such cases the amount paid will be 98% of the purchase price

Tax Benefits under PMVVY:

The Pradhan Mantri Vaya Vandana Yojana is an investment instrument for senior citizens so that they can have a secure future after retirement. This scheme does not provide any kind of tax benefits to the investors. Furthermore, the returns which are received under this scheme are taxable. It has to be noted that this scheme is exempted from GST.

If you are planning for your finances after retirement and looking to invest at a safe platform, then Pradhan Mantri Vaya Vandana Yojana is a scheme you must explore. This scheme offers a host of benefits for Senior citizens who seek low-risk and high returns on their investments. Apply for this scheme now to get your post-retirement innings secured.

Frequently Asked Questions

  • Where should be the PMVVY scheme opened?
    At the LIC. The PMVVY scheme can be easily opened by visiting any LIC branch or also by applying online through its official website.
  • What is the maximum investment limit in PMVVY?
    This scheme allows a maximum investment of up to Rs. 15 lakhs.
  • In case of death of the investor, what happens to the investment?
    Under such circumstances when the policyholder dies, the amount on maturity will go to the nominee of the scheme.
  • How much contribution an individual can withdraw in case of a medical emergency?
    An individual is allowed to withdraw 98% of the purchase price at the time of any medical emergency (self or spouse).
  • Is it possible to invest in PMVVY multiple times?
    Yes, an individual is entitled to invest in this scheme more than once. Howsoever, the amount of total purchase price must not exceed Rs. 15 lakhs.
  • Till when the PMVVY scheme is available for sale?
    The PMVVY scheme is available for sale up to 31st March 2023.