State-owned insurance group and investment corporation, Life Insurance Corporation (LIC) of India has introduced Pradhan Mantri Vaya Vandana Yojana (Modified -2020). LIC of India is solely authorised to operate this scheme. “This scheme is a Non-Linked, Non-Participating, Pension Scheme subsidised by the Government of India,” LIC of India said in a statement. Here are top details and benefits of PMVVY:-
– Pradhan Mantri Vaya Vandana Yojana has been launched with modified rate of pension for citizens aged 60 years and above.
-This plan will be available for sale commencing from 26/05/2020 for three financial years i.e. upto 31st March, 2023.
-This scheme can be purchased offline as well as online from LIC of India at www.licindia.in
– The policy term is of 10 years and for policies sold during the first financial year i.e. up to 31st March 2021, the Scheme will provide an assured rate of return of 7.40% p.a. payable monthly (i.e. equivalent to 7.66% p.a.) for the entire duration of 10 years.
– For the policies sold during the next two financial years, the applicable assured rate of interest, at which the pension payment shall be made, will be reviewed and decided at the beginning of each financial year by Ministry of Finance, Government of India.
– Total amount of purchase price under all the policies under this plan (UIN: 512G336V01) and all the policies taken under earlier versions of Pradhan Mantri Vaya Vandana Yojana (with UIN 512G311V01 and UIN: 512G311V02) allowed to a senior citizen shall not exceed Rs. 15 lakhs.
– The scheme can be purchased by payment of a lump sum Purchase Price.
-The pensioner has an option to choose either the amount of pension or the Purchase Price.
-At the time of purchase, the pensioner can choose monthly/quarterly/half yearly or yearly mode of pension.
– The minimum Purchase Price for monthly mode is Rs 1,62,162/-,for quarterly mode Rs 1,61,074/-,half yearly the same is Rs 1,59,574/- & for Yearly mode Rs 1,56,658/-
-The maximum Pension one can get under this Scheme will be Rs. 9,250/- per month, Rs. 27,750/- per quarter, Rs. 55,500/- per half-year and Rs. 1,11,000/- per year.
- On survival of the Pensioner during the policy term, Pension in arrears (at the end of each period as per mode chosen by the Pensioner) shall be payable.
– On death of the Pensioner during the policy term, the Purchase Price shall be refunded to the nominee/legal heirs.
-On survival of the pensioner to the end of the policy term, Purchase price and the final pension installment shall be payable.
– Loan upto 75% of purchase price is allowed after 3 policy years.
– The scheme also allows for premature exit for treatment of any critical/terminal illness of self or spouse.
-The Surrender Value payable in such cases shall be 98% of Purchase Price.