Ministry of Finance has promised at the time of announcing budget that the Government will come up Pradhan Mantri Vaya Vandana Yojana (PMVVY). Government stood by its promise and on May, 2017 Pradhan Mantri Vaya Vandana Yojana was launched. This plan is for the citizens of 60 years age or above. Sole authority to operate this scheme has been given to LIC. LIC has recently launched LIC Jeevan Utkarsh Policy 846 ,a single premium policy which provides saving cum protection cover. Life insurance corporation has launched it as a LIC pension plan which is available for a period of one year from the date of its launch.
Features of Pradhan Mantri Vaya Vandana Yojana
- Guaranteed monthly pension on the interest rate of 8%.
- Time period of the policy is 10 years.
- Guaranteed monthly pension.
- Surrender value payable is 98% of the purchase price.
- Loan facility is available but after completion of 3 years.
- Maximum payable loan is 75% of the purchase price.
- In case if policy holder commits suicide then the entire amount will be received by the nominee.
- Monthly pension will be created to your bank account.
- Amount received is exempt from goods and services tax.
Benefits of LIC Pension Plan:
1. Pension Payment:
If the policy holder survives during the policy term i.e., for 10 years. Then the pension shall be payable as per the chosen modes.
2. Death Benefit:
In case if the policy holder dies during the policy term then the purchase amount of the policy will be refunded to the nominee.
3. Maturity Benefit:
If the pensioner survives till the end of the policy term then he/she will receive purchase price plus final pension installment.
Eligibility Conditions and Other Restrictions:
- Minimum Entry Age: 60 years (completed)
- Maximum Entry Age: No limit
- Policy Term : 10 years
- Minimum Pension: Rs. 1,000/- per month
1. Rs. 3,000/- per quarter
2. Rs.6,000/- per half-year
3. Rs.12,000/- per year
- Maximum Pension: Rs. 5,000/- per month
1. Rs. 15,000/- per quarter
2. Rs. 30,000/- per half-year
3. Rs. 60,000/- per year
Payment of Purchase Price:
Well one can easily purchase the policy with the payment of lump sum purchase price. The policy holder has an option that he/she can either choose the amount of pension or the amount of purchase price. The minimum and maximum purchase price of the policy is given under different modes of pension:
|Mode of Pension||Minimum Purchase Price||Maximum Purchase Price|
|Yearly||Rs. 1,44,578||Rs. 7,22,892|
|Half-yearly||Rs. 1,47,601||Rs. 7,38,007|
|Quarterly||Rs. 1,49,068||Rs. 7,45,342|
|Monthly||Rs. 1,50,000||Rs. 7,50,000|
Mode of Pension Payment:
Furthermore, the mode of pension payments are monthly, quarterly, half-yearly & yearly. However, the pension payment will be done by NEFT or or Aadhaar Enabled Payment System. In addition to this, the first installment of the pension plan will be paid after 1 year, 6 months, 3 months or 1 months after the date of purchase of policy.
Pradhan Mantri Vaya Vandana Yojana is a LIC pension plan. In addition to this, loan facility will be able to the policy holder after the completion of 3 years. The maximum amount of loan which will be granted will be 75% of the purchase price of the policy.
However, the rate of interest will be charged on the granted loan will be decided by LIC on different period intervals. The loan sanctioned in the financial year 2016-2017 will be granted at the interest rate of 10% p.a.
Interest charged on loan will be recovered from the pension amount which is payable under the policy. However, if any is loan outstanding then it can be recovered from the claim amount.