On opting for monthly pension, senior citizens get guaranteed pension at a fixed rate for 10 years in the scheme.
Pradhan Mantri Vay Vandana Yojana(pmvvy) is a pension scheme available to senior citizens. On opting for monthly pension, senior citizens get guaranteed pension at a fixed rate for 10 years in the scheme. The scheme also offers a death benefit. Under this, the purchase price is refunded to the nominee. Earlier this policy was open for a very short period. However, its duration was later extended to 31 March 2020.
What is Pradhan Mantri Vaya Vandana Yojana(pmvvy) eligibility?
The minimum entry age in the scheme is 60 years. That is, senior citizens of 60 years or more can invest in it. There is no maximum age limit. A person can invest a maximum of Rs 15 lakh in the scheme.
How to apply
For this, an application form has to be filled. Necessary documents need to be attached to this form. Senior citizens can also invest in the scheme online. For this, a link to https://eterm.licindia.in/onlinePlansIndex/pmvvymain.do has to be used.
Which documents will be required?
- Pan card copy
- Address proof (copy of Aadhaar, passport)
- Copy of the first page of the bank passbook where the account holder needs a pension
Pradhan Mantri Vaya Vandana Yojana(pmvvy) scheme details
- Death Benefit: If the policyholder dies within 10 years of the policy term, the purchase price will be returned to his nominee.
- Maturity Benefit: If the policyholder survives the entire policy term ie 10 years, he will be paid the last installment of pension along with the purchase amount.
- Surrender Price: This policy allows you to surrender prematurely in critical situations during the policy period. Critical situations here mean any kind of critical/terminal illness to you or your (spouse). In such a situation you can surrender the policy and you will get 98% of the purchase price.
- Loan: Loan facility is available on completion of 3 years under the policy. Under this, you can take a loan of 75% of the maximum purchase price.
- For the financial year 2016-17, the interest rate applicable to the loan.
- Free Look Period: If a policyholder is not satisfied with the “Terms and Conditions” of the policy, he/she can return the policy to the Corporation within 15 days from the date of receipt of the policy with a reason for objection. (30 days if this policy is purchased online)
- If he does so, he will be refunded the full amount after deducting the stamp duty and the installment of any pension.
What should be kept in mind?
After three years of the policy, the loan facility is available on PMVVY. The maximum loan amount cannot exceed 75% of the purchase price.
The scheme does not provide tax benefits like other pension schemes of the government.
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