LIC Pradhan Mantri Vaya Vandana Yojana: All you need to know
1 min read.Updated: 29 Jul 2020, 07:51 AM IST
Written By Avneet Kaur
LIC Pradhan Mantri Vaya Vandana Yojana assures guaranteed pension for 10 years
For the first financial year upto 31st March 2021, the scheme will provide an assured pension of 7.40% p.a.,payable monthly
LIC Pradhan Mantri Vaya Vandana Yojana is a pension scheme for senior citizens, above 60 years of age which assures guaranteed pension for 10 years. Guaranteed rates of pension for policies sold during a year will be reviewed and decided at the beginning of each year by the Ministry of Finance, Government of India. The scheme was launched earlier this year on May 26.
For the first financial year i.e. upto 31st March 2021, the Scheme will provide an assured pension of 7.40% p.a.,payable monthly. The scheme can be bought online through LIC website or offline. The scheme is available up to 31st March 2023.
Eligibility and features of LIC Pradhan Mantri Vaya Vandana Yojana
Anyone who has attained a minimum age of 60 years can buy this policy. The policy term is 10 years. Minimum pension under the policy is ₹1,000 for monthly payout, ₹3,000 for quarterly payout, ₹6,000 for half-year and ₹12,000 for annual payout.
The premiums have been caped at ₹9,250 for monthly payout, ₹27,750 for quarterly payout, ₹55,500 for half-yearly and ₹1,11,000 for annual payout.
The pensioner can either choose the amount of pension to be received or the purchase price for which he wants to buy the policy. The other component will be decided automatically by the predefined back end calculations.
In case the pensioner wants to choose the purchase price under the policy, the minimum and maximum allowed purchase price under the policy are as below:
Pension payment under LIC Pradhan Mantri Vaya Vandana Yojana
The Government subsidised scheme allows pension to paid as -- monthly, quarterly, half-yearly & yearly. The pension payment will be through NEFT or Aadhaar Enabled Payment System. The pensioner will receive the first installment of pension after 1 year, 6 months, 3 months or 1 month from the date of purchase of the policy depending on the mode of pension payment i.e. yearly, half-yearly, quarterly or monthly respectively.
The scheme allows premature exit during the policy term under exceptional circumstances like the Pensioner requiring money for the treatment of any critical/terminal illness of self or spouse. The Surrender Value payable in such cases shall be 98% of the Purchase Price.
Loan facility is available after completion of three policy years. The maximum loan that can be granted shall be 75% of the Purchase Price.