The Pradhan Mantri Vaya Vandana Yojana was launched by the Government on 4th May 2017. Scheme was available from 4th March 2017 to 21st March 2020, but the scheme was extended up to 31st March 2023.
This is a government pension scheme with an aim to provide social security to senior citizens and for the protection of the elderly against a fall in the interest income due to unfavourable market conditions in the future.
It gives guaranteed payout of pension at a specified rate for 10 years. It also offers a death benefit in the form of the return of purchase price to the nominee.
It is managed and operated by the Life Insurance Corporation (LIC).
This scheme provides an assured return of 8% percent p.a. payable monthly, and is exempted from service tax/GST.
The scheme offers loan up to 75% of the purchase price after three policy years.
The scheme also allows for premature exit for the treatment of any critical/ terminal illness of self or spouse. On such a premature exit, 98% of the Purchase Price shall be refunded.
If the pensioner dies during the policy term of 10 years, the benefits of the scheme can be availed by the nominee or the beneficiary.
The benefits of the scheme are overall applicable to the pensioner, his/her spouse and dependents.
Individuals should be 60 years or above to be eligible for this scheme.
The policy term should be 10 years and the investment limit should be ₹15 lakh per senior citizen. The minimum pension should be ₹1000 per month and should not be more than ₹10,000 per month.
This scheme offers an interest of 7.4% per annum with monthly payout option. According to the LIC website, “For financial year 2022-23, the scheme shall provide an assured pension of 7.40% p.a. payable monthly.
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