PMVVY: Know how senior citizens get pensions under this scheme? know eligibility, benefits, taxation and more

The Government of India has modified the pension rate under this scheme and extended the period of sale for another three years from the financial year 2020-21 to March 31, 2023.

To Purchase the PMVVY scheme online please log on to our website www.licindia.in. Pic: Pixabay

PMVVY: The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is one of the most popular pension yojanas for the old-age population. This scheme was introduced on May 26, 2020.

The Government of India has modified the pension rate under this scheme and extended the period of sale for another three years from the financial year 2020-21 to March 31, 2023. As per the terms and conditions under this plan, 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.

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LIC of India is solely authorised to operate this scheme.

"For Financial Year 2022-23, the Scheme shall provide an assured pension of 7.40% p.a. payable monthly. This assured rate of pension shall be payable for the full policy term of 10 years for all the policies purchased till 31st March, 2023," LIC mentioned on its official website

This scheme can be purchased offline as well as online. To Purchase this scheme online please log on to our website www.licindia.in.

PMVVY: Benefits
-There is no tax exemption in this scheme, it is just an investment scheme.
-People above 60 years of age can make a maximum investment of up to Rs 1.5 lakh. For this, you have to apply before 31 March 2023.
-18% GST is levied on general insurance plans and term insurance plans. But in this scheme, there is a discount on GST.
-Citizens get a pension ranging from Rs 1,000 to Rs 9,250 per month, depending on the investment.

PMVVY: Purchase
To invest in Pradhan Mantri Vaya Vandana Yojana, customers can apply both online and offline. If you want to apply online, then you can do so through the official website of LIC. To apply offline, you can take advantage of Pradhan Mantri Vaya Vandana Yojana by visiting the branch of LIC.

PMVVY: Eligibility Conditions and Other Restrictions
a) Minimum Entry Age : 60 years (completed)
b) Maximum Entry Age : No limit
c) Policy Term : 10 years
d) Minimum Pension : ` 1,000/- per month
Rs 3,000/- per quarter
Rs 6,000/-per half-year
Rs 12,000/- per year
e) Maximum Pension : Rs 9,250/-per month
Rs 27,750/-per quarter
Rs 55,500/-per half-year
Rs 1,11,000/-per year
The total amount of purchase price under all the policies under this plan, and all the policies taken under Pradhan Mantri Vaya Vandana Yojana (with UIN
512G311V01 and UIN: 512G311V02) allowed to a senior citizen shall not exceed 15 lakhs

PMVVY: Mode of pension payment
The modes of pension payment are monthly, quarterly, half-yearly & yearly. The pension payment shall be through NEFT or Aadhaar Enabled Payment System. The purchase of the policy under this Government-subsidised scheme requires unique Aadhaar number validation.

The first installment of pension shall be paid after 1 year, 6 months, 3 months, or 1 month from the date of purchase of the same depending on the mode of
pension payment i.e. yearly, half-yearly, quarterly, or monthly respectively.

PMVVY: Surrender Value
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.

PMVVY: Loan
The loan facility is available after the completion of 3 policy years. The maximum loan that can be granted shall be 75% of the Purchase Price.
The rate of interest to be charged for the loan amount shall be determined at periodic intervals. For More information about loans visit the website.

Note: For More Details Visit the Official Website of LIC.

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