Key Points of Pradhan Mantri Vaya Vandana Yojana

Name of the Scheme
Pradan Mantri Vaya Vandana Yojana (PMVVY)
Type
Pension Scheme
Beneficiaries
Senior citizens, aged 60 years and above
To be Launched On
July 22, 2017
To be Launched by
Finance Minister Arun Jaitley
Scheme available from
May 4, 2017, to May 3, 2018
To be implemented by
LIC, Life Insurance Corporation

Eligibility and Conditions

Purchase of Policy
Online or Offline
Minimum Entry Age
60 years
Maximum Entry Age
No limit
Policy term
10 years
Minimum pension
  • Rs. 1000 per month
  • Rs. 3000 per quarter
  • Rs. 6000 per half year
  • Rs. 12000 per year
Maximum pension
  • Rs. 5000 per month
  • Rs. 15000 per quarter
  • Rs. 30000 per half year
  • Rs. 60000 per year

Major Benefits:

Pension Payment
During the policy term of 10 years, when the pensioner survives, pension in arrears shall be paid. (at the end of each period as per mode chosen, i.e monthly, quarterly, half yearly or annually )

Death Benefit
On death of the Pensioner during the policy term of 10 years, the Purchase Price shall be refunded to beneficiary.
(The Minimum purchase price for Rs 1000 as monthly pension is Rs. 1,50,000 and The maximum purchase price for the same is Rs.7,50,000. It varies according to the pension amount)

Maturity Benefit
On survival of the pensioner to the end of the policy term of 10 years, Purchase price along with final pension installment will be paid.

Mode of payment
The modes of pension payment are monthly, quarterly, half-yearly & annually. The pension payment will be done through NEFT or Aadhaar Enabled Payment System.

Highlights of PMVVY:

1.Assured Return
The PMVVY scheme provides an assured return of 8% p.a. payable monthly (equivalent to 8.30% p.a. effective) for 10 years to the policy holders.

2.Exempted from Tax
The scheme is exempted from any Service Tax/ GST (Goods and Services Tax)

3.Loan against policy
Loan upto 75% of the Purchase Price will be allowed after 3 policy years.
The interest of the loan shall be recovered from the pension installments and loan amount will be recovered from the final claim proceeds.

4.Premature Exit
The PMVVY scheme also allows for the premature exit for the treatment of any critical/ terminal illness of self or spouse. On such premature exit, 98% of the Purchase Price will be refunded.

5.Ceiling for whole family
The ceiling of maximum pension is covered for the whole family of the policy holder, the family will comprise of pensioner, his/her spouse and his/her dependants.

6.Subsidy by Government
If any shortfall arises, owing to the difference between the interest guaranteed and the actual interest earned, it shall be subsidized by the Government of India and reimbursed to the Corporation, along with the expenses relating to administration.

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