Pradhan Mantri Vaya Vandana Yojana (PMVVY) Scheme is a Guaranteed Pension Scheme of Government of India for senior citizen (60 years and above) available with Life Insurance Corporation (LIC) of India which provides guaranteed pension of 7.4% monthly and 7.66% yearly for 10 years. The deposited amount is returned to the policy holder after 10 years.
Pradhan Mantri Vaya Vandana Yojana (PMVVY) modified -2020 (LIC Table No. 856) is modified version of earlier PMVVY (Table No. 842) which was closed on 31-03-2020. The earlier plan has been modified and made available for three more years up to 31-03-2023. This plan is available for purchase from 26-05-2020 from LIC.
Key Features
- Policies purchased during financial year 2020-21 will get pension at the rate of 7.4% in monthly mode and 7.66% in yearly mode.
- The interest rate will be guaranteed for entire term of 10 years. Policyholder will get assured same rate for next 10 years which was fixed at the time of buying the scheme.
- On completion of 10 years, invested amount will be returned to the policyholder.
- In case of death of the policyholder before completion of 10 years term, invested amount will be returned to nominee of the policyholder.
- Interest rate for policies purchased beyond 2020-21 will be revised by Ministry of Finance on the beginning of each financial year.
Eligibility and Restrictions
Purchase Price and Pension Amount
| Age | 60 years and above |
| Policy Term | 10 years |
| Pension Mode | Yearly, Half Yearly, Quarterly or Monthly and pension amount is payable directly to policyholder’s bank account. |
| Interest rate | 7.4% in monthly mode and 7.66% in yearly mode for policy purchased in FY 2020-21 |
| Revision of interest rate | Revision of interest rate for next two FY 2021-23 and FY 2022-23 will be revised at the beginning of each year in line with Senior Citizen Saving scheme (SCSS) with ceiling of 7.75%. |
| Scheme last date | 31-03-2023 |
| Mode | Minimum | Maximum | ||
|---|---|---|---|---|
| Amount | Pension | Amount | Pension | |
| Yearly | 1,56,658 | 12,000 | 14,49,086 | 1,11,000 |
| Half Yearly | 1,59,574 | 6,000 | 14,76,064 | 55,500 |
| Quarterly | 1,61,074 | 3,000 | 14,89,993 | 27,750 |
| Monthly | 1,62,161 | 1,000 | 15,00,000 | 9,250 |
Benefits
Pension Payment:
Policyholder will get guaranteed pension for 10 years. Pension will be available at the end of selected mode, for example, after a month in case of monthly mode.
Death Benefit:
In case of death during 10 years policy term, the purchase price will be returned to nominee of legal heirs of the policyholder and policy will get closed.
Maturity
After completion of 10 years, purchase price and last pension installment will be paid to the policyholder.
Surrender value
The policy can be surrendered in case of exceptional circumstances like treatment of any critical illness of the policyholder or spouse. Surrender value will be 98% of the purchase price.
Surrender value
The policy can be surrendered in case of exceptional circumstances like treatment of any critical illness of the policyholder or spouse. Surrender value will be 98% of the purchase price.
Loan
Loan on this scheme is available after 3 years and maximum loan shall be 75% of the purchase price.