LIC's Pradhan Mantri Vaya Vandana Yojana (PMVVY) returns and other details

Life Insurance Corporation of India (LIC) offers immediate pension. Pradhan Mantri Vaya Vandana Yojana (PMVVY) can be purchased by paying a lump sum amount. The plan provides for pension payments for the policy term of 10 years, with return of purchase

price at the end of 10 years. PMMVY is a non-linked, non-participating, pension plan for citizens aged 60 years and above. 

LIC of India is solely authorised to operate this scheme. PMVVY is a non-linked, non-participating, scheme subsidized by the Government. This plan is available for three financial years i.e. up to 31st March 2023. The scheme can be purchased offline as well as online from LIC of India at www.licindia.in 

PMVVY term and interest rate: 

The policy term is of 10 years and for policies sold during the first financial year i.e. up to 31st March 2021, the scheme will provide an assured rate of return of 7.40% p.a. payable monthly (i.e. equivalent to 7.66% p.a.) for the entire duration of 10 years.

For the policies sold during the next two financial years, the applicable assured rate of interest, at which the pension payment shall be made, will be reviewed and decided at the beginning of each financial year by Finance Ministry. 

PMVVY minimum, maximum pension: 

Senior citizens can draw a minimum pension of Rs 1,000 per month depending on the amount invested in the scheme. The maximum pension amount is limited to Rs 10,000 per month. The total amount of purchase price under all the policies under this plan and all the policies taken under earlier versions of Pradhan Mantri Vaya Vandana Yojana allowed to a senior citizen shall not exceed Rs 15 lakhs.

PMVVY purchase price:

The scheme can be purchased by payment of a lump-sum purchase price. The pensioner has an option to choose either the amount of pension or the purchase price. At the time of purchase, the pensioner can choose monthly/quarterly/half-yearly or yearly mode of pension. 

The minimum purchase price for monthly mode is Rs 1,62,162, for quarterly mode Rs 1,61,074, half-yearly the same is Rs 1,59,574 & for Yearly mode Rs 1,56,658. The maximum pension one can get under this scheme will be Rs 9,250 per month, Rs 27,750 per quarter, Rs 55,500 per half-year and Rs 1,11,000 per year. 

On survival of the pensioner during the policy term, pension in arrears (at the end of each period as per mode chosen by the pensioner) shall be payable. 

On the death of the pensioner during the policy term, the purchase price shall be refunded to the nominee/legal heirs. On survival of the pensioner to the end of the policy term, Purchase price and the final pension installment shall be payable.

PMVVY loan facility: 

Loan up to 75% of purchase price is allowed after 3 policy years. The scheme also allows for premature exit 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.

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