A few years ago, the government launched a scheme for senior citizens of the country, the Pradhan Mantri Vaya Vandana Yojana. They get monthly income and social security benefits through this scheme. It is a pension plan in a sense. Let us tell you that the beneficiaries of this scheme can get constant monthly or yearly income after retirement by investing in it for a certain period of time. When you sign up for this plan, you will receive full instructions on what to do, how much money to invest, what interest rate to expect and how much pension to expect. For that read this article completely.
Pradhan Mantri Vaya Vandana Yojana
Key Highlights of Pradhanmantri Vaya Vandana Yojana
| what is the article about | Pradhan Mantri Vaya Vandana Yojana |
| Who launched? | Life Insurance Corporation of India |
| Beneficiary | citizens of india |
| purpose | Providing all important information about Pradhan Mantri Vaya Vandana Yojana |
| official website | https://www.licindia.in/Home |
| year | 2023 |
What is Pradhan Mantri Vaya Vandana Yojana?
As we mentioned earlier, the Insurance Corporation of India administers the Pradhan Mantri Vaya Vandana Yojana, a pension scheme sponsored by the Government of India . The scheme was established to provide social security and stable income to the country's senior citizens so that they can get financial support after retirement. Moreover, they will have a comfortable future. The scheme was launched at a time when various programs run by the government, private sector and banks were being phased out.
How unique
- If the policyholder survives the entire duration of the term, he will receive his payment in the form of arrears. Let us tell you that apart from the purchase price, the beneficiary will also get the last pension installment.
- However, if the person dies before the term then the policy purchase price will be returned to his nominee.
- This insurance can be purchased and canceled online. We tell them that they have 15 days to cancel the policy after purchasing it.
Amount for investment
The beneficiary must invest money to participate in the scheme. And how much pension you want to get through investment, is entirely up to you. In fact, if you want a pension of Rs 1,000 per month, you will have to deposit a maximum of Rs 1.60 lakh. Additionally, if you want a maximum income of Rs 10,000 per month, you have to contribute up to Rs 15 lakh. Cannot invest more than 15 lakh rupees in this scheme or can't get pension if he has more than this.
How much pension will you get ?
In this scheme, the pension payout is at least Rs. 1,000 to a maximum of Rs. This amount is paid every month. Additionally, it is available quarterly, semi-annually or annually. You must select one of the available periods while applying for this.
What interest rates will be available
If you choose to draw your pension on a monthly basis under this scheme, you will get 8% interest. LIC has provided 8.3% interest if you want to collect your pension annually. After three years of purchasing this coverage, you can also take out a loan. For this, LIC is also giving you a loan with an annual interest rate of 10%.
Who can benefit from this ?
Any senior citizen of the nation can avail this scheme; The minimum age requirement is 60, and there is no upper age limit. Let us tell you that the PM Vaya Vandana scheme has a maturity period of 10 years. Depending on the option you choose, you will get monthly, quarterly or half-yearly pension amount under this scheme.
What documents will be required
To participate in this scheme, you will need documents like your Aadhaar card, age certificate, PAN card, bank account details, income certificate, address proof and passport-size photo.
How to Apply
Follow the steps below to sign up for this plan.
Online process
First visit LIC website.
After that, you will see the option of “Buy Online Policy” on the homepage; Select it.
After that, click on the “Click here to buy” link that will be displayed below.
Then you will come to a new window where you have to navigate to the pension area and select the PM Vaya Vandana Yojana option.
You can read the complete information about this scheme here carefully before you click on the “Click to Buy Online” link.
All your documents should be scanned, uploaded and then you must click on the proceed option.
Then you have to complete all the required fields on the following page and click the proceed button once more.
Your application will then be processed as per this procedure. Following the application, you must put money into it.
Offline Method:
To submit offline application you have to go to nearest LIC branch.
Get the application for this scheme there, complete it, attach copies of all required documents and submit it.
FAQs - Pradhan Mantri Vaya Vandana Yojana
Here are some frequently asked questions about the scheme:
Q: What is the purpose of PMVVY?
A: The scheme aims to provide a guaranteed pension to senior citizens and ensure a regular source of income for them during their old age.
Q: Who is eligible to apply for PMVVY?
A: Any senior citizen aged 60 years or above is eligible to apply for the scheme.
Q: How can I apply for PMVVY?
A: The scheme can be purchased from the Life Insurance Corporation of India (LIC) and its authorized branches. The application process can be done offline or online as per the convenience of the applicant.
Q: How much pension can I get under PMVVY?
A: The pension amount is based on the purchase price and the pension option selected by the applicant. The pension is paid monthly, quarterly, half-yearly or yearly as per the choice of the pensioner.
Q: Is there any limit on the number of purchase of PMVVY?
A: Yes, an individual can purchase only one PMVVY policy.
Q: Is there any maturity period for PMVVY?
A: The maturity period for PMVVY is 10 years.
Q: Are there any tax benefits under PMVVY?
A: The pension received under PMVVY is fully exempt from tax under section 10(10D) of the Income Tax Act, 1961.