Government of India has announced the LIC’s Pradhan Mantri Vaya Vandana Yojana for citizens aged 60 years and above.
This is a Government subsidized pension Scheme which shall provide an assured return of 8% p.a. payable monthly (i.e. equivalent to 8.30% p.a.) on pensioner surviving during the policy term of 10 years.
Pension Payment Mode
Yearly, Half-yearly, Quarterly, Monthly
The pension rates are not age specific and the rate of pension for Rs.1000/- purchase price for different modes of pension payments are as below –
|Monthly||: Rs.80.00 p.a.|
The pension installment shall be rounded off to the nearest rupee.
Policy Term 10 Years
Premium Paying Term Single time only
Minimum Entry Age 60 Years (Completed)
Maximum Entry Age No Limit
Minimum Pension Rs.1000 per month
Rs.3000 per quarterly
Rs.6000 per half yearly
Rs.12000 per yearly
Maximum PensionRs.10,000 per month
Rs.30,000 per quarterly
Rs.60,000 per half yearly
Rs.1,20,000 per yearly
Minimum and Maximum Purchase Price
|Mode of Pension||Minimum Purchase Price||Maximum Purchase Price|
On 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.
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 Purchase Price.
Loan facility is available after completion of 3 policy years.
Statutory taxes, if any, imposed on this plan by the Government of India or any other constitutional tax Authority of India shall be as per the Tax Laws and the rate of tax as applicable from time to time.