The Government of India in collaboration with LIC has introduced a pension scheme for a limited period, called the Pradhan Mantri Vaya Vandana Yojana. The scheme came into effect in May 2017 and can be availed till 31st March 2020. The scheme is available through both online and offline modes and can be availed from the LIC official website.
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The scheme serves as social security to senior citizens after reaching a certain age which is paid back to them in regular installments. Here is all you need to know about PMVVY:
The main objective of the PMVVY scheme is to provide senior citizens with monetary benefits and protect them against any uncertainties and fall in the bank interest rates and other profit generating avenues. It is a retirement income scheme that aims to provide enough monetary support to senior citizens such that basic financial needs are met.
See Also: Aadhaar Made Mandatory for Subscribers of PMVVY Pension Scheme
Following criteria need to be met in order to be eligible for availing the benefits of PMVVY:
Note: While calculating the maximum pension amount, the pensioner’s whole family is considered which includes spouse, dependents, and the pensioner himself.
Following are the benefits under the PMVVY scheme:
See Also: Pradhan Mantri Vaya Vandana Yojana Rs 10000 Monthly Pension Plan
The scheme can be availed both online and offline through the LIC. The purchase price needs to be paid in a lump sum and the pension amount can be selected from the available options.
MODE OF PENSION |
MINIMUM PURCHASE PRICE (Rs) |
MAXIMUM PURCHASE PRICE (Rs) |
Yearly |
1,44,578 |
14,45,783 |
Half-yearly |
1,47,601 |
14,76,015 |
Quarterly |
1,49,068 |
14,90,683 |
monthly |
1,50,000 |
15,00,000 |
Under the scheme, the pension is paid on a yearly, half-yearly, quarterly and monthly basis. The policyholders can choose from the available options as per requirements. The pension payment can be done only in two ways - NEFT (National Electronic Fund Transfer) or AEPS (Aadhar Enabled Payment System).
The maximum permissible time limit to make the first pension payment is 1 year, 6 months, 3 months and 1 month respectively.
See Also: Pradhan Mantri Vaya Vandana Yojana
There is no tax deduction like Section 80C for PMVVY Scheme. Neither is the income tax free. Returns are taxed as per applicable tax laws.
There are various schemes that exclude suicide from death benefits. However, under the PMVVY, the full purchase price is paid in case the policyholder commits suicide.
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