PMVVY Scheme, Pradhan Mantri Vaya Vandana Yojana: The Pradhan Mantri Vaya Vandana Yojana is a very useful and beneficial Government scheme that is specifically popular among the elderly or retired citizens. If you are not aware of PMVVY, it is a retirement and pension scheme launched by the Indian Government in 2017. This scheme is operated as well as managed by the Life Insurance Corporation of India (LIC), which is the largest life insurance provider in the country.
The PMVVY scheme is now valid till 31st March 2023 and will provide a guaranteed pension of 7.40 percent per annum payable monthly for 2021-22. For this ongoing Financial Year, the PMVVY scheme has assured the pension rate and it will be payable for the full policy term which will be of 10 years for all the policies bought till the end of the financial year i.e., 31st March 2022. In this article, you are going to get all the details that you may want to know about the PMVVY scheme.
Pradhan Mantri Vaya Vandana Yojana Overview
PMVVY is a retirement plus pension scheme that has been announced by the Government of India. The main aim of this pension scheme which was launched in May 2017 is to help senior citizens who are aged 60 years and above.
This scheme is for the senior citizens which are managed as well as operated by Life Insurance Corporation (LIC). The scheme helps in paying out regular pension and the frequency can be for a fixed time such as quarterly, monthly, half-yearly, or annually. In simple words, the PMVVY is an exceptional alternative to traditional bank deposits.
- This government launched scheme helps in providing a guaranteed 8 percent return per annum payable monthly and it is relieved from service tax/GST as well.
- The scheme also provides loans up to 75 percent of the purchase price after three policy years.
- Additionally, the scheme also lets premature exit for the treatment of any critical/ terminal illness whether it is of self or of a spouse. In such a premature exit, 98 percent of the Purchase Price will be intended to be refunded.
- During the policy term of 10 years, if the pensioner dies, then the benefits of the scheme can be allotted to the beneficiary or nominee.
- Overall, the benefits of the scheme are applicable to the pensioner, their spouse, and their children.
PMVVY Scheme Benefits
Some of the Major Benefits of the PMVVY scheme are given below:
- This Scheme provides an assured return of 8% Per Anum Payable Monthly and is exempted from Service Tax or GST.
- PMVVY Scheme offers loans Up to 75% of the Purchase Price after 3 Policy Years.
- This scheme also allows for premature exit for the Treatment of any Critical or Terminal Illness of self or Spouse. On Such premature Exit, 98% of the Purchase Price shall be refunded.
- The Benefit of the PMVVY Scheme is applicable to the pensioner, His/Her Spouse, or Dependents.
Eligibility Criteria for PMVVY
When it comes to eligibility criteria, there are no such specific requirements for PMVVY except the candidate must be a senior citizen (60 years of age or above).
- The candidate must be a citizen of India.
- There is no specific maximum age for applying to the PMVVY scheme.
- The applicant should be ready to gain the policy term of 10 years.
- Talking about the minimum pension that is provided under the PMVVY is as follows:
Monthly: Rs. 1,000 per month.
Quarterly: Rs. 3,000 per quarter.
Half-Year: Rs. 6,000 per half-year.
Yearly: Rs.12,000 per year.
- The maximum pension that is offered under this PMVVY is as follows:
Monthly: Rs. 9,250 per month.
Quarterly: Rs. 27,750 per quarter.
Half-Year: Rs. 55,500 per half-year.
Yearly: Rs. 1,11,000 per year.
- One should take note that the total purchase price under the PMVVY must not surpass Rs.15 lakh limit.
What are the Documents Required For PMVVY?
If you want to apply for the PMVVY scheme, you will require some documents which are necessary for this process.
- Aadhaar Card
- PAN Card
- Proof of your Age
- Address Proof Certificate
- Income Proof Documents
- Bank Account Passbook
- Passport size photo of the applicant
- Documents that will prove the applicant has been retired from his employment.
How to Apply For PMVVY?
Overall, there are two main methods through which you can apply for PMVVY. If you are interested to subscribe to this government-launched scheme, then follow these methods which are given below:
Method 1: Online Process
Here are the step-by-step guidelines to apply for PMVVY through the online process:
- Step 1: Start the process by logging onto the LIC official website.
- Step 2: After landing on its homepage, you need to click on the ‘Buy Online Policies’ option and then after scrolling down the page, you’ll find a ‘Click here’ button. Click on that option.
- Step 3: Now you need to press on another link that says the ‘Pradhan Manti Vaya Vandana Yojana’ option. You will find this option under the heading ‘Buy Policy Online.’
- Step 4: After this, a new page will open on the screen and you need to click on the ‘Click to Buy Online’ option.
- Step 5: Now, key in your contact information and click on the ‘Proceed’ button.
- Step 6: Fill out the application form completely by providing all the details carefully.
- Step 7: At last, you need to submit the online application, then upload the documents carefully. Once everything is done, click on the ‘Submit’ button to complete the registration procedure.
Method 2: Offline Procedure
Here are the step-by-step instructions to apply for PMVVY through the offline procedure:
- Step 1: In order to opt for the offline method, you need to collect the application form which you can get at any LIC branch near you.
- Step 2: Once you have received the application form, you need to fill in all the required information completely.
- Step 3: After filling out the form, you have to submit it to the LIC branch along with all the relevant documents attached to the form.
- Step 4: As soon as the verification of your documents is completed, a LIC agent is going to start the policy.
One should take note, that there are four modes of pension payment which are monthly, quarterly, half-yearly, and yearly. It is up to the policyholder to choose their pension payment mode according to their preference while subscribing to the policy. As soon as the mode is selected, it can’t be changed to another mode throughout the policy term.
In the meantime, at the time of purchasing the policy, the policyholder needs to have a unique Aadhaar number validation. Also, the payment of pension is going to be done through NEFT or Aadhaar enabled system for payment. As a result, the pension holder doesn’t need to not visit the bank or LIC agent for collecting their pension payments.