Pradhan Mantri Vaya Vandana Yojana (PMVVY)

March 28, 2018

 

Ministry: Ministry of Finance

 Operating Agency:

  1. Life Insurance Corporation of India.

Objective of the Scheme:

  1. To provide social security during old age and to protect elderly persons aged 60 years and above against a future fall in their interest income due to uncertain market conditions.

Features of the Scheme:

  1. The scheme enables old age income security for senior citizens through provision of assured pension/return linked to the subscription amount based on government guarantee to Life Insurance Corporation of India (LIC).

  2. The scheme provides an assured return of 8% per annum for 10 years.

  3. The differential return, i.e. the difference between return generated by LIC and the assured return of 8% per annum would be borne by Government of India as subsidy on an annual basis. 

  4. Pension is payable at the end of each period during the policy tenure of 10 years as per the frequency of monthly/quarterly/half-yearly/yearly as chosen by the subscriber at the time of purchase. 

  5. Minimum purchase price under the scheme is Rs.1,50,000/- for a minimum pension of Rs. 1,000/- per month and the maximum purchase price is Rs.7,50,000/- for a maximum pension of Rs.5,000/- per month. 

  6. The scheme is open for subscription for a period of one year i.e. from 4th May, 2017 to 3rd May, 2018.

 Benefits of the Scheme:

  1. Pension Payment :

    • On survival of the Pensioner during the policy term of 10 years, pension in arrears (at the end of each period as per mode chosen) shall be payable.

  2. Death Benefit:

    • On death of the Pensioner during the policy term of 10 years, the Purchase Price shall be refunded to beneficiary.

  3. Maturity Benefit:

    • On survival of the pensioner to the end of the policy term of 10 years, Purchase price along with final pension installment shall be payable.

       

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