LIC Pradhan Mantri Vaya Vandana Yojna 2020: Check Interest Rate & Benefits

LIC Pradhan Mantri Vaya Vandana Yojna 2020: Check Interest Rate & Benefits

LIC has yet again brought a Good News for Senior Citizens. Amid COVID 19 financial disruptions where FD rates are diminishing constantly and hurting the passive income of amount parked in a bank account, LIC has launched a revised version of Pradhan Mantri Vaya Vandana Yojna 2020 from today, i.e wef 26 May 2020.

The government subsidised PMVVY scheme is a 10-year assured return pension scheme for senior citizens. Available only with LIC, it is a non-linked, non-participating pension plan at core which offers as much as 7.66 p.a interest rate.

The plan is available for public from May 26, 2020 for three financial years. So, you can buy this plan till March 31, 2023. The LIC PMVVY can be purchased offline as well as online from the official website www.licindia.in

PMVVY 2020: The Scheme Highlights

Name of the Scheme

Pradhan Mantri Vaya Vandana Yojana (PMVVY)

Type of Plan

A govt-backed pension plan

Minimum Entry Age

60 years

Maximum Entry Age

No Limit

Who is the issuer?

LIC licindia.in

Maximum Pension Amount

  • Monthly: Rs 9,250
  • Quarterly: Rs 27,750
  • Half-yearly: Rs 55,500
  • Annually: Rs 1,11,000

Purchase Price

  • Monthly: Rs 1,62,162
  • quarterly:  Rs 1,61,074,
  • half-yearly: Rs 1,59,574
  • Annual mode: Rs 1,56,658

Term of Policy

10 years

Interest Rate

7.40 p.m. or 7.66 p.a.

Premature Exit

Allowed.(For treatment of critical, terminal illness of self or spouse) Surrender Value is 98% of Purchase Price

Credit Guarantee

Can be used to draw loan up to 75% of purchase price after 3 policy years.

LIC PMVVY: Features & benefits

10 year policy with best returns!

The government backed PMVVY policy is undoubtedly the best pension plan for senior citizens. It is yielding the best returns, better than any other senior citizen deposit scheme. It is a 10 years plan which is offering an assured return of 7.40% p.a. or 7.66% p.a. for 10 years if bought in the financial year ending 31st March 2021.

However the applicable rate of interest for policies sold during the next two financial years will be as per the rate reviewed by Finance Ministry then respectively.

Benefits of PMVVY:

The PMBBY provides three types of benefits: pension benefit, death benefit & maturity benefit.

1. Pension Payment:

The plan pays out pension in arrears to the pensioner on survival during the policy term. This benefit ceases on death of the pensioner.

2. Death Benefit:

In case of the pensioner’s death during 10 years policy term, the Purchase Price is refunded to the beneficiary.

3. Maturity Benefit:

On survival of the pensioner till the end of the 10 years policy term, Purchase price + final pension instalment is paid out.

Purchase Price & Pension Amount:

The total amount of purchase price under all the policies of Pradhan Mantri Vaya Vandana Yojana shall not exceed Rs. 15 lakhs.

Also, there is no exclusion on account of suicide. Full Purchase Price shall be payable to the beneficiaries.

The scheme can be purchased in a lump-sum as well. The pensioner gets an option to choose pension amount and purchase price. Also they can choose monthly/quarterly/half-yearly or yearly mode of pension.

The purchase price will be as follows:

  • Monthly mode – Rs 1,62,162
  • quarterly mode– Rs 1,61,074,
  • half-yearly – Rs 1,59,574
  • Annual mode– Rs 1,56,658

The maximum pension is as follows:

  • Monthly: Rs 9,250
  • Quarterly: Rs 27,750
  • Half-yearly: Rs 55,500
  • Annually: Rs 1,11,000

Loan against policy:

In case of emergency, the pensioner can use the policy as collateral for loan. The loan can be raised for up to 75% of purchase price after completing 3 policy years.

 

Also Read: Should You Opt for Moratorium 2.0? Know the Cost of 6 Free EMI Months

 

Surrender Value:

The PMVVY allows the pensioner to exit prematurely for medical emergency. The surrender value shall be 98% of the purchase price.

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