Indialends, 27 Jul 2023

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Pradhan Mantri Vaya Vandana Yojana

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The Pradhan Mantri Vaya Vandana Yojana is a retirement cum pension scheme for senior citizens. The scheme is managed and operated by the Life Insurance Corporation. The plan is subsidized by the government and was launched in May 2017. The money invested in this scheme is known as the purchase price. As the sovereign guarantees back the scheme, it comes with a fixed rate of return on the investment. The scheme pays out regular pensions and the frequency can be monthly, quarterly, or yearly. The Pradhan Mantri Vaya Vandan Yojana is the best alternative to traditional bank deposits.

Eligibility criteria of Pradhan Mantri Vaya Vandana Yojana

There are no specific eligibility criteria for applying in Pradhan Mantri Vaya Vandana Yojana. It has the basic eligibility criteria as follows:

• Applicant must be a senior citizen of 60 years or above.
• Must be an Indian citizen
• Ready to avail of the policy term of 10 years
• The minimum purchase price is Rs 1.5 lakh, and it offers a monthly pension of Rs 1,000.
• The maximum purchase price is Rs 15 lakh, and it offers a monthly pension of Rs 10,000.

Documents required for Pradhan Mantri Vaya Vandana Yojana

• Aadhaar card
• Proof of age
• Proof of address
• Passport size photo of the applicant
• Documents indicating that the applicant has retired from employment

Benefits of Pradhan Mantri Vaya Vandan Yojana

• The Pradhan Mantri Vaya Vandana Yojana provides subscribers an assured return of 8% to 8.3% for a maximum of 10 years.
• It is providing a fixed sum on regular basis.
• The entire amount is paid on completing the policy tenure of 10 years.
• Taking this scheme, you become eligible to get a loan of 75% of the purchase price. One can avail loan after three years of the purchase of the scheme.
• Due to medical emergencies, be it is the policyholder or its family member, both are allowed to withdraw up to 98% of the purchase price.
• In case the subscriber of the scheme passed away before the completion of the policy term, then the nominee is to be paid out with the purchase price.

What is the application procedure of Pradhan Mantri Vaya Vandana Yojana?

Online procedure

• Log onto the official website of LIC
• Select ‘pension plans’ under products and proceed
• Fill in the relevant application form
• Submit the online application and upload the documents as requested

Offline Procedure

• Visit any of the nearest LIC branches to collect the application form.
• Duly fill the application form
• Submit the duly filled application form by attaching all relevant documents

Pension policy of Pradhan Mantri Vaya Vandana Yojana

The minimum purchase price is Rs 150,000 that offers a monthly pension of Rs 1000.  The pension amount a subscriber will get in his or her retirement age is based on the purchase price.

PMVVY is one of the best investment options for senior citizens. Any senior citizen who is looking for a regular source of income can invest in the Pradhan Mantri Vaya Vandana scheme launched by the Government. However, to invest in this scheme, one should have a considerable amount in hand.