The Government of India introduced Pradhan Mantri Vaya Vandana Yojana, exclusively for senior citizens aged 60 years and above, has now come up with modified rate of pension.
The period of sale of the plan has been extended for a period of three years from Financial Year 2020-21 till 31st March, 2023. Earlier, it was available from May 4, 2017 to March 31, 2020.
Under the PM Vaya Vandana Yojana, the Indian citizens aged 60 and above can avail an annual pension of up to Rs 1,11,000.
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The scheme can be purchased offline as well as online. To purchase this scheme online, customers can log on to the official website of LIC- www.licindia.in
Eligibility Conditions and Other Restrictions:
Minimum Entry Age: 60 years (completed)
Maximum Entry Age: No limit
Policy Term: 10 years
Minimum Pension: Rs 1,000 per month, Rs 3,000 per quarter, Rs 6,000 per half-year and Rs 12,000 per year.
Maximum Pension: Rs 9,250 per month, Rs 27,750 per quarter Rs 55,500 per half-year and Rs 1,11,000 per year.
Mode of pension payment
The modes of pension payment are monthly, quarterly, half-yearly & yearly. The pension payment shall be through NEFT or Aadhaar Enabled Payment System. The purchase of the policy under the Government subsidised scheme requires unique Aadhaar number validation.
The first instalment of pension shall be paid after 1 year, 6 months, 3 months or 1 month from the date of purchase of the same depending on the mode of pension payment i.e. yearly, half-yearly, quarterly or monthly, respectively.
Surrender Value
The scheme allows premature exit during the policy term under exceptional circumstances like the Pensioner requiring money for the treatment of any critical/terminal illness of self or spouse.
The Surrender Value payable in such cases shall be 98% of the Purchase Price.
Loan
Loan facility is available after completion of 3 policy years. The maximum loan that can be granted shall be 75% of the Purchase Price. The rate of interest to be charged for loan amount shall be determined at periodic intervals.
For detailed information about the scheme, customers are requested to read the Sales Brochure Pradhan Mantri Vaya Vandana Yojana thoroughly.