Pradhan Mantri Vaya Vandana Yojana is a pension scheme for senior citizens aged 60 years or more which will guarantee assured returns to them.
Life Insurance Corporation of India is the sole implementing agency of the Pradhan Mantri Vaya Vandana Yojana.
Terms of the Scheme
1.The scheme will be available from 4th May 2017 to 3rd May 2018.
2.It can be purchased both online and offline from LIC.
Features of the Scheme
1.Pradhan Mantri Vaya Vandana Yojana will offer an assured return of 8% per annum for a period of 10 years on a single lump sum premium which is Rs.150,000(minimum) and Rs.750,000(maximum).
2.The pension will be paid monthly, quarterly or yearly depending upon the choice of senior citizens.Minimum Pension is Rs.1000/month and maximum pension is Rs.5000/month.
3.Statutory taxes shall be as per the Tax laws and the rate of tax as applicable from time to time. The amount of tax paid shall not be considered for the calculation of benefits payable under the plan.
4.It offers a loan facility up to 75% of purchase price amount after 3 policy years.
The rate of interest to be charged for loan amount shall be determined at periodic intervals. For the loan sanctioned in Financial Year 2016-17, the applicable interest rate is 10% p.a. payable half-yearly for the entire term of the loan.
Loan interest will be recovered from pension amount payable under the policy. The Loan interest will accrue as per the frequency of pension payment under the policy and it will be due on the due date of pension. However, the loan outstanding shall be recovered from the claim proceeds at the time of exit.
- A premature exit from the scheme is allowed in case of liquidity needs due to the serious illness of pensioner himself or of the spouse.The amount refundable in that case is 98%of the purchase price.
6.On the death of the pensioner, the purchase price will be paid to the beneficiary.
7.On completion of 10 years of the scheme, entire purchase price along with any outstanding pension amount will be paid to the pensioner.
In the period of decreasing interest rates in the economy, this scheme(Pradhan Mantri Vaya Vandana Yojana) is a big support of senior citizens so that they can get an assured amount of pension in their old age.
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