Last Updated on January 7, 2023 by IGNOU Forum
Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme in India that was launched by the Indian government in 2017. It is a pension scheme for senior citizens aged 60 years or above. The scheme is administered by the Life Insurance Corporation of India (LIC) and is available through the LIC’s branches and agents, as well as through select banks.
Under the PMVVY, the policyholder can invest a lump sum amount and receive a guaranteed pension for a period of 10 years. The pension is paid monthly and the rate of pension is guaranteed for the entire policy term. The policyholder has the option to choose the amount of pension they want to receive, subject to a minimum and maximum limit.
The PMVVY also provides an option to receive the pension on a quarterly, half-yearly, or yearly basis. The policy has a maximum policy term of 10 years and the policyholder has the option to exit the scheme at any time after the completion of the first year.
The PMVVY is a useful pension scheme for senior citizens who want a regular income during their retirement years. It provides a guaranteed pension for a fixed period of time and offers flexibility in terms of the amount of pension and the frequency of payment.
Pradhan Mantri Vaya Vandana Yojana – Key Points
Here are some key points about the Pradhan Mantri Vaya Vandana Yojana (PMVVY):
- It is a pension scheme for senior citizens aged 60 years or above.
- The scheme is administered by the Life Insurance Corporation of India (LIC).
- The policyholder can invest a lump sum amount and receive a guaranteed pension for a period of 10 years.
- The pension is paid monthly, but the policyholder has the option to choose quarterly, half-yearly, or yearly payments.
- The rate of pension is guaranteed for the entire policy term.
- The policy has a maximum policy term of 10 years and the policyholder has the option to exit the scheme at any time after the completion of the first year.
- The PMVVY is a useful pension scheme for senior citizens who want a regular income during their retirement years.
Benefits of Pradhan Mantri Vaya Vandana Yojana
The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme for senior citizens that provides several benefits. Here are some benefits of the PMVVY:
Regular income: The PMVVY provides a guaranteed pension for a period of 10 years, which can provide a regular income to the policyholder during their retirement years.
Flexibility in pension amount: The policyholder has the option to choose the amount of pension they want to receive, subject to a minimum and maximum limit. This allows the policyholder to customize the pension amount to suit their needs.
Flexibility in pension frequency: The policyholder has the option to choose the frequency of pension payments, which can be monthly, quarterly, half-yearly, or yearly.
Guaranteed rate of pension: The rate of pension is guaranteed for the entire policy term, which means that the policyholder can be assured of a fixed income for the policy term.
Tax benefits: The premium paid for the PMVVY is eligible for tax deductions under Section 80C of the Income Tax Act.
Easy enrollment: The PMVVY is available through the LIC’s branches and agents, as well as through select banks. The enrollment process is simple and can be done at a bank or an LIC branch.
Overall, the PMVVY is a useful pension scheme for senior citizens who want a regular income during their retirement years. It provides a guaranteed pension for a fixed period of time and offers flexibility in terms of the amount of pension and the frequency of payment.
Eligibility of Pradhan Mantri Vaya Vandana Yojana
To be eligible for the Pradhan Mantri Vaya Vandana Yojana (PMVVY), the policyholder must be a senior citizen aged 60 years or above. There is no upper age limit for the PMVVY.
The PMVVY is available to all Indian citizens, whether resident or non-resident. The policyholder can be an individual or a joint policy with a spouse. The policy can be purchased by making a lump sum payment.
To apply for the PMVVY, the policyholder must visit a bank or an LIC branch and fill out an application form. The policyholder must also provide proof of identity and age, such as a passport, voter ID card, or PAN card. The policyholder must also provide proof of address, such as a utility bill or bank statement.
After the application is submitted, the bank or the LIC will verify the details and, if the policyholder is eligible, will enroll them in the PMVVY. The premium for the policy must be paid at the time of enrollment.
It is important to note that the PMVVY is a voluntary pension scheme and the policyholder has the option to opt out of the scheme at any time after the completion of the first year. If the policy is surrendered after the completion of the first year, the policyholder is entitled to receive the surrender value, which is the premium paid minus the pension received.
How to Apply for Pradhan Mantri Vaya Vandana Yojana
To apply for the Pradhan Mantri Vaya Vandana Yojana (PMVVY), you need to follow these steps:
Visit a bank or an LIC branch: You will need to visit a bank or an LIC branch to apply for the PMVVY.
Fill out the application form: You will need to fill out an application form to apply for the PMVVY. You can get the form from the bank or the LIC branch.
Submit proof of identity and age: You will need to submit proof of your identity and age, such as a passport, voter ID card, or PAN card, along with the application form.
Submit proof of address: You will also need to submit proof of your address, such as a utility bill or bank statement, along with the application form.
Pay the premium: The premium for the PMVVY must be paid at the time of enrollment. You can pay the premium in cash, by check, or through a bank transfer.
Submit the completed application form: After you have filled out the application form and collected all the necessary documents, you can submit the form to the bank or the LIC branch.
Wait for the application to be processed: The bank or the LIC will verify the details you have provided in the application form and, if you are eligible, will enroll you in the PMVVY.
It is important to note that the PMVVY is a voluntary pension scheme and you have the option to opt out of the scheme at any time after the completion of the first year. If you wish to opt out of the scheme, you can do so by contacting the bank or the LIC.
Frequently Asked Questions related to Pradhan Mantri Vaya Vandana Yojana
Here are some frequently asked questions about the Pradhan Mantri Vaya Vandana Yojana (PMVVY):
What is the PMVVY?
The PMVVY is a pension scheme for senior citizens aged 60 years or above. It provides a guaranteed pension for a period of 10 years and is administered by the Life Insurance Corporation of India (LIC).
How much pension does the PMVVY provide?
The policyholder can choose the amount of pension they want to receive, subject to a minimum and maximum limit. The current rate of pension for the PMVVY is 7.5% per annum.
Is the PMVVY renewable?
No, the PMVVY has a maximum policy term of 10 years. After the policy term is completed, the policyholder has the option to exit the scheme.
Who is eligible for the PMVVY?
To be eligible for the PMVVY, the policyholder must be a senior citizen aged 60 years or above. There is no upper age limit for the PMVVY.
How do I apply for the PMVVY?
To apply for the PMVVY, you need to visit a bank or an LIC branch and fill out an application form. You will also need to submit proof of identity and age, as well as proof of address. The premium for the policy must be paid at the time of enrollment.
How long is the policy term for the PMVVY?
The PMVVY has a maximum policy term of 10 years.
Can I exit the PMVVY before the policy term is over?
Yes, you have the option to exit the PMVVY at any time after the completion of the first year. If the policy is surrendered after the completion of the first year, you are entitled to receive the surrender value, which is the premium paid minus the pension received.
Is the rate of pension guaranteed for the entire policy term?
Yes, the rate of pension is guaranteed for the entire policy term.
Are there any tax benefits for the PMVVY?
Yes, the premium paid for the PMVVY is eligible for tax deductions under Section 80C of the Income Tax Act. The pension received is taxable as per your income tax slab.
Who administers the PMVVY?
The PMVVY is administered by the Life Insurance Corporation
