Organisation : Life Insurance Corporation
Service Name : Pradhan Mantri Vaya Vandana Yojana
Applicable For : Policy Holders
Applicable States/ UTs : India
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LIC Pradhan Mantri Vaya Vandana Yojana
Government of India has announced Pradhan Mantri Vaya Vandana Yojana for citizen age 60 years and above. LIC of India has been given the sole privilege to operate this scheme.
Related : LIC Policies Under Salary Savings Scheme : www.statusin.in/35909.html
The Pradhan Mantri Vaya Vandana Yojana has been launched on 4th May 2017.The scheme shall be available for one year from date of launch.
Benefits
Pension Payment :
On survival of the Pensioner during the policy term of 10 years, pension in arrears (at the end of each period as per mode chosen) shall be payable.
Death Benefit :
On death of the Pensioner during the policy term of 10 years, the Purchase Price shall be refunded to beneficiary.
Maturity Benefit :
On survival of the pensioner to the end of the policy term of 10 years, Purchase price along with final pension installment shall be payable.
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
** Rs.12,000/- per year
Maximum Pension :
** Rs. 5,000/- per month
** Rs. 15,000/- per quarter
** Rs. 30,000/- per half-year
** Rs. 60,000/- per year
Ceiling of maximum pension is for a family as a whole i.e. total amount of pension under all the policies allowed to a family under this plan shall not exceed the maximum pension limit. The family for this purpose will comprise of pensioner, his/her spouse and dependants.
Payment Of Purchase Price
The scheme can be purchased by payment of a lump sum Purchase Price. The pensioner has an option to choose either the amount of pension or the Purchase Price.
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 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 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 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.