Pradhan Mantri Vaya Vandana Yojana

key points of the plan

 

• Pradhan Mantri Vaya Vandana Yojana is a pension scheme announced by the Government of India exclusively for senior citizens of 60 years of age and above.

• This plan can be purchased offline as well as online through Life Insurance Corporation of India (LIC). Life Insurance Corporation of India has the right to operate this scheme.privilege has been granted.

• This pension plan can be purchased during the same period.

• This scheme is payable monthly at 8% per annum for 10 years (effective 8.30 per cent per annum).Pension is payable at the end of each period during the policy period of 10 years as per the frequency (monthly/quarterly/half-yearly/annual) chosen by the pensioner at the time of purchase of the plan.

• The difference between the interest guaranteed and the actual interest and the administrative expenses related costs will be paid by the government to LIC as subsidy.

• This scheme is exempted from Service Tax/GST. 

• Premature withdrawal is also allowed in this plan for the treatment of any serious/ terminal illness of self or of your spouse. In case of such premature withdrawal, 98 per cent of the purchase price of the scheme will be refunded.

• The purchase price will be paid to the beneficiary on the death of the pensioner during the policy term of 10 years.

• The purchase price along with the last pension installment will be payable to the pensioner till the end of the policy term of 10 years.