// LIC | Pradhan Mantri Vaya Vandana Yojana




Pradhan Mantri Vaya Vandana Yojana

Government of India in the Budget Speech of 2018-19 has announced the enhancement of maximum limit under Pradhan Mantri Vaya Vandana Yojana to Rs. 15 lakhs per senior citizen. The period of sale for this scheme has also been extended upto 31st March, 2020.

LIC of India has been given the sole privilege to operate this scheme.

This scheme can be purchased offline as well as online. To Purchase this scheme online please log on to our website

LIC of India has been given the sole privilege to operate this scheme.

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 the 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. 10,000/- per month
    Rs. 30,000/- per quarter,
    Rs. 60,000/- per half-year
    Rs. 1,20,000/- per year.

Ceiling of maximum pension is for a family as a whole i.e. total amount of pension under all the policies issued 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 plan 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.

The minimum and maximum Purchase Price under different modes of pension will be as under:

Mode of Pension Minimum Purchase Price Maximum Purchase Price
Yearly Rs. 1,44,578/- Rs. 14,45,783/-
Half-yearly Rs. 1,47,601/- Rs. 14,76,015/-
Quarterly Rs. 1,49,068/- Rs. 14,90,683/-
Monthly Rs. 1,50,000/- Rs. 15,00,000/-

The Purchase Price to be charged shall be rounded to nearest rupee

Mode of pension payment:

The modes of pension payment are monthly, quarterly, half-yearly & yearly. The pension payment shall be through ECS/NEFT only.

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.

Sample Pension rates per Rs.1000/- Purchase Price

The pension rates for Rs.1000/- Purchase Price for different modes of pension payments are as below:

  • Yearly: Rs. 83.00 p.a.
  • Half-yearly: Rs. 81.30 p.a.
  • Quarterly: Rs. 80.50 p.a.
  • Monthly: Rs. 80.00 p.a.

The pension instalment shall be rounded off to the nearest rupee.

These rates are not age specific.

Surrender Value:

The policy can be surrendered aftercompletion of 15 years. The Surrender Value payable will be refund of Purchase Price. However, under exceptional circumstances, if the pensioner requires money for the treatment of any critical/terminal illness of self or spouse then the policy can be surrendered before the completion of 15 years and the Surrender Value payable 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 would be determined from time to time by the Corporation.

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.

Taxes:

Taxes including Service Tax, if any, shall be as per the Tax laws and the rate of tax as applicable from time to time.

The amount of tax payable as per the prevailing rates shall be payable by the policyholder on Purchase Price. The amount of Tax paid shall not be considered for the calculation of benefits payable under the plan.

Free Look period:

If a policyholder is not satisfied with the "Terms and Conditions of the policy, he/she may return the policy to the Corporation within 15 days from the date of receipt of the policy stating the reason of objections.

The amount to be refunded within free look period shall be the Purchase Price deposited by the policyholder after deducting the charges for Stamp duty.