The PMVVY provides a valuable security net. Remember, it's wise to explore different investment options for retirement. Fixed deposit (FD) offer guaranteed returns and flexible tenures, allowing you to tailor your investments alongside the PMVVY or other pension schemes.
Features and benefits of PMVVY yojana
Here are some key benefits of the PMVVY:
- The Pradhan Mantri Vaya Vandana Yojana guarantees a regular payout for up to 10 years. You can choose the frequency of payments that best suits your needs.
- The scheme starts with a guaranteed 7.40% annual interest rate for 2023-24. Each year, the rate will be adjusted, potentially aligning with the Senior Citizens Saving Scheme (SCSS).
- The Pradhan Mantri Vaya Vandana Yojana offers flexible payout options. You can choose to receive your pension monthly, quarterly, half-yearly, or annually, based on your individual needs. Your first payment will arrive shortly after purchasing the plan, with the timing depending on your chosen payout frequency.
- In case of a medical emergency, you can access 98% of your investment by exiting the policy early.
- If you are not satisfied with the Pradhan Mantri Vaya Vandana Yojana after your purchase, you have a window to return it. For online purchases, this "free look" period is 30 days from the start of the policy. Offline purchases have a shorter 15-day window.
The full purchase amount, after deducting any applicable stamp duty or released pension payment, will be refunded within the specified free lock-in period.
- With the Pradhan Mantri Vaya Vandana Yojana, you have the option to take a loan against your investment after 3 years. You can borrow up to 75% of the amount you invested. Interest on the loan will be deducted from your regular pension payments. Interest is due on your pension payment date, and if you surrender the policy or it reaches maturity, any outstanding loan balance will be deducted from the final payout.
The maximum and minimum pension provided under the PMVVY
Pension frequency
|
Minimum pension
|
Maximum pension
|
Monthly
|
Rs. 1,000
|
Rs. 9,250
|
Quarterly
|
Rs. 3,000
|
Rs. 27,750
|
Half-Yearly
|
Rs. 6,000
|
Rs. 55,500
|
Annually
|
Rs. 12,000
|
Rs. 1,11,000
|
How to apply for Pradhan Mantri Vaya Vandana Yojana (PMVVY)?
Online method
Step 1: Visit the official website of the Life Insurance Corporation.
Step 2: Navigate to the 'Buy Policy Online' section and choose "Pradhan Mantri Vaya Vandana Yojana."
Step 3: Click on button no. 842 for 'Buy Online,' then select 'Click to Buy Online' on the new page.
Step 4: Create an Access ID by providing details like name, email, mobile number, date of birth, address, and servicing unit. You will receive the 9-digit Access ID via SMS or email.
Step 5: Enter the Access ID and click 'Proceed' to continue with the application.
Step 6: Select the pension plan that suits you best, fill out the application form, submit the required documents, and proceed with the payment. Upon successful submission, you will receive an acknowledgment and policy number.
Offline method
To buy this scheme offline, visit your nearest or preferred LIC branch. Fill out the application form and submit it with the necessary documents and the chosen amount.
Maximum and minimum purchase and pension price
This table summarises the pension payouts offered under the Pradhan Mantri Vaya Vandana Yojana scheme based on the investment amount and chosen payment frequency.
Mode of Pension Payment
|
Minimum Purchase Price (Investment in Rs.)
|
Minimum Pension (in Rs.)
|
Maximum Purchase Price (Investment in Rs.)
|
Maximum Pension (in Rs.)
|
Monthly
|
1,62,162
|
1,000
|
15,00,000
|
9,250
|
Quarterly
|
1,61,074
|
3,000
|
14,89,933
|
27,750
|
Half-Yearly
|
1,59,574
|
6,000
|
14,76,064
|
55,500
|
Yearly
|
1,56,658
|
12,000
|
14,49,086
|
1,11,000
|
Important points
- Investment amount determines the pension payout.
- Higher investment leads to a higher monthly pension.
- Choose the payout frequency that best suits your financial needs
Taxability provisions of PMVVY scheme
- Investment: Contributions made to PMVVY are not eligible for a tax deduction under Section 80C of the Income Tax Act.
- Returns: The interest earned on PMVVY investments is taxable as per the applicable income tax bracket.
- Tax Deduction at Source (TDS): TDS applies to the pension received from PMVVY.
- GST: PMVVY investments are exempt from Goods and Services Tax (GST).
How to check PMVVY policy details
Policyholders can access their PMVVY policy details through the Umang App:
- Navigate to the PMVVY section within the Umang App
- Locate the "Policy Basic Details" section and click "Open"
- Choose the preferred login method: MPIN or OTP
- Enter your mobile number and the chosen login credential (MPIN/OTP)
- Under "General Services," select "Policy Basic Details"
- Provide your policy number and mobile number, then click "View Details"
- Your policy information will be displayed
Eligibility criteria for PMVVY
The key eligibility criteria for PMVVY are as follows:
- Applicant must be a citizen of India.
- The applicant should be at least 60 years of age (completed) while entering the PMVVY scheme.
- There is no maximum age of entering into the policy.
- The maximum purchase price for PMVVY should not go beyond Rs. 15 lakh
Documents required to apply for Pradhan Mantri Vaya Vandana Yojana (PMVVY)
- Bank account details
- Aadhaar card
- PAN card
- Address proof
- Age proof
- Passport size photo
- Proof of retirement from employment
Fixed deposits are reliable investment option for senior citizens seeking steady income. Consider incorporating them into your retirement portfolio alongside schemes like PMVVY for diversification. Bajaj Finance offers one of the highest interest rates, up to 8.65% p.a., on their FD. Additionally, Bajaj Finance FDs are AAA rated, ensuring the highest level of safety.
Additional read: PM-Kisan Samman Nidhi Yojana
Contact details for inquiries regarding the PMVVY policy
- Phone: 022-67819281 or 022-67819290 (Monday to Friday, 10:00 AM to 5:30 PM IST)
- Email: onlinedmc@licindia.com
Please note: These contact details are specific to PMVVY policy inquiries.
Investment considerations
The PMVVY scheme offers a guaranteed pension option for eligible senior citizens. It can be a valuable tool for retirement planning. However, a significant initial investment is required to participate.
Conclusion
The Pradhan Mantri Vaya Vandana Yojana (PMVVY) offers a compelling option for senior citizens seeking safe and reliable retirement income. With its guaranteed returns, flexible pay-out options, and government backing, PMVVY is a valuable tool for securing your financial future.
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