Pradhan Manthri Vaya Vandana Yojana (PMVVY)T-842 | Review
Pradhan Manthri Vaya Vandana Yojana (PMVVY) – Plan No 842 – is a pension scheme launched by Government of India, exclusively for senior citizens. This is a Government Subsidised pension scheme with an assured return of 8% per annum payable monthly for a period of 10 years. As the annuity amount is paid monthly the effective yield of 8% offered becomes equivalent to 8.3% Per annum. The plan is launched through public sector insurer Life Insurance Corporation of India (LIC) as the exclusive administrator.
| Eligibility Conditions and Restrictions | ||
|---|---|---|
| 1 | Minimum Age At Entry | 60 years completed |
| 2 | Maximum Age at Entry | No limit |
| 3 | Policy Term | 10 Years |
| 4 | Minimum Pension | Rs. 1000 per month |
| Rs. 3000 per quarter | ||
| Rs. 6000 per half year | ||
| Rs. 12000 per year | ||
| 5 | Maximum Pension | Rs. 5000 per month |
| Rs. 15000 per quarter | ||
| Rs. 30000 per Half year | ||
| Rs. 60000 per Year | ||
Calculate the available pension from the desired purchase price – Pradhan Manthri Vaya Vandana Yojana (PMVVY)
Calculate purchase price required from the desired pension – Pradhan Manthri Vaya Vandana Yojana (PMVVY)
Pradhan Manthri Vaya Vandana Yojana (PMVVY) Premium and Benefit Calculator – How to use it?
Two types of calculators are provided here. First one will give you available pension for a desired purchase price while the second one will give you amount you will have to pay for a desired pension. Enter the values as shown in the above picture and click calculate.
If you are unable to view the Premium Calculators here Click to open Premium Calculator Pradhan Manthri Vaya Vandana Yojana (PMVVY)T-842
Benefits payable under Pradhan Manthri Vaya Vandana Yojana (PMVVY)T-842
1. Pension
Pension as available depending on the pension mode selected will be paid (at the end of each period) for a period of 10 years.
2. Death benefit
Purchase price shall be refunded to the nominee or legal hairs on the unfortunate event of death of policy holder.
3. Maturity Benefit
On survival up to the end of the policy term(10 years) purchase price and final pension instalment shall be payable.
Pension Rates of Pradhan Manthri Vaya Vandana Yojana (PMVVY)(T-842)
Pension rates does not vary with age and the rate of pension for different modes of pension payment are as given below.
| Pension Mode | Pension Rate | Payable |
|---|---|---|
| Monthly Pension | 8.00 % | at the end of every month |
| Quarterly Pension | 8.05 % | at the end of every quarter |
| Half Yearly Pension | 8.13 % | at the end of every half year |
| Yearly Pension | 8.30 % | at the end of every year |
Purchase price restrictions for Pradhan Manthri Vaya Vandana Yojana (PMVVY)
Plan can be purchased by payment of a lump sum Purchase price. Pensioner has the option to choose either the amount of pension or the purchase price. Minimum and maximum purchase price for various modes of pension is given below.
| Mode of Pension | Minimum Purchase Price | Maximum Purchase Price |
|---|---|---|
| Yearly | Rs. 1,44,578 | Rs. 7,22,892 |
| Half – yearly | Rs. 1,47,601 | Rs. 7,38,007 |
| Quarterly | Rs. 1,49,068 | Rs. 7,45,342 |
| Monthly | Rs. 1,50,000 | Rs. 7,50,000 |
What is so special in Pradhan Manthri Vaya Vandana Yojana (PMVVY)
Off late, Indian as well as world economic scenario has witnessed dwindling interest rates. As the Interest rates of bank fixed deposits are hovering around 5 %, a guaranteed interest rate of 8% as pension is really attractive. Only limitations are the caps in the maximum purchase price and the minimum age at entry of 60 years.
Loan and Surrender facility on Pradhan Manthri Vaya Vandana Yojana (PMVVY)
Loan facility is available after the completion of 3 policy years. Maximum loan that can be granted shall be 75 % of purchase price. Surrender facility is available only under exceptional situations like the pensioner requiring money for the treatment of any critical/terminal illness of self or spouse and the amount payable shall be 98% of purchase price.
How to purchase Pradhan Manthri Vaya Vandana Yojana (PMVVY)?
This scheme can be purchased either online or offline based on your choice. Offline purchase can be done as any other plan through agents or contacting any LIC branch office.
If you decide to purchase it online you can click here to reach the relevant link in LIC’s web site.
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If you have any doubts or suggestions, please feel free to use the comment box given below.
Anish L J is a ‘Financial Planner’ and member of Chartered Insurance Institute(CII), London and Insurance Institute of India. He is also a finance, insurance and software consultant. He thoroughly follows the developments in finance, insurance, and other related sectors.
