LIC Offering Pradhan Mantri Vaya Vandana Yojana Pension Scheme
Life Insurance Corporation Of India (LIC) is authorized to operate Pradhan Mantri Vaya Vandana Yojana, which is a union government Pension Scheme.
Eligibility of the Pradhan Mantri Vaya Vandana Yojana
Under the policy brochure, LIC has mentioned the eligibility criteria of the pension scheme. The minimum entry age in the scheme is 60 years, while there is no maximum entry age for the same. The policy term has been fixed for 10 years, with a minimum pension amount of Rs. 1,000, monthly, or Rs. 3,000 quarterly, or Rs. 6,000 half-yearly, or Rs. 12,000 yearly. The maximum pension amount is Rs. 9,250 monthly or Rs. 27,750 quarterly, or Rs. 55,500 half-yearly, or Rs. 1,11,000 yearly. The total amount of purchase price under all the policies under this plan, and all the policies taken under Pradhan Mantri Vaya Vandana Yojana allowed to a senior citizen can not exceed Rs. 15 lakhs, according to the policy regulation.
Benefits offered by Pradhan Mantri Vaya Vandana Yojana
If the investor or the pensioner survived the full policy term of 10 years, a pension in arrears, at the end of each period as per the mode chosen will be paid. If the investor dies before the policy term ends, the purchase price will be refunded to the beneficiary of the scheme. Similarly, under maturity benefits, the purchase price along with the final pension installment will be paid, on the survival of the pensioner to the end of the policy term of 10 years. Additionally, the amount of Tax (GST) paid by the investor, will not be considered for the calculation of benefits payable under the plan.
Pension payment rate and purchase price
As an investor, you can purchase this plan by payment of a lump-sum purchase price. You can choose from either the below-mentioned amount of pension or the Purchase Price. The minimum and maximum Purchase Prices under different modes of pension have been mentioned here.
Mode of Pension Minimum Purchase Price Maximum Purchase Price
Yearly Rs. 1,56,658 Rs. 14,49,086
Half-yearly Rs. 1,59,574 Rs. 14,76,064
Quarterly Rs. 1,61,074 Rs. 14,89,933
Monthly Rs. 1,62,162 Rs. 15,00,000
(The Purchase Price to be charged will be rounded off.)
The pension rates for Rs. 1000/- Purchase Price for different modes of pension payments have been mentioned by LIC. For yearly mode, the amount will be Rs. 76.60 p.a., for Half-yearly mode, the amount will be Rs. 75.20 p.a., for Quarterly mode, the amount will be Rs. 74.50 p.a., and for Monthly mode, the amount will be Rs. 74.00 p.a.
Other related benefits
You can avail the loan facility under the Pradhan Mantri Vaya Vandana Yojana. However, you can avail yourself of 75% of the Purchase Price as the maximum loan amount. The interest will be charged for the loan amount, which will be determined at periodic intervals. LIC informs, “Loan interest will be recovered from the 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 the pension. However, the loan outstanding shall be recovered from the claim proceeds at the time of exit. The applicable interest rate shall be based on the method approved by IRDAI.”
You can also avail of a free lock-in period, which means if the investor or the policyholder is not satisfied he or she may return the policy to the Corporation within 15 days (30 days if this policy is purchased online) from the date of receipt of the policy stating the reason of objections. In that case, the amount of Purchase Price will be refunded within a free look-in period.
