Pradhan Mantri Vaya Vandana Yojana
Pradhan Mantri Vaya Vandana Yojana (Plan No. 856, UIN No. 512G336V01) is a pension scheme issued by Life Insurance Corporation of India and is designed for citizens above the age of 60 years. Under this plan, the guaranteed rates of pension for policies sold during a year are reviewed and decided at the beginning of each year by the Ministry of Finance, Government of India. For the first financial year i.e. upto 31st March 2021, the scheme has decided to provide an assured pension of 7.40% p.a. payable monthly. Given below are the complete details of this plan. Let’s take a look.
Features and Benefits of PMVVY Policy
This plan comes with a variety of features that help the customers in a wide range. To give you a clarity about those features, we have created a list of all the plan’s features below. Check it out and see how this plan can be useful to you.
- Pension Benefit- If the policyholder survives during the policy term of 10 years, then the pension amount in arrears i.e. at the end of each period as per mode chosen is paid to the policyholder. The total amount of purchase price under this plan can not exceed more than Rs. 15 lakhs.
- Death Benefit- In case of the death of the pensioner during the policy term, the purchase price of this policy is refunded to policyholder’s nominee/beneficiary.
- Maturity Benefit- Under this benefit, if the pensioner survives upto the stipulated date of maturity, then the purchase price of this policy along with the final pension installment is refunded back to the pensioner.
- Loan facility- Another distinguishing feature of this plan is that it comes with the benefit of loan facility. This implies that the policyholder can avail loan against this policy after completing 3 policy years. The maximum loan that can be granted is equal to 75% of the purchase price.
In order to buy the Pradhan Mantri Vaya Vandana Yojana policy, the customer need to fulfill a certain set of eligibility rules and criteria. Given below are the details about the same. Let’s take a look.
|Entry Age||60 years (completed)||No limit|
|Pension (Monthly)||Rs. 1,000/-||Rs. 9,250/-|
|Policy Term||10 years|
|Mode of pension payment||Yearly, half-yearly, quarterly or monthly|
Premium Rates of Pradhan Mantri Vaya Vandana Yojana
In order to help you understand this policy and its premium rates better, we’ve created here a sample illustration about the premium rates of this plan. The pension rates for Rs. 1000/- purchase price for different modes of pension payments are given in the table below. Let’s have a look.
|Payment mode||Payment amount|
|Yearly||Rs. 76.60 p.a.|
|Half yearly||Rs. 75.20 p.a.|
|Quarterly||Rs. 74.50 p.a.|
|Monthly||Rs. 74.00 p.a.|
Details of Pension and Purchase Rates of Pradhan Mantri Vaya Vandana Yojana
Pradhan Mantri Vaya Vandana Yojana is designed to offer maximum convenience to its customers. Meaning, the policy can be purchased by paying an yearly, half-yearly, quarterly or monthly price. In return, you’ll be eligible to receive the pension according to the chosen modes. Here are the samples rates for your understanding.
|Modes||Minimum Purchase Price (Rs.)||Maximum Purchase Price (Rs.)||Minimum Pension (Rs.)||Maximum Pension (Rs.)|
How To Buy Pradhan Mantri Vaya Vandana Yojana Policy?
The buying process of Pradhan Mantri Vaya Vandana Yojana policy is really simple and easy. The company now also offers an online buying process wherein the customers can login to the LIC website and buy the plan. To help you understand this process better, we’ve created below a step by step list of the online buying process. Let’s take a look.
- Visit the official website of the LIC company.
- Slide below on the home page and you’ll see the ‘Buy online policies’ tab.
- Select ‘Click here’ tab.
- You’ll get redirected to the online policies.
- Select Pradhan Mantri Vaya Vandana Yojana and tap on the ‘Click to buy online’ option.
- Fill in your personal and contact details.
- After submitting the details, you can customize your plan as per your needs.
- Once you’ve checked all the details, you can pay the premium amount.
The policy details will be shared with you over email.
List of Documents Required While Filing a Claim Under PMVVY
While filing for a claim, the customers need to submit a list of documents to the company. Given below is a list of all those documents. Let’s check out.
For benefit payable on death of the Pensioner:
- In case of death of the Pensioner, the claimant shall submit the claim forms, as prescribed by the Corporation, accompanied with original policy document, proof of title, proof of death, to the satisfaction of the Corporation. If the age is not admitted under the policy, the proof of age of the pensioner shall also be submitted.
- Within 90 days from the date of death, intimation of death along with death certificate must be notified in writing to the office of the Corporation where the policy is serviced for any claim to be admissible. However, delay in intimation of the genuine claim by the claimant, if any, may be condoned by the Corporation, on merit, where delay is proved to be for reasons beyond his/her control.
For pension payments:
- The Pensioner need to submit the Life Certificate in the proforma of the Corporation or online “Jeevan Pramaan” or in any other manner as enabled by Corporation in this regard at the time intervals as prescribed from time to time. The pension payments shall be released only on receipt of the LifeCertificate.
For benefit payable on Surrender:
- The Pensioner need to submit the discharge form along with the original policy document, proof of medical treatment of self/spouse and proof of age, if the age is not admitted earlier.
For benefit payable on Maturity:
- The Pensioner must submit the discharge form along with the original policy document and proof of age, if the age is not admitted earlier.
- In addition to above, any requirement mandated under any statutory provision or as may be required as per law shall also be required to be submitted.
Frequently Asked Questions
Yes, every customer has the right to return the policy if he/she is not satisfied with the “Terms and Conditions” of the policy. The return can be made 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 for objections. The amount to be refunded within the free look period shall be the Purchase Price deposited by the policyholder after deducting the charges for Stamp duty and pension paid, if any.
This plan allows policyholder’s to avail the facility of premature exit during the policy term under exceptional circumstances. The surrender value payable in such cases will be equal to 98% of the purchase price.