Pradhan Mantri Vaya Vandana Yojana (PMVVY), a pension scheme to benefit the senior citizens, is available till March 31. Launched in 2017, Pradhan Mantri Vaya Vandana Yojana offers a guaranteed monthly income of up to ₹10,000 for 10 years. With a good return and death benefit, this LIC pension scheme is an attractive investment option for those who are above 60 years. At present, senior citizens have time till March end to avail the benefits of this scheme.
Eligibility: Any individual who is 60 or above the age of 60 can invest in Pradhan Mantri Vaya Vandana Yojana (PMVVY) scheme. There is no entry age.
How to buy: You can buy PMVVY scheme from Life Insurance Corp. of India. This pension scheme is available via both offline and online mode. You can visit the nearest LIC branch or log on to the official website of LIC to purchase this annuity scheme. A policyholder has an option to return the policy within 15 days of the purchase. If the policy is purchased online, the free look period is 30 days.
Investment: Senior citizens can buy this LIC scheme by investing a lump sum. One can invest a maximum amount of ₹15 lakh under Pradhan Mantri Vaya Vandana Yojana (PMVVY) scheme. The tenure of the policy is set at 10 years.
Return: The scheme offers an assured return of 8% to 8.30% per annum, depending on how you choose to get your payout. Senior citizens can draw a minimum pension of ₹1,000 per month depending on the amount invested in the scheme. The maximum pension amount is limited at ₹10,000 per month. The insuree will receive a pension amount based on the premium given by an individual.
Mode of pension payment: Senior citizens will have an option to get the pension in four ways — monthly, quarterly, half-yearly and yearly. The first installment of pension shall be paid after one year, six months, three months or one month from the date of purchase of the same depending on the mode of pension payment. One will receive the pension payment through NEFT or Aadhaar-enabled payment system.
Additional benefits: If the pensioner passes away during the policy tenure, the benefits will forwarded to the nominees.
Any individual can apply for loans after completion of three years. The maximum loan that can be granted shall be 75% of the purchase price. The interest on the loan will be recovered from the pension payment that is being made through NEFT or Aadhaar-enabled payment system.
Tax benefits: Pradhan Mantri Vaya Vandana Yojana (PMVVY) scheme does not provide tax deduction benefit under section 80C of the Income Tax Act. Returns from this scheme will be taxed as per existing tax laws.The scheme is exempted from Goods and Services Tax (GST).