PMVVY

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Introduction

The Government of India introduced the Pradhan Mantri Vaya Vandana Yojana (PMVVY) as a pension scheme exclusively for senior citizens aged 60 years and above. Managed by the Life Insurance Corporation of India (LIC), this scheme aims to provide financial security and a guaranteed pension to elderly individuals, ensuring a stable income post-retirement.

Features and Benefits of PMVVY

Retirement Financial Security via Pension Payment

PMVVY provides retirees with financial stability by offering assured pension payments and mitigating market volatility risks.

Assurance of Returns

Unlike other investment schemes influenced by market fluctuations, PMVVY safeguards seniors from economic uncertainties by guaranteeing a fixed return rate.

Periodic Payout Options

Investors can choose from multiple pension payout frequencies:

Monthly
Quarterly
Half-Yearly
Annually

Maturity Benefit

At the end of the policy term (10 years), the authority returns the purchase price along with the final pension installment to the subscriber.

Death Benefit

In the event of the policyholder’s death within the policy term, the nominee receives the entire purchase price of the policy.

Surrender Value

PMVVY permits premature exit under exceptional circumstances, such as medical emergencies of the spouse or policyholder, with a surrender value of 98% of the purchase price.

Free Lock-in Period

Subscribers have a 15-day free-look period (30 days for online purchase), during which they can opt out of the scheme if unsatisfied.

Loan Facility

After three years of investment, a loan facility is available under PMVVY, allowing borrowers to avail up to 75% of the purchase price.

Exclusion

In case of the policyholder’s demise by suicide, the full purchase price is returned to the nominee.

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Eligibility Criteria for the Pradhan Mantri Vaya Vandana Yojana

The applicant must be 60 years or older.
There is no maximum age limit.
The policy term is 10 years.
The scheme is available only for Indian citizens.

Purchase Price Payment for Different Periodic Payouts under PMVVY

The purchase price is determined by the pension amount chosen by the applicant. The minimum and maximum purchase price varies based on the payout frequency.

Maximum Purchase Price Under Different Modes of Pension

Mode of Pension	Maximum Purchase Price (INR)	Maximum Monthly Pension (INR)
Monthly	15,00,000	9,250
Quarterly	15,00,000	27,750
Half-Yearly	15,00,000	55,500
Yearly	15,00,000	1,11,000

Minimum Purchase Price Under Different Modes of Pension

Mode of Pension	Minimum Purchase Price (INR)	Minimum Monthly Pension (INR)
Monthly	1,50,000	1,000
Quarterly	1,50,000	3,000
Half-Yearly	1,50,000	6,000
Yearly	1,50,000	12,000

Comparison with Senior Citizens Savings Scheme (SCSS)

PMVVY is often compared with the Senior Citizens Savings Scheme (SCSS), another government-backed retirement plan. Here’s how they differ:

Feature	PMVVY	SCSS
Interest Rate	Fixed by the Government	Market-linked
Tenure	10 years	5 years (extendable by 3 years)
Premature Exit	Allowed (with 2% penalty)	Allowed (with penalties)
Investment Limit	INR 15 lakh	INR 30 lakh
Tax Benefits	No Section 80C Benefit	Section 80C available

How to Apply for Pradhan Mantri Vaya Vandana Yojana Scheme (PMVVY)

PMVVY can be purchased online and offline through Life Insurance Corporation of India (LIC) branches and its official website.

Documents Required to Apply for Pradhan Mantri Vaya Vandana Yojana (PMVVY)

Identity Proof: Aadhaar card, PAN card, Passport
Address Proof: Aadhaar card, Voter ID, Utility bills
Age Proof: Aadhaar card, Birth certificate
Bank Details: Cancelled cheque for pension payouts

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Conclusion

The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a well-structured pension scheme offering financial security to senior citizens. With assured returns, flexible payout options, and loan facilities, PMVVY serves as an excellent investment avenue for retirees seeking stability. Though it lacks tax benefits under Section 80C, its guaranteed pension and government backing make it a reliable option compared to other pension schemes like SCSS.