LIC last month operationalised a new pension scheme called Pradhan Mantri Vaya Vandana Yojana (PMVVY). This follows Prime Minister Narendra Modi earlier announcing the launch of a scheme for senior citizens (60 years and above) in which they will get a guaranteed interest of over 8 per cent for 10 years. LIC or Life Insurance Corporation of India will operate this scheme. Financial planners say that Pradhan Mantri Vaya Vandana Yojana Scheme will offer more avenues to senior citizens to earn regular income at a time of falling interest rates. According to LIC, Pradhan Mantri Vaya Vandana Yojana Scheme or the pension scheme will be available for one year from date of the launch. The PMVVY pension scheme is subsidised by the government.
1) According to LIC, the PMVVY pension scheme can be purchased offline as well as online from its website (www.licindia.in).
3) If the pensioner survives the policy term of 10 years, purchase price along with final pension installment shall be payable under the PMVVY pension scheme. (The amount invested in the scheme is called the 'purchase price'.)
5) The minimum age for entry into the PMVVY pension scheme is 60 years (completed) while there is no maximum age limit.
LIC said the ceiling of maximum pension is for a family as a whole, which means the total amount of pension under all the policies allowed to a family under this plan shall not exceed the maximum pension limit. The family for this purpose will comprise of pensioner, his/her spouse and dependants.
7) Accordingly, Rs 1,000 will be the minimum pension amount payable monthly for which Rs 1,50,000 has to be invested under the Pradhan Mantri Vaya Vandana Yojana Scheme. Similarly, the maximum monthly pension shall be Rs 5,000 per month for which Rs 7,50,000 has to be invested. For other modes, see the table below.
9) The PMVVY pension scheme allows premature exit during the policy term under exceptional circumstances like the pensioner requiring money for the treatment of any critical/terminal illness of self or spouse, LIC said. The surrender value payable in such cases shall be 98 per cent of the original invested amount. Loan facility is available after completion of three policy years. The maximum loan that can be granted shall be 75 per cent of the invested amount.
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