Pradhan Mantri Vaya Vandana Yojana (PMVVY) - Benefits, Eligibility and Application Process

The Pradhan Mantri Vaya Vandana Yojana is a pension scheme for senior citizens over the age of 60 announced by the Government of India, administered by the Life Insurance Corporation (LIC). This scheme aims to provide financial assistance to senior citizens by providing them with regular pensions.

Benefits of the scheme

• The policyholder will receive an assured return of 8% per year for the duration of the policy.
• If the policyholder lives through the period, the pension will be paid in arrears.
• If the policyholder dies during the term, the purchase price is returned to the beneficiary.
• If the policyholder survives the policy period, the policyholder will receive the purchase price as well as the final pension instalment.
• After three years, the policyholder is eligible for a loan against the policy. The interest on the loan will be recovered from the policyholder's pension payment. If the loan is approved by the 30th of April 2018, the interest rate is 10% p.a. and can be paid half-yearly for the duration of the policy. The PMVVY loan facility is one of the reasons for the scheme's enormous popularity.
• If the policyholder is dissatisfied with the terms of the policy, they have 15 days to cancel it. If the procedure is purchased online, the free-look period is 30 days.

Eligibility Criteria for PMVVY

• The candidate's age must be at least 60 or more.
• There is no upper limit to entry.
• The PMVVY scheme has a ten-year term.
• The minimum pension that can be paid monthly, quarterly, half-yearly, and yearly is R.1,000, 3,000, 6,000, and 2,000, respectively, with a maximum limit of Rs 10,000, 30,000, 60,000, and 1,20,000.

Documents Required for the PMVVY

• Aadhaar Card
• Age proof
• Address proof
• Passport size photograph
• Document showing the retirement status of the applicant

How to Apply to PMVVY?

Offline Process:

• Go to any nearest LIC branch
• Fill out the form
• Attach all the required documents
• Submit the form with all the documents

Online Process:

• Go to the official website of LIC
• Select the tab "buy online policies"
• Now, scroll down and click on "click here to buy" option
• Click on "pmvvy"
• Click on buy online
• Enter all the details
• Now, proceed
• Fill out the form
• Upload all the essential documents
• Now, Submit the form

Modes of Pension Payment

The pension under the Pradhan Mantri Vaya Vandana Yojana can be paid monthly, quarterly, half-yearly, or annually, depending on the policyholder's preference. The retirement payment can be made using the Aadhaar Enabled Payment

Conclusion

PMVVY is a low-risk investment option for seniors over the age of 60. This scheme's pension serves as a consistent source of income to help retired people meet their financial obligations. To invest in this scheme, however, one must have sufficient liquid funds.