Ministry: Ministry of Finance
It is a pension scheme exclusively for senior citizens aged 60 years and above
Scheme:
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Under this scheme, senior citizens will get a guaranteed interest of 8% for 10 years depending upon the investment made by them
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This PMVVY scheme will be available from May 4, 2017 to May 3, 2018. Change: Time limit extended until March, 2018
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Life Insurance Corporation of India (LIC) has been given the sole privilege to operate the scheme.
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It can be purchased offline as well as online through LIC
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This scheme provides an assured return of 8% per annum payable monthly for 10 years on single lumpsum premium ranging from Rs. 150000 (minimum) to Rs.750000 (maximum). Change : Max limit has been increased to Rs 15 Lakh.
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Pension (minimum: Rs.1000/ month; maximum: Rs.5000) will be payable at the end of each period, during the policy term of 10 years, as per the frequency of monthly, quarterly, half-yearly, yearly as chosen by the pensioner at the time of purchase.
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It is exempted from goods and services (GST) tax.
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It will offer senior citizens more avenues to earn steady regular income at a time of falling interest rates.
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On survival of the pensioner to the end of the policy term of 10 years, the purchase price of the scheme along with the final pension instalment will be payable.
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The scheme also offers loan up to 75% of the purchase price after 3 policy years (to meet the liquidity needs).
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Loan interest will be recovered from the pension instalments and loan will be recovered from claim proceeds.
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The scheme allows for premature exit for the treatment of any critical terminal illness of self or spouse.
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On such premature exit, 98% of the purchase price would be refunded.
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On death of the pensioner during the policy term of 10 years, the purchase price should be paid to the beneficiary.