Life is often hard on people who are unable to find a source of income for themselves. The reason being that to have a happy and healthy life, certain expenses have to be done like healthy food, good healthcare, and a little bit of mental health enriching things like going on a vacation or simply being able to expend without having to ask someone for money. People often suppress their wishes if they can’t afford them and ask someone else for money. The elders in our society majorly face this.
These elders who once were young worked hard over the years and supported their families for their growth and well-being, but often it happens that if an elder becomes unable to work further or retires, they start facing financial problems. Since they are not earning anymore, they have to rely on their heirs to take care of them monetarily. Also, to add problems to the equation, when a person crosses a certain age, they start having multiple health problems, and often, they find it very difficult to pay for the healthcare expenses all on their own. To fix this, the Government of India has rolled out a yojana where a person can invest when they are young and can reap benefits as they grow older. This SchemeScheme rolled out by the Government is called the Pradhan Mantri Vaya Vandana Yojana or PMVVY scheme in short. Let’s quickly understand what the Yojana is and how it will benefit the elders of our society.
Highlights of the Yojana
- Prime Minister Narendra Modi announced PMVVY on 4th May 2017 after the success of the Varishtha Pension Bima Yojana of 2003.
- Aims at helping senior citizens of the age 60 and above to have monetary security in their old age.
- It will provide a fixed 8% pension.
- Pradhan Mantri Vaya Vandana Yojana PMVVY is being launched and implemented through LIC.
- As per the scheme the person pays a maximum purchase price of Rs 1,50,000, he will get back a minimum pension of Rs 1000 per month, and if the lump sum paid is Rs. 7,50,000, then the insured will get a minimum return of Rs. 5000 monthly as a return by the life insurance corporation of India
- This Scheme applies to citizens over 6o years of age and they will get assured pension payment.
Yojana List, Latest News, Updates, and Scheme
To make India a better nation each day, the Government is working towards focusing and solving one problem at a time. And a lot of these problems are because a large portion of the Indian population is under the poverty line and, due to the lack of monetary support, faces many problems. T help[ them overcome these problems, the Government of India, under the guidance of Prime Minister Narendra Modi, is launching a lot of Schemes or Yojanas to help eradicate this problem slowly and steadily.
Below is some name of the popular Yojanas that are currently profiting a lot of Indians:
- Pradhan Mantri Garib Kalyan Yojana
- Ayushman Bharat PMJAY
- Pradhan Mantri Jan Dhan Yojana (PMJDY)
- Pradhan Manrti Jan Dhan Yojana PMJDY
- Atal Pension Yojana (APY)
- Pradhan Mantri Mudra Yojana
- Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY)
- Pradhan Mantri Suraksha Bima Yojana PMSBY
- Pradhan Mantri Mudra Yojana
- Pradhan Mantri Vaya Vandana Yojana PMVVY
However, today we will try to tell you all about the PMVVY.
Latest News and Updates
- If you want to have complete information about the SchemeScheme, it is very important to know the updates and what’s going on with the SchemeScheme. We have mentioned below a few news that has come late and the updates too so that you are well equipped with all the info you need.
- The Government will give an assured rate of return of 7.40 % per annum and reset the percentage annually after 2022.
- To avail of the pension scheme for senior citizens, it is now mandatory to have a valid Aadhar Card to enrol for this.
- Life Insurance Corporation of India will be implementing the pension plans under this Yojana and give assured returns to the senior citizen based on the lump sum they pay.
- The investment limit was double for the PMVVY scheme, where the insured will get up to Rs. 10,000 per month.
This SchemeScheme has been launched to bring about a positive change in the hardships faced by senior citizens. This SchemeScheme will enable the senior citizens so that the hard work done and the money made by this hard work when the senior citizen was young can be put to use and get the benefits when they grow old. This pension policy will be activated with the policy term for 10 years.
It will have different lump sum investment options based on the investment; they will get an 8% rate of return. This is a great scheme with a manageable purchase price and pension will be payable on the frequency that you choose. The entire scheme will be enforced by the LIC of India.
Features and Benefits of the Scheme
Let’s have a look at what are the features of the pension policy PMVVY scheme and what benefits you will get as per the Yojana:
The SchemeScheme, when started, will give a promised assured rate of return at 7.40 % and after that will be rested from the next year onwards.
Flexibility for choosing Frequency of Payment
The policyholder will give the flexibility to choose the payment frequency in the policy term of 10 years. They can choose the payment to be done monthly, Quarterly, half-yearly, and yearly, which will provide the policyholder to manage the finances according to their needs and requirements.
Investment and Rate of Return
The maximum lime for which the policy can be purchased is Rs. 15 lakh, where the return rate of Rs 15 lakh will be a pension of Rs 9250 monthly. At the same time, the minimum purchase price is Rs. 1 lakh 50 thousand.
If the policyholder wants to opt for the premature exit due to the illness of self or spouse, they will get 98% of the purchase price in a refund.
If the policyholder dies, the monthly rate of returns would be paid to the beneficiary mentioned in the application form. Also, the SchemeScheme is exempted from GST.
If the policyholder survives even after the policy term of 10 years ends, he shall be paid the purchase price and the final pension instalment at the end of the policy term.
That’s about the features and benefits that one can get from the PMVVY. Let’s now get to know the application procedure to get the benefit of pension policy of the tenure of 10 years the policy will be valid. This scheme can be availed with a very simple procedure.
The registration process is very simple if you want to buy this pension policy, you will have to follow quick, simple steps, and you can get yourself enrolled for this Yojana. We have divided this process into parts, i.e., the documents you will require and online and offline applications, whichever is available. The initial validity was till 31st march 2020 but has been extended till 2023.
We have listed the list of Documents that will be required during submission. Please make sure to carry all the documents while submission.
The list includes:
- Duly filled Application form.
- Aadhar Card
- Proof of Age
- Proof of Address
- Minimum 2 passport size photographs of the person applying.
- Retirement Document showing that the applicant is no longer employed with any organization.
Make sure to carry all these documents when you go for the application.
The online Application process for PMVVY
The Government has kept the application process very simple and easy, whether you want to fo an online application or an offline application.
Below we have listed down the steps you can follow to apply for this policy online:
- You can visit licindia.in (LIC website)
- You will find an option for products, click on that, and then you will be able to see the option for pension plans.
- Once you click on the pension plans tab, then you will see the Pradhan Mantri Vaya Vandana Yojana PMVVY on the screen.
- Click on the Buy Online option.
- Now there will be a form, fill in the details and submit.
- You will now see an option for “Get Access ID” Click on that.
- You will receive an email or SMS with the ID.
- Enter the ID, select the plan, fill the form, upload the required documents, and submit.
- Now the screen will show you the online payment option, pay as per your choice, and you have successfully bought the policy.
- The company will send across the policy documents on your registered email ID.
Now, let’s know the offline procedure too.
The Offline Application for PMVVY.
We have mentioned how to use the offline method too; it is as follows:
- Go to your nearest LIC branch and ask for the application form.
- Please fill the form and submit it along with the required documents
- Pay the premium, and your policy document will be issued to you.
It would help if you cleared the eligibility criteria to enrol in this policy. Below is the criteria listed out for you:
- Applicant should be the AgeAge of 60 years or above.
- Applicant must be a citizen of India.
- Applicant must be retired
- Applicant should hold a valid Aadhar Card
The objective of the PMVVY Scheme
The Pradhan Mantri Vaya Vandana Yojana PMVVY is launched with an aim so that the senior citizen is financially independent when it comes to spending the rest of their life in comfort and good health care. And since the LIC of India implements it, the most trusted name for Insurance, senior citizens can now be relieved that their future is secure.
The SchemeScheme can be availed of for a policy term of 10 years with a pension payable monthly.
You can LIC contact centre number to know more details or in case if you have any grievances. The number is +91 22 6827 6827. It is available 24*7.
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