Pradhan Mantri Vaya Vandana Yojana (PMVVY)
Government has launched the Pradhan Mantri Vaya Vandana Yojana (PMVVY) to provide social security during old age and to protect elderly persons aged 60 and above against a future fall in their interest income due to uncertain market conditions.
Salient features of Pradhan Mantri Vaya Vandana Yojana
- The scheme provides an assured return of 8% per annum for 10 years
- The differential return, i.e. the difference between return generated by LIC and the assured return of 8% per annum would be borne by Government of India as subsidy on an annual basis.
- Pension is payable at the end of each period during the policy tenure of 10 years as per the frequency of monthly/quarterly/ half-yearly/yearly as chosen by the subscriber at the time of purchase.
- Minimum purchase price under the scheme is Rs.1,50,000/- for a minimum pension of Rs. 1,000/- per month
- The maximum purchase price is Rs.15,00,000/- for a maximum pension of Rs.5,000/- per month.
- The scheme is exempted from Goods and Services Tax (GST).
- The scheme is open for subscription till 3rd May 2018.
- Life Insurance Corporation operates the scheme.
- The 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. The Surrender Value payable in such cases shall be 98% of Purchase Price
- Loan facility is available after completion of 3 policy years. The maximum loan that can be granted shall be 75% of the Purchase Price.
In budget 2018-19, the government has increased the maximum investment limit from Rs 7.5 lacs to Rs 15 lacs.