The central government is in charge of running the Pradhan Mantri Vaya Vandana Yojana. Senior citizens can benefit from PMVVY, a plan that combines insurance policies with pensions. This plan guarantees the beneficiary a pension. On May 26, 2020, the Central Government launched this program. If you want to participate, you can apply for this program by March 31, 2023.Under this program, a husband and a wife can each receive a pension after they turn 60.
Yojana Pradhan Mantri Vaya Vandana: The PM Vaya Vandana Yojana is a social security program through which applicants can receive a monthly, quarterly, or annual pension. Let us inform you that the Life Insurance Corporation of India (LIC) is in charge of administering this plan, which was launched by the Indian government.
Yojana Pradhan Mantri Vaya Vandana: Eligibility
This program is open to people who are at least 60 years old. They are allowed a maximum investment of Rs.15 lakh are covered by this program. Please be informed that the initial investment limit for this scheme was Rs 7.5, which was later increased to Rs 7.5.This plan offers senior citizens a higher interest rate than other plans.
Pradhan Mantri Vaya Vandana Yojana:
Invest seven rupees in the policy to receive a monthly return of five thousand rupees. A guaranteed 10-year fixed-rate pension payout is provided by interest rate PMVVY. This plan will guarantee a monthly return of 7.4% annually over the course of the ten years.
Pradhan Mantri Vaya Vandana Yojana: Features and Benefits
1.Retirement security through pension payments: Participants in the Pradhan Mantri Vaya Vandana Yojana are eligible to receive a fixed sum at the end of a time period of their choice for a maximum of ten years.
2.Guaranteed returns: On April 1 of each fiscal year, the Senior Citizens Savings Scheme (SCSS) revises the assured rate of interest to a maximum of 7.75%, with a fresh evaluation of the program in the event that this cap is breached at any time.
3.Options for periodic payouts: With the plan, individuals can select a monthly, quarterly, half-yearly, or annual payout option based on their requirements and convenience. After purchasing the plan, the first payment must be made immediately, depending on the chosen method of payment.For instance, the first installment should arrive within three months of the policy’s purchase date if a pensioner has selected a quarterly payment plan.
4.Maturity benefit: The Pradhan Mantri Vy Vandna Yojna provides a maturity benefit in addition to the final payment and a one-time lump sum payment for the plan’s purchase price. A pensioner can use this facility until the end of the policy’s term.
5.Death benefit: The pensioner’s beneficiary who dies during the policy’s term is entitled to the full purchase price as compensation as long as they provide the necessary documentation.
6.Loan service: After three successful policy years, individuals can get a loan against a Pradhan Mantri Vaya Vandana Yojana investment. The maximum amount a pensioner can borrow is 75% of the purchase price. The interest on the loan is deducted from the pension payout based on the set frequency of loan repayments. The due date for interest is the date the pension is paid.
During maturity or surrender, the outstanding loan balance will also be deducted from the claim amount.
For instance, if the following information is provided when you invest a lump sum from your savings to guarantee a regular, fixed income for the next ten years:
Age: 60 years
Purchase Price: Rs. 7,50,000
Policy Term: 10 years
Purchase Year: 2017
Pension Mode: Monthly
You will receive a pension benefit of Rs. 4,625 as pension amount at the end of every month for 10 years. The rate of interest is 7.4% so, 7.4% of Rs. 7,50,000 divided by 12 is what you will get every month and on maturity, you will receive the purchase price i.e Rs. 7,50,000 which you had paid to purchase the plan.
Let’s say you’re 68 years old and need money to treat yourself or your spouse of a serious illness. In such a scenario, you will receive a monthly pension of Rs up until the age of 68.4,625, and when you surrender the policy at the age of 68, you will receive a refund equal to 98% of the purchase price, or 98% of 7,50,000, or Rs.7,35,000.
