The LIC PMVVY scheme provides the elderly with a monthly pension of Rs 9250, full details inside

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The PMVVY is a pension scheme for people aged 60 or over.





Fixed deposits, postal savings programs, tax-exempt bonds and other capital market products are all available to seniors right now. Unlike these deposit systems, there is one that offers a repo when a lump sum payment is invested for a set period of time. The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a scheme run by LICs which provides a fixed monthly pension for ten years.












PMVVY Pension Plan: Features

The PMVVY is a pension scheme for people aged 60 or over. There is no upper age limit for seniors.

The plan has a duration of ten years with a monthly pension ranging from Rs 1,000 to Rs 9,250 for the entire duration. The plan is open for investment until March 31, 2023. However, LIC guarantees a guaranteed annual return of 7.4% on this plan for fiscal year 22 if purchased before March 31, 2022.

According to LIC’s website, “The scheme would give an insured pension of 7.40% per annum, payable monthly, for the financial year 2021-22. This guaranteed pension rate will be paid for the entire period of ten years for all policies purchased until March 31, 2022.”

LIC, India’s largest insurer, is the only one authorized to administer this scheme. The program can be purchased with a one-time payment. A pensioner, on the other hand, will be able to choose between the amount of his pension and the redemption price. This scheme allows a maximum investment of Rs. 15,000,000. Similarly, the scheme will grant interest rates ranging from 7.4% to a maximum of 7.66% per annum depending on different types of pension payments .












For example, a senior can earn 7.4% on monthly payments, 7.45% on quarterly and semi-annual payments, and 7.52% on annual payments. Also, the plan offers 7.66% per annum for annual payments.

Higher interest rates

Compared to many fixed bank deposits and postal savings programs, the PMVVY interest rate is higher.

The state-owned Senior Citizen Savings Scheme (SCSS) pays 7.4% interest, while the SBI pays 6.30% interest on DFs of less than 2 crore with a term of 5 to 10 years for the elderly. In addition, ICICI Bank and HDFC Bank provide senior citizens with an interest rate of 6.35% on loans with terms ranging from 5 years 1 day to 10 years. Repo payment should be made using NEFT or Aadhaar Enabled Payment System to invest in PMVVY.

Purchasing a policy under this government subsidized program requires authentication of a unique Aadhaar number. PMVVY offers a plethora of benefits. The overdue pension (at the end of each period in the manner specified) will be paid if the retiree survives the ten-year policy term.

The redemption price will be refunded to the beneficiary if the pensioner dies during the ten-year insurance period. Meanwhile, there is a maturity benefit available on the scheme, which pays the purchase price plus the final pension payment if the retiree lives to the end of the 10-year policy term.

There is also a loan facility available under the scheme, but only after three years of insurance have passed.












The maximum loan amount is set at 75% of the purchase price. The interest rate that will be charged on the loan amount will be fixed at regular intervals. Additionally, the PMVVY allows for early withdrawal throughout the life of the contract in extraordinary situations, such as when a retiree needs funds to treat a critical or terminal illness in themselves or their spouse. In such circumstances, the redemption value payable is 98% of the purchase price.






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