Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme being run by the Ministry of Finance to provide immediate pension for senior citizens of 60 years and above. PMVVY pension scheme is being implemented with LIC and interested and eligible candidates can buy LIC PM Vaya Vandana Yojana plan online at www.licindia.in. The revised PMVVY LIC Plan 856 can be purchased by paying a lumpsum amount.
LIC PM Vaya Vandana Yojana plan provides pension payments of stated amount for the policy term of 10 years. PMVVY Scheme envisages an assured rate of return of 7.4% per annum (for monthly pension) for the financial year 2020-21, equivalent to 7.66% per annum. In this LIC Pension Plan 856, there is a return of purchase price at the end of 10 years.
PMVVY Scheme last date was 31 March 2020, but central govt. has extended its deadline for 3 years i.e Now PMVVY last date is 31 March 2023. PMVVY Pension would be paid at the end of each period as per payment mode chosen starts as early as next month if monthly mode is chosen. On the death of the pensioner at any time during the term of 10 years, the purchase price will be refunded to the legal heirs / nominees.
LIC PMVVY Pension Scheme
Pradhan Mantri Vaya Vandana Yojana was recently modified in May 2020 by the central government is a non-linked, non-participating, pension scheme
subsidized by the Government of India. According to the new changes, the new interest rate would be reviewed and decided at the beginning of new every financial year by the Ministry of Finance. The scheme was extended for 3 years up to 31st March 2023.
PMVVY LIC Application Form
The application form for PMVVY LIC pension scheme can be downloaded from the official website of LIC India or obtained from the nearby office of LIC. However, candidates can also purchase the PMVVY pension plan at the official website of LIC India at licindia.in using the below given procedure.
STEP 1: Visit the Online Policy Page at the official website of LIC India at https://onlinesales.licindia.in/eSales/liconline.
STEP 2: Now Click the “Buy Now” button under the LIC Plan 856 (Pradhan Mantri Vaya Vandana Yojana) as given in the below screenshot.
STEP 3: On the next page click the “Click to Buy Online” button to open the LIC PMVVY online application form which will look like below.
STEP 4: Fill all the required details in the form and click “Calculate Premium” button. Now, you will receive the OTP on your mobile number, enter the OTP on the OTP screen and click “Proceed” button.
STEP 5: After entering the OTP, you will be asked if you already have a PMVVY policy, select “No” and then click “Next” button.
STEP 6: On the next page, you will see the complete application form for the LIC PMVVY Plan, where you have to select the “Purchase Option”, “Pension Mode”, “Amount” and “Payment Mode”. After filling all the details as per your choice, click the “Calculate Premium” button.
STEP 7: On the next step, you will be shown the details of the premium and then you can go ahead with the Aadhaar Validation and online payment of the premium. After successful payment, you will be issued the policy and a policy number will be provided.
The purchase of the policy under this Government subsidised scheme requires unique Aadhaar number validation.
Pension payment modes available for PMVVY scheme are monthly, quarterly, half-yearly and yearly. The minimum investment amount is Rs. 1.50 lakh.
PMVVY Interest Rates
For the first financial year under the extended PMVVY scheme, the interest rate has been fixed at 7.4% for monthly pension which is equivalent to 7.66% per annum.
Pension interest rates for FY 2020-21 payable under different modes of Payment (Yearly, Half Yearly, Quarterly, Monthly) are as under
| Mode of Pension | Effective Interest Rate per annum |
|---|---|
| Yearly | 7.60% |
| Half-Yearly | 7.52% |
| Quarterly | 7.45% |
| Monthly | 7.40% |
LIC PMVVY Scheme PDF
The revised guidelines and brochure PDF of the PMVVY scheme can be downloaded using the below links.
Policy Document | Policy Sales Brocure (Basic Guidelines) | LIC PMVVY Sales Brochure – English | LIC PMVVY Sales Brochure – Hindi
PMVVY Investment / Pension Amount
Below are the complete details of investment and pension amount for different modes of pension
Minimum Purchase Price
| Mode of Pension | Minimum Purchase Price (Rs.) | Corresponding Pension Amount |
|---|---|---|
| Yearly | 1,56,658 | 12,000 per annum |
| Half-Yearly | 1,59,574 | 6,000 Half year |
| Quarterly | 1,61,074 | 3,000 per Qtr. |
| Monthly | 1,62,162 | 1,000 per month |
Maximum Purchase Price
| Mode of Pension | Maximum Purchase Price (Rs.) | Corresponding Pension Amount |
|---|---|---|
| Yearly | 14,49,086 | 1,11,000 per annum |
| Half-Yearly | 14,76,064 | 55,500 per half year |
| Quarterly | 14,89,933 | 27,750 per Qtr. |
| Monthly | 15,00,000 | 9,250 per month |
PMVVY Loan Facility
This is one of the biggest advantages of the PMVVY. Under the scheme, applicants can apply for loan after completion of 3 policy years. Policy holders can get up to 75% of the purchase price as loan. The rate of interest for the loan is determined by the LIC of India at periodic intervals.
Loan interest will be recovered from the pension amount payable under the policy. The Loan interest will accrue as per the frequency of pension payment under the policy and it will be due on the due date of pension.
PMVVY Loan Interest Rate
For the loan sanctioned till 30th April, 2021, the applicable interest rate is 9.5% per annum for the entire term of the loan.
PMVVY Eligibility
Below is the basic eligibility criteria for the PMVVY pension scheme.
- Minimum Entry Age: 60 years (completed)
- Maximum Entry Age: No limit
- Policy Term: 10 years
- Minimum Pension: 1,000/- per month, 3,000/- per quarter, 6,000/- per 6 months, Rs. 12,000/- per year
- Maximum Pension: 9,250/- per month, 27,750/- per quarter, 55,500/- per half-year, 1,11,000/- per year
Total amount of purchase price under all the policies taken under Pradhan Mantri Vaya Vandana Yojana shall not exceed Rs. 15 lakhs.
LIC PMVVY Scheme Features
The important features and highlights of LIC Plan Number 842 are as follows:-
| Medical | No medical examination is required. |
| Surrender Value | Premature exit is allowed during policy term under exceptional circumstances like Critical/Terminal illness of self or spouse. Surrender Value payable in such cases is 98% of the Purchase Price. |
| Loan | Loan is available under the policy after completion of 3 policy years. Maximum loan granted will be 75% of the purchase price. |
| Suicide | There is no exclusion in case of suicide. In such a case, the full purchase price will be payable to the nominee / legal heir. |
Aadhaar Card Mandatory for PMVVY Benefits
An individual eligible for receiving the benefit under PM Vaya Vandana Yojana (PMVVY scheme) shall hereby be required to furnish proof of possession of Aadhaar number. As per the Finance Ministry notification, applicant must possess the unique 12-digit biometric identity number or undergo Aadhaar authentication. In case aadhar card is not available, applicant must enroll for Aadhaar number first before making PMVVY registration.
PMVVY Tax Benefits
PMVVY pension scheme for senior citizens is not a tax saving scheme but an investment plan to fund their retirement. All the elderly people above 60 years were allowed to invest a max. amount of Rs. 15 lakh on or before 31 March 2023. For the policy term of 10 years, senior citizens can get a minimum pension of Rs. 1,000 per month and a maximum pension of Rs. 9,250 per month depending on the amount invested.
Will you get tax savings benefit under section 80C?
Returns from this scheme will be taxed as per existing tax laws and the rate of tax as applicable from time to time. The scheme is exempted from Goods and Services Tax (GST). All general insurance scheme includes 18 percent GST such as term insurance. However, to give a relief to senior citizens, there are a few LIC schemes including Pradhan Mantri Vaya Vandana Yojana scheme, which continues to be exempted under GST as they were exempted from service tax before July 1, 2017.
This PMVVY scheme will not allow investor to claim a deduction for investments up to Rs. 1.5 lakh under section 80C of the Income Tax Act. This scheme is not an eligible investment under this section of the Income Tax Act. However, a representation can be filed before IT dept. to include the sum paid under PMVVY scheme as an eligible deduction under section 80C of Income Tax Act to bring this scheme on par with Senior Citizens Saving Scheme. The inclusion however, will require legislative amendment which can be made in the subsequent budgets.
PMVVY Frequently Asked Questions (FAQ’s)
Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a pension scheme for senior citizens offered by Life insurance Corporation (LIC) and run by the ministry of Finance, Government of India.
As per the new guidelines, the interest rate for FY 2020-21 for PMVVY Scheme is 7.4% per annum and thereafter to be reset every year.
The minimum entry age for PMVVY Scheme is 60 years while the maximum entry age has no limit.
The minimum pension amount is Rs. 1,000 per month while the maximum pension amount is Rs. 9,250 per month.
If the pensioner survives till the end of the policy term of 10 years, purchase price of the annuity along with final pension installment will be payable to the policyholder.
If the pensioner dies during the policy term of 10 years, the purchase price of the annuity scheme will be refunded to the beneficiary.
Citizens can now apply online for PMVVY Scheme at the official website of Life Insurance Corporation (LIC) India at www.licindia.in
Yes, Aadhaar Card is mandatory
The minimum investment amount is Rs. 1,62,162 for Rs. 1,000 p.m pension while the maximum investment is Rs. 15,00,000 for Rs. 9,250 p.m as pension.
The new last date for PMVVY policy purchase is 31 March 2023.
LIC PMVVY Helpline
Visit the official website of LIC India at licindia.in for more details or reach at the below helpline contact details
PHONE: 022-67819281 or 022-67819290 (Monday to Saturday: 10.30 am to 05.30 pm, except 2nd and 4th Saturday of every month)
TOLL FREE: 1800-227-717
EMAIL: onlinedmc@licindia.com