Pradhan Mantri Vaya Vandana Yojana - PMVVY LIC Scheme

Retiring soon and worried about regular money flows? Then you can consider for Pradhan Mantri Vaya Vandana Yojana scheme. The retirement scheme provides attractive interest rates and regular payouts. Its last opportunity for senior citizens to invest at a guaranteed annual return of 8% before 31st March 2020.  Whether the buying option will get further open or not is a question only God knows. PMVVY is a pension product (PMVVY Pension Scheme) for senior citizens that is backed by the authorities of India and operated by using Life Insurance Corporation of India (LIC). It provides 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. The scheme enables old age income security for senior citizens through the provision of assured pension/return linked to the subscription amount based on government guarantee to Life Insurance Corporation of India (LIC). This policy can be purchased both online and offline. Union government announced in the budget that PMVVY LIC will open 4th May 2017 after a mention within initially became open for only for one year and changed into later prolonged through two extra years inside 2018 Budget till 31^st March 2020. 

The scheme provides an assured return of 8% per annum for 10 years. The differential return, i.e. the difference between the 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. Under PMVVY investment limit has been increased to 1,50,000. It was seven and a Ru 50,000 earlier. Due to increasing investment limit, senior citizens will be able to get pension up to Rs 10,000 per month. Under PMVVY, the maximum investment limit has been changed from per family to per senior citizen. That is, if both husband and wife are senior in a family, then both of them can invest a maximum of 15 - 15 lakhs, that is, both together can avail the bonus by investing a total of 30 lakhs. Pension will be paid monthly, quarterly, half-yearly and annually to the pension holder. Pension will be paid by NEFT or through Aadhaar Enabled Payment System. 

	Minimum	Maximum
Age	60 years (completed)	No limits
Policy Term	10 Year
Pension mode	Monthly, quarterly, half-yearly and yearly
Purchase price	Rs. 1,50,000 monthly Rs. 1,49,068 quarter Rs. 1,47,601 half-yearly Rs.1,44,578 yearly	Rs. 15,00,000 monthly Rs. 14,90,683 quarter Rs. 14,76,015 half-yearly Rs. 14,45,783 annuals
Pension Amount	Rs. 1,000 / - monthly Rs. 3,000 / - quarter Rs.6,000 / - Half Yearly Rs.12,000 / - yearly	Rs. 10,000 / - monthly Rs. 30,000 / - quarter Rs. 60,000 / - half yearly Rs. 1,20,000 / - yearly

If the policyholder survives the entire policy term 10 years, then pension will be paid at the end of the period (monthly/quarter/half-yearly/yearly) chosen by him. A subscriber can buy LIC PMVVY online through PMVVY online registration.

For every 10,00,000 rupees invested in the scheme you get,

1- 6,667 rupees will be paid in monthly mode

2- 20,125 rupees to be paid in a quarterly mode

3- 40,650 will be paid in half-year mode

4- 83,000 in the annual mode to be paid

If the policyholder dies inside 10 years of the policy time period, the acquisition fee might be back to his nominee. If the policyholder survives the whole policy time period 10 years, he can be paid the last instalment of pension alongside with the purchased quantity. In this kind of situation you may give up the coverage and you'll get 98% of the acquisition fee. Loan facility is to be had on completion of three years below the coverage. Under this, you may take a mortgage of 75% of the maximum purchase. The amount deposited below this scheme of section 80C of Income Tax Act 1961 is tax-free. However, you need to pay income tax on the interest earned from the accumulated quantity.