A pension may be received annually, quarterly, or monthly under the PM Vaya Vandana Yojana social security programme.
The Pradhan Mantri Vaya Vandana Yojana is administered by the central government. PMVVY is an insurance policy-cum-pension scheme that provides security to senior citizens. The beneficiary is guaranteed a pension under this plan. The Central Government launched this programme on May 26, 2020. By 31 March 2023, you can apply for this programme if you'd want to participate as well. After turning 60, both a husband and a woman may get a pension under this programme.
Pradhan Mantri Vaya Vandana Yojana: About
PM Vaya Vandana Yojana is a social security scheme in accordance with which the applicant may get an annual, quarterly, or monthly pension. Let us tell you that the Indian Government has introduced this plan which is run by the Life Insurance Corporation of India (LIC).
Pradhan Mantri Vaya Vandana Yojana: Eligibility
Pradhan Mantri Vaya Vandana Yojana: Interest rate
PMVVY offers a 10-year, fixed-rate pension payout that is guaranteed. For the whole ten-year period, this plan will guarantee a return of 7.4% per year, which will be paid out monthly.
Pradhan Mantri Vaya Vandana Yojana: Benefits and Features
1. Obtaining pension payments for retirement security-
Individuals who have enrolled in the Pradhan Mantri Vaya Vandana Yojana are eligible to receive a fixed sum at the conclusion of a time period of their choosing for a maximum length of 10 years.
2. Guaranteed returns-
Annual reset of the assured rate of interest takes effect from April 1 of each fiscal year, in accordance with the Senior Citizens Savings Scheme's (SCSS) revised rate of returns, up to a maximum of 7.75%, with a fresh evaluation of the programme upon breach of this cap at any time.
3. Options for periodic payout-
According to their needs and convenience, people can choose a monthly, quarterly, half-yearly, or annual payout option with the plan. Depending on the payment method selected, the first payment needs to be made right away after purchasing the plan. For instance, if a pensioner has chosen a quarterly payment schedule, the first instalment should arrive within three months of the policy's purchase date.
4. Maturity benefit-
In addition to the last instalment payout and a lump sum payment for the plan's purchase price, the Pradhan Mantri Vy Vandna Yojna offers a maturity benefit. Up until the conclusion of the policy's tenure, a pensioner may use this facility.
5. Death benefit-
Upon providing the necessary paperwork, the beneficiary of a pensioner who passes away during the policy's term is entitled to receive the whole purchase price as compensation.
6. Loan service-
People may obtain a loan against a Pradhan Mantri Vaya Vandana Yojana investment after three successful policy years. Pensioners are only permitted to borrow up to 75% of the cost of the purchase. According to the frequency of loan repayment set, interest computed on the loan is recovered from the pension payout. The date of the pension payment is when the interest is due.
Additionally, the outstanding loan balance will be recovered from its claim amount during maturity or surrender.
For instance, If you invest a lump sum from your savings to ensure a fixed regular income for the next 10 years with the following details below:
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.
And in case the holder dies at age of 65- The purchase amount, or Rs. 7,50,000, will be paid to the nominee upon the death. You will receive a monthly pension of Rs. 4,625 until you become 65. This is valid for any moment throughout the ten-year policy term when he passes away.
Suppose at the age of 68 you need the money for treatment of some critical illness of yourself or your spouse. In such a scenario, till the age of 68, you will receive a monthly pension of Rs. 4,625 and at the age of 68 when you surrender the policy, you will be refunded 98% of the purchase price i.e. 98% of 7,50,000 = Rs. 7,35,000.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "What is PM Vaya Vandana Yojana for senior citizens?")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}