LIC Pension Plam, PMVVY plan details, interest rate 2022, last date to apply: Who doesn’t want a nice, steady income in old age or retirement? To secure retirement, we invest in multiple tools hoping that the corpus at retirement will help us get through our old age without any stress. It’s a fact that retirement planning isn’t easy. But those who work on realistic plans reap the rewards after 60. For those who are already retired and looking for guaranteed pension plans backed by the Modi government, a new plan is doing the rounds that could help you live out your old age peacefully. The pattern referred to here is Pradhan Mantri Vaya Vandana Yojana (PMVVY).
The Pradhan Mantri Vaya Vandana Yojana was launched in 2017. It was initially available for subscription till March 31, 2020. But the government extended the last date till March 31, 2023. The scheme aims to protect the elderly from 60 (completed) and above by providing an insured/guaranteed pension. LIC of India is the sole authority to run this pension scheme in which the elderly get immediate monthly/quarterly/half-yearly/annual pension. To join, seniors will need to purchase the plan by paying a lump sum. At maturity, LIC returns the premium to the retiree.
PMVVY Last date to apply
The Pradhan Mantri Vaya Vandana Yojana is available for subscription until March 31, 2023.
PMVVY Age Eligibility
According to the LIC, people age 60 (completed) and older can purchase the pension plan. There is no upper age limit for joining the scheme.
Term of the PMVVY policy
The duration of the Pradhan Mantri Vaya Vandana Yojana policy is 10 years.
Payment of PMVVY pension
The pension will be paid to the subscriber on a monthly/quarterly/half-yearly or annual basis. The subscriber will have to choose it at the time of purchase. Once the frequency of the annuity has been chosen, it cannot be changed for the duration of the contract.
According to the policy document, the first pension will start after 1 month, 3 months, 6 months or 1 year from the date of purchase.
PMVVY Minimum and maximum pension
The minimum and maximum pension under the PMVVY depends on the pensioner’s plan.
Minimum pension: MONTHLY – Rs 1,000 | QUARTERLY or 3 MONTHS – Rs 3,000 | Semester or 6 months Rs 6,000 | ANNUAL Rs 12,000
Maximum pension: MONTHLY – Rs 9,250 | QUARTERLY or 3 MONTHS 27,750 | Half-yearly or 6 MONTHS 55,500 | ANNUAL Rs 1,11,000.
The total purchase price/premium amount under all plans under PMVVY must not exceed Rs 15 lakhs.
FOR THE MINIMUM PENSION
For Rs 1,000 Monthly pension – Rs 1,62,162 premium
For Rs 3,000 Quarterly Pension (3 Months) – Rs 1,61,074 premium
For Rs 6,000 Semi-annual pension (6 months) – Rs 1,59,574 premium
For Rs 12,000 Annual pension – Rs 1,56,658 premium
FOR THE MAXIMUM PENSION
For Rs 9,250 Monthly pension – Rs 15,00,000 premium
For Rs 27,750 Quarterly Pension (3 Months) – Rs 14,89,933 premium
For Rs 55,500 Semi-annual pension (6 months) – Rs 14,76,064 premium
For Rs 1,11,000 Annual pension – Rs 14,49,086 premium
PMVVY interest rate (according to policy document)
For monthly pension – 7.4%
For quarterly pension – 7.45%
For half-yearly pension – 7.52%
For annual pension – 7.66%
According to the LIC document, in the event of the retiree’s death during the 10-year policy term, the purchase price/premium will be refunded to the beneficiary.
At maturity, LIC will return/refund the purchase price/premium and the final pension payment to the retiree.
Loan facility is available after completion of 3 years of insurance. The maximum loan that can be granted will be 75% of the purchase price.