LIC of India issues Pradhan Mantri Vaya Vandana Yojana (PMVVY) that fetches 8% pension for senior citizens. This is a very special scheme available only for senior citizen.
Now a days when interest rate across all savings are falling, PMVVY offers guaranteed 8% interest rate for 10 years. Under this scheme pension is payable as per the intervals chosen by the holder i.e. monthly/quarterly/half-yearly or yearly.
Pradhan Mantri Vaya Vandana Yojana (PMVVY)
- This scheme is only available for senior citizens till May 3, 2018.
- PMVVY offers regular income at a time of falling interest rates. The scheme is exempted from GST (Goods and Services Tax).
- PMVVY can be purchased offline through agents as well as online through Life Insurance Corporation (LIC) of India.
- PMVVY will provide secure return of 8 percent annually for 10 years.
- There is a minimum and maximum limit for investment in the Pradhan Mantri Vaya Vandana Yojana scheme.(for details visit LIC’s official website)
- On the completion of 10 years, holder gets back amount invested along with final pension installment.
- In case of death of the holder during the policy term of 10 years, the purchase price will be paid to the nominee.
- A loan available after 3 policy years – up to 75 per cent of purchase price.
- Premature exit/surrender is allowed for treatment of any critical/terminal illness of self or spouse. On such premature exit, 98 per cent of the purchase price will be refunded.