Introduction:
The Government of India has announced Pradhan Mantri Vaya Vandana Yojana for citizen aged 60 years and above. LIC of India has been given the sole privilege to operate this scheme. The Pradhan Mantri Vaya Vandana Yojana was launched on 4th May 2017.The scheme shall be available for one year from date of launch.
This scheme can be purchased offline as well as online. To Purchase this scheme online please log on to our website www.licindia.in.
Benefits :
Pension Payment :
On survival of the Pensioner during the policy term of 10 years, pension in arrears (at the end of each period as per mode chosen) shall be payable.
Death Benefit:
On death of the Pensioner during the policy term of 10 years, the Purchase Price shall be refunded to the beneficiary.
Maturity Benefit:
On survival of the pensioner to the end of the policy term of 10 years, Purchase price along with final pension installment shall be payable.
Eligibility Conditions and Other Restrictions:
1. Minimum Entry Age: 60 years (completed)
2. Maximum Entry Age: No limit
3. Policy Term : 10 years
4. Minimum Pension: Rs. 1,000/- per month
Rs. 3,000/- per quarter
Rs.6,000/- per half-year
Rs.12,000/- per year
5. Maximum Pension: Rs. 5,000/- per month
Rs. 15,000/- per quarter
Rs. 30,000/- per half-year
Rs. 60,000/- per year
Ceiling of maximum pension is for a family as a whole i.e. total amount of pension under all the policies allowed to a family under this plan shall not exceed the maximum pension limit. The family for this purpose will comprise of pensioner, his/her spouse and dependants.
Payment of Purchase Price:
The scheme can be purchased by payment of a lump sum Purchase Price. The pensioner has an option to choose either the amount of pension or the Purchase Price.
The minimum and maximum Purchase Price under different modes of pension will be as under:
| Mode of Pension | Minimum Pension | Maximum Pension | Purchase Price (Minimum) | Purchase Price (Maximum) |
|---|
| Yearly | Rs. 1,44,578/- | Rs. 7,22,892/- | Rs. 1,44,578/- | Rs. 7,22,892/- |
| Half-yearly | Rs. 1,47,601/- | Rs. 7,38,007/- | Rs. 1,47,601/- | Rs. 7,38,007/- |
| Quarterly | Rs. 1,49,068/- | Rs. 7,45,342/- | Rs. 1,49,068/- | Rs. 7,45,342/- |
| Monthly | Rs. 1,50,000/- | Rs. 7,50,000/- | Rs. 1,50,000/- | Rs. 7,50,000/- |
The Purchase Price to be charged shall be rounded to nearest rupee.
Mode of pension payment:
The modes of pension payment are monthly, quarterly, half-yearly & yearly. The pension payment shall be through NEFT or Aadhaar Enabled Payment System.
The first instalment of pension shall be paid after 1 year, 6 months, 3 months or 1 month from the date of purchase of the same depending on the mode of pension payment i.e. yearly, half-yearly, quarterly or monthly respectively.
Sample Pension rates per Rs.1000/- Purchase Price
The pension rates for Rs.1000/- Purchase Price for different modes of pension payments are as below:
Yearly: Rs. 83.00 p.a.
Half-yearly: Rs. 81.30 p.a.
Quarterly: Rs. 80.50 p.a.
Monthly: Rs. 80.00 p.a.
The pension instalment shall be rounded off to the nearest rupee.
These rates are age independent.
Surrender Value:
The scheme allows premature exit during the policy term under exceptional circumstances like the Pensioner requiring money for the treatment of any critical/terminal illness of self or spouse. The Surrender Value payable in such cases shall be 98% of Purchase Price.
Loan:
Loan facility is available after completion of 3 policy years. The maximum loan that can be granted shall be 75% of the Purchase Price.
The rate of interest to be charged for loan amount shall be determined at periodic intervals. For the loan sanctioned in Financial Year 2016-17, the applicable interest rate is 10% p.a. payable half-yearly for the entire term of the loan.
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. However, the loan outstanding shall be recovered from the claim proceeds at the time of exit.
Taxes:
Statutory Taxes, if any, imposed on this Plan by the Government of India or any other constitutional tax Authority of India shall be as per the Tax laws and the rate of tax as applicable from time to time.
The amount of tax paid shall not be considered for the calculation of benefits payable under the plan.
Free Look period:
If a policyholder is not satisfied with the “Terms and Conditions” of the policy, he/she may return the policy to the Corporation within 15 days (30 days if this policy is purchased online) from the date of receipt of the policy stating the reason for objections.
The amount to be refunded within the free look period shall be the Purchase Price deposited by the policyholder after deducting the charges for Stamp duty and pension paid, if any.
Exclusion:
Suicide: There shall be no exclusion on count of suicide and full Purchase Price shall be payable.
