PRADHAN MANTRI VAYA VANDANA YOJANA (PMVVY) – PENSION SCHEME FOR SENIOR CITIZENS - watsupptoday.com
PRADHAN MANTRI VAYA VANDANA YOJANA (PMVVY) – PENSION SCHEME FOR SENIOR CITIZENS
Posted 03 Aug 2017 05:07 PM

The government of India has always been coming up with new schemes and programs for the senior citizens. Now again it is ready to provide the people of India with yet another valuable venture Pradhan Mantri Vaya Vandana Yojana (PMVVY) which was applicable from May 4, 2017, till May 3, 2018. The schemes can be availed online and offline by Life Insurance Corporation (LIC) of India.
The scheme is aimed to provide 8% return p.a payable every month (equivalent to 8.30% p.a. effective) for 10 years. Pension amount will be paid at the end of every period, in the term policy for 10 years as per chosen by the pensioner at the time of purchase. It is exempted from taxes such as Service tax/GST.
As per the scheme norms, a pensioner can avail up to 75% loan on the purchase price after 3 years of the policy. The loan interest will be deducted from the pension installments and loan amount will be recovered from claim proceeds. Premature exit on the scheme is also available due to critical/terminal illness of the pensioner or spouse. Premature exit allows 98% of the purchase price to be refunded whereas on the death of the pensioner the amount will be paid to the beneficiary.



Senior Citizen Savings Scheme (SCSS) or Post Office MIS. Can be compared to this scheme. SCSS gives a return rate of 8.4% which has a lock in period till the maturity of the scheme. In SCSS a consumer can invest upto 15 lakh but here the policy is limited to 7.5 lakh only. Guaranteed schemes always attract people so it has a plus point to attract the investor. PMVVY promises to give a fixed income for 10 years. LIC started selling the scheme from May 4, 2017, and has sold 58152 policies and collected premium of Rs 2705 from PMVVY.

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