Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a Pension Scheme announced by the Government of India exclusively for the senior citizens aged 60 years and above which was available from 4th May, 2017 to 31st March, 2020. The scheme is now extended up to 31st March, 2023 for a further period of three years beyond 31st March, 2020.
The Government of India has introduced Pradhan Mantri Vaya Vandana Yojana (Modified-2020), with modified rate of pension under this plan and extended the period of sale of this plan for a further period of three years from Financial Year 2020-21 till 31st March, 2023. As per the terms and conditions under this plan, guaranteed rates of pension for policies sold during a year will be reviewed and decided at the beginning of each year by the Ministry of Finance, Government of India. For the first financial year i.e. upto 31st March 2021, the Scheme will provide an assured pension of 7.40% p.a. payable monthly. LIC of India is solely authorised to operate this scheme. This scheme can be purchased offline as well as online. To Purchase this scheme online please log on to our website www.licindia.in.
Official website details
Beneficiaries who want to invest in this scheme can check with the official LIC website at www.licindia.in to purchase online. The pension scheme can also be purchased offline by visiting or contacting their local LIC policy agent.
Benefits of the scheme
Following are the major benefits under the Pradhan Mantri Vaya Vandana Yojana (PMVVY):
- Scheme provides initially an assured rate of return of 7.40 % per annum for the year 2020-21 per annum and thereafter to be reset every year.
- Annual reset of assured rate of interest with effect from April 1st of financial year in line with revised rate of returns of Senior Citizens Saving Scheme (SCSS) upto a ceiling of 7.75% with fresh appraisal of the scheme on breach of this threshold at any point.
- Pension is payable at the end of each period, during the policy term of 10 years, as per the frequency of monthly/ quarterly/ half-yearly/ yearly as chosen by the pensioner at the time of purchase.
- The scheme is exempted from GST.
- 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.
- Loan upto 75% of Purchase Price shall be allowed after 3 policy years (to meet the liquidity needs). Loan interest shall be recovered from the pension installments and loan to be recovered from claim proceeds.
- The scheme also allows for premature exit for the treatment of any critical/ terminal illness of self or spouse. On such premature exit, 98% of the Purchase Price shall be refunded.
- On death of the pensioner during the policy term of 10 years, the Purchase Price shall be paid to the beneficiary.
- The ceiling of maximum pension is for a family as a whole, the family will comprise of pensioner, his/her spouse and dependants.
- The shortfall owing to the difference between the interest guaranteed and the actual interest earned and the expenses relating to administration shall be subsidized by the Government of India and reimbursed to the Corporation.
Eligibility Conditions and Other Restrictions
- Minimum Entry Age: 60 years (completed)
- Maximum Entry Age: No limit
- Policy Term : 10 years
- Investment limit : Rs 15 lakh per senior citizen
- Minimum Pension: Rs. 1,000/- per month
Rs. 3,000/- per quarter
Rs.6,000/- per half-year
Rs.12,000/- per year. Inve - Maximum Pension: Rs. 12,000/- per month
Rs. 30,000/- per quarter
Rs. 60,000/- per half-year
Rs. 1,20,000/- 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.
The Scheme can be purchased offline as well as online through Life Insurance Corporation (LIC) of India which has been given the sole privilege to operate this Scheme. To buy online, visit http://www.licindia.in/
Click Here For Download Policy Document 
Sales Brochure
Sales Brochure - English
Sales Brochure - Hindi
Eligibility criteria
- To be eligible under this pension scheme the beneficiary has to be minimum of 60 years or above of age at the time of purchase.
- The policy does not offer with any maximum age limit for the beneficiary to purchase the pension scheme.
- The policy holder will have to pay the premium amount for full 10 years from the date of purchase.
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 Purchase Price | Maximum Purchase Price |
| Yearly | Rs. 1,56,658/- | Rs. 7,22,892/- |
| Monthly | Rs. 1,62,162/- | Rs. 7,50,000/- |
- On monthly basis, the policy holder can request for claims on minimum basis equivalent to Rs 1000 till Rs 5000 maximum.
- If the beneficiary wants to claim on quarterly basis then he will be eligible for minimum of Rs 3000 to a maximum of Rs 15,000 quarterly.
- In case he wants to claim for half yearly pension then minimum claim for Rs 6000 while maximum of Rs 30,000 can be made.
- On yearly basis the policy holder can collect a pension minimum of Rs 12000 and maximum of 60,000 Rupees.
Purchase price payment
In order to make the purchase of the scheme you may have to invest lump sum price. You can make the selection from amongst four purchase price mentioned below:-
- Monthly plan – To enroll under this plan the policy holder will have to pay a premium equivalent to Rs 150,000 or Rs 750,000 either minimum or maximum.
- Three months Plan – Under this plan to enroll the policy holder will have to invest Rs 149,068 or Rs 745,342 as minimum or Maximum amount.
- Six Months plan – to get registered in this plan the policy holder will have to pay or invest around Rs 147,601 to Rs 738,007 as minimum or maximum amount.
Payment mode
- According to the latest updates from LIC, beneficiaries can make use of Aadhar enabled payment options or via Bank transfer NEFT. The payments can be made according to the plans purchased.
- Beneficiary can make the payments monthly, quarterly, half yearly or annually using the NEFT or Aadhar.
Premature Exit of scheme
In case any beneficiary is not able to make payment till maturity date on account of emergency, then the pensioner will be able to collect a amount or 98 percent of the overall purchase price.
Loan benefit
- Beneficiaries will be able to apply for loan under the pension scheme once they have managed to pay a premium for 3 years consecutively.
- Beneficiaries can request for a loan amount equivalent to around 75 percent of the overall purchase value of the pension scheme.
- The LIC will be charging with an interest rate on the loan amount equivalent to around 10 percent annual.
Tax benefits
According to the latest updates all tax imposed on the policy and pension amount will be as per the tax regulations imposed by the department.
Purchase Price Payment for Different Periodic Payouts under PMVVY
Interested individuals can purchase PMVVY scheme in monthly, quarterly, half-yearly or yearly payout mode by depositing the purchase price in a lump sum. A buyer can either select the purchase price or pension amount while opting for this plan.
Check out the maximum and minimum purchase price to better understand this scheme.
Maximum purchase price under different modes of pension
| Mode of pension | Maximum purchase price | Corresponding pension amount |
| Yearly | 14,49,086 | 1,11,000 per annum |
| Half-yearly | 14,76,064 | 55,500 per half-year |
| Quarterly | 14,89,933 | 27,750 per Qtr. |
| Monthly | 15,00,000 | 9,250 per month |
Minimum purchase price under different modes of pension
| Mode of pension | Minimum purchase price | Corresponding pension amount |
| Yearly | 1,56,658 | 12,000 per annum |
| Half-yearly | 1,59,574 | 6,000 Half-year |
| Quarterly | 1,61,074 | 3,000 per Qtr. |
| Monthly | 1,62,162 | 1,000 per month |
Source: LIC official website
Moratorium period
The LIC also offers with a free look time offer for a period of 30 days to the policy holder. By this period from the date of purchase if the policy holder is not satisfied then he can request to discontinue and the policy fund can be requested back by the policy holder.
Hope all the information provided is helpful for the candidates applying for Pradhan Mantri Vaya Vandana Yojana Scheme. For more further clarifications visit the official site. In this article, we discussed some of the scheme benefits, Eligibility Criteria, Required Documents and some steps guiding candidates with Pradhan Mantri Vaya Vandana Yojana Scheme Application process. For all the latest article related to the government schemes
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