Eligibility of Pradhan Mantri Vaya Vandana Yojana
Under the policy brochure, LIC mentioned the pension plan eligibility criteria. The minimum age of entry into the scheme is 60, while there is no maximum age of entry for the same. The duration of the policy has been set at 10 years, with a minimum pension amount of Rs. 1,000, monthly, or Rs. 3,000 per quarter, or Rs. 6,000 semi-annually, or Rs. 12,000 per year. The maximum pension amount is Rs. 9,250 per month or Rs. 27,750 per term, or Rs. 55,500 semi-annually, or Rs. 1,11,000 per year.
The total amount of purchase price under all policies under this plan and all policies taken out under Pradhan Mantri Vaya Vandana Yojana entitled to an elderly person cannot exceed Rs. 15 lakhs, as per the policy settlement.
Benefits offered by Pradhan Mantri Vaya Vandana Yojana
If the investor or retiree has survived the full 10-year term of the policy, an overdue annuity, at the end of each period depending on the mode chosen, will be paid. If the investor dies before the end of the contract term, the purchase price will be refunded to the plan beneficiary. Similarly, under the Maturity Benefits, the purchase price plus the final pension payment will be paid, on the survival of the retiree until the end of the 10-year policy term.
In addition, the amount of tax (GST) paid by the investor will not be taken into account in calculating the benefits payable under the plan.
Annuity payment rate and purchase price
As an investor, you can purchase this plan upon payment of a lump sum purchase price. You can choose between the pension amount mentioned below or the purchase price.
The minimum and maximum purchase prices according to the different pension methods have been mentioned here.
|Pension method||Minimum purchase price||Maximum purchase price|
(The purchase price to be invoiced will be rounded.)
The pension rates for Rs. 1000/- Purchase price for different modes of payment of pensions has been mentioned by LIC. For annual mode, the amount will be Rs. 76.60 pa, for semiannual mode, the amount will be Rs. 75.20 pa, for quarterly mode, the amount will be Rs. 74.50 pa, and for the monthly mode, the amount will be Rs. 74.00 pa
Other Related Benefits
You can avail the loan facility under the Pradhan Mantri Vaya Vandana Yojana. However, you can avail yourself of 75% of the purchase price as the maximum loan amount. Interest will be charged for the loan amount, which will be determined at periodic intervals. LIC advises: “Interest on the loan will be recovered from the amount of pension payable under the policy. Interest on the loan will accrue according to the frequency of payment of pension under the policy and will be due at the due date of the repo. However, the outstanding loan will be recovered from the proceeds of the receivable at the time of exit. The applicable interest rate will be based on the method approved by IRDAI.
You can also benefit from a free blocking period, which means that if the investor or the policyholder is not satisfied, he can return the policy to the Company within 15 days (30 days if this policy is purchased online) from the date of receipt of the policy stating the reason for the objections. In this case, the amount of the purchase price will be refunded during a free consultation period.