Ministry of Finance
It is a Pension Scheme exclusively for the senior citizens aged 60 years and above.
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.
Key features of the scheme:
- The scheme provides an assured return of 8% per annum payable monthly (equivalent to 8.30% p.a. effective) for 10 years.
- 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 Service Tax/ GST.
- On survival of the pensioner to the end of the policy term of 10 years, Purchase price along with final pension instalment shall be payable.
- Loan up to 75% of Purchase Price shall be allowed after 3 policy years (to meet the liquidity needs). Loan interest shall be recovered from the pension instalments 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 a premature exit, 98% of the Purchase Price shall be refunded.
- On the death of the pensioner during the policy term of 10 years, the Purchase Price shall be paid to the beneficiary.
Recently, Government has made Aadhaar mandatory for subscribers of Pradhan Mantri Vaya Vandana Yojana (PMVVY).