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Pradhan Mantri Vaya Vandana Yojana completes Five Years

  • Posted By
    10Pointer
  • Categories
    Polity & Governance
  • Published
    23rd Jul, 2022

Context

The five years of the Pradhan Mantri Vaya Vandana Yojana are now complete.

About Pradhan Mantri Vaya Vandana Yojana

  • Pradhan Mantri Vaya Vandana Yojana (PMVVY) was launched as a government pension scheme for senior citizens which is managed and operated by Life Insurance Corporation (LIC). 
  • The scheme is exempted from GST. 
  • The scheme provides an assured return of 8% p.a. payable monthly and is exempted from service tax/GST.
  • The scheme offers loans up to 75% of the purchase price after 3 policy years.
  • 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.
  • If the pensioner dies during the policy term of 10 years, the benefits of the scheme can be availed by the nominee or the beneficiary.
  • The benefits of the scheme are overall applicable to the pensioner, his/her spouse and dependents.

Eligibility

  • Any individual must fulfil the following criteria for being eligible under Pradhan Mantri Vaya Vandana Yojana:
    • He/she should be 60 years or above to be eligible for the scheme.
    • The policy term should be of 10 years.
    • Investment limit should be Rs. 15 lakh per senior citizen.
    • The minimum pension should be Rs. 1,000/- per month and should not be more than Rs. 10,000/- per month.

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