Indian's most trusted insurance company LIC has come up with many new pension schemes for senior citizens. LIC Pradhan Mantri Vaya Vandana Yojana is one such pension scheme for senior citizens aged above 60 years which assures guaranteed pension for 10 years.
Moreover, 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.
The scheme which was launched earlier this year on 26th May will provide an assured pension of 7.40% p.a., payable monthly for the first financial year i.e. up to 31st March 2021.
Pradhan Mantri Vaya Vandana Yojana can be bought online through LIC website or offline which is available up to 31st March 2023.
Feature and Eligibility of LIC Pradhan Mantri Vaya Vandana Yojana:
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Person minimum age of 60 year or above can buy this policy.
The policy term is 10 years.
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Minimum pension under the policy is ₹1,000 for monthly payout, ₹3,000 for quarterly payout, ₹6,000 for half-year and ₹12,000 for annual payout.
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The premiums have been caped at ₹9,250 for monthly payout, ₹27,750 for quarterly payout, ₹55,500 for half-yearly and ₹1,11,000 for annual payout.
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The pensioner can either choose the amount of pension to be received or the purchase price for which he wants to buy the policy.
What is Surrender Value?
You can do premature exit during the policy term under exceptional circumstances like the Pensioner requiring money for the treatment of any critical/terminal illness of self or spouse. The Surrender Value payable in such cases shall be 98% of the Purchase Price.
What is the Loan facility?
This scheme allows you to take loan after the completion of three policy years. The maximum loan that can be granted shall be 75% of the Purchase Price.
