Pradhan Mantri Vaya Vandana Yojana (842) from LIC
Last Update: 27th May, 2020
Pradhan Mantri Vaya Vandana Yojana is Pension plan for Senior citizens announced by Government of India. This policy is government's subsidized pension scheme which will avail guaranteed 8% return in yearly mode.
This plan has been closed on 31-03-2020 and new modified plan has been launched.
Go to New Plan: PMVVY Modified-2020 Plan (856)
Modifications with effect from 03-05-2018.
- Maximum deposit limit has been increased to 15 Lakh.
- Maximum Pension of 10,000/month can be availed.
- This 15 Lakh Limit has now been modified to per senior citizen (Earlier it was for per family).
- The last date to purchase this scheme is 31-03-2020.
- This 15 Lakh limit is inclusive of earlier 7.5 Lakh, which means if some had ealier deposited 7.5 Lakh, he would be able to deposite another 7.5 Lakh only.
Related Link: Pension Calculator
Plan Parameters
| Age at Entry | 60 Years (Completed) Calculate your Age |
|---|---|
| Maximum Age at Entry | No Limit |
| Policy Term | 10 Years (Fixed) |
| Pension Receiving Mode | Monthly, Quarterly, Half Yearly or Yearly |
Please use following calculator to calulate pension as per your choice of amount and pension mode.
PMVVY Pension Calculator [Rates up to 31-03-2020]
Pension benefit
- Pensioner will receive pension amount as per selected mode. Pension will be available on completion of selected mode, for example, in case of monthly mode, pension will be paid on completion of month.
This plan can be purchsed on payment of single one time amount, the minimum and maximum limit of one time lumpsum amount is given in the following table
| Mode | Minimum | Maximum | ||
|---|---|---|---|---|
| Amount | Pension | Amount | Pension | |
| Yearly | 1,44,578 | 12,000 | 14,45,784 | 1,20,000 |
| Half Yearly | 1,47,601 | 6,000 | 14,76,014 | 60,000 |
| Quarterly | 1,49,068 | 3,000 | 14,90,684 | 30,000 |
| Monthly | 1,50,000 | 1,000 | 15,00,000 | 10,000 |
Death benefit
- Deposited amount will be returned to nominee or legal heirs.
Maturity Benefit
- On compltion of 10 years, the deposited amount along with last due pension will be returned to policy holder.
Policy Surrender
- In extra-ordinary cases like critical medical emergency of policy holder or spouse, the policy can be surrendered before completion of 10 year term. The surrender value will be 98% of purchase price.
Example of Pradhan Mantri Vaya Vandana Yojana (LIC Table 842)
Let's take example of PMVVY with following details.
| Age (Years) | 60 (Completed) |
| One Time Deposit | 7,50,000 |
| Policy Term(Years) | 10 |
| Purchase Year | 2017 |
| Pension Mode | Monthly |
As per above example, pension scheme holder requires to deposit on time lumpsum amount of 7,50,000 and monthly pension will credit in to his/her account on completion of each month from date of purchase for next 10 years.
On completion of 10 years, 7,50,000 will be returned to policy holder. Following table provides year-wise pension details.
Pension Details
| Year | Age | Deposit Amount | Monthly Pension | Total Pension in a Year | Return of Purchase Price |
|---|---|---|---|---|---|
| 2017 | 60 | 750000 | 5000 | 60000 | 0 |
| 2018 | 61 | 0 | 5000 | 60000 | 0 |
| 2019 | 62 | 0 | 5000 | 60000 | 0 |
| 2020 | 63 | 0 | 5000 | 60000 | 0 |
| 2021 | 64 | 0 | 5000 | 60000 | 0 |
| 2022 | 65 | 0 | 5000 | 60000 | 0 |
| 2023 | 66 | 0 | 5000 | 60000 | 0 |
| 2024 | 67 | 0 | 5000 | 60000 | 0 |
| 2025 | 68 | 0 | 5000 | 60000 | 0 |
| 2026 | 69 | 0 | 5000 | 60000 | 0 |
| 2027 | 70 | 750000 | |||
Death Claim Details
In case death before completion of 10 years (Before Year 2027 in this case), purchase price (Rs. 7,50,000) will be returned to policy holder's nominee or legal heirs
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