LIC Pradhan Mantri Vaya Vandana Yojana: LIC PMVVY to close for investment on Mar 31, check details

The LIC Pradhan Mantri Vaya Vandana Yojana (PMVVY) pension program was introduced by the government in 2017 with the intention of providing retirement benefits to senior citizens. A guaranteed pension is available to seniors 60 years of age and older under the LIC-managed program.

Pension payments under the PMVVY plan are made in accordance with the pay-out option that the investor chose when the funds were put in the plan. Pension payments may be made every month, every quarter, every half-year, or every year.

With the annual pension option, the policy can be purchased for a minimum of Rs.1,56,658 (for Rs.12,000 annual pension) and a maximum of Rs.14,49,086 (for Rs.1,11,000 yearly pension). The monthly option, it ranges from Rs.1,62,162 (Rs.12,000 yearly pension) to Rs.15 lakh (Rs.1,11,000 annual pension).

Investors under the scheme are not eligible to claim deductions under section 80C of the Income-tax Act because the scheme. Returns from this plan will be taxed at the time of receipt in accordance with current tax laws and the applicable tax rate.

According to the LIC website, “"For Financial Year 2022-23, the Scheme shall provide an assured pension of 7.40% p.a. payable monthly. This assured rate of pension shall be payable for the full policy term of 10 years for all the policies purchased till 31st March, 2023."

The insurance allows for an immediate withdrawal during the policy term in specific circumstances, such as when a pensioner requires money for the treatment of a serious or terminal sickness of themselves or a spouse. The Surrender Value due in such cases will be equal to 98% of the purchase price.

A loan facility is available once three policy years have been completed. It is important to note that the maximum loan amount is just 75% of the purchase price. The interest rate that will be applied to the loan amount will be determined on a regular basis.