Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a scheme that has been introduced by the Indian government as a retirement cum pension scheme to support elderly people. The government of India has subsidized this scheme and launched it in the year 2017. The Pradhan Mantri Vaya Vandana Yojana Scheme is a type of pension plan that has been brought to support the senior citizens of the society and is managed by the Life Insurance Corporation (LIC).
The people have to pay a purchase price (the purchasers invest a certain amount of money in the Pradhan Mantri Vaya Vandana Scheme that is called Purchase Price). The main motto of the scheme is the assured ROR (Rate of Return) on the money that the purchaser invests. The people buying this scheme can trust the return that is told to them as the government itself guarantees the return on the investment. The Pradhan Mantri Vaya Vandana Yojana scheme ensures the payment of pension constantly or regularly. The frequency of the monthly payment of the scheme can be yearly, quarterly, or monthly. This scheme introduced by the government happens to be the best alternative for the monthly deposits in any bank.
The scheme being introduced to support the elderly people in the society doesn’t need many documents in the processing. The purchaser of the scheme will need to submit an Aadhaar Card, any age proof card, address proof, passport size photo, documents, or paper showing the retirement of the applicant from the employment.
Similarly, the eligibility criteria of the Pradhan Mantri Vaya Vandana Yojana are also very easy to understand and are not complicated. The applicant or the subscriber of the scheme must be of two categories:
- A Senior Citizen, i.e. more than 60 years of age.
- An Indian Citizen
Benefits that can be availed under the scheme
Various benefits can be availed under the Pradhan Mantri Vaya Vandana Scheme. Some of them are:
- The scheme assures the subscribers a ROR of 8%-8.3% for 10 years consecutively.
- The scheme ensures a consistent payout of pension.
- The subscriber will be paid the entire amount after the completion of 10 years that will include the purchase price and final pension of the subscriber.
- The subscriber can also avail of the loan amount after three years in case of emergency.
- The subscriber also gets the benefit of withdrawing 98% of the amount for the medical emergency.
- In case the subscriber dies or passes away within the term of the policy, the nominee will be eligible to get the purchase price and the final amount.
The PMVVY scheme also allows the subscribers to make an early exit from the policy on the condition that the applicant himself/herself is critically ill or the condition of the spouse has medically deteriorated. The 98% amount can be withdrawn, and the remaining 2% will be charged as the penalty for withdrawing fees or penalty by the government. In case the subscriber or the applicant who has purchased the policy commits suicide, the nominee will be eligible to receive a 100% refund of the amount.
ALSO READ | Pradhan Mantri Garib Kalyan Yojana Benefits and Eligibility.
The policy of the pension
The minimum price that the applicant has to pay is Rs.1,50,000 for a pension for a monthly pension of Rs.1000. If the subscriber subscribes to the Quarterly mode of pension, the subscriber will need to pay Rs.3000 minimum or Rs.30,000 maximum. If the subscriber subscribes to the Bi-annual mode of pension, the subscriber will need to pay Rs.6,000 minimum and Rs.60,000 maximum if the subscriber subscribes to the annual mode of pension. The policy also provides the subscriber with a 15 days period to look free of cost if the subscriber purchases it in the offline mode and a 30 days free look period if the subscriber has purchased through the online mode. If the subscriber feels unsatisfied with the terms & conditions of the policies, the subscriber holds the right to cancel the policy at any point of time and ask for the return of the policy from the corporation and similarly receive the price that has been deposited without paying any charges on the stamp duty.
The Pradhan Mantri Vaya Vandana Yojana is a scheme introduced by the government which aims to support the elderly section of society. The elderly people or the senior citizens of the society don’t have any support system except for their children. There are many families which send their elder parents to NGOs because they don’t feel the need to keep their parents at their home. Therefore, this scheme will ensure the safety of the senior citizens in the country after retirement.