Pradhan Mantri Vaya Vandana Yojana(PMVVY)

Benefits Of Pradhan Mantri Vaya Vandana Yojana(PMVVY)

Mentioned below are the benefits of the PMVVY scheme:

• Pension Payment: In case the pensioner survives the policy tenure, pension at the end of each term shall be provided to the pensioner. The pensioner has the option of selecting the method through which the pension must be paid.
• Death Benefit: If the pensioner passes away within the term of the policy, the purchase price will be returned to the beneficiary.
• Maturity benefit: The purchase amount will be paid along with the final pension instalment if the pensioner survives the whole policy period.
• Loan facility: After three years of insurance, the retiree can take out a loan against the policy. A loan can be used to fund up to 75% of the purchase price. The interest on the loan will be deducted from the monthly pension payment. If a loan was approved before April 30, 2018, the rate of interest is 10 %, payable half-yearly for the duration of the policy.
• Surrender benefit: Under extraordinary cases, such as the assured life requiring money for the certain treatment of a critical/terminal illness of the self or spouse during the term of the policy, the policy allows a premature leave during the term of the policy. In such cases, the S.V. (Surrender Value) payable should be % of the original purchase price.
• Tax benefits: Income tax benefits are available on premium that have already been paid, and the benefits that are eligible are determined by current income tax laws.
• Free-look period: If the policyholder is unhappy with the conditions of the insurance, he or she has 15 days to cancel it. If the policy is bought online, however, the free-look period is 30 days. The policyholder will receive a reimbursement of the purchase price once stamp duties have been deducted.

Additional Riders For Pradhan Mantri Vaya Vandana Yojana Plan

The Pradhan Mantri Vaya Vandana Yojana Rider is an optional add-on to the base Plan that provides additional benefits, including:

• Term Assurance Rider
• Accidental Death
• Disability Benefit Rider
• Critical illness rider

Taxes On The Pradhan Mantri Vaya Vandana Yojana Plan

If the Indian Government or another constitutional tax authority imposes any Statutory Taxes, they will be imposed in compliance with the appropriate tax laws and tax rates. The amount of tax paid will not be taken into account when calculating the benefits provided under the PMVVY scheme.

Documents Required For Pradhan Mantri Vaya Vandana Yojana Plan

The following are the documents that the applicant must submit before enrolling in the Pradhan Mantri Vaya Vandana Yojana. -

• Aadhaar Card
• Proof of Age
• Proof of Address
• Photos of the applicant in passport size
• Relevant Document/Declaration confirming the applicant's retired status

Scheme Validity

The subscription period for the scheme has been extended by 3 years, from FY 2020-21 to March 31, 2023. The plan can be purchased both physically and online through the website of the LIC.

How To Buy Pradhan Mantri Vaya Vandana Yojana Plan Online?

The Pradhan Mantri Vaya Vandana Yojana is available both offline and online. Before purchasing this plan, be sure to read the Pradhan Mantri Vaya Vandana Yojana reviews. The policy can be acquired with a one-time lump-sum payment. The insured person can choose between the pension amount and the current Purchase Price.

Pradhan Mantri Vaya Vandana Yojana- Premature Exit

• The Pradhan Mantri Vaya Vandana Yojana (PMVVY) also allows for a premature exit if the self or spouse suffers from a serious disease. In this situation, the policyholder will receive a refund of 98 percent of the principal invested. However, the remaining 2% will be charged as a penalty for leaving early.
• If the policyholder commits suicide, the nominee will receive a full return of the purchase amount.

Exclusions Of Pradhan Mantri Vaya Vandana Yojana Plan

This policy will be invalid if the Life Assured commits suicide within 12 months of the date of risk enforcement of the policy. The Corporation would not entertain any claim under this policy except for the guaranteed 80% of the premiums that have already been paid; this would exclude any taxes, extra premiums, or rider premiums (if any) if the insurance is still in effect.