LIC’s Senior Citizen Pension Plan: All You Want To Know About This Scheme

What it’s essential know concerning the senior citizen pension plan supplied by LIC

Senior residents solely have a couple of months to join the Pradhan Mantri Vaya Vandana Yojana (PMVVY). It is a Life Insurance coverage Company (LIC)-managed pension scheme for these 60 and older. 

Senior people who buy the plan for a lump cost of as much as Rs 15 lakh will obtain an instantaneous month-to-month, quarterly, half-yearly, or annual pension. PMVVY will proceed to be accessible until March 31, 2023.

In response to the LIC web site, the PMVVY scheme is accessible to aged residents of India who’re 60 years (accomplished) or older. There is not any higher age restrict to purchasing the plan.

After one month, three months, six months, or one yr from the date of buy, the primary pension instalment begins. Pension, demise, and maturity advantages are all coated. For the 10-year coverage interval, PMVVY presents a pension based mostly on the subscriber deciding on pension mode.

If the pensioner survives the 10-year coverage time period, the pension in arrears will likely be paid (on the finish of every interval in response to the mode chosen). 

The acquisition value will likely be returned to the beneficiary if the pensioner passes away throughout the coverage’s 10-year time period. The acquisition value and closing pension cost are payable if the pensioner lives to the tip of the coverage’s 10-year time period.

The rate of interest for plans bought till March 31, 2023, will likely be 7.40 per cent yearly, payable month-to-month.

The PMVVY permits for a minimal month-to-month pension of Rs 1,000 and a most month-to-month pension of Rs 9,250. For month-to-month, quarterly, half-yearly or annual pensions, the minimal buy value beneath the scheme is Rs 1,62,162, Rs 1,61,074, Rs 1,59,574 and Rs 1,56,658, respectively.

The scheme’s most buy value for month-to-month pensions is Rs 15 lakh, quarterly pensions of Rs 14,89,933, half-yearly pensions of Rs 14,76,064, and annual pensions of Rs 14,49,086.

A senior citizen can not make investments greater than Rs 15 lakh. All through the time period, the coverage could also be surrendered at any time.

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