If you are a resident of India then you will be eligible to apply for the Pradhan Mantri Vaya Vandana Yojana which is a pension scheme created by the Indian government. It was introduced in the financial year 2023 to provide monthly pension facilities to people who are above the age of 60 years and permanent residents of India but are not able to get financial funds due to various circumstances that they are going through. You can check out the details related to the step-by-step procedure to apply online for the scheme from the article provided below and we will also share with you all the details related to the eligibility and the benefits available for all of the beneficiaries.
About Pradhan Mantri Vaya Vandana Yojana
The Government of India has introduced the Pradhan Mantri Vaya Vandana Yojana in order to provide proper opportunities as a retirement plan. The plan was created in order to provide proper pension opportunities to the people and to enter the scheme you must have attained the age of 60 years and there is no maximum age limit available for the development of the Pradhan Mantri Vaya Vandana Yojana. The candidates will be able to apply for the scheme until the financial year 2023 because the scheme was recently modified by the Government of India and it was extended up until the year 2023. The scheme was introduced in the financial year 2022 by the government and it provides an assured pension of 7.4% per annum payable monthly to the beneficiaries.
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Specifications Of Pradhan Mantri Vaya Vandana Yojana
The applicant must follow the following specifications in relation to the Pradhan Mantri Vaya Vandana Yojana:-
- Free Look period: If a policyholder is not satisfy with the “Terms and Conditions” of the policy, he/she may return the policy to the Corporation within 15 days
- The amount to refund within the free look period shall be the Purchase Price deposits by the policyholder after deducting the charges for Stamp duty
- Statutory Taxes, if any, imposed on this plan by the Government of India or any other constitutional Tax Authority of India shall be as per the Tax laws and the rate of tax as applicable from time to time. The amount of tax (GST) paid shall not consider for the calculation of benefits payable under the plan.
- The loan facility is available after the completion of 3 policy years. The maximum loan that can grant shall be 75% of the Purchase Price.
- For the loan sanctioned till 30th April 2021, the applicable interest rate is 9.5% p.a. For the entire term of the loan.
- Loan interest will recover from the pension amount payable under the policy. The Loan interest will accrue as per the frequency of pension payment under the policy. And it will be due on the due date of the pension. However, the loan outstanding shall recover from the claim proceeds at the time of exit. The applicable interest rate shall be based on the method approved by IRDAI.
- The scheme allows premature exit during the policy term under exceptional circumstances like the Pensioner requiring money for the treatment of any critical/terminal illness. The Surrender Value payable in such cases shall be 98% of the Purchase Price.
Benefits Of Pradhan Mantri Vaya Vandana Yojana
The following benefits will be available under the Pradhan Mantri Vaya Vandana Yojana:-
- Pension Payment: On survival of the Pensioner during the policy term of 10 years, pension in arrears (at the end of each period as per mode chosen) shall be payable.
- Death Benefit: On the death of the Pensioner during the policy term of 10 years, the Purchase Price shall refund to the beneficiary.
- Maturity Benefit: On survival of the pensioner to the end of the policy term of 10 years, the Purchase price along with the final pension installment shall be payable
Mode Of Payment
The payment under this scheme will be on the following basis as decided by the Life Insurance Corporation:-
- The modes of pension payment are monthly, quarterly, half-yearly & yearly. The pension payment shall be through NEFT or Aadhaar Enabled Payment System. The purchase of the policy under this Government subsidized scheme requires unique Aadhaar number validation. The first installment of pension shall pay after 1 year, 6 months or others from the date of purchase of the same depending on the mode of pension payment
The applicant must follow the following eligibility criteria to be eligible for the LIC Insurance Corporation scheme:-
- Minimum Entry Age: 60 years (completed)
- Maximum Entry Age: No limit
- Policy Term: 10 years
- Minimum Pension: ` 1,000/- per month
- ` 3,000/- per quarter
- `6,000/-per half-year
- `12,000/- per year
- Maximum Pension: ` 9,250/-per month
- ` 27,750/-per quarter
- ` 55,500/-per half-year
- ` 1,11,000/-per year
- The total amount of purchase price under all the policies under this plan, and all the policies taken under Pradhan Mantri Vaya Vandana Yojana (with UIN 512G311V01 and UIN: 512G311V02) allowed to a senior citizen shall not exceed `15 lakhs.
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Pradhan Mantri Vaya Vandana Yojana Application Procedure
To apply for this scheme you will have to follow the simple procedure given below:-
- You will first have to visit the PM Vaya Vandana website of the scheme by clicking on the link given here.
- The details related to the Pradhan Mantri Vaya Vandana Yojana will open on your screen.
- You have to read all of the details to understand the motive behind the development of the scheme.
- You can download the sale brochure of the scheme by clicking on the sale brochure button
- You can read most of the information related to the scheme from the sale brochure.
- You have to now click on the apply online button.
- The application form will open on your screen and you will have to enter the details related to yourself.
- You also have to upload all of the documents and successfully apply for the Pradhan Mantri Vaya Vandana Yojana.
- Life Insurance Corporation of India
- Central Office, Yogakshema,
- Jeevan Bima Marg,
- Mumbai – 400021.
- Website: www.licindia.in
- Registration Number: 512