Modification of Pradhan Mantri Vaya Vandana Yojana (PMVVY) by LIC of India

The Life Insurance Corporation (LIC) of India has introduced Pradhan Mantri Vaya Vandana Yojana (PMVVY) (Modified- 2020) which is applicable to resident Indian senior citizens (age 60 years or above). LIC is solely authorised to operate this scheme. Below are the modifications done-

Particulars Earlier PMVVY Modified PMVVY- 2020
Date of Launching 4th May 2017 26th May 2020
Last date to Invest 31st Match, 2020 31st March, 2023
Rate of return (assured) (payable on monthly basis) 8% p.a.

7.4% p.a. (effectively 7.66 p.a.) for 1st year

(i.e. up to 31st March, 2020- after that rate will be reviewed and decided at the beginning of each FY by FM, Govt of India)

Duration (policy term) 10 years
How to purchase Offline or Online from LIC of India at www.licindia.in
Total Investments under all the policies under this scheme Should not exceeds Rs. 15 Lakhs (cumulating earlier or now)
Death Benefits The Purchase price shall be refunded to the nominee or beneficiary
Maturity Benefits If pensioner surviving to the stipulated Date of Maturity, the Purchase price along with the final pension installment shall be refunded to the pensioner.
Policy Loan The scheme offers loan up to 75% of the purchase price after 3 policy years.
Surrender The scheme allows premature exit under exceptional circumstances like treatment of any critical or terminal illness of self or spouse. Payable value in such cases shall be 98% of purchase price.
Free-look period 15 days (30 days if this policy is purchased online) from the of receipt of the Policy document by the Pensioners.
Decision points Pensioner has an option to choose either the amount of pension or the Purchase price.
Payout Options Pensioner can choose monthly/ quarterly/ half yearly or yearly mode. Once any option is chosen it cannot be changed later.

Minimum Purchase Price

(Source- LIC)

For Monthly- Rs. 1,62,162/-

For Quarterly- Rs. 1,61,074/-

For half yearly- Rs. 1,59,574/-

For yearly- Rs. 1,56,658/-

Maximum Pension

(Source- LIC)

For Monthly- Rs. 9,250/-

For Quarterly- Rs. 27,750/-

For half-yearly- Rs. 55,500/-

For yearly- Rs. 1,11,000 /-