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 /- |
|