Pradhan Mantri Vaya Vandana Yojana (PMVVY) Pension plan provides immediate pension for senior citizens of 60 years and above. People can now buy Life Insurance Corporation (LIC) PM Vaya Vandana Yojana plan online at www.licindia.in. LIC Plan 842 can be purchased by paying a lumpsum amount. LIC Plan 842 (PMVVY) application form PDF download available at the official website or through nearest LIC India branch.
PM Vaya Vandana Yojana plan provides for pension payments of stated amount for the policy term of 10 years. PMVVY Scheme envisages an assured rate of return of 7.4% per annum for 2020-21. In this LIC Pension Plan 842, there is a return of purchase price at the end of 10 years. Pension payment modes available for PMVVY scheme are monthly, quarterly, half-yearly and yearly. The minimum investment amount is Rs. 1.50 lakh. Below is the complete procedure to apply online for Pradhan Mantri Vaya Vandana Yojana.
This PMVVY Scheme last date was 31 March 2020, but central govt. has extended its deadline for 3 years i.e PMVVY last date now is 31 March 2023. PMVVY Pension would be paid at the end of each period as per payment mode chosen starts as early as next month if monthly mode is chosen. On the death of the pensioner at any time during the term of 10 years, the purchase price will be refunded to the legal heirs/nominees.
LIC PMVVY Pension Plan Application Form PDF Download
Central govt. has made Aadhaar mandatory for subscribers of Pradhan Mantri Vaya Vandana Yojana (PMVVY) pension scheme for senior citizens. The notification dated 23 December 2019 had been issued under Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016. Below is the complete procedure to buy LIC Pension Plan No. 842 named PM Vaya Vandana Yojana:-
- Firstly visit the official Life Insurance Corporation (LIC) India website at licindia.in
- At the homepage, click at the “Pradhan Mantri Vaya Vandana Yojana” banner under ‘Buy Policies Online’ section.
- The LIC Pension Plan No. 842 page for PMVVY application form pdf download will appear as shown below:-
- Here select the “Pradhan Mantri Vaya Vandana Yojana” tab or directly click this link. In the new page, click at the “Buy Online” option to open the application form for PMVVY scheme as shown below:-
Here candidates can enter their personal details, e-mail, mobile phone number, date of birth, address, pin code and click at the “Get Access ID” button to get access identity.
LIC Plan 842 (PMVVY) Features
The important features and highlights of LIC Plan Number 842 are as follows:-
|Medical||No medical examination is required.|
|Surrender Value||Premature exit is allowed during policy term under exceptional circumstances like Critical/Terminal illness of self or spouse. Surrender Value payable in such cases is 98% of the Purchase Price.|
|Loan||Loan is available under the policy after completion of 3 policy years. Maximum loan granted will be 75% of the purchase price.|
Pradhan Mantri Vaya Vandana Yojana Pension Options
Here are the minimum and maximum purchase price under different modes of pension:-
PM Vaya Vandana Yojana Minimum Purchase Price – The minimum investment has been revised to Rs. 1,56,658 for pension of Rs. 12,000 per annum and Rs. 1,62,162 for getting a minimum pension amount of Rs. 1000 per month under the scheme.
PM Vaya Vandana Yojana Maximum Purchase Price
The maximum investment has also been revised to Rs. 15,66,580 for pension of Rs. 1,20,000 per annum and Rs. 16,21,620 for getting a minimum pension amount of Rs. 10,000 per month under the scheme.
Aadhaar Card Mandatory for PMVVY Benefits
An individual eligible for receiving the benefit under PM Vaya Vandana Yojana (PMVVY scheme) shall hereby be required to furnish proof of possession of Aadhaar number. As per the Finance Ministry notification, applicant must possess the unique 12-digit biometric identity number or undergo Aadhaar authentication. In case aadhar card is not available, applicant must enroll for Aadhaar number first before making PMVVY registration.
In cases where Aadhaar authentication fails due to poor biometrics, then Dept. of Financial Services through its implementing agency would make provisions to help beneficiaries get the Aadhaar number. Further, where biometric or Aadhaar one-time password or time-based OTP authentication is not possible, benefit under the scheme may be given on the basis of physical Aadhaar letter whose authenticity may be verified through the quick response (QR) code printed on the Aadhaar letter. In the Budget 2018-19, the maximum limit under PMVVY was doubled to Rs 15 lakh per senior citizen. PMVVY scheme is available for subscription till March 2020.
Does PMVVY Pension Scheme Gives Tax Benefit
PMVVY pension scheme for senior citizens is not a tax saving scheme but an investment plan to fund their retirement. All the elderly people above 60 years were allowed to invest a max. amount of Rs. 15 lakh on or before 31 March 2020. For the policy term of 10 years, senior citizens can get a minimum pension of Rs 1,000 per month and a maximum pension of Rs 10,000 per month depending on the amount invested.
Will you get tax savings benefit under section 80C?
Returns from this scheme will be taxed as per existing tax laws and the rate of tax as applicable from time to time. The scheme is exempted from Goods and Services Tax (GST). All general insurance scheme includes 18 percent GST such as term insurance. However, to give a relief to senior citizens, there are a few LIC schemes including Pradhan Mantri Vaya Vandana Yojana scheme, which continues to be exempted under GST as they were exempted from service tax before July 1, 2017.
This PMVVY scheme will not allow investor to claim a deduction for investments up to Rs. 1.5 lakh under section 80C of the Income Tax Act. This scheme is not an eligible investment under this section of the Income Tax Act. However, a representation can be filed before IT dept. to include the sum paid under PMVVY scheme as an eligible deduction under section 80C of Income Tax Act to bring this scheme on par with Senior Citizens Saving Scheme. The inclusion however, will require legislative amendment which can be made in the subsequent budgets.
Other key highlights
Free Look period: If any senior citizen is not satisfied with the “Terms and Conditions” of the policy, then they may return the policy to the LIC within 15 days (30 days if the policy is purchased online) from the date of receipt of the policy stating the reason of objections. The refund amount you get will be the purchase price after deducting the stamp duty charges and pension paid if any.
Loan: After the completion of 3 years, senior citizens can avail the loan facility. You can avail a maximum loan amount equal to 75% of the purchase price.
Surrender Value: Under exceptional circumstances, where the pensioner requires money for the treatment of any critical illness of self or spouse, they can get 98% of purchase price as surrender value.
Suicide: There is no exclusion in case of suicide. In such a case, the full purchase price will be payable to the beneficiary.
PMVVY Frequently Asked Questions (FAQ’s)
1) What is PM Vaya Vandana Yojana?
Pradhan Mantri Vaya Vandana Yojana is offered by Life insurance Coporation (LIC) of India to give a guaranteed payout of pension at a specified rate to elderly people. It also offers a death benefit in the form of return of purchase price to the nominee. So, if you are a senior citizen and have lump sum money in your bank account, then you can consider buying this immediate annuity scheme.
2) What is the interest rate of PMVVY Scheme for 2020-21?
As per the new guidelines, the interest rate for FY 2020-21 for PMVVY Scheme is 7.4% per annum and thereafter to be reset every year.
3) What is the minimum and maximum entry age for PM Vaya Vandana Scheme?
The minimum entry age for PMVVY Scheme is 60 years while the maximum entry age has no limit.
4) What is the minimum and maximum pension amount for PMVVY Scheme?
The minimum pension amount is Rs. 1000 per month while the maximum pension amount is Rs. 10,000 per month.
5) What is the Maturity Benefit for Pradhan Mantri Vaya Vandana Yojana?
If the pensioner survives till the end of the policy term of 10 years, purchase price of the annuity along with final pension installment will be payable to the policyholder.
6) What is the death benefit of PMVVY?
If the pensioner dies during the policy term of 10 years, the purchase price of the annuity scheme will be refunded to the beneficiary.
7) How to Fill PMVVY Online Application Form?
People can now apply online for PMVVY Scheme at the official website of Life Insurance Corporation (LIC) India at www.licindia.in
8) What are the various modes of pension payment?
The modes of pension payment are monthly, quarterly, half-yearly and yearly for PMVVY Scheme.
9) Is Aadhaar Card Mandatory to Avail PMVVY Pension Scheme Benefits?
The notification dated 23 December 2019 had been issued under Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016. Aadhar Card has now been made mandatory for subscribers of PMVVY pension scheme.
10) What is minimum and maximum investment for PMVVY Scheme monthly pension?
The minimum investment amount is Rs. 1,56,658 for Rs. 1,000 p.m pension while the maximum investment is Rs. 15,66,580 for Rs. 10,000 p.m as pension.
11) What is the new deadline for PMVVY Scheme?
The new deadline for Pradhan Mantri Vaya Vandana Yojana is 31 March 2023.