How To Avail PMVVY Benefits?

The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a government-backed pension scheme specifically designed for senior citizens. It ensures a fixed monthly income for individuals aged 60 years or above, providing them financial security in their post-retirement years. The scheme is managed by the Life Insurance Corporation of India (LIC) and offers a range of benefits. Senior citizens can avail of the scheme by meeting certain eligibility criteria and completing the application process.

Steps to Avail PMVVY Benefits:

Check Eligibility Criteria:

Before applying, ensure you meet the following basic eligibility criteria:

• Age: The applicant must be 60 years or older at the time of purchasing the policy.
• Citizenship: The applicant must be an Indian citizen.
• Investment Amount: The minimum purchase price is Rs. 1,56,658 for a monthly pension of Rs. 1,000. The maximum purchase price is Rs. 15,00,000, which provides a monthly pension of Rs. 10,000, based on the type of pension payment selected.

Choose the Type of Pension Payment:

PMVVY allows individuals to select from different pension payment modes:

• Monthly Pension: A fixed pension is paid monthly.
• Quarterly, Half-Yearly, or Annual Pension: Pensions can also be received on a quarterly, half-yearly, or annual basis, depending on the policyholder’s preference.

The amount of pension depends on the amount invested and the frequency of pension payment. The longer the payment frequency (e.g., annual), the higher the monthly equivalent pension will be.

Complete the Application Process:

• Visit the LIC Office or Website: You can apply for PMVVY either online through the official LIC website or by visiting a nearby LIC branch.
• Fill in the Application Form: Complete the application form with your personal details, investment amount, and preferred pension payment mode. Ensure all details are correct to avoid any delays.
• Submit KYC Documents: You will need to submit Know Your Customer (KYC) documents, such as proof of identity (Aadhar card, voter ID), proof of age (birth certificate, passport), and address proof (utility bills, passport).
• Payment: You can pay the premium amount either by cheque, demand draft, or online payment through the LIC website or branch.

Receive the Pension Certificate:

Once your application is processed and approved, LIC will issue a pension certificate confirming your enrollment in PMVVY. This certificate will outline the pension amount, payment frequency, and tenure.

Pension Payment:

After completing the application process and receiving the pension certificate, you will start receiving the pension as per the chosen frequency. The pension payments will be made directly to your bank account.

Pension Term:

The PMVVY scheme is available for a duration of 10 years from the date of purchase. At the end of the tenure, the purchase price will be refunded to the nominee or legal heir of the policyholder.

Tax Benefits:

The premium paid towards PMVVY is eligible for tax deduction under Section 80C of the Income Tax Act, provided the sum is within the overall limit. However, the pension income received is taxable, so you should account for taxes while planning your pension.

Example:

Anil, a 65-year-old retiree, wishes to invest in PMVVY for a monthly pension of Rs. 5,000. He visits his nearest LIC branch, fills in the application form, submits his KYC documents (Aadhar card, voter ID, and bank details), and pays the required amount for the policy. He chooses to receive the pension monthly. After the application is processed, Anil starts receiving a fixed Rs. 5,000 monthly pension directly into his bank account. The principal amount invested will be refunded to his nominee after 10 years.

Important Points to Remember:

• Policy Term: The PMVVY policy is available for 10 years, and the pension payments are guaranteed for this period.
• Survivor Benefit: If the policyholder passes away during the 10-year term, the purchase price will be refunded to the nominee.
• Premature Withdrawal: If the policyholder opts for premature withdrawal, there may be a penalty or deduction on the payout amount, depending on the terms.
• Interest Rate: The interest rate for PMVVY is set by the government and may vary over time. The rate is typically higher than standard fixed deposits, offering senior citizens a better return on their investment.

Conclusion:

The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is an excellent financial option for senior citizens looking for a steady income in their post-retirement years. By following the application process and meeting the eligibility criteria, seniors can avail of the benefits of this government-backed pension scheme and ensure their financial stability. It provides them with a guaranteed monthly income, offering peace of mind during their retirement years.