Pradhan Mantri Vaya Vandana Yojana

Description

 

The Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a government-backed pension scheme that offers financial security and regular income during one’s retirement years. Here are the key features and benefits of the PMVVY policy:

1. Pension Benefit: The policyholder receives a regular pension sum in arrears if they live out the whole ten-year insurance term. Depending on the option selected (monthly, quarterly, half-annually, or yearly), pension payments will vary in regularity. The pension distributions allowed under the program at the conclusion of each term give retirees a reliable source of income.
2. Purchase Price Limit: The total purchase price or premium paid for this policy cannot exceed Rs. 15 lakhs. This limit ensures that the scheme remains accessible to a wide range of retirees.
3. Death Benefit: In the unfortunate event of the pensioner’s demise during the policy term, the entire purchase price (the premium paid) is refunded to the policyholder’s nominee or beneficiary. This feature provides financial security to the policyholder’s loved ones.
4. Maturity Benefit: If the pensioner survives until the end of the policy term (10 years), they receive the purchase price of the policy along with the final pension installment. This maturity benefit ensures that the policyholder receives a lump sum amount at the end of the policy term.
5. Loan Facility: The policy offers a loan facility after completing three policy years. Policyholders can avail a loan against the policy, with the maximum loan amount being up to 75% of the purchase price. This feature provides flexibility and access to funds when needed during retirement.