Pradhan Mantri Vaya Vandana Yojana (Plan No: 842) from LIC

Pradhan Mantri Vaya Vandana Yojana is Pension plan for Senior citizen announced by Government of India. This plan is government subsidized pension scheme which will avail guaranteed 8% return in monthly mode and 8.3% return in yearly mode. This plan plan can be purchased from LIC up to 03-05-2018.

Plan Parameters

Age at Entry	60 Years (Completed)
Maximum Age at Entry	No Limit
Policy Term	10 Years (Fixed)
Pension Receiving Mode	Monthly, Quarterly, Half Yearly or Yearly

Pension benefit

• Pensioner will receive pension amount as per selected mode. Pension will be available on completion of selected mode, for example, in case of monthly mode, pension will be paid on completion of month.

This plan can be purchsed on payment of single one time amount, the minimum and maximum limit of one time lumpsum amount is given in the following table

Mode	Minimum		Maximum
	Amount	Pension	Amount	Pension
Yearly	1,44,578	12,000	7,22,892	60,000
Half Yearly	1,47,601	6,000	7,38,007	30,000
Quarterly	1,49,068	3,000	7,45,342	15,000
Monthly	1,50,000	1,000	7,50,000	5,000

Death benefit

• Deposited amount will be returned to nominee or legal heirs.

Maturity Benefit

• On compltion of 10 years, the deposited amount along with last due pension will be returned to policy holder.

Policy Surrender

• In extra-ordinary cases like critical medical emergency of policy holder or spouse, the policy can be surrendered before completion of 10 year term. The surrender value will be 98% of purchase price.

Example of Pradhan Mantri Vaya Vandana Yojana (LIC Table 842)

Let's take example of PMVVY with following details.

Age (Years)	60 (Completed)
One Time Deposit	7,50,000
Policy Term(Years)	10
Purchase Year	2017
Pension Mode	Monthly

As per above example, pension scheme holder requires to deposit on time lumpsum amount of 7,50,000 and monthly pension will credit in to his/her account on completion of each month from date of purchase for next 10 years.

On completion of 10 years, 7,50,000 will be returned to policy holder. Following table provides year-wise pension details.

Pension Details

Year	Age	Deposit Amount	Monthly Pension	Total Pension in a Year	Return of Purchase Price
2017	60	750000	5000	60000	0
2018	61	0	5000	60000	0
2019	62	0	5000	60000	0
2020	63	0	5000	60000	0
2021	64	0	5000	60000	0
2022	65	0	5000	60000	0
2023	66	0	5000	60000	0
2024	67	0	5000	60000	0
2025	68	0	5000	60000	0
2026	69	0	5000	60000	0
2027	70				750000

Death Claim Details

In case death before completion of 10 years (Before Year 2027 in this case), purchase price (Rs. 7,50,000) will be returned to policy holder's nominee or legal heirs.