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Pradhan Mantri Vaya Vanadana Yojana

Pradhan Mantri Vaya Vandana Yojana is a single premium payment pension plan. This pension plan offers an option to either choose the amount of pension or the purchase price. The all-new Pradhan Mantri Vaya Vandana Yojana was launched on 4th May 2017. It is a government-subsidized pension scheme that provides an assured return of 7.66% per annum, which is paid monthly to the pensioner surviving during the policy term of 10 years. Also, this plan is exempted from goods and service tax and is available for online purchases too.

Eligibility Criteria and Other Restrictions-

  • The minimum entry age for this plan is 60 years (completed).
  • There is no maximum entry for this plan.
  • The policy term for Pradhan Mantri Vaya Vandana Yojana is 10 years.
  • Pension mode- yearly, half-yearly, quarterly, and monthly.
  • The maximum pension amount criteria in this plan is for an entire family. The family comprises pensioners, spouses, and dependents.

Premium & Pension Amount of PMVVY


Purchase Price








Rs.1,59, 574

Rs. 1,56,658



Rs. 14,89,933


Rs. 14, 49,086

Pension Amount












Rs. 9250




Mode of Pension Payment

The modes of pension payment are monthly, quarterly, half-yearly & yearly. The pension payment can be done through NEFT or Aadhaar Enabled Payment System.

Benefits Payable Under PMVVY

Maturity Benefit

On the successful completion of the term of the policy, a purchase price and final pension instalment are given to the pensioner.

Death Benefit

On the occasion of unforeseen death of the pensioner during the term policy, the purchase price is returned to the nominee.

Pension Payment

If the pensioner survives throughout the policy, the pension is paid according to the selected pension payment mode.

Surrender Value

Surrender value is available under this policy. The policyholder can exit the policy term before maturity under exceptional circumstances like the pensioner requiring money for the treatment of any critical/terminal illness of self or spouse. The Surrender Value payable in such cases can be 98% of Purchase Price.


The loan facility is available under Pradhan Mantri Vaya Vandana Yojana. One can avail of this facility after the completion of 3 years of the policy term. The maximum loan that can be granted should be 75% of the purchase price. The rate of interest to be charged for loan amount would be determined from time to time by LIC. Loan interest will be recovered from the pension amount payable under the policy.

Free-look Period

If a policyholder is not satisfied with the “Terms and Conditions” of the policy, he/she may return the policy to the Corporation within 15 days (30 days if this policy is purchased online) from the date of inception of the policy stating the reason of objections.

In this case, the policyholder will get the entire amount after deducting the charges for Stamp duty and pension paid (if any).

Tax Benefit

There are no tax benefits under this policy. The pension you receive is taxable. This would be added to your income and taxed at the marginal tax rate, similar to fixed deposits.

Pradhan Mantri Vaya Vandana Yojana (PMVVY) is a good and simple product especially for aged people looking for regular income after retirement.

How Should I Apply For PMVVY?

You can buy PMVVY via online and offline modes. Let's find out more about them.

Online Application

  1. Visit the official website of LIC-
  2. Click on 'Products' followed by 'Pension plans'.
  3. Click on 'Pradhan Mantri Vaya Vandana Yojana'. Click on the ' Buy Online' tab.
  4. Submit the form with the required details and click on 'Get Access ID'.
  5. You will get an ID on your mobile or email address. Enter the ID and click proceed.
  6. Now, select the plan as per your needs and fill the form and submit.
  7. Make the payment using available payment options and the company will share the policy documents to your registered e-mail address.

Offline Application

  1. Customers can visit the LIC branch to fill the form.
  2. Submit the form along with the documents.
  3. You can submit the form to any LIC Branch.
  4. Pay the premium charges at the branch itself and collect your policy documents.

Required Documents To Buy PMVVY

Below is the list of required documents to invest in the PMVVY scheme:

  • Proof of age.
  • Aadhaar card.
  • Passport size photo of the applicant.
  • Proof of address.
  • Retirement related documents.


Suicide is not covered under this plan. However, the plan will provide the complete purchase price to the nominee.


The demerits of this policy are:

  • The amount is locked-in for 10 years, so the money may not be available if required urgently (other than in case of illness).
  • The pension is not adjusted in inflation. Assuming inflation at 7%, the purchasing power of Rs.5,000 would be reduced to Rs.2,500 in 10 years.

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