The Pradhan Mantri Vaya Vandana Yojana (PMVVY) was launched by the Government of India in 2017 with the aim of providing senior citizens with a regular income after retirement. This scheme is an insurance policy cum pension scheme that ensures a safe investment and better returns. This scheme is available to senior citizens aged 70 years and above.
Although the scheme was initially available until March 31, 2023, it has provided financial security to millions of people. This scheme is successfully administered by the Life Insurance Corporation of India (LIC).
The Pradhan Mantri Vaya Vandana Yojana (PMVVY) comes with several unique benefits that make it ideal for senior citizens. First, senior citizens benefiting from this scheme receive a fixed sum assured for a maximum period of 10 years. The scheme initially offered a guaranteed rate of return of 7.40% per annum, which was subsequently adjusted annually.
Depending on the amount invested, citizens could receive a regular pension ranging from ₹1,000 to ₹9,250 per month. Another major advantage was that while general insurance plans attract 18% GST, this plan was fully exempt from GST.
If a person was dissatisfied with the policy, they could return it within 15 days, and upon providing the reason for the return, the consumer received a refund. Furthermore, after completing three successful policy years, individuals could also take a loan against their Pradhan Mantri Vaya Vandana Yojana investment, making the scheme a haven in case of emergencies.
Applying for the Pradhan Mantri Vaya Vandana Yojana was very easy online and was administered by the LIC.
To apply online, applicants first had to visit the official website of the Life Insurance Corporation of India. They had to click on the "Buy Policy Online" option. A new tab opened, then select the online purchase option. Next, they had to create an ID by providing their name, email address, mobile number, date of birth, address, and other important information. Then, they had to submit the access ID and choose to proceed with the application. In the final step, they had to upload scanned copies of the required documents and make the payment.
To avail the PM Vaya Vandana Yojana, it was mandatory to meet the eligibility criteria set by the government. Certain important documents were required, including a PAN card, an Aadhaar card, and details of the bank account into which they wanted their pension deposited each month. It was also necessary to provide accurate information about each family member.